Why Both Hydrogen and Carbon Are Key for Net-Zero Steelmaking

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Why Both Hydrogen and Carbon Are Key for Net-Zero Steelmaking
49

Why Both Hydrogen and Carbon Are
Key for Net-Zero Steelmaking
The 2021 AIST Howe Memorial Lecture

                     Carl De Maré
                     Expert Carbon-Neutral Industry,
                     Sint-Niklaas, Belgium
                     carl@carldemare.be

In 2019, four years after the Paris Climate Agreement,            Also, within the steel sector, the commitment
the United Nations announced that more than 60 coun-           to tackle climate change and CO2 emissions
tries had already committed to become carbon neutral           gained momentum. In recent months, the top
by 2050. This included the European Union but not              five companies in the sector all committed to carbon-
the three largest CO2 emitters: China, the United              neutral steelmaking in 2050 (Table 1).
States and India. In spite of the Paris Agreement, the            Steel is a cornerstone of our economy. It is one of
global CO2 emissions continued to grow to a record             the most important construction materials that is
high of 36.44 billion tons, 24% higher than in 2005            present in nearly all aspects of our lives. Steel will be
and a 60% increase from 1990 (Fig. 1).                         crucial to transform to a carbon-neutral economy:
   Since the end of 2019, the world has dramatically           renewable power generation will require more steel
changed. The coronavirus pandemic quickly spread               (Fig. 2), steel for CO2 and hydrogen pipelines will
over the world with an unprecedented impact on                 be required and the electrification of transport will
our daily lives and economies. Global CO2 emissions            boost the demand for electrical steels.
dropped 7% in 2020 to 34 Gtons
and the commitments to tackle cli-
mate change picked up:

» China, the largest CO2 emitter
  today, announced in September
  2020 its new objectives to peak
  CO2 emissions before 2030 and
                                                                                                                                       SEP 2021

  to be carbon neutral in 2060.
» The U.S. announced in March
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  2021 to become carbon neutral
  in 2050 and to reduce its green-
  house gases (GHG) in 2030 by
  50–52% versus 2005.
» The European Union, tradition-
  ally a frontrunner, increased its
  commitment in April 2021 to
  reach 55% GHG reduction in               Fig. 1 Evolution of total CO2 emissions related to use of fossil fuels and cement
  2050 versus 1990.                                production. Land use not included.1
Why Both Hydrogen and Carbon Are Key for Net-Zero Steelmaking
50

                                                            Production in 2019
                                                              (million tons)      Announcement           Discussion
                                        ArcelorMittal              97.31          September 2020
                                                                                                         GHG Generation Related to Current Iron
                                        Baowu                      95.47            January 2021         and Steelmaking Processes — Steelmaking is
                                        Nippon                     51.68           December 2020             a mature industry, optimized over the last 150 years.
                                        HBIS                         46.56             March 2021            Steel  is also the only material that is intrinsically
                                                                                                             circular. Recovered steel scrap is representing nearly
                                        POSCO                        43.12           December 2020
                                                                                                             one-third of the iron resources to make up new steel
                                       Table 1 A  nnouncement of Top 5 Steel Producers to Become            products. However, in spite of the growing scrap avail-
                                                 Carbon Neutral in 2050                                      ability, it will take until 2050 before primary steelmak-
                                                                                                             ing will start to (slowly) come down (Fig. 3).
                                                                                                               Primary steelmaking starts with iron ore, which is
                                          It is expected that between now and 2070, steel                    reduced to iron in a high-temperature gas reaction
                                       demand will further grow to 2.8 billion tons per year                 with carbon monoxide (CO) and hydrogen (H2).
                                       (Fig. 3). This growth conflicts with the need to reduce                 The blast furnace–based route (BF/basic oxygen
                                       CO2 emissions. Indeed, steelmaking is energy inten-                   furnace (BOF)) is dominant, with a market share of
                                       sive and carbon plays a key role. In 2019, 1.875 billion              90%, where mainly carbon (coke and coal) is used
                                       tons of steel was produced, emitting on average 1.85                  both for the heating and the chemical reduction but
                                       tons of CO2.3 With a total of 3.45 billion tons of CO2,               also for the melting of the iron into hot metal. The
                                       steel is responsible for 8.5% of all GHG emissions and                other commercial production is done by so-called
                                       9.5% of the CO2 emissions related to the use of fossil                direct reduction in a shaft, where solid iron (direct
                                       fuels.                                                                reduced iron (DRI) or sponge iron) is produced by
                                          Going forward, the steel industry needs to assess and              using a mixture of reactant gases CO and H2. The
                                       decide which pathways are technologically and eco-                    sponge iron is melted in an electric arc furnace (EAF)
                                       nomically viable in order to reach carbon neutrality.                 using electricity. The reduction CO:H2 gas is pro-
                                                                                                                            duced in that case from natural gas.
                                                                                                                               In the BF process, typically 70–80% of
                                                                                                                            the reduction is done by CO and 20–30%
                                                                                                                            by H2. In the natural gas DRI shaft,
                                                                                                                            60–70% of the reduction is done by H2,
                                                                                                                            with the rest by CO reduction, leading to
                                                                                                                            a lower CO2 generation (Fig. 4).
                                                                                                                               Comparing the GHG emissions between
                                                                                                                            BF/BOF and DRI/EAF plants needs to be
                                                                                                                            done at the system level, including the
                                                                                                                            co-production of 0.5 MWh per ton crude
                                                                                                                            steel of power from the syngas generated
                                                                                                                            during iron reduction and the 200 kg per
                                                                                                                            ton cement clinker substitute in the BF/
                                                                                                                            BOF plant. In a DRI/EAF plant, those
                                                                                                                            byproducts require additional energy to
                                                                                                                            produce the same amount of power in
                                       Fig. 2 Tons of steel used per MW power generation capacity.2
                                                                                                                            a separate power and cement kiln. The
                                                                                                                            analysis of CO2 emission per ton there-
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                                                                                                                            fore always has to be done referring to the
                                                                                                                            marginal power production technology
                                                                                                                            in the system.
                                                                                                                               In the BF/BOF plant, 40% of the
                                                                                                                            emissions are due to chemical reduc-
                                                                                                                            tion, 35% due to the need for high-
                                                                                                                            temperature heat and 25% is generated
                                                                                                                            in the power plant with the exported syn-
                                       Fig. 3 Expected evolution of primary (basic oxygen furnace, BOF) and
                                                                                                                            gas from the reduction process.
           SEP 2021

                                               secondary (electric arc furnace, EAF) steelmaking in the 21st                   In case of a system with natural gas–
                                               century.36                                                                   based power, the figures in the DRI/EAF
                                                                                                                            process are not that different: 33% due to
Why Both Hydrogen and Carbon Are Key for Net-Zero Steelmaking
51

Fig. 4 Major key performance indicators for the two main production pathways to produce iron and steel.

heating, 27% due to reduction
and 40% is related to the power
and cement production (Fig. 5).
  The total emissions of the
BF/BOF and the DRI/EAF are
very close to 1,600 kg per ton
crude steel in economies where
natural gas is used for the mar-
ginal power production (is the
case in the next decades for
most of the countries) (Fig. 6).
When the marginal power is
produced with coal (was the
case on the past), the emissions
of the DRI/EAF plant are 25%
higher compared to BF/BOF.               Fig. 5 CO2 emissions in blast furnace (BF)/BOF integrated plant and direct reduced iron
When we move to a full zero-                     (DRI)/EAF plant to co-produce 1 ton steel + 0.5 MWh power + 200 kg cement
                                                 clinker in case of natural gas–based power system.
CO2 power generation system
in the future, the DRI/EAF
plant will have 30% lower emis-
sions versus the BF/BOF process.
                                                                                                                                           SEP 2021

