IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v168y2022ics0301421522003251.html
   My bibliography  Save this article

Policy and pricing barriers to steel industry decarbonisation: A UK case study

Author

Listed:
  • Richardson-Barlow, Clare
  • Pimm, Andrew J.
  • Taylor, Peter G.
  • Gale, William F.

Abstract

Global climate targets have highlighted the need for a whole-systems approach to decarbonisation, one that includes targeted national policy and industry specific change. Situated within this context, this research examines policy and pricing barriers to decarbonisation of the UK steel industry. Here the techno-economic modelling of UK green steelmaking provides a technical contribution to analysis of pricing barriers and policy solutions to these barriers in the UK specifically, but also to the broader industrial decarbonisation literature. Estimated costs and associated emissions projections reveal relevant opportunities for UK steel in contributing to national climate and emissions targets. Modelling demonstrates that green steelmaking options have been put at price disadvantages compared to emissions-intensive incumbents and that fossil-free hydrogen-based steelmaking has lower emissions and lower levelised costs than carbon capture and storage options, including top gas recycling blast furnace (TGR-BF) with CCS, and HIsarna smelter with CCS. Two primary policy recommendations are made: the removal of carbon pricing discrepancies and reductions in industrial electricity prices that would level the playing field for green steel producers in the UK. The research also provides relevant policy considerations for the international community in other industrial decarbonisation efforts and the policies that must accompany these decarbonisation choices.

