Steel is a key component of our modern economy. Steel is used for a wide variety of industrial purposes and provides a solid base for the construction and repair of bridges and homes. However, this essential industry is facing a global challenge: climate change. To reduce GHG emission, the steel industry requires a strategic synergy between innovation, financial commitment and responsive markets. This article explores what the steel industry could do to reduce its emissions through the adoption of low-emissions technologies, forward-thinking government policies, and cooperation between other industries.
The steel industry undergoes a transformation to reduce emissions. Two key initiatives are to reduce energy consumption and use of natural-gas in steel production. This is not an easy task, and it will take a combination of policy incentives, technological advancements, and consumer demand for greener products to achieve its goal.
In this context, the steel industry's focus is on reducing direct GHG emissions at the raw material input stage, as well as at the iron and steel-making phase. In the raw materials input phase, this involves a switch to cleaner coals as well as a reduction in methane emissions during the mining processes. During the iron-and-steel production phase, energy consumption is optimized by switching to renewable sources of electricity and improving furnace efficiency.
The final stage, namely the use or carbon dioxide capture, utilization, and avoidance (CCU), via hydrogen-based, as well as through electrochemical routes, in steel production is yet to reach a mature stage. Several research projects are currently underway to assess the economics and technical feasibility of these low-emission alternative steelmaking plants.
An economic study was conducted to determine the Net Product Cost (NPC), which is the difference between traditional steelmaking processes using blast and basic oxygen crucibles. This included a calculation for the total cost incurred to the steelmakers based on an estimate of operating costs and revenue from the sale of by-products. A standard method based on literature was used to calculate the costs of avoiding CO2 emissions.
This analysis indicates that steelmaking through H2-DRP routes or EAF processes is competitive against traditional processes. The results are consistent with the findings of previous publications evaluating the economic potential of alternative steelmaking technologies (e.g. Peters et.al., 2004). The results also suggest that adoption of these technologies could lead to a reduction in global GHG emissions due to the steel industry. This is good for the environment, but also for the economies in the countries that produce steel. Our future can be brighter and safer if we use renewable energy to produce steel. The emergence of new and sustainable processes for making steel could play an important role in achieving the global climate targets set by the United Nations Framework Convention on Climate Change and the Paris Agreement.
English
Write a Message