Session: 01-01: Decarbonizing Industrial Processes

Paper Number: 161884

161884 - Energy and Climate Impacts of Electrification of the Steel Industry 

Abstract: 

Steel production is one of the largest sources of industrial greenhouse gas (GHG) emissions globally. Many of these emissions are associated with the use of blast furnaces, which convert iron ore into steel using fuels like coal, coke, and natural gas. Electrification of the steel industry, through the use of electric arc furnaces, in conjunction with direct reduction of iron ore via hydrogen, can significantly reduce the GHG emissions per unit of steel produced. However, both electrification and the production of hydrogen by electrolysis are significant consumers of electricity. Here, we consider a case study of the electrification of the steel industry in the state of Indiana. Indiana is the largest steel-producing state in the US, and is home to a number of blast furnace and electric arc furnace facilities. Expanding this electrified steel infrastructure would require an expansion in electricity production capacity in Indiana and surrounding states. To account for this increase in electricity demand, we model the eastern interconnection of the US electricity grid with increased electricity demand using the NREL ReEDS capacity expansion model. We estimate the electricity required to produce steel under multiple hydrogen electrolyzer operating conditions like varied pressure, temperature, and current density. We also consider uncertainty associated with the electricity required for the direct reduction of iron ore into iron. Using this information about projected grid load, we consider multiple possible grid futures using different combinations of low-emissions electricity generation technologies, including wind, solar, nuclear, and carbon capture and storage options. We find that in all scenarios, there is a net reduction in overall greenhouse gas emissions over a 30-year time horizon. However, in some scenarios when steel electrification is adopted rapidly, there is a net increase in grid emissions in the first few years of operation. Despite the early increases in annual emissions as the grid struggles to accommodate sudden increases in electricity load, a faster steel electrification transition results in a larger reduction in emissions over a 30-year period. Overall, we see the largest emissions reductions in scenarios where wind generation technology costs fall more rapidly than their current pace. Emissions reductions are the lowest when low-carbon electricity generation adoption continues at its current pace without significant cost or technology performance improvements. None of the scenarios we consider are able to totally eliminate the emissions associated with the steelmaking process, both because we do not limit our electricity consumption to zero-emissions sources and because of the direct emissions associated with the steelmaking process.

Presenting Author: Rebecca Ciez Purdue University

Presenting Author Biography: Dr. Rebecca Ciez is an Assistant Professor in Mechanical Engineering and Environmental and Ecological Engineering at Purdue University. Prior to Purdue, she was a postdoctoral researcher at the Columbia Electrochemical Energy Center and the Andlinger Center for Energy and the Environment at Princeton University. Her research combines methods from engineering, quantitative policy analysis, and economics to consider the economic and environmental impacts of energy systems and technologies. She applies these methods to energy technologies that are part of the electrification and decarbonization transition, including battery energy storage systems, residential and industrial heat pumps, hydrogen electrolysis, steel electrification, and direct air capture. Dr. Ciez’s work has been published in journals including ACS Energy Letters, Joule, and Nature Sustainability, and has been covered by publications including Science Magazine, Wired, The Wall Street Journal, and IEEE Spectrum. She holds a bachelor’s degree in mechanical engineering from Columbia University and a Ph.D. in Engineering and Public Policy from Carnegie Mellon University.