IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v387y2025ics0306261925003290.html
   My bibliography  Save this article

Low-carbon economic dispatch of iron and steel industry empowered by wind‑hydrogen energy: Modeling and stochastic programming

Author

Listed:
  • Wu, Haotian
  • Ke, Deping
  • Xu, Jian
  • Song, Lin
  • Liao, Siyang
  • Zhang, Pengcheng

Abstract

The advancement of iron and steel production techniques is facilitating the transition of the iron and steel industry (ISI) from coal as the primary energy source to renewable alternatives such as wind and hydrogen. This also implies that the traditional scheduling method of the ISI, which considers only a single form of energy, requires immediate upgrading. To address this issue, this paper proposes a low-carbon stochastic economic dispatch model that considers the multi-energy coupled ISI. The implementation of a resource task network, which defines discrete steel production, permits the incorporation of gas-based ironmaking and stochastic wind‑hydrogen scenarios into an extended resource task network (ERTN). This ERTN ultimately provides a mathematical representation of the overall operation of the ISI. Additionally, a carbon trading model for the ISI based on the actual carbon policies in southern China is constructed to provide additional guidance on the energy use of the ISI. To overcome the computational challenges posed by the considerable number of binary variables and scenarios inherent to the ERTN, a Lagrangian Benders decomposition algorithm (LBDA) has been developed. This approach entails decomposing the original model into a master problem and multiple subproblems, thereby facilitating more efficient optimization. The simulation results demonstrate that the proposed model is capable of rationally arranging iron and steel production and optimizing the energy utility to maximize the overall economy of ISI, and the LBDA is able to guarantee optimality while significantly enhancing the solution efficiency.

