Mathematical optimization modeling for scenario analysis of integrated steelworks transitioning towards hydrogen-based reduction

Carl Haikarainen, Lei Shao, Frank Pettersson and Henrik Saxén

Energy, 2024, vol. 305, issue C

Abstract: To reduce carbon dioxide emissions from the steel industry, efforts are made to introduce a steelmaking route based on hydrogen reduction of iron ore instead of the commonly used coke-based reduction in a blast furnace. Changing fundamental pieces of steelworks affects the functions of most every system unit involved, and thus warrants the question of how such a transition could optimally take place over time, and no rigorous attempts have until now been made to tackle this problem mathematically. This article presents a steel plant optimization model, written as a mixed-integer non-linear programming problem, where aging blast furnaces and basic oxygen furnaces could potentially be replaced with shaft furnaces and electric arc furnaces, minimizing costs or emissions over a long-term time horizon to identify possible transition pathways. Example cases show how various parameters affect optimal investment pathways, stressing the necessity of appropriate planning tools for analyzing diverse cases.

Keywords: Steel production; Optimization; MINLP; Transition; Hydrogen; System model (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:305:y:2024:i:c:s0360544224021406

DOI: 10.1016/j.energy.2024.132366

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