IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v294y2024ics0360544224005280.html
   My bibliography  Save this article

CO2 abatement feasibility for blast furnace CCUS retrofits in BF-BOF steel plants in China

Author

Listed:
  • Gu, Changwan
  • Li, Kai
  • Gao, Shikang
  • Li, Jiayu
  • Mao, Yifan

Abstract

As one of the energy and carbon intensive industries, the steel industry's low-carbon transition will contribute to the achievement of China's carbon neutrality goal. In this study, a comprehensive source-sink matching-trinomial tree real option evaluation model for China's steel industry was established by combining the database of carbon emissions from blast furnaces of BF-BOF process steel plants, and onshore and offshore CO2 storage potential and injection capacity rate database. By using this model, we investigate the CO2 abatement potential and investment decisions for blast furnace CCUS full-chain projects in China's BF-BOF process steel plants. The results show that a total of 420.07Mt/a of CO2 reductions can be achieved, attributed to 111 steel plants screened for source-sink matching. If no extra incentive policy was included, the current carbon market only supported immediate investment in 14 steel plant CCUS retrofit full-chain projects, which could achieve 36.47Mt/a of CO2 reductions, with a critical carbon price ranging from 6.96 to 202.98USD/t, averaged at 86.97 USD/t. Technological advances, rising carbon prices and government incentives would all contribute to the development of CCUS full-chain projects in the steel industry. The findings provide a strategy for the deployment of blast furnace CCUS retrofit in China's steel industry.

Suggested Citation

  • Gu, Changwan & Li, Kai & Gao, Shikang & Li, Jiayu & Mao, Yifan, 2024. "CO2 abatement feasibility for blast furnace CCUS retrofits in BF-BOF steel plants in China," Energy, Elsevier, vol. 294(C).
    • Handle: RePEc:eee:energy:v:294:y:2024:i:c:s0360544224005280
    DOI: 10.1016/j.energy.2024.130756
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544224005280
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2024.130756?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. Fan, Jing-Li & Xu, Mao & Yang, Lin & Zhang, Xian & Li, Fengyu, 2019. "How can carbon capture utilization and storage be incentivized in China? A perspective based on the 45Q tax credit provisions," Energy Policy, Elsevier, vol. 132(C), pages 1229-1240.
    2. Zhang, Xian & Wang, Xingwei & Chen, Jiajun & Xie, Xi & Wang, Ke & Wei, Yiming, 2014. "A novel modeling based real option approach for CCS investment evaluation under multiple uncertainties," Applied Energy, Elsevier, vol. 113(C), pages 1059-1067.
    3. Zhang, Xinhua & Gan, Dongmei & Wang, Yali & Liu, Yu & Ge, Jiali & Xie, Rui, 2020. "The impact of price and revenue floors on carbon emission reduction investment by coal-fired power plants," Technological Forecasting and Social Change, Elsevier, vol. 154(C).
