Techno-Economic and CO2 Emissions Analysis of the Molten Carbonate Fuel Cell Integration in a DRI Production Plant for the Decarbonization of the Steel Industry
Roberto Scaccabarozzi,
Chiara Artini,
Stefano Campanari and
Maurizio Spinelli
Applied Energy, 2024, vol. 376, issue PB, No S0306261924016477
Abstract:
Developing low-carbon systems for the steel industry is increasingly considered necessary for contributing to the targets of CO2 emission reduction requested by modern environmental policies. This work focuses on a process for decarbonizing primary steel production by integrating an MCFC system in a DRI production plant based on the Energiron ZR process configuration. An MCFC system can be used to remove CO2 from the flue gases while producing electricity and reducing the net electric consumption of the DRI plant. The reference scenario, the carbon capture case, and an additional hydrogen-based H-DRI system using high temperature electrolysis are simulated using Aspen Plus to evaluate and compare their energy and environmental performance. The results show that even considering the additional power consumption of the complete carbon capture and separation system, the overall electrical consumption of the carbon capture case is decreased by 78 % and the direct CO2 emissions by up to 95 %. Furthermore, reduced electricity consumption reduces scope 2 emissions, increasing the sustainability of the process in the steel industry. On the other hand, the H-DRI case decreases primary energy consumption by 24 % but significantly increase electricity requirement; thus, it represents a better future solution when cheap low-CO2 electricity is available. The plant configurations are compared economically by retrieving investment and operational costs from the open literature to estimate the levelized cost of DRI and the cost of CO2 avoided. The results show that installing the MCFC and the anode purification system increases the investment costs by 38 % compared to a conventional plant. However, the lower electricity consumption and carbon tax expenditure lead to a comparable final DRI product cost. Contrarily, due to the electrolyzer high investment and operational costs, the additional marginal DRI cost of the H-DRI case is 31 % higher. Finally, the sensitivity analysis on the main variable costs shows that, independently from the electricity and natural gas price, the carbon capture case is economically competitive to the reference scenario, considering a carbon tax of 60 €/tCO2 or higher. At the same time, the H-DRI solution requires low electricity prices to be competitive. In conclusion, even if, in the long term, the objective is to completely replace the use of fossil fuels with renewable energy, in the short term, the implementation of MCFC in the DRI plant can significantly reduce the environmental impact of primary steel production without significant economic penalization.
Keywords: Techno-economic analysis; Carbon capture and storage; Iron and steel industry; Molten carbonate fuel cell; Decarbonization (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:appene:v:376:y:2024:i:pb:s0306261924016477
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DOI: 10.1016/j.apenergy.2024.124264
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