Suggested Citation

  • Richardson-Barlow, Clare & Pimm, Andrew J. & Taylor, Peter G. & Gale, William F., 2022. "Policy and pricing barriers to steel industry decarbonisation: A UK case study," Energy Policy, Elsevier, vol. 168(C).
    • Handle: RePEc:eee:enepol:v:168:y:2022:i:c:s0301421522003251
    DOI: 10.1016/j.enpol.2022.113100
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421522003251
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2022.113100?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Alexander Nurse & Olivier Sykes, 2020. "Place-based vs. place blind? – Where do England’s new local industrial strategies fit in the ‘levelling up’ agenda?," Local Economy, London South Bank University, vol. 35(4), pages 277-296, June.
    2. Byeongho Lim & Kyoungseo Hong & Jooyoung Yoon & Jeong-In Chang & Inkyo Cheong, 2021. "Pitfalls of the EU’s Carbon Border Adjustment Mechanism," Energies, MDPI, vol. 14(21), pages 1-18, November.
    3. Bożena Gajdzik & Włodzimierz Sroka & Jolita Vveinhardt, 2021. "Energy Intensity of Steel Manufactured Utilising EAF Technology as a Function of Investments Made: The Case of the Steel Industry in Poland," Energies, MDPI, vol. 14(16), pages 1-17, August.
    4. Mollie Painter & Sally Hibbert & Tim Cooper, 2019. "The Development of Responsible and Sustainable Business Practice: Value, Mind-Sets, Business-Models," Journal of Business Ethics, Springer, vol. 157(4), pages 885-891, July.
    5. Lars J. Nilsson & Fredric Bauer & Max Åhman & Fredrik N. G. Andersson & Chris Bataille & Stephane de la Rue du Can & Karin Ericsson & Teis Hansen & Bengt Johansson & Stefan Lechtenböhmer & Mariësse va, 2021. "An industrial policy framework for transforming energy and emissions intensive industries towards zero emissions," Climate Policy, Taylor & Francis Journals, vol. 21(8), pages 1053-1065, September.
    6. Rissman, Jeffrey & Bataille, Chris & Masanet, Eric & Aden, Nate & Morrow, William R. & Zhou, Nan & Elliott, Neal & Dell, Rebecca & Heeren, Niko & Huckestein, Brigitta & Cresko, Joe & Miller, Sabbie A., 2020. "Technologies and policies to decarbonize global industry: Review and assessment of mitigation drivers through 2070," Applied Energy, Elsevier, vol. 266(C).
    7. Pardo, Nicolás & Moya, José Antonio, 2013. "Prospective scenarios on energy efficiency and CO2 emissions in the European Iron & Steel industry," Energy, Elsevier, vol. 54(C), pages 113-128.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bożena Gajdzik & Radosław Wolniak & Wieslaw Wes Grebski, 2023. "Electricity and Heat Demand in Steel Industry Technological Processes in Industry 4.0 Conditions," Energies, MDPI, vol. 16(2), pages 1-29, January.
    2. Sandra Kiessling & Hamidreza Gohari Darabkhani & Abdel-Hamid Soliman, 2022. "The Bio Steel Cycle: 7 Steps to Net-Zero CO 2 Emissions Steel Production," Energies, MDPI, vol. 15(23), pages 1-22, November.
    3. Bożena Gajdzik & Radosław Wolniak & Wies Grebski, 2023. "Process of Transformation to Net Zero Steelmaking: Decarbonisation Scenarios Based on the Analysis of the Polish Steel Industry," Energies, MDPI, vol. 16(8), pages 1-36, April.
    4. Liu, Yue & Sun, Huaping & Meng, Bo & Jin, Shunlin & Chen, Bin, 2023. "How to purchase carbon emission right optimally for energy-consuming enterprises? Analysis based on optimal stopping model," Energy Economics, Elsevier, vol. 124(C).
    5. Tom Savage & Antonio del Rio Chanona & Gbemi Oluleye, 2023. "Robust Market Potential Assessment: Designing optimal policies for low-carbon technology adoption in an increasingly uncertain world," Papers 2304.10203, arXiv.org.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bożena Gajdzik & Radosław Wolniak & Wies Grebski, 2023. "Process of Transformation to Net Zero Steelmaking: Decarbonisation Scenarios Based on the Analysis of the Polish Steel Industry," Energies, MDPI, vol. 16(8), pages 1-36, April.
    2. Li, Yibo & Li, Juan & Sun, Mei & Guo, Yanzi & Cheng, Faxin & Gao, Cuixia, 2024. "Analysis of carbon neutrality technology path selection in the steel industry under policy incentives," Energy, Elsevier, vol. 292(C).
    3. Deger Saygin & Herib Blanco & Francisco Boshell & Joseph Cordonnier & Kevin Rouwenhorst & Priyank Lathwal & Dolf Gielen, 2023. "Ammonia Production from Clean Hydrogen and the Implications for Global Natural Gas Demand," Sustainability, MDPI, vol. 15(2), pages 1-28, January.
