WiSaNo Study Confirms CO2 Neutral Sponge Iron for Green Steel
World's leading steel manufacturer ArcelorMittal is driving the transformation for green steel and, with funding from the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety, has commissioned a study to investigate the technological and economic framework conditions under which green steel can be produced in the future. Now we have the results. Professors Marc Hölling and Hans Schäfers of Competence Center for Renewable Energies and Energy Efficiency CC4E at the University of Applied Sciences HAW in Hamburg analyzed in the study "Wind Steel from Northern Germany" WiSaNo how CO2-neutral steel is efficient and efficient in electric arc furnaces can be produced sustainably with sponge iron on a hydrogen basis.
They concluded “The most advantages are offered by the production of sponge iron near the coast with transport to steelworks inland. The associated CO2 avoidance costs are in the order of 200 euros per ton of CO2 in relation to an integrated blast furnace. However, these costs are well above the profit margins of the steel industry, so that suitable funding and control instruments must be developed by politics in order to enable the steel industry to be decarbonised.
The researchers at HAW have examined different concepts for CO2-free steel production, each with an annual production volume of one million tons of rolled steel, in order to enable easy scaling. A comparison shows most of the advantages for flexible, hydrogen-based DRI production near the coast and transport to an existing steel mill location inland. The production of CO2-free DRI directly enables a significant reduction in CO2 emissions. In the next step towards climate-neutral production, it would be possible to switch to green electricity, including energy storage, so that the entire process becomes CO2-free. Thanks to the energy-intensive direct reduction near the coast, the costs for network expansion and storage can be kept moderate.