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

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...

Full description

Bibliographic Details
Main Authors: Alla Toktarova, Lisa Göransson, Filip Johnsson
Format: Article
Language:English
Published: MDPI AG 2021-12-01
Series:Energies
Subjects:
Online Access:https://www.mdpi.com/1996-1073/14/24/8349
_version_ 1797505060666605568
author Alla Toktarova
Lisa Göransson
Filip Johnsson
author_facet Alla Toktarova
Lisa Göransson
Filip Johnsson
author_sort Alla Toktarova
collection DOAJ
description 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.
first_indexed 2024-03-10T04:13:17Z
format Article
id doaj.art-aa4a2551fb7b49cf90fba6dad6a25c3a
institution Directory Open Access Journal
issn 1996-1073
language English
last_indexed 2024-03-10T04:13:17Z
publishDate 2021-12-01
publisher MDPI AG
record_format Article
series Energies
spelling doaj.art-aa4a2551fb7b49cf90fba6dad6a25c3a2023-11-23T08:06:03ZengMDPI AGEnergies1996-10732021-12-011424834910.3390/en14248349Design of Clean Steel Production with Hydrogen: Impact of Electricity System CompositionAlla Toktarova0Lisa Göransson1Filip Johnsson2Department of Space, Earth and Environment, Chalmers University of Technology, SE-412 96 Gothenburg, SwedenDepartment of Space, Earth and Environment, Chalmers University of Technology, SE-412 96 Gothenburg, SwedenDepartment of Space, Earth and Environment, Chalmers University of Technology, SE-412 96 Gothenburg, SwedenIn 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.https://www.mdpi.com/1996-1073/14/24/8349decarbonizationelectrification of industrysteel industrymodelling and optimizationrenewable energy sources (RESs)hydrogen storage
spellingShingle Alla Toktarova
Lisa Göransson
Filip Johnsson
Design of Clean Steel Production with Hydrogen: Impact of Electricity System Composition
Energies
decarbonization
electrification of industry
steel industry
modelling and optimization
renewable energy sources (RESs)
hydrogen storage
title Design of Clean Steel Production with Hydrogen: Impact of Electricity System Composition
title_full Design of Clean Steel Production with Hydrogen: Impact of Electricity System Composition
title_fullStr Design of Clean Steel Production with Hydrogen: Impact of Electricity System Composition
title_full_unstemmed Design of Clean Steel Production with Hydrogen: Impact of Electricity System Composition
title_short Design of Clean Steel Production with Hydrogen: Impact of Electricity System Composition
title_sort design of clean steel production with hydrogen impact of electricity system composition
topic decarbonization
electrification of industry
steel industry
modelling and optimization
renewable energy sources (RESs)
hydrogen storage
url https://www.mdpi.com/1996-1073/14/24/8349
work_keys_str_mv AT allatoktarova designofcleansteelproductionwithhydrogenimpactofelectricitysystemcomposition
AT lisagoransson designofcleansteelproductionwithhydrogenimpactofelectricitysystemcomposition
AT filipjohnsson designofcleansteelproductionwithhydrogenimpactofelectricitysystemcomposition