Decarbonizing Primary Steelmaking: Strategic Capacity Modification and Reduction Planning

Yannik Graupner (), Fabio Rausch, Christian Weckenborg and Thomas S. Spengler
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Yannik Graupner: Technische Universität Braunschweig
Fabio Rausch: Technische Universität Braunschweig
Christian Weckenborg: Technische Universität Braunschweig
Thomas S. Spengler: Technische Universität Braunschweig

Chapter Chapter 2 in Operations Research Proceedings 2023, 2025, pp 9-15 from Springer

Abstract: Abstract Due to climate change, high-emission industries must transform their production processes toward low-carbon technologies. Therefore, steelmakers plan to replace currently operated production facilities long-term. However, production facilities can also be modified to achieve medium-term emission reductions. Against this background, we present a planning model to support decisions about closing or modifying production facilities within production networks for conventional primary steelmaking. The mixed-integer linear programming model aims to maximize the net present value of steelmaking. It incorporates time-dependent emission budgets that initiate the transformation process. Also, plant modifications to reduce specific greenhouse gas emissions are included. Using different climate scenarios, the dynamic transformation of a European steelmakers’ production network is examined in a case study. The results indicate that modifying production facilities is more favorable in the case of site-specific emission budgets compared to global budgets.

Keywords: Strategic capacity planning; Steel production network; Greenhouse gas emission budgets (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/978-3-031-58405-3_2

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