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...
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MDPI AG
2021-12-01
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Online Access: | https://www.mdpi.com/1996-1073/14/24/8349 |
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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. |
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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 |
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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 |