CO2 Reduction Strategies in the Basic Metals Industry: A Systems Approach

This paper discusses the results of a Western European energy and materials systems engineering study that analyses the impact of greenhouse gas (GHG) emission reduction on the future of the steel and aluminum industry. he technology selection will be significantly affected by future CO2 policies. The avail- ability of C02 removal and storage technology and the social acceptance of this strategy for GHG emission reduction is of key importance for the strategy selection. The use of coal based smelting reduction technologies is optimal in case of weak C02 policies or in case of strong C02 policies and low CO2 removal and storage costs. The selection of CCF or Corex technology depends on the penalty regime. However, if C02 removal proves to be problematic, CCF development fails and strong C02 policies are introduced, the gas based DRI production processes will become more attractive. In both cases, the energy efficiency of the iron and steel industry will further increase in the next decades. The impact of GHG emission reduction on aluminum prices and aluminum use can be significant. However contrary to common notions the aluminum production will be positively affected by GHG emission reduction, notwithstanding the currently high emissions in aluminum production. A combination of emission mitigation in production and significant GHG emission reduction effects further down the product chain cause this effect. A significant potential exists for improved materials efficiency. This potential is generally neglected in energy efficiency and CO2 reduction studies. However improved steel qualities are of similar importance for C02 emission reduction as increased energy efficiency. It remains to see if this potential will be used to its full extent in the next decades. Model calculations indicate that the impact of C02 policies on the competition with other materials will be limited. Greenhouse gas emission mitigation will have much more impact on materials production and waste handling than on materials consumption.