    4. d'Amore, Federico & Mocellin, Paolo & Vianello, Chiara & Maschio, Giuseppe & Bezzo, Fabrizio, 2018. "Economic optimisation of European supply chains for CO2 capture, transport and sequestration, including societal risk analysis and risk mitigation measures," Applied Energy, Elsevier, vol. 223(C), pages 401-415.
    5. Tang, Bao-Jun & Zhou, Hui-Ling & Chen, Hao & Wang, Kai & Cao, Hong, 2017. "Investment opportunity in China's overseas oil project: An empirical analysis based on real option approach," Energy Policy, Elsevier, vol. 105(C), pages 17-26.
    6. Jing-Li Fan & Jingying Fu & Xian Zhang & Kai Li & Wenlong Zhou & Klaus Hubacek & Johannes Urpelainen & Shuo Shen & Shiyan Chang & Siyue Guo & Xi Lu, 2023. "Co-firing plants with retrofitted carbon capture and storage for power-sector emissions mitigation," Nature Climate Change, Nature, vol. 13(8), pages 807-815, August.
    7. Kim, Hansol & Lee, Jaewook & Lee, Soobin & Lee, In-Beum & Park, Joo-hyoung & Han, Jeehoon, 2015. "Economic process design for separation of CO2 from the off-gas in ironmaking and steelmaking plants," Energy, Elsevier, vol. 88(C), pages 756-764.
    8. Luis Míguez, José & Porteiro, Jacobo & Pérez-Orozco, Raquel & Patiño, David & Rodríguez, Sandra, 2018. "Evolution of CO2 capture technology between 2007 and 2017 through the study of patent activity," Applied Energy, Elsevier, vol. 211(C), pages 1282-1296.
    9. Massol, Olivier & Tchung-Ming, Stéphane & Banal-Estañol, Albert, 2018. "Capturing industrial CO2 emissions in Spain: Infrastructures, costs and break-even prices," Energy Policy, Elsevier, vol. 115(C), pages 545-560.
    10. He, Kun & Wang, Li, 2017. "A review of energy use and energy-efficient technologies for the iron and steel industry," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 1022-1039.
    11. Oh, Se-Young & Binns, Michael & Cho, Habin & Kim, Jin-Kuk, 2016. "Energy minimization of MEA-based CO2 capture process," Applied Energy, Elsevier, vol. 169(C), pages 353-362.
    12. Yi-Ming Wei & Jia-Ning Kang & Lan-Cui Liu & Qi Li & Peng-Tao Wang & Juan-Juan Hou & Qiao-Mei Liang & Hua Liao & Shi-Feng Huang & Biying Yu, 2021. "A proposed global layout of carbon capture and storage in line with a 2 °C climate target," Nature Climate Change, Nature, vol. 11(2), pages 112-118, February.
    13. Chen, Siyuan & Zhang, Qi & Wang, Ge & Zhu, Lijing & Li, Yan, 2018. "Investment strategy for underground gas storage facilities based on real option model considering gas market reform in China," Energy Economics, Elsevier, vol. 70(C), pages 132-142.
    14. Tan, Zhizhou & Zeng, Xianhai & Lin, Boqiang, 2023. "How do multiple policy incentives influence investors’ decisions on biomass co-firing combined with carbon capture and storage retrofit projects for coal-fired power plants?," Energy, Elsevier, vol. 278(PB).
    15. Wang, Peng-Tao & Wei, Yi-Ming & Yang, Bo & Li, Jia-Quan & Kang, Jia-Ning & Liu, Lan-Cui & Yu, Bi-Ying & Hou, Yun-Bing & Zhang, Xian, 2020. "Carbon capture and storage in China’s power sector: Optimal planning under the 2 °C constraint," Applied Energy, Elsevier, vol. 263(C).
    Full references (including those not matched with items on IDEAS)

