摘要 :
In the attempt to reduce greenhouse gas emissions from steel production, several large industry decarbonization projects have emerged in Europe. The commercialization of low-emission steel technology, however, faces systemic barri...
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In the attempt to reduce greenhouse gas emissions from steel production, several large industry decarbonization projects have emerged in Europe. The commercialization of low-emission steel technology, however, faces systemic barriers such as a lack of infrastructure and unclear demand for greener steel. As part of its new commitment to climate-neutrality, the European Commission has announced plans to more actively create and reshape markets for green basic materials. The approach is inspired by the recent success story of renewable energy, where market interventionist policy has successfully led to cost reductions and supported the diffusion of wind and photovoltaics. However, the applicability of this type of policy to decarbonize basic materials has so far not been investigated. In this study, we evaluate the effectiveness, feasibility, efficiency and fairness of early commercialization policy support for the decarbonization transition of steel. We compare two approaches: demand side market creation and direct production subsidies through carbon contracts for difference. We find that the subsidy approach can more effectively enable the realization of primary green steel production. A complementary use of market creation policy instruments can reduce the production subsidy volumes needed and aid the global diffusion of new production methods. Although effective, we find that production subsidies will distribute the costs and benefits of the transition unequally. In order to improve effectiveness and fairness of the policy, parallel programmes such as electricity price guarantees and transitional assistance policies for disadvantaged regions are needed. Key policy insights Carbon contracts for difference are the most promising policy instrument to commercialize low-emission primary steel but are likely to lead to unequal distribution of transition costs. Market creation policies can support the global diffusion of low-emission primary steelmaking. Material efficiency and demand reduction can reduce the need for primary steel production by more than 50%. Regions without access to large amounts of renewable electricity are especially disadvantaged. Unclear EU ETS benchmarks currently create a perverse incentive that keeps firms from investing in breakthrough technologies.
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摘要 :
The target of zero emissions sets a new standard for industry and industrial policy. Industrial policy in the twenty-first century must aim to achieve zero emissions in the energy and emissions intensive industries. Sectors such a...
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The target of zero emissions sets a new standard for industry and industrial policy. Industrial policy in the twenty-first century must aim to achieve zero emissions in the energy and emissions intensive industries. Sectors such as steel, cement, and chemicals have so far largely been sheltered from the effects of climate policy. A major shift is needed, from contemporary industrial policy that mainly protects industry to policy strategies that transform the industry. For this purpose, we draw on a wide range of literatures including engineering, economics, policy, governance, and innovation studies to propose a comprehensive industrial policy framework. The policy framework relies on six pillars: directionality, knowledge creation and innovation, creating and reshaping markets, building capacity for governance and change, international coherence, and sensitivity to socio-economic implications of phase-outs. Complementary solutions relying on technological, organizational, and behavioural change must be pursued in parallel and throughout whole value chains. Current policy is limited to supporting mainly some options, e.g. energy efficiency and recycling, with some regions also adopting carbon pricing, although most often exempting the energy and emissions intensive industries. An extended range of options, such as demand management, materials efficiency, and electrification, must also be pursued to reach zero emissions. New policy research and evaluation approaches are needed to support and assess progress as these industries have hitherto largely been overlooked in domestic climate policy as well as international negotiations. Key policy insights Energy and emission intensive industries can no longer be complacent about the necessity of zero greenhouse gas (GHG) emissions. Zero emissions require profound technology and organizational changes across whole material value chains, from primary production to reduced demand, recycling and end-of-life of metals, cement, plastics, and other materials. New climate and industrial policies are necessary to transform basic materials industries, which are so far relatively sheltered from climate mitigation. It is important to complement technology R&D with the reshaping of markets and strengthened governance capacities in this emerging policy domain. Industrial transformation can be expected to take centre stage in future international climate policy and negotiations.
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The Swedish steel industry stands before a potential transition to drastically lower its CO2 emissions using direct hydrogen reduction instead of continuing with coke-based blast furnaces. Previous studies have identified hydrogen...
