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Decarbonizing China’s iron and steel industry from the supply and demand sides for carbon neutrality

Author

Listed:
  • Ren, Ming
  • Lu, Pantao
  • Liu, Xiaorui
  • Hossain, M.S.
  • Fang, Yanru
  • Hanaoka, Tatsuya
  • O'Gallachoir, Brian
  • Glynn, James
  • Dai, Hancheng

Abstract

Iron and steel production in China contributes to 14% of China’s total energy-related CO2 emissions. Decarbonizing the iron and steel sector will therefore play an important role in achieving the goal of carbon neutrality. This study explored possible low-carbon transition pathways for China’s iron and steel industry to achieve carbon neutrality by 2050. An integrated approach was developed that combined a computable general equilibrium model and a bottom-up technology-selection module. The results indicated that although energy-saving technologies can reduce CO2 emissions in the short term, in the long term, adopting breakthrough technologies (e.g., carbon capture and storage (CCS) and hydrogen-based direct reduction (DR)), increasing the share of scrap-based electric arc furnace (EAF) steel production, and decarbonizing upstream energy-supply sectors will be crucial for climate change mitigation. Hydrogen-based DR could be an effective option for CO2 emission reduction in scenarios where CCS is not available, with its share increasing to 23%–25% by 2050. System-wide cross-sector decarbonization can help achieve climate targets at lower costs through flexible technology combinations and avoid carbon leakage into upstream energy-supply sectors.

Suggested Citation

  • Ren, Ming & Lu, Pantao & Liu, Xiaorui & Hossain, M.S. & Fang, Yanru & Hanaoka, Tatsuya & O'Gallachoir, Brian & Glynn, James & Dai, Hancheng, 2021. "Decarbonizing China’s iron and steel industry from the supply and demand sides for carbon neutrality," Applied Energy, Elsevier, vol. 298(C).
  • Handle: RePEc:eee:appene:v:298:y:2021:i:c:s0306261921006334
    DOI: 10.1016/j.apenergy.2021.117209
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