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Introducing carbon constraint in the steel sector: ULCOS scenarios and economic modeling

  • Elie Bellevrat

    (Enerdata S.A. - Aucune)

  • Philippe Menanteau


    (LEPII - Laboratoire d'Économie de la Production et de l'Intégration Internationale - CNRS - Grenoble 2 UPMF - Université Pierre Mendès France)

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    Modeling activities and scenario building are at the heart of the economic analysis delivered by the ULCOS program. Two main objectives were followed in the framework of SP9. First the modeling team had to provide a set of coherent energy economic scenarios using POLES model. Second, the economic conditions for the emergence of the ULCOS technologies were analyzed. ULCOS contributes to the elaboration of contrasted scenarios that the steel industry could face in the long term. To aim at these objectives specific tools have been used: POLES model for the global energy system modeling and ISIM model for the steel sector based prospective ([1] Hidalgo, 2003). The most promising steel production technologies identified in ULCOS Phase 1 have been introduced into ISIM as generic technologies. ISIM was then integrated as a module into POLES modeling system. The main model outputs are the energy prices and mixes and the steel sector balances with a focus on the technology mix. Actually the climate policy scenarios developped in project allow making recommendations to the steel industry in terms of sustainable development but also in terms of business strategy.

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    Paper provided by HAL in its series Post-Print with number halshs-00430381.

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    Date of creation: Sep 2009
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    Publication status: Published in Revue de Métallurgie, 2009, pp.318-324. <10.1051/metal/2009059>
    Handle: RePEc:hal:journl:halshs-00430381
    DOI: 10.1051/metal/2009059
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    1. Christophe Rynikiewicz, 2008. "The climate change challenge and transitions for radical changes in the European steel industry," Post-Print halshs-00005052, HAL.
    2. Gielen, Dolf & Moriguchi, Yuichi, 2002. "CO2 in the iron and steel industry: an analysis of Japanese emission reduction potentials," Energy Policy, Elsevier, vol. 30(10), pages 849-863, August.
    3. Demailly, Damien & Quirion, Philippe, 2008. "European Emission Trading Scheme and competitiveness: A case study on the iron and steel industry," Energy Economics, Elsevier, vol. 30(4), pages 2009-2027, July.
    4. Hidalgo, Ignacio & Szabo, Laszlo & Carlos Ciscar, Juan & Soria, Antonio, 2005. "Technological prospects and CO2 emission trading analyses in the iron and steel industry: A global model," Energy, Elsevier, vol. 30(5), pages 583-610.
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