The Hydrogen Opportunity for Carbon-
Neutral Steelmaking
                                                                                                                                    I IRON & STEEL TECHNOLOGY I AIST.ORG

Industrial Experience With Hydrogen Utilization for
Iron Reduction Until Now: The chemical reaction
between iron oxide and the CO and H2-containing
reductant gas is responsible for 40% of the CO2
emissions in the BF/BOF process and 27% in the
DRI shaft process. The basic concept of hydrogen
                                                                   Fig. 6 CO2 emission in kg per ton steel comparison between
ironmaking is simple: substituting the carbon (or the                      BF/BOF and DRI/EAF as function of the marginal power
carbon monoxide) in Eq. 1 by hydrogen in Eq. 2 to                          generation technology.
Why Both Hydrogen and Carbon Are Key for Net-Zero Steelmaking
52

                                       reduce the ore and releasing water vapor instead of                produced with 100% renewable power can theoret-
                                       CO2 as byproduct of the reaction.                                  ically reduce the emissions of the DRI shaft process
                                                                                                          itself to zero (Table 2). Electrolyzers are also of inter-
                                             Fe2O3 + 6CO = 2Fe + 3CO + 3CO2 + 26.6 kJ                     est for blast furnaces: the hydrogen can be injected in
                                                                                                          the tuyeres to replace coal and the oxygen can be used
                                                                                            (Eq. 1)       for oxygen enrichment of the hot blast (Fig. 7).

                                             Fe2O3 + 6H2 = 2Fe + 3H2 + 2H2O – 99.5 kJ                     The Thermodynamics of Iron Ore Reduction With
                                                                                                          Hydrogen: Even when industrial experience with
                                                                                            (Eq. 2)       hydrogen to reduce iron ore is limited, the potential
                                                                                                          impact on the reduction process of the ore is well
                                                           H2 + O2 = H2O + 240 kJ                         understood. Over the last century, more than 20,000
                                                                                                          papers have been published, from which 20% focused
                                                                                            (Eq. 3)       on iron ore reduction with CO and 5% specifically
                                                                                                          studied the reduction of iron ore with H2.
                                          The need for high temperature is responsible for                   Thermodynamically, the differences between CO
                                       35% of the CO2 emissions in the BF and 33% in DRI.                 and hydrogen reduction are explained in the Baur-
                                       Burning hydrogen instead of coal or natural gas for                Glassner diagram (Fig. 8). From the point of view
                                       heat is a second opportunity to use hydrogen (Eq. 3).              of gas utilization, hydrogen is the best reduction gas
                                          Although this looks easy to do, there is very little            with high temperatures (>850°C) as the reduction is
                                       practical experience. The only commercial appli-                   still ongoing even with >30% H2O in the reduction
                                       cation so far was in Trinidad (Circored) where                     gas. However, for lower temperatures (650°C), CO gas
                                       DRI was produced with hydrogen from
                                       steam methane reforming in fluidized
                                       bed reactors.4 The DRI production was
                                       not emitting CO2, but the production of
                                       hydrogen was CO2 intensive. The total
                                       need of 84 kg hydrogen per ton steel
                                       resulted in 29% higher emissions versus
                                       the natural gas–based DRI process (Table
                                       2). The higher emissions combined with
                                       technical issues stopped the project and
                                       the hydrogen-based DRI production was
                                       never further industrialized.
                                          In recent years, using hydrogen for
                                       steelmaking has regained attention as
                                       a way to reduce GHG emissions. The
                                       steam methane reformer (SMR) can be
                                       combined with carbon capture and stor-
                                       age (CCS) to produce the so-called blue
                                       hydrogen, or even better the hydrogen
                                       can be produced with water electroly-
                                       sis based on carbon-free power sourc-
                                       es, green hydrogen. Green hydrogen            Fig. 7 Integration electrolyzers in steel plants allow for the use of both
                                                                                                   hydrogen and oxygen.5
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                                                                                         Hydrogen from               Hydrogen from
                                                                                     steam methane reformer      SMR + carbon capture         Green hydrogen with
                                             DRI fuel             Natural gas           (SMR)-based DRI         and storage (CCS) (89%)        renewable power
                                        Fuel per ton DRI        10.5 GJ/ton DRI           84 kg/ton DRI               84 kg/ton DRI               84 kg/ton DRI
                                        CO2 per unit          59 kg/GJ natural gas      9.5 kg/kg hydrogen            1.05 kg/kg H2                 0 kg/kg H2
                                        CO2 per ton DRI          620 kg/ton DRI          798 kg/ton DRI               88 kg/ton DRI                0 kg/ton DRI
                                        % vs. natural gas                                     129%                         15%                         0%
           SEP 2021

                                       Table 2 T
                                                heoretical Consumption of Hydrogen and Related CO2 Emissions in the DRI Shaft Process
Why Both Hydrogen and Carbon Are Key for Net-Zero Steelmaking
53

                                              Number of
               Search terms                    papers
 Iron (oxide or ore) reduction                  20,230
 Iron (oxide or ore) reduction CO                3,692
 Iron (oxide or ore) reduction H2                 109
 Iron (oxide or ore) mechanisms                   792
 Iron (oxide or ore) reduction kinetics           741

Table 3 P
         ublications on the Reduction of Iron Oxides From
        1900 to 20206

is consumed up to 50% CO2 in the mixture, where                Fig. 8 T
                                                                       he Baur-Glässner diagram for H2 reduction (Fe-O-H2
the hydrogen reduction stops at 25% H2O. From the                     system – dotted lines) and the CO reduction (Fe-O-C
enthalpy point of view, Eqs. 1 and 2 show that hydro-                 system – solid lines) as a function of the % H2O and
gen reduction is endothermic (thus is cooling the                     CO2 in the reduction gas (gas oxidation degree = 0
                                                                      means 100% H2 or 100% CO).7
burden) while carbon monoxide is exothermic and
helps to keep the burden at temperature.

Hydrogen Injection in Existing BF and DRI Plants:              consumption of 34.5 million tons/year. When all the
The preceding text explains why injection H2 in the            hydrogen is green, a significant CO2 reduction of 400
existing BF or DRI process is possible without major           million tons/year is possible.
adaptations up to a certain threshold. Modern blast
furnaces are equipped with gas and coal injection              The Constraints to Move to Full Hydrogen
systems at the tuyeres and have experience with inject-        Steelmaking: A logical next step could be to move
ing hydrogen-rich coke gas. Injection of pre-heated            to the full hydrogen way by replacing all the natural
natural gas to 320°C is possible up to 140 kg/ton hot          gas in the DRI shaft process. In Europe, the HYBRIT
metal.8 Modeling the injection of pre-heated hydro-            consortium aims to demonstrate the full supply chain
gen shows that until 27.5 kg hydrogen injection per            from power to hydrogen, including storage, iron ore
ton hot metal through the tuyeres is possible without          pelletizing, reduction and steelmaking.37 Recently
major changes in the thermal balance of the blast              also in Sweden, a second project was announced —
furnace.5 With an average scrap ratio in the BOF, this         GreenH2Steel — to move quickly to a commercial
results in approximately 25 kg of hydrogen consump-            phase.38 ArcelorMittal also announced a collaboration
tion per ton of steel and when the hydrogen is green,
CO2 is reduced with 300 kg/ton steel
(approximately 20%).
   In the existing DRI shafts (both                   25 kg/t H2 injection               Blue hydrogen    Green hydrogen
MIDREX and HYL based), up to 30%           Steel production (billion tons)                    1.38                1.38
of the natural gas can be replaced
                                           H2 demand (million tons)                           34.5               34.5
by hydrogen without major adapta-
tions. This results in 22.5 kg/ton DRI     Greenhouse    gas reduction   (million tons)        358                402
or approximately 25 kg hydrogen            Power Consumption (TWh)                                               1,725
consumption per ton of steel and           Power Consumption (EJ)                                                 6.2
                                                                                                                                    SEP 2021