Suggested Citation

  • Wu, Haotian & Ke, Deping & Xu, Jian & Song, Lin & Liao, Siyang & Zhang, Pengcheng, 2025. "Low-carbon economic dispatch of iron and steel industry empowered by wind‑hydrogen energy: Modeling and stochastic programming," Applied Energy, Elsevier, vol. 387(C).
  • Handle: RePEc:eee:appene:v:387:y:2025:i:c:s0306261925003290
    DOI: 10.1016/j.apenergy.2025.125599
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261925003290
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.apenergy.2025.125599?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Richardson-Barlow, Clare & Pimm, Andrew J. & Taylor, Peter G. & Gale, William F., 2022. "Policy and pricing barriers to steel industry decarbonisation: A UK case study," Energy Policy, Elsevier, vol. 168(C).
    2. Kirschen, Marcus & Risonarta, Victor & Pfeifer, Herbert, 2009. "Energy efficiency and the influence of gas burners to the energy related carbon dioxide emissions of electric arc furnaces in steel industry," Energy, Elsevier, vol. 34(9), pages 1065-1072.
    3. García-Muñoz, Fernando & Dávila, Sebastián & Quezada, Franco, 2023. "A Benders decomposition approach for solving a two-stage local energy market problem under uncertainty," Applied Energy, Elsevier, vol. 329(C).
    4. Huang, Xuhui & Zhou, Tao & Zhang, Ning, 2025. "How does the carbon market influence the marginal abatement cost? Evidence from China's coal-fired power plants," Applied Energy, Elsevier, vol. 378(PA).
    5. Superchi, Francesco & Mati, Alessandro & Carcasci, Carlo & Bianchini, Alessandro, 2023. "Techno-economic analysis of wind-powered green hydrogen production to facilitate the decarbonization of hard-to-abate sectors: A case study on steelmaking," Applied Energy, Elsevier, vol. 342(C).
    6. Ren, Lei & Zhou, Sheng & Ou, Xunmin, 2023. "The carbon reduction potential of hydrogen in the low carbon transition of the iron and steel industry: The case of China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 171(C).
    7. Ragheb Rahmaniani & Shabbir Ahmed & Teodor Gabriel Crainic & Michel Gendreau & Walter Rei, 2020. "The Benders Dual Decomposition Method," Operations Research, INFORMS, vol. 68(3), pages 878-895, May.
    8. Sheng, Kangling & Wang, Xiaojun & Si, Fangyuan & Zhou, Yue & Liu, Zhao & Hua, Haochen & Wang, Xihao & Duan, Yuge, 2024. "Rational capacity investment for renewable hydrogen-based steelmaking systems: A multi-stage expansion planning strategy," Applied Energy, Elsevier, vol. 372(C).
    9. Chen, Mengxiao & Cao, Xiaoyu & Zhang, Zitong & Yang, Lun & Ma, Donglai & Li, Miaomiao, 2024. "Risk-averse stochastic scheduling of hydrogen-based flexible loads under 100% renewable energy scenario," Applied Energy, Elsevier, vol. 370(C).
    10. Toktarova, Alla & Walter, Viktor & Göransson, Lisa & Johnsson, Filip, 2022. "Interaction between electrified steel production and the north European electricity system," Applied Energy, Elsevier, vol. 310(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wu, Haotian & Ke, Deping & Song, Lin & Xu, Jian & Liao, Siyang & Wang, Lei, 2025. "Multi-objective and multi-stage capacity planning for low-carbon iron and steel industry empowered by wind-gas‑hydrogen energy," Applied Energy, Elsevier, vol. 390(C).
    2. Su, Pengfei & Zhou, Yue & Li, Hongyi & Perez, Hector D. & Wu, Jianzhong, 2025. "Cost-effective scheduling of a hydrogen-based iron and steel plant powered by a grid-assisted renewable energy system," Applied Energy, Elsevier, vol. 384(C).
    3. Hu, Hang & Yang, Lingzhi & Yang, Sheng & Zou, Yuchi & Wang, Shuai & Chen, Feng & Guo, Yufeng, 2024. "Development and assessment of an integrated wind energy system for green steelmaking based on electric arc furnace route," Energy, Elsevier, vol. 302(C).
    4. Caixin Yan & Zhifeng Qiu, 2025. "Review of Power Market Optimization Strategies Based on Industrial Load Flexibility," Energies, MDPI, vol. 18(7), pages 1-41, March.
    5. Zhang, Xiao-Yan & Wang, Cenfeng & Xiao, Jiang-Wen & Wang, Yan-Wu, 2025. "A transactive energy cooperation scheduling for hydrogen-based community microgrid with refueling preferences of hydrogen vehicles," Applied Energy, Elsevier, vol. 377(PC).
    6. Yihan Wang & Zongguo Wen & Mao Xu & Christian Doh Dinga, 2025. "Long-term transformation in China’s steel sector for carbon capture and storage technology deployment," Nature Communications, Nature, vol. 16(1), pages 1-13, December.
    7. Lopez, Gabriel & Galimova, Tansu & Fasihi, Mahdi & Bogdanov, Dmitrii & Breyer, Christian, 2023. "Towards defossilised steel: Supply chain options for a green European steel industry," Energy, Elsevier, vol. 273(C).
    8. Wang, Shunchao, 2025. "Optimal sizing of Power-to-Ammonia plants: A stochastic two-stage mixed-integer programming approach," Energy, Elsevier, vol. 318(C).
    9. Jie Yang & Shaowen Lu & Liangyong Wang, 2020. "Fused magnesia manufacturing process: a survey," Journal of Intelligent Manufacturing, Springer, vol. 31(2), pages 327-350, February.
    10. Kuttner, Leopold, 2022. "Integrated scheduling and bidding of power and reserve of energy resource aggregators with storage plants," Applied Energy, Elsevier, vol. 321(C).
    11. Nardin, Gioacchino & Meneghetti, Antonella & Dal Magro, Fabio & Benedetti, Nicole, 2014. "PCM-based energy recovery from electric arc furnaces," Applied Energy, Elsevier, vol. 136(C), pages 947-955.
    12. Chen, Zhengjie & Ma, Wenhui & Wu, Jijun & Wei, Kuixian & Yang, Xi & Lv, Guoqiang & Xie, Keqiang & Yu, Jie, 2016. "Influence of carbothermic reduction on submerged arc furnace energy efficiency during silicon production," Energy, Elsevier, vol. 116(P1), pages 687-693.
    13. Zuo, Wei & Li, Dexin & Li, Qingqing & Cheng, Qianju & Huang, Yuhan, 2024. "Effects of intermittent pulsating flow on the performance of multi-channel cold plate in electric vehicle lithium-ion battery pack," Energy, Elsevier, vol. 294(C).
    14. García-Muñoz, Fernando & Dávila, Sebastián & Quezada, Franco, 2023. "A Benders decomposition approach for solving a two-stage local energy market problem under uncertainty," Applied Energy, Elsevier, vol. 329(C).
    15. Wang, Qian & Du, Caiyi & Zhang, Xueguang, 2024. "Modeling and planning optimization of carbon capture load based on direct air capture," Energy, Elsevier, vol. 310(C).
    16. Ren, Lei & Shi, Hong & Yang, Yifang & Liu, Jianzhe & Ou, Xunmin, 2025. "Carbon reduction cost of hydrogen steelmaking technology in China," Energy, Elsevier, vol. 320(C).
    17. Zhang, Zhiqing & Zhong, Weihuang & Mao, Chengfang & Xu, Yuejiang & Lu, Kai & Ye, Yanshuai & Guan, Wei & Pan, Mingzhang & Tan, Dongli, 2024. "Multi-objective optimization of Fe-based SCR catalyst on the NOx conversion efficiency for a diesel engine based on FGRA-ANN/RF," Energy, Elsevier, vol. 294(C).
    18. Zhu, Yongxian & Keoleian, Gregory A. & Cooper, Daniel R., 2025. "The role of hydrogen in decarbonizing U.S. industry: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 214(C).
    19. Zhang, Zhiqing & Liu, Hui & Yang, Dayong & Li, Junming & Lu, Kai & Ye, Yanshuai & Tan, Dongli, 2024. "Performance enhancements of power density and exergy efficiency for high-temperature proton exchange membrane fuel cell based on RSM-NSGA III," Energy, Elsevier, vol. 301(C).
    20. Kayacık, Sezen Ece & Basciftci, Beste & Schrotenboer, Albert H. & Ursavas, Evrim, 2025. "Partially adaptive multistage stochastic programming," European Journal of Operational Research, Elsevier, vol. 321(1), pages 192-207.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:387:y:2025:i:c:s0306261925003290. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.