Decarbonizing China’s iron and steel industry from the supply and demand sides for carbon neutrality

Ming Ren, Pantao Lu, Xiaorui Liu, M.S. Hossain, Yanru Fang, Tatsuya Hanaoka, Brian O'Gallachoir, James Glynn and Hancheng Dai

Applied Energy, 2021, vol. 298, issue C, No S0306261921006334

Abstract: Iron and steel production in China contributes to 14% of China’s total energy-related CO2 emissions. Decarbonizing the iron and steel sector will therefore play an important role in achieving the goal of carbon neutrality. This study explored possible low-carbon transition pathways for China’s iron and steel industry to achieve carbon neutrality by 2050. An integrated approach was developed that combined a computable general equilibrium model and a bottom-up technology-selection module. The results indicated that although energy-saving technologies can reduce CO2 emissions in the short term, in the long term, adopting breakthrough technologies (e.g., carbon capture and storage (CCS) and hydrogen-based direct reduction (DR)), increasing the share of scrap-based electric arc furnace (EAF) steel production, and decarbonizing upstream energy-supply sectors will be crucial for climate change mitigation. Hydrogen-based DR could be an effective option for CO2 emission reduction in scenarios where CCS is not available, with its share increasing to 23%–25% by 2050. System-wide cross-sector decarbonization can help achieve climate targets at lower costs through flexible technology combinations and avoid carbon leakage into upstream energy-supply sectors.

Keywords: Iron and steel industry; Direct reduction iron; Carbon capture and storage; IMED model; Cross-sector decarbonization (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (30)

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DOI: 10.1016/j.apenergy.2021.117209

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