enables a CO2 reduction of 200 kg/
                                           Full hydrogen steelmaking                     Blue hydrogen     Green hydrogen
ton steel.
                                           Steel production  (billion tons)                   1.38                1.38
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   Based on the current experiences,
it can be concluded at both for the        H2 demand (million tons)                           115.9              115.9
existing BF/BOF plants as well as          Greenhouse gas reduction (million tons)             358                402
for the DRI gas shaft plants, at least
                                           Power Consumption (TWh)                                               5,796
25 kg/ton steel of hydrogen displace
coal and natural gas. For the 1.38         Power  Consumption      (EJ)                                          20.9
billion tons of steel produced in         Table 4 Demand for Hydrogen, CCS, Renewable Power in Case of 25 kg H2
2018 with hot metal and gas-based                   Injection and in Case of Full Hydrogen Steelmaking Simulated for Steel
DRI, this would lead to a hydrogen                  Production in 2018
Why Both Hydrogen and Carbon Are Key for Net-Zero Steelmaking
54

                                       together with MIDREX to build a 100,000-ton DRI                   scenarios (Fig. 9). The Net Zero by 2050 scenario
                                       pilot plant that can run on 100% hydrogen.9                       of the International Energy Agency (IEA)11 shows
                                          However, a number of constraints need to be con-               a potential power production from wind and solar
                                       sidered when moving to full hydrogen steelmaking:                 of 110 EJ (Fig. 9). Full green hydrogen steelmaking
                                                                                                         would thus consume 20% of all solar and wind energy
                                       1. Green Hydrogen Supply Challenge for the Full                   worldwide. In that case it would not be available for
                                       Hydrogen Pathway: The potential consumption of                    other sectors and applications.
                                       34.5 million tons of hydrogen in existing BF and DRI                 The IEA’s Net Zero by 2050 scenario itself projects
                                       plants is comparable to the global refining industry              approximately 35 million tons of hydrogen consump-
                                       (38.2 million tons) or global ammonia production                  tion in the iron and steel sector (Fig. 10). This figure
                                       (31.5 million tons).10 It is 45% of the current annual            matches the 25 kg/ton hydrogen injection possible
                                       hydrogen consumption and all this hydrogen produc-                without adapting the BF and DRI plants. Hydrogen
                                       tion must be blue or green. In the case of green hydro-           supply in 2050 will still be limited and insufficient to
                                       gen, 402 million tons of CO2 would be avoided, but it             justify a complete rebuild of the steelmaking assets for
                                       creates an annual demand of 1,725 TWh or 6.2 EJ per               the full hydrogen pathway.
                                       year of renewable power (Table 4).
                                          Moving to full hydrogen increases the demand                        2. Technological Challenges for Full Hydrogen
                                       to 115.9 million tons or three times the current                       Pathway Related to the Ironmaking Assets: Moving
                                       demand for the global refining industry. 20.9 EJ of                    to full hydrogen steelmaking is for sure not possible
                                       renewable power would be required, which needs to                      with the blast furnace process. Metallurgical coal
                                       be put into the perspective of long-term zero-carbon                   plays a key role in creating the permeability for reduc-
                                                                                                                           tion gas and to create a high-temperature
                                                                                                                           melting zone. The current assets would
                                                                                                                           need to be rebuilt by gas-based DRI assets,
                                                                                                                           which need to be redesigned, as in the
                                                                                                                           current processes CO is playing a key
                                                                                                                           role. In-depth research on the impact of
                                                                                                                           H2/CO ratio in a DRI shaft was done in
                                                                                                                           the ULCOS project. Experimental results
                                                                                                                           show an important impact on the metalli-
                                                                                                                           zation of the DRI with increasing H2/CO
                                                                                                                           ration (Fig. 11). The lower metallization
                                                                                                                           is due to the thermal gradient caused
                                                                                                                           by the endothermic hydrogen reduction
                                                                                                                           (lower temperature at the center) com-
                                                                                                                           bined with slower reduction kinetics at
                                                                                                                           lower temperature. To keep the current
                                       Fig. 9 The global total final energy consumption by fuel in the net-zero
                                               scenario of the International Energy Agency (IEA) (hydrogen-based           metallization degree, the productivity
                                               includes hydrogen, ammonia and synthetic fuels).  11                        of the shaft needs to come down. New
                                                                                                                           designs will be required to overcome
                                                                                                                           these problems for full H2 reduction.
                                                                                                                              In the cooling zone, natural gas is
                                                                                                                           injected, which results in a minimum
                                                                                                                           1.5% up to 4% carbon in the DRI. Cooling
                                                                                                                           by nitrogen will require a new concept
I IRON & STEEL TECHNOLOGY I AIST.ORG

                                                                                                                           for the evacuation zone. The tightness
                                                                                                                           between the cooling zone and reactor
                                                                                                                           will be crucial in order to avoid nitrogen
                                                                                                                           buildup in the reactor.
                                                                                                                              To avoid sticking and powdering in the
                                                                                                                           shaft, the selection of raw material will be
                                                                                                                           more strict, putting pressure on the sup-
                                                                                                                           ply of pellets (Fig. 12). Interesting, there-
                                                                                                                           fore, is the announcement by Primetals
           SEP 2021

                                       Fig. 10 Hydrogen and hydrogen derived fuels in the Net Zero by 2050                Technologies,    which is restarting the
                                                 scenario of IEA.11                                                        R&D for a hydrogen-based reduction
Why Both Hydrogen and Carbon Are Key for Net-Zero Steelmaking
55

Fig. 11 M
         etallization degree of DRI as function of the
        temperature and H/CO ratio as tested in the ULCOS
        research program.12

plant with fines and with fluidized bed reactors to
overcome those problems.14

3.     Technological        Challenges       for   Full             Fig. 12 Challenges with sticking and powdering in full
Hydrogen         Pathway        Related       to    the                      hydrogen DRI shaft will put pressure on raw material
Steelmaking Assets: Moving to hydrogen-                                      supply.13
based ironmaking will have a major impact on steel-
making assets. The average heat size of EAF today
is relatively small as the EAF is feeding casters for
long products or casting–strip rolling plants (Fig. 13).            will lead to a high FeO content in the slag and thus
When steelmakers want to keep the high productivity                 important yield losses. For that reason, steelmakers
of secondary metallurgy and continuous slab casting,                are moving to 4% carbon in the DRI. When starting
heat sizes above 300 tons with tap-to-tap times below               from zero-carbon DRI, the existing EAF design will
40 minutes are required. This is a challenge for both               require a significant amount of carbon and oxygen
the electrical transformer as well as for the EAF equip-            injection to create a protective atmosphere, a foaming
ment itself as a specific power consumption above 600               slag and keeping the Fe losses under control. In the
kWh/ton steel is expected.                                          HYBRIT project, bio-carbon would be injected in the
   For high-quality-grade steel, nitrogen pickup from               bath for that purpose. However, the yield of the car-
the air during the process will be needed. The lower                bon injection in EAF can be problematic.
metallization and zero carbon content of the DRI

                                                                                                                                           SEP 2021
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                                  (a)                                                          (b)

