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Design of Clean Steel Production with Hydrogen: Impact of Electricity System Composition

Author

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  • Alla Toktarova

    (Department of Space, Earth and Environment, Chalmers University of Technology, SE-412 96 Gothenburg, Sweden)

  • Lisa Göransson

    (Department of Space, Earth and Environment, Chalmers University of Technology, SE-412 96 Gothenburg, Sweden)

  • Filip Johnsson

    (Department of Space, Earth and Environment, Chalmers University of Technology, SE-412 96 Gothenburg, Sweden)

Abstract

In Europe, electrification is considered a key option to obtain a cleaner production of steel at the same time as the electricity system production portfolio is expected to consist of an increasing share of varying renewable electricity (VRE) generation, mainly in the form of solar PV and wind power. We investigate cost-efficient designs of hydrogen-based steelmaking in electricity systems dominated by VRE. We develop and apply a linear cost-minimization model with an hourly time resolution, which determines cost-optimal operation and sizing of the units in hydrogen-based steelmaking including an electrolyser, direct reduction shaft, electric arc furnace, as well as storage for hydrogen and hot-briquetted iron pellets. We show that the electricity price following steelmaking leads to savings in running costs but to increased capital cost due to investments in the overcapacity of steel production units and storage units for hydrogen and hot-briquetted iron pellets. For two VRE-dominated regions, we show that the electricity price following steel production reduces the total steel production cost by 23% and 17%, respectively, as compared to continuous steel production at a constant level. We also show that the cost-optimal design of the steelmaking process is dependent upon the electricity system mix.

Suggested Citation

  • Alla Toktarova & Lisa Göransson & Filip Johnsson, 2021. "Design of Clean Steel Production with Hydrogen: Impact of Electricity System Composition," Energies, MDPI, vol. 14(24), pages 1-21, December.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:24:p:8349-:d:700113
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    References listed on IDEAS

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    Citations

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    Cited by:

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    3. Begoña Vivanco-Martín & Alfredo Iranzo, 2023. "Analysis of the European Strategy for Hydrogen: A Comprehensive Review," Energies, MDPI, vol. 16(9), pages 1-36, May.
    4. Weiss, Robert & Ikäheimo, Jussi, 2024. "Flexible industrial power-to-X production enabling large-scale wind power integration: A case study of future hydrogen direct reduction iron production in Finland," Applied Energy, Elsevier, vol. 365(C).
    5. Sheng, Kangling & Wang, Xiaojun & Si, Fangyuan & Zhou, Yue & Liu, Zhao & Hua, Haochen & Wang, Xihao & Duan, Yuge, 2024. "Rational capacity investment for renewable hydrogen-based steelmaking systems: A multi-stage expansion planning strategy," Applied Energy, Elsevier, vol. 372(C).
    6. 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).
    7. Öberg, Simon & Odenberger, Mikael & Johnsson, Filip, 2022. "The cost dynamics of hydrogen supply in future energy systems – A techno-economic study," Applied Energy, Elsevier, vol. 328(C).
    8. 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.

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