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Improving the economics of fossil-free steelmaking via co-production of methanol
KTH, School of Engineering Sciences in Chemistry, Biotechnology and Health (CBH), Chemical Engineering, Energy Processes.ORCID iD: 0000-0002-7129-0223
(English)Manuscript (preprint) (Other academic)
Abstract [en]

Steelmaking is responsible for 7% of the global net emissions of carbon dioxide and heavily reducing emissions from currently dominating steelmaking processes is difficult and costly. Recently, new steelmaking processes based on the reduction of iron ore with hydrogen (H2) produced via water electrolysis have been suggested. If the electricity input to such processes is fossil-free, near-zero carbon dioxide emissions steelmaking is achievable. However, the high electricity demand of electrolysis is a significant implementation barrier. A H2 storage may alleviate this via allowing a larger share of H2 to be produced at low electricity prices. However, accurately forecasting the dynamics of electricity markets is challenging. This increases the risk of investment in a H2 storage. Here we evaluate a novel methanol-based H2 storage concept for a H2-based steelmaking process that also allows for the co-production of methanol. During electricity price peaks, the methanol can be reformed to produce H2 for the steelmaking process. During prolonged periods of low electricity prices, excess methanol can be produced and sold off, thus improving the prospects of storage profitability. We use historical electricity prices and a process model to evaluate methanol-fossil-free steel co-production schemes. Methanol co-production has the potential to improve the economics of H2 supply to a fossil-free steelmaking process by up to an average of 0.40 €/kg H2 across considered scenarios, equivalent to a reduction in H2 production electricity costs of 25.0%.

Keywords [en]
fossil-free steelmaking, hydrogen storage, methanol, electrolysis, industrial decarbonization.
National Category
Energy Engineering Chemical Engineering
Research subject
Energy Technology
Identifiers
URN: urn:nbn:se:kth:diva-309721OAI: oai:DiVA.org:kth-309721DiVA, id: diva2:1643329
Projects
HYBRIT RP1
Funder
Swedish Energy Agency, HYBRIT RP1StandUp
Note

QC 20220309

Available from: 2022-03-09 Created: 2022-03-09 Last updated: 2025-02-18Bibliographically approved
In thesis
1. Non-geological hydrogen storage for fossil-free steelmaking
Open this publication in new window or tab >>Non-geological hydrogen storage for fossil-free steelmaking
2022 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

In the last half-century, global steel use has increased more than threefold and further growth is expected, particularly in developing economies. However, steelmaking is currently responsible for 7% of the global net carbon dioxide (CO2) emissions, and any substantial further optimization of existing processes that utilize fossil fuels for iron ore reduction is infeasible. Therefore, steelmaking must change for climate change mitigation targets to be achievable. Hydrogen (H2) steelmaking using H2 produced via electrolysis is one way forward. A challenge is the substantial electricity demand of electrolysis. H2 storage may lower the electricity cost of electrolysis by allowing a larger share of H2 to be produced when the electricity price is low. Existing experience with large-scale H2 storage is limited to salt caverns and the construction of such caverns requires suitable geological formations, which are neither ubiquitous nor well-distributed. However, geologically-independent H2 storage technologies have not previously been evaluated for integration with H2 steelmaking. This is the aim of this thesis. H2 storage technologies were reviewed and liquid H2 carriers were identified as the most techno-economically feasible non-geological options. Out of these liquid carriers, methanol (CH3OH) was found particularly promising for H2 steelmaking due to the low heat demand of its dehydrogenation, its low-cost storage, and the high technological readiness of plants for both its production and dehydrogenation. A complete CH3OH-based H2 storage concept was developed, including processes for CO2 and heat supply. Its ability to reduce the H2 production cost in a H2 steelmaking process was evaluated via a deterministic optimization method based on historical electricity prices. Results indicate that CH3OH-based storage may be competitive with geological storage options, especially for cases with long-duration electricity price patterns.  The option to also sell off accumulated CH3OH from the storage was investigated. Such steel and CH3OH co-production may improve storage utilization and reduce the risk of investment into H2 storage as it allows for profitability to be reached under a more diverse set of electricity market conditions.

Abstract [sv]

Den globala stålanvändningen har mer än tredubblats under de senaste 50 åren och ytterligare tillväxt förväntas, framförallt i utvecklingsländer. Ståltillverkning står dock för 7 % av de globala nettoutsläppen av koldioxid (CO2) och möjligheter till ytterligare optimering av nuvarande processer för järnmalmsreduktion baserade på fossila bränslen är begränsade. Nya ståltillverkningsmetoder krävs därför för att etablerade klimatmål ska kunna uppnås. En väg framåt är järnmalmsreduktion med vätgas (H2) producerad via elektrolys. En utmaning är elektrolysens stora elbehov. Ett H2-lager kan reducera elkostnaden för elektrolys genom att tillåta att en större andel H2 produceras när elpriset är lågt. Befintlig erfarenhet av storskalig H2-lagring är helt begränsad till saltkaverner i geologiska saltformationer och dessa finns inte att tillgå överallt. Icke-geologiska H2-lagringstekniker har dock inte tidigare utvärderats för H2-baserad ståltillverkning, vilket är syftet med denna avhandling. Flytande H2-bärare identifierades som de mest tekno-ekonomiskt gångbara alternativen för icke-geologisk H2-lagring. Av dessa bärare befanns metanol (CH3OH) vara särskilt lovande för H2-baserad ståltillverkning på grund av det låga värmebehovet för dess dehydrogenering, dess låga lagringskostnad och för att processer för både dess produktion och dehydrogenering har en hög teknisk mognadsgrad. Ett komplett CH3OH-baserat lagringskoncept för H2-baserad ståltillverkning utvecklades, inklusive processer för CO2- och värmeförsörjning. Detta koncepts förmåga att minska kostnaden för H2-baserad ståltillverkning utvärderades via en deterministisk optimeringsmetod baserad på historiska elpriser. Resultat indikerar att H2-lagring i CH3OH kan vara konkurrenskraftigt med geologisk lagring, särskilt i särskilt i scenarier med ihållande perioder med höga elpriser.  Vidare undersöktes även möjligheter att inkludera försäljning av CH3OH i lagringskonceptet. Resultat visar att sådan försäljning kan minska risken för investering i ett CH3OH-baserat H2-lager som en del av en H2-baserad ståltillverkningsprocess då det gör det möjligt för lagret att nå lönsamhet under mer varierade elmarknadsförhållanden.

Place, publisher, year, edition, pages
Kungliga Tekniska högskolan, 2022. p. 104
Series
TRITA-CBH-FOU ; 2022:21
Keywords
hydrogen storage, fossil-free, steelmaking, industrial decarbonization, hydrogen direct reduction
National Category
Chemical Engineering Energy Systems
Research subject
Chemical Engineering
Identifiers
urn:nbn:se:kth:diva-309735 (URN)978-91-8040-162-3 (ISBN)
Public defence
2022-04-08, Kollegiesalen, Brinellvägen 8, Zoom: https://kth-se.zoom.us/j/66521083318, Stockholm, 14:00 (Swedish)
Opponent
Supervisors
Funder
Swedish Energy Agency, HYBRIT RP1
Note

QC 2022-03-10

Available from: 2022-03-10 Created: 2022-03-10 Last updated: 2025-02-18Bibliographically approved

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