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Economic Analysis of an Integrated Steel Plant Equipped with a Blast Furnace or Oxygen Blast Furnace

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  • Jiayuan Song

    (School of Energy and Environmental Engineering, University of Science and Technology Beijing, Beijing 100083, China)

  • Zeyi Jiang

    (School of Energy and Environmental Engineering, University of Science and Technology Beijing, Beijing 100083, China)

  • Yongjie Zhang

    (Central Research Institute, China BAOWU Steel Group Corporation Limited, Shanghai 200126, China)

  • Zhicheng Han

    (ENFI Research Institute, China ENFI Engineering Corporation, No. 12 Fuxing Road, Beijing 100038, China)

  • Yuanxiang Lu

    (School of Energy and Environmental Engineering, University of Science and Technology Beijing, Beijing 100083, China)

  • Huiyao Dong

    (JMP Statistical Discovery LLC, SAS Campus Drive, Cary, NC 27513, USA)

  • Ying Zhang

    (JMP Statistical Discovery LLC, SAS Campus Drive, Cary, NC 27513, USA)

Abstract

The oxygen blast furnace with top gas recycling (TGR-OBF) ironmaking technology can reduce CO 2 emissions, especially when combined with carbon capture and storage technology (CCS). However, the successful commercialization of technology cannot be achieved without economic evaluation. This study applied the Box–Behnken design method and a Monte Carlo simulation-based risk analysis to assess the sensitivity of influencing factors affecting the net present value (NPV) of an integrated steel plant (ISP) and to predict the impact of variable market scenarios on the NPV of three ISPs. The results indicated that among the three ISPs, the conventional ISP (C-ISP) is the least profitable, followed by the ISP equipped with TGR-OBF and CCS (ISP-OBF-CCS), and the most profitable is the ISP equipped with TGR-OBF (ISP-OBF), which is at least CNY 0.392 Bn and CNY 1.934 Bn more profitable than the ISP-OBF-CCS and C-ISP respectively. Under the current Chinese carbon trading policy and the cost of CCS, CCS technology does not make a company profitable. This study explored an approach for analyzing ISP economic applicability under uncertain markets, which can be used as a reference for the development of alternative processes for steel production.

Suggested Citation

  • Jiayuan Song & Zeyi Jiang & Yongjie Zhang & Zhicheng Han & Yuanxiang Lu & Huiyao Dong & Ying Zhang, 2023. "Economic Analysis of an Integrated Steel Plant Equipped with a Blast Furnace or Oxygen Blast Furnace," Sustainability, MDPI, vol. 15(15), pages 1-14, August.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:15:p:11824-:d:1208304
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    References listed on IDEAS

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    1. Zhang, Ming & Liu, Xiao & Wang, Wenwen & Zhou, Min, 2013. "Decomposition analysis of CO2 emissions from electricity generation in China," Energy Policy, Elsevier, vol. 52(C), pages 159-165.
    2. Bendato, Ilaria & Cassettari, Lucia & Mosca, Marco & Mosca, Roberto, 2016. "Stochastic techno-economic assessment based on Monte Carlo simulation and the Response Surface Methodology: The case of an innovative linear Fresnel CSP (concentrated solar power) system," Energy, Elsevier, vol. 101(C), pages 309-324.
    3. Huang, Lizhen & Krigsvoll, Guri & Johansen, Fred & Liu, Yongping & Zhang, Xiaoling, 2018. "Carbon emission of global construction sector," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 1906-1916.
    4. Ren, Lei & Zhou, Sheng & Peng, Tianduo & Ou, Xunmin, 2021. "A review of CO2 emissions reduction technologies and low-carbon development in the iron and steel industry focusing on China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 143(C).
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    Cited by:

    1. Yuanxiang Lu & Zeyi Jiang & Xinru Zhang & Dianyu E, 2024. "Solid Flow in an Experimental Oxygen Blast Furnace Model: Effects of Recycled Gas and Raceway," Energies, MDPI, vol. 17(2), pages 1-12, January.

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