Levelized Cost Analysis for Blast Furnace CO 2 Capture, Utilization, and Storage Retrofit in China’s Blast Furnace–Basic Oxygen Furnace Steel Plants

Changwan Gu (), Jingjing Xie, Xiaoyu Li () and Xu Gao
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Changwan Gu: School of Energy and Mining Engineering, China University of Mining and Technology, Beijing (CUMTB), Beijing 100083, China
Jingjing Xie: School of Energy and Mining Engineering, China University of Mining and Technology, Beijing (CUMTB), Beijing 100083, China
Xiaoyu Li: School of Environment, Tsinghua University, Beijing 100084, China
Xu Gao: Railway Engineering Research Institute, China Academy of Railway Sciences Corporation Limited, Beijing 100081, China

Energies, 2023, vol. 16, issue 23, 1-20

Abstract: As the largest carbon emitter in China’s manufacturing sector, the low-carbon transition of the steel industry is urgent. CO 2 capture, utilization, and storage (CCUS) technology is one of the effective measures to reduce carbon emissions in steel industry. In this paper, a comprehensive assessment model of source–sink matching-levelized cost in China’s steel industry is constructed to evaluate the potential, economy, and spatial distribution of CCUS retrofits of blast furnaces in the BF-BOF steel industry. The results show that, if no extra incentive policy is included, the levelized cost of carbon dioxide (LCOCD) of 111 steel plants with a 420.07 Mt/a CO 2 abatement potential ranges from −134.87 to 142.95 USD/t. The levelized cost of crude steel (LCOS) range of steel plants after the CCUS retrofits of blast furnaces is 341.81 to 541.41 USD/t. The incentives such as carbon market and government subsidies will all contribute to the early deployment of CCUS projects. The CCUS technology could be prioritized for deployment in North China, Northwest China, and East China’s Shandong Province, but more powerful incentives are still needed for current large-scale deployment. The research results can provide references for the early deployment and policy formulation of CCUS in China’s steel industry.

Keywords: carbon capture, utilization, and storage (CCUS); steel plant; blast furnace; source–sink matching; levelized cost (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2023
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