Assessment of hydrogen direct reduction for fossil-free steelmaking

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Assessment of hydrogen direct reduction for fossil-free steelmaking. / Vogl, Valentin; Åhman, Max; Nilsson, Lars J.

In: Journal of Cleaner Production, Vol. 203, 203, 29.08.2018, p. 736-745.

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TY - JOUR

T1 - Assessment of hydrogen direct reduction for fossil-free steelmaking

AU - Vogl, Valentin

AU - Åhman, Max

AU - Nilsson, Lars J

PY - 2018/8/29

Y1 - 2018/8/29

N2 - Climate policy objectives require zero emissions across all sectors including steelmaking. The fundamental process changes needed for reaching this target are yet relatively unexplored. In this paper, we propose and assess a potential design for a fossil-free steelmaking process based on direct reduction of iron ore with hydrogen. We show that hydrogen direct reduction steelmaking needs 3.48 MWh of electricity per tonne of liquid steel, mainly for the electrolyser hydrogen production. If renewable electricity is used the process will have essentially zero emissions. Total production costs are in the range of 361–640 EUR per tonne of steel, and are highly sensitive to the electricity price and the amount of scrap used. Hydrogen direct reduction becomes cost competitive with an integrated steel plant at a carbon price of 34–68 EUR per tonne CO2 and electricity costs of 40 EUR/MWh. A key feature of the process is flexibility in production and electricity demand, which allows for grid balancing through storage of hydrogen and hot-briquetted iron, or variations in the share of scrap used.

AB - Climate policy objectives require zero emissions across all sectors including steelmaking. The fundamental process changes needed for reaching this target are yet relatively unexplored. In this paper, we propose and assess a potential design for a fossil-free steelmaking process based on direct reduction of iron ore with hydrogen. We show that hydrogen direct reduction steelmaking needs 3.48 MWh of electricity per tonne of liquid steel, mainly for the electrolyser hydrogen production. If renewable electricity is used the process will have essentially zero emissions. Total production costs are in the range of 361–640 EUR per tonne of steel, and are highly sensitive to the electricity price and the amount of scrap used. Hydrogen direct reduction becomes cost competitive with an integrated steel plant at a carbon price of 34–68 EUR per tonne CO2 and electricity costs of 40 EUR/MWh. A key feature of the process is flexibility in production and electricity demand, which allows for grid balancing through storage of hydrogen and hot-briquetted iron, or variations in the share of scrap used.

KW - Hydrogen economy

KW - steel

KW - Climate policy

KW - Zero emissions

KW - Flexibility

KW - Steel Hydrogen Industry

KW - Electrification

U2 - 10.1016/j.jclepro.2018.08.279

DO - 10.1016/j.jclepro.2018.08.279

M3 - Article

VL - 203

SP - 736

EP - 745

JO - Journal of Cleaner Production

JF - Journal of Cleaner Production

SN - 0959-6526

M1 - 203

ER -