Fig. 13 Average heat size for current EAF plants (a) and specific power consumption as function of the charge (b).15
Why Both Hydrogen and Carbon Are Key for Net-Zero Steelmaking
56

                                          voestalpine       is
                                       announcing        the
                                       development         of
                                       hydrogen plasma
                                       melting reduction
                                       to overcome the
                                       a forement ioned
                                       problems.39 A hydro-
                                       gen plasma would
                                       be used to directly
                                       move to steel in a
                                       type of electric arc
                                       reduction/melting
                                       furnace. However,
                                       this development is
                                       still at low technolo-              ensitivity of Hydrogen cost in 2030 in the IEA Net Zero 2050 scenario.11 Renewable power
                                                                  Fig. 14 S
                                                                           cost US$40/MWh, full load hours at best locations.
                                       gy readiness level.
                                          Interesting is the
                                       announcement from thyssenkrupp Steel Europe to
                                       develop an electrical hot metal production unit.16
                                       The idea is to melt the DRI from a shaft furnace in
                                       an adapted submerged-arc furnace where carbon is
                                       added to reach a 4% carbon alloyed hot metal. This
                                       hot metal can go to the existing BOF plants and slab
                                       casters. As 4% carbon is required in the “liquid DRI,”
                                       this innovation fits well with the approach to inject 25
                                       kg hydrogen in DRI shaft, but is less suited for a full
                                       hydrogen pathway.

                                       4. Economical Challenges for the Full Hydrogen
                                       Pathway: Probably the largest challenge is economic,
                                                                                                         Fig. 15 Energy density of gaseous and liquid fuels.17
                                       which can be expressed in the CO2 abatement cost.
                                       CO2 abatement cost is the break-even price needed to
                                       make green hydrogen-based process break even with
                                       the current processes.
                                          The production of hydrogen from water electrol-                44% of the hydrogen would be consumed. In this case,
                                       ysis requires 50–55 kWh/kg hydrogen. The power                    the total hydrogen cost for the steelmaker increases
                                       consumption is responsible for approximately 80%                  to US$4.32/kg but this is still lower versus the on-site
                                       of the hydrogen cost. The IEA predicts a 2030 hydro-              hydrogen cost of US$5/kg as projected by IEA. The
                                       gen cost of US$3/kg in the case of off-side hydrogen              CO2 abatement cost in case of 25 kg hydrogen injec-
                                       generation with low-cost renewable power from wind                tion per ton of steel in the existing blast furnace is
                                       and solar PV, while US$5/kg is expected for on-site               US$342 where US$474 is found for the DRI case
                                       grid-connected hydrogen generation (Fig. 14).                     (Table 5).
                                          In the case of off-side hydrogen generation, addi-                Those levels are significantly above the project-
                                       tional costs for transport of hydrogen to the steel               ed CO2 prices for 2050 (Table 6). Moving to full
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                                       plant and temporary storage are required to deal with             hydrogen steelmaking will only further increase this
                                       fluctuations in the variable renewable power produc-              number as additional capital costs will be required
                                       tion. Hydrogen is known for its low energy density per            to rebuild the existing assets. As three times more
                                       liter, which explains why more energy is required for             hydrogen would be required, it is likely that hydrogen
                                       the compression or the liquefaction for transport and             will need to be transported over longer distances and
                                       storage compared to other energy carriers (Fig. 15).              become more expensive.
                                          According to Bossel, approximately 10% of the
                                       hydrogen is consumed per 1,000 km pipeline and 40%
                                       of the hydrogen energy is consumed to liquefy and                 Electrification of High-Temperature Heat
           SEP 2021

                                       store the hydrogen. When we assume 2,000 km trans-                With Zero-Carbon Power — Hydrogen will play
                                       port on average and storage of 60% of the hydrogen,               an important role in carbon-neutral steelmaking as
Why Both Hydrogen and Carbon Are Key for Net-Zero Steelmaking
57

                           Per ton steel                                    25kg injection in BF          25kg injection in DRI
 Off-side H2 generation from renewables (US$/kg)                                 US$3.00                        US$3.00
 H2 consumption for transport, temporary storage                                   44%                            44%
 Total cost of Hydrogen (US$/kg)                                                 US$4.32                        US$4.32
 Green H2 cost (US$/ton steel)                                                    US$113                        US$113
 Savings in coal and gas cost (US$/ton steel)                                     US$10                          US$20
 CO2 abatement (kg/ton steel)                                                       300                           195
 CO2 abatement cost (US$/ton CO2)                                                 US$342                        US$474

Table 5 CO2 Abatement Cost of 25 kg/ton Steel Hydrogen Injection in Existing BF and DRI Plants

             USD (2019) per metric ton of CO2                         2025                2030           2040             2050
 Advanced economies                                                    75                 130            205              250
 Selected emerging market and developing economies                     45                  90            160              200
 Other emerging market and developing economies                        3                   15             35               55

Table 6 C
         O2 Price Evolution in the Net-Zero-Carbon Scenario According to IEA (Selected Emerging Markets Include China, Russia,
        Brazil and South Africa)11

injected gas in existing BF and DRI plants. However,                  superheat the hot blast of the blast furnace. Plasma
banning carbon and moving to full hydrogen is                         is an ionized state of gas containing free charge car-
extremely challenging in relation to supply, econom-                  riers and therefore is electrically conductive. In the
ics and process technology. To reach carbon neutrali-                 thermal plasma, temperatures of 1,000 K and above
ty, steelmakers need to combine in a smart way the use                are reached, which results in very fast and efficient
of hydrogen, zero-carbon power and carbon.                            thermal conversion without any catalyst. Plasma torch-
   The need for high-temperature heat is responsi-                    es up to 2.4 MW are commercially available to replace
ble for 35%, resp. 33% of the CO2 emissions in the                    fossil fuel burners and have electrical efficiencies
current BF, resp. DRI plants (Fig. 4). Technology                     above 85%.19 In the course of the ULCOS project,
exists to directly electrify the generation of high-                  the integration of 2 MW torches into the tuyeres of a
temperature heat instead of indirectly working with                   large blast furnace was studied (Fig. 16). Power con-
green hydrogen. As the conversion of power to hydro-                  sumption is approximately 250 kWh/ton hot metal
gen and hydrogen to heat has a yield of below 50%,                    (or 0.9 GJ), which is significantly below the current
it is smarter and cheaper to directly use power for                   consumption in the hot stoves and 220 kg/ton hot
heating.                                                              metal CO2 emission is avoided by not burning blast
                                                                      furnace gas.
Plasma Torch Applications to Generate High-                              Once the plasma torches are integrated in the
Temperature Heat: An attractive technology for                        tuyeres, superheating of the hot blast can be consid-
steelmakers is for plasma torches to heat up and to                   ered as there is no constraint anymore due to the
                                                                                                                                         SEP 2021
                                                                                                                                  I IRON & STEEL TECHNOLOGY I AIST.ORG

                                 (a)                                                               (b)

Fig. 16 Plasma torches integrated in the tuyeres of a blast furnace to heat up the hot blast.20
Why Both Hydrogen and Carbon Are Key for Net-Zero Steelmaking
58

                                                                                                                    CH4 + CO2 = 2CO + 2H2 – 247 kJ

                                                                                                                                                               (Eq. 5)

                                                                                                                    CH4 + H2O = CO + 3H2 – 208 kJ

                                                                                                                                                               (Eq. 6)