    4. Suopajärvi, Hannu & Umeki, Kentaro & Mousa, Elsayed & Hedayati, Ali & Romar, Henrik & Kemppainen, Antti & Wang, Chuan & Phounglamcheik, Aekjuthon & Tuomikoski, Sari & Norberg, Nicklas & Andefors, Alf , 2018. "Use of biomass in integrated steelmaking – Status quo, future needs and comparison to other low-CO2 steel production technologies," Applied Energy, Elsevier, vol. 213(C), pages 384-407.
    5. Fábio T. F. Silva & Alexandre Szklo & Amanda Vinhoza & Ana Célia Nogueira & André F. P. Lucena & Antônio Marcos Mendonça & Camilla Marcolino & Felipe Nunes & Francielle M. Carvalho & Isabela Tagomori , 2022. "Inter-sectoral prioritization of climate technologies: insights from a Technology Needs Assessment for mitigation in Brazil," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 27(7), pages 1-39, October.
    6. Qi, Meng & Park, Jinwoo & Lee, Inkyu & Moon, Il, 2022. "Liquid air as an emerging energy vector towards carbon neutrality: A multi-scale systems perspective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 159(C).
    7. Bożena Gajdzik & Magdalena Jaciow & Radosław Wolniak & Robert Wolny & Wieslaw Wes Grebski, 2023. "Assessment of Energy and Heat Consumption Trends and Forecasting in the Small Consumer Sector in Poland Based on Historical Data," Resources, MDPI, vol. 12(9), pages 1-33, September.
    8. Sun, Yongqi & Shen, Hongwei & Wang, Hao & Wang, Xidong & Zhang, Zuotai, 2014. "Experimental investigation and modeling of cooling processes of high temperature slags," Energy, Elsevier, vol. 76(C), pages 761-767.
    9. Mayyas Alsalman & Vian Ahmed & Zied Bahroun & Sara Saboor, 2023. "An Economic Analysis of Solar Energy Generation Policies in the UAE," Energies, MDPI, vol. 16(7), pages 1-25, March.
    10. Wei Wang & Leonid Melnyk & Oleksandra Kubatko & Bohdan Kovalov & Luc Hens, 2023. "Economic and Technological Efficiency of Renewable Energy Technologies Implementation," Sustainability, MDPI, vol. 15(11), pages 1-19, May.
    11. Róbert Csalódi & Tímea Czvetkó & Viktor Sebestyén & János Abonyi, 2022. "Sectoral Analysis of Energy Transition Paths and Greenhouse Gas Emissions," Energies, MDPI, vol. 15(21), pages 1-26, October.
    12. Rafał Nagaj & Bożena Gajdzik & Radosław Wolniak & Wieslaw Wes Grebski, 2024. "The Impact of Deep Decarbonization Policy on the Level of Greenhouse Gas Emissions in the European Union," Energies, MDPI, vol. 17(5), pages 1-23, March.
    13. Kermeli, Katerina & Edelenbosch, Oreane Y. & Crijns-Graus, Wina & van Ruijven, Bas J. & van Vuuren, Detlef P. & Worrell, Ernst, 2022. "Improving material projections in Integrated Assessment Models: The use of a stock-based versus a flow-based approach for the iron and steel industry," Energy, Elsevier, vol. 239(PE).
    14. Al-Qahtani, Amjad & Parkinson, Brett & Hellgardt, Klaus & Shah, Nilay & Guillen-Gosalbez, Gonzalo, 2021. "Uncovering the true cost of hydrogen production routes using life cycle monetisation," Applied Energy, Elsevier, vol. 281(C).
    15. Jana Gerta Backes & Julian Suer & Nils Pauliks & Sabrina Neugebauer & Marzia Traverso, 2021. "Life Cycle Assessment of an Integrated Steel Mill Using Primary Manufacturing Data: Actual Environmental Profile," Sustainability, MDPI, vol. 13(6), pages 1-18, March.
    16. Lopez, Gabriel & Galimova, Tansu & Fasihi, Mahdi & Bogdanov, Dmitrii & Breyer, Christian, 2023. "Towards defossilised steel: Supply chain options for a green European steel industry," Energy, Elsevier, vol. 273(C).
    17. Stamatios K. Chrysikopoulos & Panos T. Chountalas & Dimitrios A. Georgakellos & Athanasios G. Lagodimos, 2024. "Decarbonization in the Oil and Gas Sector: The Role of Power Purchase Agreements and Renewable Energy Certificates," Sustainability, MDPI, vol. 16(15), pages 1-24, July.
    18. Pashchenko, Dmitry, 2023. "Hydrogen-rich gas as a fuel for the gas turbines: A pathway to lower CO2 emission," Renewable and Sustainable Energy Reviews, Elsevier, vol. 173(C).
    19. Landon Yoder & Alora Cain & Ananya Rao & Nathaniel Geiger & Ben Kravitz & Mack Mercer & Deidra Miniard & Sangeet Nepal & Thomas Nunn & Mary Sluder & Grace Weiler & Shahzeen Z. Attari, 2024. "Muddling through Climate Change: A Qualitative Exploration of India and U.S. Climate Experts’ Perspectives on Solutions, Pathways, and Barriers," Sustainability, MDPI, vol. 16(13), pages 1-20, June.
    20. Kirsten Andersen & Rebecca Tekula, 2022. "Value, Values, and Valuation: The Marketization of Charitable Foundation Impact Investing," Journal of Business Ethics, Springer, vol. 179(4), pages 1033-1052, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:168:y:2022:i:c:s0301421522003251. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.