    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. Li, Zezheng & Yu, Pengwei & Xian, Yujiao & Fan, Jing-Li, 2024. "Investment benefit analysis of coal-to-hydrogen coupled CCS technology in China based on real option approach," Energy, Elsevier, vol. 294(C).
    2. Jia-Yue Huang & Yun-Fei Cao & Hui-Ling Zhou & Hong Cao & Bao-Jun Tang & Nan Wang, 2018. "Optimal Investment Timing and Scale Choice of Overseas Oil Projects: A Real Option Approach," Energies, MDPI, vol. 11(11), pages 1-22, October.
    3. Fan, Jing-Li & Shen, Shuo & Wei, Shi-Jie & Xu, Mao & Zhang, Xian, 2020. "Near-term CO2 storage potential for coal-fired power plants in China: A county-level source-sink matching assessment," Applied Energy, Elsevier, vol. 279(C).
    4. Zhang, Shuai & Liu, Linlin & Zhang, Lei & Zhuang, Yu & Du, Jian, 2018. "An optimization model for carbon capture utilization and storage supply chain: A case study in Northeastern China," Applied Energy, Elsevier, vol. 231(C), pages 194-206.
    5. Weidong Lei & Wenjing Zhang & Jiawei Zhu, 2024. "Optimal Design of Resilient Carbon Capture, Utilization and Storage (CCUS) Supply Chain Networks under Facility Disruption," Sustainability, MDPI, vol. 16(7), pages 1-19, March.
    6. Míguez, José Luis & Porteiro, Jacobo & Pérez-Orozco, Raquel & Patiño, David & Gómez, Miguel Ángel, 2020. "Biological systems for CCS: Patent review as a criterion for technological development," Applied Energy, Elsevier, vol. 257(C).
    7. Yang, Lin & Xu, Mao & Fan, Jingli & Liang, Xi & Zhang, Xian & Lv, Haodong & Wang, Dong, 2021. "Financing coal-fired power plant to demonstrate CCS (carbon capture and storage) through an innovative policy incentive in China," Energy Policy, Elsevier, vol. 158(C).
    8. Gorupec Natalia & Tiberius Victor & Brehmer Nataliia & Kraus Sascha, 2022. "Tackling uncertain future scenarios with real options: A review and research framework," The Irish Journal of Management, Sciendo, vol. 41(1), pages 69-88, July.
    9. Hanne Lamberts-Van Assche & Tine Compernolle, 2022. "Using Real Options Thinking to Value Investment Flexibility in Carbon Capture and Utilization Projects: A Review," Sustainability, MDPI, vol. 14(4), pages 1-24, February.
    10. Tan, Zhizhou & Zeng, Xianhai & Lin, Boqiang, 2023. "How do multiple policy incentives influence investors’ decisions on biomass co-firing combined with carbon capture and storage retrofit projects for coal-fired power plants?," Energy, Elsevier, vol. 278(PB).
    11. Liu, Jiangfeng & Zhang, Qi & Li, Hailong & Chen, Siyuan & Teng, Fei, 2022. "Investment decision on carbon capture and utilization (CCU) technologies—A real option model based on technology learning effect," Applied Energy, Elsevier, vol. 322(C).
    12. Lei Zhu & Xing Yao & Xian Zhang, 2020. "Evaluation of cooperative mitigation: captured carbon dioxide for enhanced oil recovery," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 25(7), pages 1261-1285, October.
    13. Wang, Yihan & Wen, Zongguo & Xu, Mao & Kosajan, Vorada, 2024. "The carbon-energy-water nexus of the carbon capture, utilization, and storage technology deployment schemes: A case study in China's cement industry," Applied Energy, Elsevier, vol. 362(C).
    14. Zhang, Qi & Liu, Jiangfeng & Wang, Ge & Gao, Zhihui, 2024. "A new optimization model for carbon capture utilization and storage (CCUS) layout based on high-resolution geological variability," Applied Energy, Elsevier, vol. 363(C).
    15. Fan, Jing-Li & Xu, Mao & Li, Fengyu & Yang, Lin & Zhang, Xian, 2018. "Carbon capture and storage (CCS) retrofit potential of coal-fired power plants in China: The technology lock-in and cost optimization perspective," Applied Energy, Elsevier, vol. 229(C), pages 326-334.
    16. Chu, Baoju & Lin, Boqiang & Tian, Lichun & Zheng, Chaofeng & Ye, Nan & Zhu, Yafang & Tan, Zhizhou, 2024. "A long-term impact assessment of carbon capture (storage) investment conducted by conventional power company on sustainable development," Applied Energy, Elsevier, vol. 358(C).
    17. Lin, Boqiang & Liu, Zhiwei, 2024. "Assessment of China's flexible power investment value in the emission trading system," Applied Energy, Elsevier, vol. 359(C).
    18. Chen, Siyuan & Zhang, Qi & Wang, Ge & Zhu, Lijing & Li, Yan, 2018. "Investment strategy for underground gas storage facilities based on real option model considering gas market reform in China," Energy Economics, Elsevier, vol. 70(C), pages 132-142.
    19. Roussanaly, S. & Aasen, A. & Anantharaman, R. & Danielsen, B. & Jakobsen, J. & Heme-De-Lacotte, L. & Neji, G. & Sødal, A. & Wahl, P.E. & Vrana, T.K. & Dreux, R., 2019. "Offshore power generation with carbon capture and storage to decarbonise mainland electricity and offshore oil and gas installations: A techno-economic analysis," Applied Energy, Elsevier, vol. 233, pages 478-494.
    20. Xi, Han & Wu, Xiao & Chen, Xianhao & Sha, Peng, 2021. "Artificial intelligent based energy scheduling of steel mill gas utilization system towards carbon neutrality," Applied Energy, Elsevier, vol. 295(C).

    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:energy:v:294:y:2024:i:c:s0360544224005280. 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.journals.elsevier.com/energy .

    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.