Understanding the potential future capacity of distributing green steel solutions - current knowledge and future challenges

Abstract: Transitioning from the conventional steel process to a direct hydrogen reduction process in the steel industry is a significant step towards reducing carbon dioxide emissions and achieving greater sustainability. The process involves using hydrogen gas as a reducing agent instead of carbon to remove oxygen from the iron ore. This study aimed to investigate the future capacity of the hydrogen-based steelmaking process in Sweden by 2050 while also examining the pathway for transitioning to hydrogen-based steelmaking in other European countries in comparison to the Swedish case. To achieve this goal, a systematic literature search was conducted using Scopus and Web of Science databases to identify relevant case studies and reviews that focused on green steel solutions and that discussed associated challenges and barriers. A aconsupteal model was designed by simplifying the process into three production steps, hydrogen storage, and hot briquette iron storage to calculate the energy consumption and material requirements for the hydrogen direct process in Sweden. Additionally, a survey providing insights regarding current practices and perspectives was administered to seven companies in Sweden and two in other European countries, namely the Netherlands and Germany. Furthermore, a comparative analysis of the literature review on life cycle assessment was conducted to compare the carbon emissions associated with two different steel production processes: the conventional process using the basic oxygen furnace and the emerging hydrogen-based steel production process.  An analysis of the energy consumption within the hydrogen-based steelmaking process reveals several components, including the electrolyze, direct reduction shaft furnace, electric arc furnace, and briquetted iron and hydrogen storage. The model results showed that electrolyzing alone accounts for 60% of the energy needed in the process. The model showed that hydrogen direct reduction steelmaking needs 3.66 MWH of electricity per ton of liquid steel produced in Sweden.  Only a few of the Swedish companies have adopted innovative approaches while the remaining steel mills primarily rely on scrap-based methods. While they may obtain hydrogen-reduced iron as a raw material in the future, emissions reduction is not their primary focus. These mills contribute to emissions through fuel usage, and efforts are underway to transition from fossil fuels to electricity, bio -based gas, or hydrogen. Hydrogen-based steel production produces significantly lower greenhouse gas emissions than conventional steel productio, by up to 90 percent, depending on the specific process and energy used, as stated in the life cycle analysis reviews.  This thesis shows key factors for the success of hydrogen-based steel production methods; low -emission electricity and flexibility to store hydrogen. All three countries have expressed interest in and invested in hydrogen-based steelmaking. the share of renewable energy produced and consumed in hydrogen-based steel production in Sweden is expected to make up a share of 2.3% of the total renewable energy production in the country, while Germany and the Netherlands are projected to contribute a modest 1.5% and 1.3% respectively. However, the search for ways to lower carbon dioxide emissions is costly in terms of the amount of electricity required. There are practical reasons for the restricted usage of this steelmaking process in Europe, including the availability of steel scrap, electricity demand, and the low likelihood of scrap generation and recycling scrap availability on the EU  market. Because of this, it is challenging to predict capacity and carbon dioxide reduction by 2050.