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Decarbonizing Primary Steelmaking: Strategic Capacity Modification and Reduction Planning

In: Operations Research Proceedings 2023

Author

Listed:
  • Yannik Graupner

    (Technische Universität Braunschweig)

  • Fabio Rausch

    (Technische Universität Braunschweig)

  • Christian Weckenborg

    (Technische Universität Braunschweig)

  • Thomas S. Spengler

    (Technische Universität Braunschweig)

Abstract

Due to climate change, high-emission industries must transform their production processes toward low-carbon technologies. Therefore, steelmakers plan to replace currently operated production facilities long-term. However, production facilities can also be modified to achieve medium-term emission reductions. Against this background, we present a planning model to support decisions about closing or modifying production facilities within production networks for conventional primary steelmaking. The mixed-integer linear programming model aims to maximize the net present value of steelmaking. It incorporates time-dependent emission budgets that initiate the transformation process. Also, plant modifications to reduce specific greenhouse gas emissions are included. Using different climate scenarios, the dynamic transformation of a European steelmakers’ production network is examined in a case study. The results indicate that modifying production facilities is more favorable in the case of site-specific emission budgets compared to global budgets.

Suggested Citation

  • Yannik Graupner & Fabio Rausch & Christian Weckenborg & Thomas S. Spengler, 2025. "Decarbonizing Primary Steelmaking: Strategic Capacity Modification and Reduction Planning," Lecture Notes in Operations Research, in: Guido Voigt & Malte Fliedner & Knut Haase & Wolfgang Brüggemann & Kai Hoberg & Joern Meissner (ed.), Operations Research Proceedings 2023, chapter 0, pages 9-15, Springer.
    • Handle: RePEc:spr:lnopch:978-3-031-58405-3_2
    DOI: 10.1007/978-3-031-58405-3_2
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