                                                                                                           In dry CO2 reforming, CO2 is used instead of steam
                                                                                                         to produce a syngas from methane. The reaction is
                                                                                                         also endothermic and the energy penalty compared
                                                                                                         to the steam methane reforming is limited (approx-
                                       Fig. 17 R
                                                eduction of fuel rate and CO2 in the blast furnace      imately 20%). Thanks to the high temperature gen-
                                               when superheating the hot blast with plasma torches.21    erated in a plasma (>1,000 K), the dry reforming
                                                                                                         reaction is fast and complete without any catalyst. The
                                                                                                         plasma system is flexible to follow a fluctuating sup-
                                                                                                         ply of renewable power. The high temperature of the
                                       refractory of the hot blast main. Fig. 17 shows the              syngas in the plasma makes it compatible with direct
                                       impact on the CO2 generated in the blast furnace                 injection in the DRI shaft.
                                       when the hot air is superheated up to 1,800°C. The                  For a DRI plant, approximately 1 MWh per ton DRI
                                       coke rate is reduced to the minimum theoretical                  will be required for the reforming and heating of the
                                       amount needed for iron carburization and burden                  reductant gas without changing the DRI shaft process
                                       support. The flame temperature and top gas tempera-
                                       ture are kept constant. Significantly higher pulver-
                                       ized coal injection (PCI) and productivity of the BF
                                       are possible without further oxygen consumption. For
                                       a typical medium-sized 6,000-tons-per-day BF, 28 MW
                                       of power is consumed, which is less than 1 MW per
                                       tuyere. This potentially reduces the CO2 generation
                                       by 270 kg/ton.

                                       Plasma Torches for Methane Cracking and Dry                      Fig. 18 P
                                                                                                                 lasma heating and reforming of hot syngas for
                                       Reforming of CO2 : Another way to electrify is to use                    injection in the BF or in the DRI shaft.20
                                       plasma to replace the reformer/heater in the DRI
                                       shaft. Today plasma torches are commercially used
                                       for methane cracking.

                                                        CH4 = C + 2H2 – 74.5 kJ

                                                                                             (Eq. 4)

                                          Methane cracking or pyrolysis is the chemical split-
                                       ting of hydrocarbons into hydrogen and solid carbon
                                       (Eq. 4). The gaseous hydrogen and solid carbon are
                                       produced (no CO or CO2 is produced as no oxygen
I IRON & STEEL TECHNOLOGY I AIST.ORG

                                       is entering the system). The most prominent example
                                       is Monolith Materials, which is operating a 16-MW
                                       plasma to produce carbon black with hydrogen as
                                       a byproduct. Steelmakers can use the hydrogen for
                                       injection in BF or DRI and the solid carbon to dis-
                                       place coal for cokemaking and PCI.
                                          Using plasma torch for dry methane reforming has
                                       been developed in the course of ULCOS (Eq. 5). Dry
                                       reforming is comparable to the traditional and well-
           SEP 2021

                                       known steam methane reforming (Eq. 6).                           Fig. 19 IGAR Blast Furnace concept with shaft injection at
                                                                                                                 950°C.9
59

                                                                                      plasma technology is mainly used today
                                                                                      in the waste sector to clean gases from
                                                                                      waste gasifiers. Municipal waste is gas-
                                                                                      ified in fluidized bed reactors of 160
                                                                                      MW or more. After cleaning the gas for
                                                                                      chlorine, it can be used to reform CO2
                                                                                      in the plasma torch and produce a sta-
                                                                                      ble CO:H2 syngas for injection.

                                                                                   Using Waste Streams for Biocoal
                                                                                   Injection in BF and EAF: Direct plastic
                                                                                   injection in the tuyeres of a blast fur-
                                                                                   nace or the use of charcoal in the EAF
Fig. 20 Process scheme and yield for torrefaction process of wood.                are other examples of waste sources
                                                                                   used as alternative reductants. In Brazil,
                                                                                   several smaller BFs are even running
                                                                                   on 100% charcoal produced from euca-
itself. It avoids the generation of 220 kg CO2 due to                              lyptus. The low mechanical resistance
the current combustion of DRI top gas (Fig. 18).                    and limited supply of fresh wood do not allow for
   By a moderate adaptation of the existing BF, shaft               the replacement of coke in large blast furnaces, but
injection of reformed gas is possible at 950°C (Fig. 19).           this is not the case for the coal injection. Indeed the
ArcelorMittal is developing this hybrid BF-DRI process              carbon sourced into state-of-the-art blast furnaces
in the IGAR project in Dunkerque.9 Approximately                    accounts for nearly 50% of the injected grinded coal.
100 kg of cokes and coal input can be replaced by hot               Waste wood can be an excellent substitute for coal
syngas shaft injection without major changes in the                 injection after a torrefaction treatment of the wood.
operating point of the blast furnace.                               Torrefaction occurs when biomass is heated at 250–
                                                                    300°C in the absence of oxygen, where charcoal is
                                                                    produced by a slow pyrolysis process at temperatures
Alternative Carbon Reductants as a Third                            of 400°C or more. Thanks to the lower temperature,
Step                                                                the yield is significantly better compared to charcoal
                                                                   (Fig. 20).
Gasification of Waste to Replace Natural Gas: The                     Research has shown that torrefied wood, with dif-
use of plasma reforming for DRI and BFI is compatible               ferent ash content and different temperature treat-
with using waste hydrocarbons instead of natural gas.               ments, combusts faster than fossil coal (Fig. 21). The
Plasma reforming is done at very high temperature                   reason is the greater specific surface of biocoal thanks
without catalyst. An advantage is that no purification              to the cellular structure of the wood.
of the methane or CO2 is required. For this reason,

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                                                                                                                                   I IRON & STEEL TECHNOLOGY I AIST.ORG

                                                                       Fig. 22 T
                                                                                orrefaction of waste wood in a rotating drum as
                                                                               developed by TorrCoal.40
Fig. 21 C
         ombustion rate of different types of biocoal and
        pulverized coal injection coal during injection in the BF.27
60

