Improved Energy Efficiency and Fuel Substitution in the Iron and Steel Industry

Abstract: IPCC reported in its climate change report 2013 that the atmospheric concentrations of the greenhouse gases (GHG) carbon dioxide (CO2), methane, and nitrous oxide now have reached the highest levels in the past 800,000 years. CO2 concentration has increased by 40% since pre-industrial times and the primary source is fossil fuel combustion. It is vital to reduce anthropogenic emissions of GHGs in order to combat climate change. Industry accounts for 20% of global anthropogenic CO2 emissions and the iron and steel industry accounts for 30% of industrial emissions. The iron and steel industry is at date highly dependent on fossil fuels and electricity. Energy efficiency measures and substitution of fossil fuels with renewable energy would make an important contribution to the efforts to reduce emissions of GHGs.This thesis studies energy efficiency measures and fuel substitution in the iron and steel industry and focuses on recovery and utilisation of excess energy and substitution of fossil fuels with biomass. Energy systems analysis has been used to investigate how changes in the iron and steel industry’s energy system would affect the steel plant’s economy and global CO2 emissions. The thesis also studies energy management practices in the Swedish iron and steel industry with the focus on how energy managers think about why energy efficiency measures are implemented or why they are not implemented. In-depth interviews with energy managers at eleven Swedish steel plants were conducted to analyse energy management practices.In order to show some of the large untapped heat flows in industry, excess heat recovery potential in the industrial sector in Gävleborg County in Sweden was analysed. Under the assumptions made in this thesis, the recovery output would be more than three times higher if the excess heat is used in a district heating system than if electricity is generated. An economic evaluation was performed for three electricity generation technologies for the conversion of low-temperature industrial excess heat. The results show that electricity generation with organic Rankine cycles and phase change material engines could be profitable, but that thermoelectric generation of electricity from low-temperature industrial excess heat would not be profitable at the present stage of technology development. With regard to fossil fuels substituted with biomass, there are opportunities to substitute fossil coal with charcoal in the blast furnace and to substitute liquefied petroleum gas (LPG) with bio-syngas or bio synthetic natural gas (bio-SNG) as fuel in the steel industry’s reheating furnaces. However, in the energy market scenarios studied, substituting LPG with bio-SNG as fuel in reheating furnaces at the studied scrap-based steel plant would not be profitable without economic policy support. The development of the energy market is shown to play a vital role for the outcome of how different measures would affect global CO2 emissions.Results from the interviews show that Swedish steel companies regard improved energy efficiency as important. However, the majority of the interviewed energy managers only worked part-time with energy issues and they experienced that lack of time often was a barrier for successful energy management. More efforts could also be put into engaging and educating employees in order to introduce a common practice of improving energy efficiency at the company.