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The Swedish steel industry stands before a potential transition to drastically lower its CO2 emissions using direct hydrogen reduction instead of continuing with coke-based blast furnaces. Previous studies have identified hydrogen direct reduction as a promising option. We build upon earlier efforts by performing a technological innovation system study to systematically examine the barriers to a transition to hydrogen direct reduction and by providing deepened quantitative empirics to support the analysis. We also add extended paper and patent analysis methodology which is particularly useful for identifying actors and their interactions in a technological system. We conclude that while the innovation system is currently focused on such a transition, notable barriers remain, particularly in coordination of the surrounding technical infrastructure and the issue of maintaining legitimacy for such a transition in the likely event that policies to address cost pressures will be required to support this development. (C) 2019 The Authors. Published by Elsevier Ltd.
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摘要 :
Global steel production is currently dependent on coal and capital-intensive production facilities with long economic lifetimes. While the Paris Agreement means carbon neutrality must be reached globally by 2050-2070, with negativ...
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Global steel production is currently dependent on coal and capital-intensive production facilities with long economic lifetimes. While the Paris Agreement means carbon neutrality must be reached globally by 2050-2070, with negative emissions thereafter, coal-based steel production today accounts for around 8% of global energy related CO2 emissions. Its production may stabilize or even decline in industrialized countries, but it will increase significantly in the emerging economies. In the past, the focus of CO2 reduction for steel has been on moderate emissions reductions through energy efficiency measures and on exploring carbon capture and storage. However, as (1) the cost of renewable electricity is declining rapidly, (2) carbon capture and storage has not materialized yet, and (3) and more and more countries set deep emission reduction targets, electricity- and hydrogen-based steel making has gathered substantial momentum over the past half-decade. Given the short time frame and the sector's deep carbon lock-in, there is an urgent need to understand the national climate and energy policy as well as the current implementation of low-CO2 and renewable electricity that would enable a shift from coal-based to electricity-based steel making. In this paper, we first identify the countries that are likely to be major steel producers in the future and thus major CO2-emitters. Then we map medium- and long-term CO2 reduction and renewable targets as well as the current share of low-CO2 and renewable electricity by country. Based on these data, we develop a set of indicators that map the readiness of steel-producing countries for a sustainable transition. Our findings show that although binding long-term CO2 reduction targets are being implemented, medium-term CO2 reduction do not yet affect coal based steel production. Overall, the global steel industry seems not be on track yet, though differences between steel producing countries are large. Common shortcomings across countries are a lack of access to renewable electricity and a lack of demanding medium-term CO2 reduction targets. The paper ends with recommendations on how to enable a low-carbon transition of the global steel industry in line with the Paris Agreement.
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摘要 :
Climate policy objectives require zero emissions across all sectors including steelmaking. The fundamental process changes needed for reaching this target are yet relatively unexplored. In this paper, we propose and assess a poten...
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Climate policy objectives require zero emissions across all sectors including steelmaking. The fundamental process changes needed for reaching this target are yet relatively unexplored. In this paper, we propose and assess a potential design for a fossil-free steelmaking process based on direct reduction of iron ore with hydrogen. We show that hydrogen direct reduction steelmaking needs 3.48 MWh of electricity per tonne of liquid steel, mainly for the electrolyser hydrogen production. If renewable electricity is used the process will have essentially zero emissions. Total production costs are in the range of 361-640 EUR per tonne of steel, and are highly sensitive to the electricity price and the amount of scrap used. Hydrogen direct reduction becomes cost competitive with an integrated steel plant at a carbon price of 34-68 EUR per tonne CO2 and electricity costs of 40 EUR/MWh. A key feature of the process is flexibility in production and electricity demand, which allows for grid balancing through storage of hydrogen and hot-briquetted iron, or variations in the share of scrap used. (C) 2018 The Authors. Published by Elsevier Ltd.
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