                                         A demonstrated technology for large-scale torre-
                                       faction of waste wood is the external heated rotating            CCU Technology to Close the Carbon Circle
                                       drum as is commercialized by Torrcoal (Fig. 22). In              and Create Value — The consequence of the
                                       the TORERO project, ArcelorMittal is building a first                 described electrification is an increase of the amount
                                       torrefaction plant for 100,000 tons of biocoal injection              of available steel waste gas, which will be more and
                                       in the BF which will start in 2022.9                                  more produced from waste carbon but which eventu-
                                                                                                             ally still is converted into CO2 as long as the exported
                                       Supply Constraint for Waste Wood and Waste                            waste gas is burned in a power plant. It does not make
                                       Plastic: As is the case for green hydrogen, the injec-                sense to first electrify the heat supply instead but as a
                                       tion of biocoal and use of plastic waste will rather                  consequence export the surplus waste gas to a power
                                       be constraint by the supply and not due to technical                  plant to generate power.
                                       limitations to adapt the existing DRI and BF plants.                     Fig. 23 illustrates the impact of electrification of
                                          In Europe, approximately 100 kg wood waste per                     the external heater/reformer as is used in the Midrex
                                       capita of 52.9 million tons is generated by end-of-life               DRI Shaft. There are no changes for the inputs and
                                       products from which 25–30% come from the demoli-                      outputs of the DRI process itself. However, where
                                       tion and construction market. Only 15% of this waste                  today with the thermal heater/reformer approximate-
                                       is recycled.28 By closing the coal-fired power plants,                ly 4 GJ of syngas is incinerated to supply the heat, this
                                       waste wood becomes more and more available for                        is replaced by 1 MWh power supply to the plasma
                                       other purposes.                                                       reactor and thus creating 4 GJ of syngas which needs
                                          In 2018, 367 million tons of plastics were produced.               to be exported. Another example is the electrification
                                       Approximately 9% of end-of-life plastics are recy-                    of the hot blast of the BF: approximately 1.5 GJ per
                                       cled and 12% are incinerated. The remaining 80%                       ton hot metal of steel waste gas will be replaced by
                                       (approximately 280 million tons per year) is polluting                0.25 MWh of power.
                                       the environment. One-third of plastics are produced                      The steel sector is probably the largest producer of
                                       in China, and 15% are produced in Europe (55 mil-                     syngas. Globally, the steel sector generates approxi-
                                       lion tons).                                                           mately 7,000 terajoules of syngas. This is comparable
                                          Substitution of 50 kg of PCI with waste wood and 3                 to the total natural gas consumption of Germany and
                                       GJ of gas with plastic waste gasification at European                 Italy, the two largest economies in Europe.
                                       steel plants results in a demand of approximately 10                     Syngas is produced on purpose in the chemical
                                       million tons waste wood and 11 million tons of plastics               sector as the first step to produce CO and H2 for the
                                       (approximately 20% of supply for both waste streams).                 production of hydrocarbons. As the steel waste gas is
                                       Such a scale of waste recycling is feasible both from                 already available as CO and H2, little or no cracking
                                       technology as from supply point of view, and will                     and reforming need to be done in order to use it
                                       create significant value for society and reduce CO2                   as feedstock for chemicals. Carbon capture and use
                                       emissions by 350 kg/ton crude steel.                                  (CCU) technologies are bringing new options to con-
                                                                                                                                    vert waste gas into products and
                                                                                                                                    avoid the incineration of gas in a
                                                                                                                                    power plant.
                                                                                                                                       In 2015, thyssenkrupp Steel
                                                                                                                                    Europe launched a large pro-
                                                                                                                                    gram, Carbon2Chem, to convert
                                                                                                                                    syngas into chemicals.23 Tata
                                                                                                                                    Steel and ArcelorMittal are study-
                                                                                                                                    ing the same approach in the
                                                                                                                                    Steel2Chemicals project.24 The
I IRON & STEEL TECHNOLOGY I AIST.ORG

                                                                                                                                    major challenge, however, is to
                                                                                                                                    clean the steel waste gas up to
                                                                                                                                    levels at which catalysts are not
                                                                                                                                    poisoned. On top the CO:H2
                                                                                                                                    ratio needs to be shifted to the
                                                                                                                                    right amount with the water gas
                                                                                                                                    shift reaction which is consuming
                                                                                                                                    energy.
                                                                                                                                       A promising approach is the
           SEP 2021

                                       Fig. 23 T
                                                raditional process scheme (left) and scheme after electrification (right) of       gas  fermentation technology as
                                               DRI/EAF plant.                                                                       developed by Lanzatech. In con-
                                                                                                                                    trast to the traditional catalytic
61

                          (a)                                                           (b)

Fig. 24 Gasfermentation of carbon-containing waste gas into microbes.

chemistry, a fermentation by microbes is used to con-
vert CO and hydrogen into products. The fermenta-
tion can be compared with the fermentation of sugar
from corn or sugarcane into ethanol by yeast. In the
gas fermentation, the gas is pressurized and injected
into water tanks with microbes. The microbes are
directly consuming CO and H2 to produce ethanol
(C2H5OH) which is continuously distillated out of the
broth (Fig. 24).
   The main advantage is the compatibility and flex-
ibility of the gas fermentation with DRI and BF gas:
                                                                  Fig. 25 C
                                                                           onstruction of the Steelanol plant at ArcelorMittal
» The microbe is driven by CO and H2. In case
                                                                          Gent.26
  there is a lack of H2, the microbe will itself
  perform the water shift reaction by picking up
  hydrogen from the water.
» The microbe is adapted to the typical DRI and                   steel. Further processing of the ethanol into 120 kg
  BF atmosphere. Very little or no cleaning is                    ethylene per ton steel is straightforward with existing
  necessary.                                                      technology. Applying this to the European market as
» The gases do not need to be pure. The pres-                     a business case, the steel sector can supply 12 million
  ence of CO2 and nitrogen will not impact the                    tons of ethylene to the chemical sector, avoiding 24
  fermentation process as such and does not need                  million tons of CO2. This is approximately 50% of the
  to be removed.                                                  current ethylene market of Europe. Fig. 26 illustrates
» The energy conservation of the bio-based sys-                   a number of potential markets for Ethanol in 2030,
  tem is very high: approximately 70% of the                      which is 25 times larger compared to the current
  energy is converted into alcohol, while the                     application to blend ethanol in the gasoline.
  other 30% is converted into biomass. This bio-                     By combining the recycling of waste wood and plas-
  mass can be fermented into biogas or can also                   tics into the DRI and BF process with the conversion
  be used as animal feed.                                         of the steel waste gas into ethanol and chemicals, the
                                                                                                                                         SEP 2021

» By changing the microbes, different chemicals                   steel sector is an enabler of the circular economy by
  can be made and other markets can be reached.                   converting waste into products at large scale.
                                                                                                                                  I IRON & STEEL TECHNOLOGY I AIST.ORG

   The Lanzatech technology was first used at com-
mercial scale at Shougang steel where the plant                   Waste Heat Enables Low-Cost Carbon
started in 2018. Currently a large investment with                Capture and Export (CCE) of CO2 — The
ArcelorMittal is close to commissioning and will start            remaining CO2 emissions (approximately 200 kg/ton)
up in 2022 (Fig. 25).                                             are mainly from biological origin or from carbon in
   When applied at full scale and using all the steel             the plastic waste. Capturing this CO2 for transport
waste gas, a yield of 200 kg of alcohol per ton of steel          and storage (CCS) is straightforward and can result
is possible, avoiding 400 kg/ton CO2 per ton of crude
62

                                       Fig. 26 Potential demand for ethanol (in billion liters) in the EU market is 25 times larger compared to the blending into gasoline.25

                                       even in negative CO2 emissions: the so-called BECCS                   plant is under construction at ArcelorMittal in the
                                       (bio-energy with CCS).                                                course of the 3D-CCUS project (Fig. 26).
                                         In-situ capture of CO2 in the BF and DRI plant can                     Opex cost for capture and liquefaction of CO2 with
                                       be done at a low cost by using waste heat from the                    waste heat will be in the range of US$10–20/ton CO2.
                                       steelmaking process. Novel approaches with amine                      Liquid CO2 can be shipped over long distances with
                                       washing allows for the capture of 99% of the CO2 with                 the same technology that is used for liquefied natural
                                       approximately 2.3 GJ/ton CO2 of low-pressure steam,                   gas (LNG). Shipping costs on the base of 1 million
                                       which is recovered at the steel plant.31 A first pilot                tons of CO2 per year over 1,000 km distance are in the
                                                                                                             range of US$10–15/ton33 depending on the size of the
                                                                                                             ships, resulting in overall cost for carbon capture and
                                                                                                             export (CCE) below US$50/ton CO2.
                                                                                                                In a net-zero world, industrial regions with high
                                                                                                             concentrations of chemical and steel plants will
                                                                                                             need to import renewable power over long distances.
                                                                                                             Fig. 27 shows the long-term gap between potential of
                                                                                                             renewable energy generation versus renewable energy
                                                                                                             needs for West Europe. Northern France, Belgium,
                                                                                                             Netherlands and west Germany up to northern Italy
                                                                                                             are lacking up to 1,000 TWh in total.
                                                                                                                New specializations will be created in the global
                                                                                                             net-zero economy. Renewable power generated in
                                                                                                             regions with abundant sun need to be converted to a
I IRON & STEEL TECHNOLOGY I AIST.ORG

