IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v16y2023i23p7817-d1289473.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/16/23/7817/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/16/23/7817/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. 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).
    3. Chen, Qianqian & Gu, Yu & Tang, Zhiyong & Wei, Wei & Sun, Yuhan, 2018. "Assessment of low-carbon iron and steel production with CO2 recycling and utilization technologies: A case study in China," Applied Energy, Elsevier, vol. 220(C), pages 192-207.
    4. Vazquez, A. & Iglesias, G., 2016. "Grid parity in tidal stream energy projects: An assessment of financial, technological and economic LCOE input parameters," Technological Forecasting and Social Change, Elsevier, vol. 104(C), pages 89-101.
    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. 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).
    2. Chen Ya & Zhang Xintian & Liu Haoxiang, 2021. "Investigating the Impact of Capacity Utilization on Carbon Dioxide Emission: Evidence from China’s Iron and Steel Industry," Journal of Systems Science and Information, De Gruyter, vol. 9(6), pages 681-703, December.
    3. Zhuyuan Wang & Ting Hu & Mike Tebyetekerwa & Xiangkang Zeng & Fan Du & Yuan Kang & Xuefeng Li & Hao Zhang & Huanting Wang & Xiwang Zhang, 2024. "Electricity generation from carbon dioxide adsorption by spatially nanoconfined ion separation," Nature Communications, Nature, vol. 15(1), pages 1-9, December.
    4. Jing-Li Fan & Zezheng Li & Xi Huang & Kai Li & Xian Zhang & Xi Lu & Jianzhong Wu & Klaus Hubacek & Bo Shen, 2023. "A net-zero emissions strategy for China’s power sector using carbon-capture utilization and storage," Nature Communications, Nature, vol. 14(1), pages 1-16, December.
    5. Fouz, D.M. & Carballo, R. & López, I. & González, X.P. & Iglesias, G., 2023. "A methodology for cost-effective analysis of hydrokinetic energy projects," Energy, Elsevier, vol. 282(C).
    6. Wu, Xiao & Xi, Han & Qiu, Ruohan & Lee, Kwang Y., 2023. "Low carbon optimal planning of the steel mill gas utilization system," Applied Energy, Elsevier, vol. 343(C).
    7. Yuancheng Lin & Honghua Yang & Linwei Ma & Zheng Li & Weidou Ni, 2021. "Low-Carbon Development for the Iron and Steel Industry in China and the World: Status Quo, Future Vision, and Key Actions," Sustainability, MDPI, vol. 13(22), pages 1-28, November.
    8. An, Runying & Yu, Biying & Li, Ru & Wei, Yi-Ming, 2018. "Potential of energy savings and CO2 emission reduction in China’s iron and steel industry," Applied Energy, Elsevier, vol. 226(C), pages 862-880.
    9. Ma, Chunyan & Wang, Nan & Chen, Yifeng & Khokarale, Santosh Govind & Bui, Thai Q. & Weiland, Fredrik & Lestander, Torbjörn A. & Rudolfsson, Magnus & Mikkola, Jyri-Pekka & Ji, Xiaoyan, 2020. "Towards negative carbon emissions: Carbon capture in bio-syngas from gasification by aqueous pentaethylenehexamine," Applied Energy, Elsevier, vol. 279(C).
    10. Zhou, Jianli & Chen, Zhuohao & Wu, Shuxian & Yang, Cheng & Wang, Yaqi & Wu, Yunna, 2024. "Potential assessment and development obstacle analysis of CCUS layout in China: A combined interpretive model based on GIS-DEMATEL-ISM," Energy, Elsevier, vol. 310(C).
    11. Xu, Liang & Li, Qi & Myers, Matthew & Cao, Xiaomin, 2023. "Investigation of the enhanced oil recovery mechanism of CO2 synergistically with nanofluid in tight glutenite," Energy, Elsevier, vol. 273(C).
    12. Chen, Shi & Duan, Xiaoyu & Lin, Jyh-Horng & Chang, Ching-Hui, 2024. "Impact of carbon capture and storage, cap-and-trade, and multiproduct cost structure on pollution in an oligopoly," Energy Economics, Elsevier, vol. 137(C).
    13. Song, Weiming & Zhou, Jianan & Li, Yujie & Yang, Jian & Cheng, Rijin, 2021. "New technology for producing high-quality combustible gas by high-temperature reaction of dust-removal coke powder in mixed atmosphere," Energy, Elsevier, vol. 233(C).
    14. Shi, Qiaoling & Shan, Yuli & Zhong, Chao & Cao, Ye & Xue, Rui, 2022. "How would GVCs participation affect carbon intensity in the “Belt and Road Initiative” countries?," Energy Economics, Elsevier, vol. 111(C).
    15. Rui Wang & Wenjia Cai & Ryna Yiyun Cui & Lin Huang & Weidong Ma & Binbin Qi & Jia Zhang & Jiang Bian & Haoran Li & Shihui Zhang & Jianxiang Shen & Xian Zhang & Jiutian Zhang & Wei Li & Le Yu & Ning Zh, 2025. "Reducing transition costs towards carbon neutrality of China’s coal power plants," Nature Communications, Nature, vol. 16(1), pages 1-11, December.
    16. 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).
    17. Masood S. Alivand & Omid Mazaheri & Yue Wu & Ali Zavabeti & Andrew J. Christofferson & Nastaran Meftahi & Salvy P. Russo & Geoffrey W. Stevens & Colin A. Scholes & Kathryn A. Mumford, 2022. "Engineered assembly of water-dispersible nanocatalysts enables low-cost and green CO2 capture," Nature Communications, Nature, vol. 13(1), pages 1-11, December.
    18. Xie, Heping & Gao, Xiaolin & Liu, Tao & Chen, Bin & Wu, Yifan & Jiang, Wenchuan, 2020. "Electricity generation by a novel CO2 mineralization cell based on organic proton-coupled electron transfer," Applied Energy, Elsevier, vol. 261(C).
    19. Jiang, Jingjing & Ye, Bin & Liu, Junguo, 2019. "Peak of CO2 emissions in various sectors and provinces of China: Recent progress and avenues for further research," Renewable and Sustainable Energy Reviews, Elsevier, vol. 112(C), pages 813-833.
    20. Jiang, Wei & Chen, Yunfei, 2022. "The time-frequency connectedness among carbon, traditional/new energy and material markets of China in pre- and post-COVID-19 outbreak periods," Energy, Elsevier, vol. 246(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:gam:jeners:v:16:y:2023:i:23:p:7817-:d:1289473. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.