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Levelized Cost Analysis for Blast Furnace CO 2 Capture, Utilization, and Storage Retrofit in China’s Blast Furnace–Basic Oxygen Furnace Steel Plants

Author

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  • Changwan Gu

    (School of Energy and Mining Engineering, China University of Mining and Technology, Beijing (CUMTB), Beijing 100083, China)

  • Jingjing Xie

    (School of Energy and Mining Engineering, China University of Mining and Technology, Beijing (CUMTB), Beijing 100083, China)

  • Xiaoyu Li

    (School of Environment, Tsinghua University, Beijing 100084, China)

  • Xu Gao

    (Railway Engineering Research Institute, China Academy of Railway Sciences Corporation Limited, Beijing 100081, China)

Abstract

As the largest carbon emitter in China’s manufacturing sector, the low-carbon transition of the steel industry is urgent. CO 2 capture, utilization, and storage (CCUS) technology is one of the effective measures to reduce carbon emissions in steel industry. In this paper, a comprehensive assessment model of source–sink matching-levelized cost in China’s steel industry is constructed to evaluate the potential, economy, and spatial distribution of CCUS retrofits of blast furnaces in the BF-BOF steel industry. The results show that, if no extra incentive policy is included, the levelized cost of carbon dioxide (LCOCD) of 111 steel plants with a 420.07 Mt/a CO 2 abatement potential ranges from −134.87 to 142.95 USD/t. The levelized cost of crude steel (LCOS) range of steel plants after the CCUS retrofits of blast furnaces is 341.81 to 541.41 USD/t. The incentives such as carbon market and government subsidies will all contribute to the early deployment of CCUS projects. The CCUS technology could be prioritized for deployment in North China, Northwest China, and East China’s Shandong Province, but more powerful incentives are still needed for current large-scale deployment. The research results can provide references for the early deployment and policy formulation of CCUS in China’s steel industry.

Suggested Citation

  • Changwan Gu & Jingjing Xie & Xiaoyu Li & Xu Gao, 2023. "Levelized Cost Analysis for Blast Furnace CO 2 Capture, Utilization, and Storage Retrofit in China’s Blast Furnace–Basic Oxygen Furnace Steel Plants," Energies, MDPI, vol. 16(23), pages 1-20, November.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:23:p:7817-:d:1289473
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    References listed on IDEAS

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    3. Yang, Lin & Xu, Mao & Yang, Yuantao & Fan, Jingli & Zhang, Xian, 2019. "Comparison of subsidy schemes for carbon capture utilization and storage (CCUS) investment based on real option approach: Evidence from China," Applied Energy, Elsevier, vol. 255(C).
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