                                                                                                             liquid energy carrier to transport the cheap energy to
                                                                                                             the industrial regions.
                                                                                                                Fig. 28 shows the result of a study where the import
                                                                                                             of renewable energy from four regions to Zeebrugge
                                                                                                             (Belgium) was studied with liquid hydrogen, liquid
                                                                                                             methane (LNG) and methanol as carriers. Methanol
                                                                                                             offers the most attractive case but requires CO2 to
                                                                                                             convert the hydrogen from PV into methanol. This
                                                                                                             opens new opportunities to use CO2 : as stockfeed to
           SEP 2021

                                       Fig. 27 CO2 capture unit under construction at the blast             make methanol with low-cost renewables.
                                                furnace of ArcelorMittal Dunkerque.31
63

                                                                  Conclusions
                                                                  The Smart Carbon Pathway — In this paper, five
                                                                  key enabling technologies to move to carbon neutral-
                                                                  ity have been reviewed in detail with a focus on the
                                                                  constraints to scale up each solution. All five technolo-
                                                                  gies can be integrated with the BF/BOF plants as with
                                                                  the DRI/EAF plants with only minor adaptations to
                                                                  the existing processes. The fossil inputs (coal and nat-
                                                                  ural gas) are replaced by renewable power, cellulosic
                                                                  waste and recycled polymers. CCU and CCE allows to
                                                                  convert the carbon-containing steel waste gas into eth-
                                                                  anol and methanol. Biogenic CO2 can be combined
                                                                  with CCS to realize even negative emissions (BECCS
                                                                  as a sixth key enabling technology).
                                                                     As a result, the initial CO2 emissions of 1,600 kg for
                                                                  BF plants and 1,100 kg for DRI plants in the future
                                                                  net-zero-power world, is stepwise reduced to zero
                                                                  (Fig. 29).

                                                                   » The renewable power allows to electrify the
                                                                     high-temperature heat generation.
                                                                   » Renewable power is converted into 25 kg green
Fig. 28 B
         alance of renewable power potential versus demand
        (including hydrogen) per region in EU.34
                                                                     hydrogen for injection in BF and DRI plants.
                                                                   » The cellulosic biowaste is converted into biocoal
                                                                     for the BF and the EAF.
                                                                   » The recycled polymers are gasified in order to
  With a CO2 captured and exported at a cost below                   reform with CO2 into a syngas.
US$50/ton, the cost of green methanol is even below                » The waste gas of the DRI and BF plant is con-
the current fossil methanol cost. This illustrates                   verted into high-value molecules with biological
again the issue with hydrogen: it requires less energy               gasfermentation.
to convert hydrogen in methanol and transport the                  » The remaining fossil CO2 is captured, liquefied
methanol compared to liquefy and transporting the                    and exported at low cost and imported again as
hydrogen itself. The methanol can be supplied to the                 green methanol produced with low-cost photo-
chemical sector or can be reformed back to syngas                    voltaic power.
and used in DRI or BF shaft injection.35

                                                                                                                                          SEP 2021
                                                                                                                                   I IRON & STEEL TECHNOLOGY I AIST.ORG

Fig. 29 A
         verage levelized cost of hydrogen (H2), methane (CH4 ) and methanol (CH3OH) in Zeebrugge (B), produced in Chile, Oman,
        Australia, Morocco from renewables (as function of cost of CO2: EUR160/ton, EUR80/ton and EUR40/ton).34
64

                                       » The biological CO2 from cellulosic biomass                        and the hydrogen narrative, which are competing
                                         waste can also be captured for BECCS (negative                    with each other (point A and B in Fig. 30).
                                         carbon emissions).                                                   The CCS narrative was at the base of the ULCOS
                                                                                                           project in 2005 in Europe. It states that carbon is a
                                         The key enabling technologies (KETs) as integrated                mandatory resource, and that steelmaking always will
                                       in Fig. 29 have a number of elements in common.                     produce a lot of CO2. Large-scale CCS integration is
                                                                                                           enabling to move to carbon neutrality at the lowest
                                       » All technologies exist at commercial scale or                     cost. It allows to continue to current infrastructure
                                         are currently in demonstration.                                   and keep the jobs. In this way, CCS is promoted as a
                                       » All technologies can be stepwise integrated                       contributor to the “Just Transition.”41
                                         with both BF and DRI plants.                                         More recently, the hydrogen narrative was launched.
                                       » Each KET can be deployed in parallel. There is                    It promotes the radical change away from carbon to
                                         no risk for carbon lock-in by starting with one                   hydrogen produced with renewables. Although the
                                         technology. On the contrary, the combination                      costs of the transition are very high in case only
                                         of 2 KET is creating additional synergy gains                     renewables are considered, it is believed that banning
                                         which will accelerate the deployment.                             carbon feedstock is the most desirable abatement
                                       » All technologies are scaled related to realistic                  option.
                                         supply constraints.                                                  Both narratives however have the same issues: lack
                                                                                                           of robustness and increasing costs with scaling up.
                                                                                                              There are beliefs in a deterministic world with only
                                       A New Narrative for Carbon-Neutral Steel-                           one endgame (e.g., “continue storage of fossil CO2”;
                                       making — Until now, two narratives for carbon-                     “green hydrogen economy”). There is no flexibility to
                                       neutral steelmaking were launched: the CCS narrative                adapt the path for future “black swans.” An example
                                                                                                           is the belief in hydrogen fuel cells for future transport
I IRON & STEEL TECHNOLOGY I AIST.ORG
           SEP 2021

                                       Fig. 30 Integrating five key enabling technologies allows to move existing BF and DRI plants to move to carbon neutral.
65

Fig. 31 T
         he traditional CCS (point A) and Hydrogen (point B) narratives result in high cost and low flexibility (thus risks). The novel
        Smart carbon narrative is flexible and combines five strategies at their lowest cost point.

until recently the battery technology popped up as a                   recently in the U.S., no significant progress was made
game changer. One clear black swan that occurred                       related to CCS.
after the ULCOS project is the gasfermentation of                         The same risks happen with the hydrogen narrative.
steel waste gas, which suddenly makes large-scale                      The EU is allocating massive amounts of money to
CCU possible.                                                          support the initial investments in hydrogen, but this
   Both narratives are suffering from the law of                       will be not enough. Limited potential to deploy locally
diminishing returns. This means that the first abate-                  renewable power will result in high costs. All experts
ment steps can be relatively cheap, but the larger the                 believe that the hydrogen narrative will be more cost-
deployment, the higher the costs and the lower the                     ly compared to the CCS narrative and will require
returns. Green hydrogen production on-site for flex-                   financial support during decades. The result is loss
ible injection can be relatively cheap for the first 50                of competitiveness and jobs and higher contributions
or 100 MW, but in order to run 3-GW electrolyzers                      from taxpayers (directly through taxes or indirect-
24/7 with renewable power, long-distance transport                     ly through contract for differences, carbon border
of power and hydrogen with intermediate (seasonal)                     adjustments, etc.). The lack of justness risks creating
storage will be required. The same is true for CCS: a                  resistance against the whole climate transition plan.
fraction of the CO2 can be captured at a low cost and                     The two conflicting narratives are paralyzing the
can be stored or used locally. But 100% capture of                     climate actions in the steel industry and are block-
all CO2 and storage during decades will result in an                   ing the necessary investments to move to carbon
exponential increase of the marginal storage costs.                    neutrality.
                                                                                                                                                  SEP 2021

   Although IPCC confirms that without CCS the CO2                        Steelmakers need to develop a new, compelling
abatement costs, 2015–2100 will be 138% higher ver-                    narrative based on the Smart Carbon pathway (point
                                                                                                                                           I IRON & STEEL TECHNOLOGY I AIST.ORG

sus solutions with CCS,41 CCS never got the necessary                  C in Fig. 30). The steel sector can be at the center of
incentives and political will due to the two aforemen-                 the future ecosystem guided by values as zero waste,
tioned reasons. The lack of flexibility created the fear               cradle to cradle and high returns thanks to optimal
that supporting CCS would lead to carbon lock-in                       specialization. The optimum is not only carbon or
(for example by keeping the coal-fired power plants).                  only hydrogen, but the combination of both. This
Financing CCS risked making the deployment of                          results in lower costs for CO2 capture (the red curve),
renewable power more expensive and thus policymak-                     more flexibility to support variable renewables, higher
ers feared to have to pay twice. Since 2005, except                    added value thanks to the production of chemicals,
66

                                       higher return to society by promoting circular econo-               8.     T. Okosun et al., “On the Impacts of Pre-Heated Natural Gas
                                                                                                                  Injection in Blast Furnaces,” Processes 2020, Vol. 8, p. 771.
                                       my and job creation.
                                                                                                           9.     ArcelorMittal, Carbon Action Report 1, June 2019.
                                                                                                           10.    IEA, “The Future of Hydrogen,” 2019.

                                       Summary                                                             11.    IEA, “Net Zero by 2050,” 2021.
                                                                                                           12.    F. Patisson et al., “Hydrogen Ironmaking: How It Works,”
                                                                                                                  Metals, Vol. 10, 2020, p. 922.
                                       This article gave an overview of the challenges and                 13.    Nippon Steel Carbon Neutral Vision 205, “A Challenge of
                                       opportunities to transform the steel sector to car-                       Zero Carbon Steel,” March 2021.
                                       bon neutrality. The main technological steps were                   14.    Primetals Technologies press release, London, U.K., June
                                       described and the constraints for implementation in                        2019.
                                       a 2050 carbon-neutral world were identified.                        15.    J. Madias et al., “The Influence of Metallics and EAF Design,”
                                                                                                                  Steel Times International, December 2017.
                                         Starting from the traditional and conflicting nar-
                                                                                                           16.    thyssenkrupp press release, Düsseldorf, Germany, August
                                       ratives for carbon neutral steelmaking, which are                          2020.
                                       the CCS narrative and the hydrogen narrative, it                    17.    U. Bossel et al., “Energy and the Hydrogen Economy.”
                                       was shown that steelmakers need to develop the new                  18.    S. Timmerberg et al., “Hydrogen and Hydrogen-Derived
                                       compelling the Smart Carbon based on a flexible                            Fuels Through Methane Decomposition of Natural Gas
                                       combination of carbon and hydrogen inputs from                            – GHG Emissions and Costs,” Energy Conversion and
                                                                                                                  Management: X, Vol. 7, 2020.
                                       renewables and from waste resources at the entry
                                                                                                           19.    Westinghouse Plasma Corp.
                                       and production of high valuable chemicals with CCU
                                                                                                           20.    J. Borlée, “European Steel Industry Main Pathways Toward
                                       (carbon capture and use), CCE (carbon capture and                          the Smart, Low Carbon Industry of the Future,” ESTEP
                                       export) and BECCS (bio-energy CCS).                                        Workshop, February 2018.
                                         The Smart Carbon narrative will bring the steel                   21.    M. Sukhram, “The Use of Plasma Torches in Blast Furnace
                                       sector at the center of the carbon-neutral ecosystem                       Ironmaking,” ECIC2016, Linz, Austria.
                                       with a more “ just transition” which creates jobs and               22.    Monolith Materials, https://monolithmaterials.com.
                                       prosperity for our society.                                         23.    http://www.thyssenkruppsteel.com.
                                                                                                           24.    ISPT.EU, S2C Steel2Chemicals projected.
                                                                                                           25.    C. De Maré, “Carbon Neutral Steelmaking at ArcelorMittal:
                                       Acknowledgments                                                            A Key Enabler for the Circular Economy,” VARIO Colloquium,
                                                                                                                  December 2019.
                                                                                                           26.    http://www.steelanol.eu.
                                       I would like to thank my friends who nominated me                   27.    K. Wing, et al., “Combustibility of Charcoal for Direct
                                       and the AIST Awards and Recognition Committee to                           Injection in Blast Furnace Ironmaking,” CanmetENERGY,
                                       give me the honor to present the 2021 Howe Memorial                        Canada.
                                       Lecture. I am especially thankful to ArcelorMittal and              28.    S. Nannoni, “Valorizing Wood Waste for Energy and Material
                                                                                                                  in Europe,” November 2019.
                                       all colleagues who supported me during all those
                                                                                                           29.    http://www.torero.eu.
                                       years to develop new solutions for one of the most
                                                                                                           30.    http://www.valmet.com.
                                       challenging problems. I would also like to thank
                                                                                                           31.    “The Known Unknowns of Plastic Pollution,” The Economist,
                                       the many business partners (suppliers, technology                          3 March 2018.
                                       providers, researchers, etc.) who contributed to the                32.    http://www.3d-ccus.com.
                                       developments described. Finally, a special thank-you                33.    “Shipping CO2 — UK Cost Estimation Study,” Final Report
                                       to Jennifer Holmgren for the inspiring journey we                          for BEIS, elementenergy, November 2018.
                                       could walk together over the last 10 years.                         34.    “Shipping Sun and Wind to Belgium Is Key in Climate
                                                                                                                  Neutral Economy,” Hydrogen Import Coalition Final Report,
                                                                                                                 January 2021.

                                       References                                                          35.    J. Andersson et al., “Methanol as a Carrier of Hydrogen and
                                                                                                                  Carbon in Fossil-Free Production of Direct Reduced Iron,”
                                                                                                                  Energy Conversion and Management: X7, 2020.
I IRON & STEEL TECHNOLOGY I AIST.ORG

                                       1.   “Our World in Data,” https://ourworldindata.org.               36.    M. Xylia et al., “Worldwide Resource Efficient Steel
                                       2.   Carl De Maré’s own analysis.                                          Production,” KTH Stockholm, VITO Belgium.
                                       3.   World Steel Association, http://www.worldsteel.org.            37.    http://www.hybritdevelopment.se.
                                       4.   D. Nuber et al., “Circored Fine Ore Direct Reduction,”         38.    “Environmental Report 2020,” voestalpine, 31 December
                                            Millenium Steel 2006, pp. 37–40.                                      2020.
                                       5.   Z. Fan, et al., “Low-Carbon Production of Iron and Steel:      39.    http://www.greenh2steel.com.
                                            Technological Options, Economic Assessment and Policy,         40.    http://www.torrcoal.com.
                                            Joule, Vol. 5, No. 4, 2021, pp. 829–862.
                                                                                                           41.    Z. Janipour, et al., “Understanding Contrastring Narratives
                                       6.   F. Patisson et al., “Hydrogen Ironmaking: How It Works,”              on Carbon Dioxide Capture and Storage for Dutch
                                            Metals, Vol. 10, 2020, p. 922.                                        Industry Using System Dynamics,” International Journal of
           SEP 2021

                                       7.   D. Spreitzer et al., “Reduction of Iron Oxides With Hydrogen          Greenhouse Gas Control, 29 December 2020.                 F
                                            — A Review,” Steel Research International, Vol. 90, 2019.
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