Steel production through electrolysis: impacts for electricity … · 2019. 11. 27. · 131, 176,...

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Steel production through electrolysis: impacts for electricity consumption Adam Rauwerdink VP, Business Development October 18, 2019

Transcript of Steel production through electrolysis: impacts for electricity … · 2019. 11. 27. · 131, 176,...

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Steel production through electrolysis: impacts for electricity consumption

Adam Rauwerdink

VP, Business Development

October 18, 2019

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A 3,000 year old formula

Iron Ore

Fe2O3

Iron

Fe

Carbon Dioxide

CO2

Carbon (Coal)

C

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Iron Age 1000 BC Digital Age 2019

>2 Gt CO2 per year

(8% of global emissions)

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Steel in 2018

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1,800 million tonnes

Aluminium is #2 at 64 million tonnes

70% 30%

Integrated Steel Mill (Iron ore new steel units)

Mini Mill (Scrap recycled steel units)

Source: World Steel Association

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Integrated steel mill: material flow

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Molten oxide electrolysis (MOE) is emissions free

Iron Ore

Fe2O3

Iron

Fe

Oxygen

O2

Electricity

e-

No carbon in the process = No CO2 emitted

Electricity decarbonization eliminates/reduces indirect emissions!

Molten Oxide Electrolysis (MOE)

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Changing the formula from coal to electricity

Iron Ore

Fe2O3

Iron

Fe

Oxygen

O2

Electricity

e-

Molten Oxide Electrolysis (MOE)

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Iron Ore

Fe2O3

Iron

Fe

Carbon Dioxide

CO2

Carbon (Coal)

C

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MOE is more energy efficient

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0

1

2

3

4

5

6

ENERGY TO PRODUCE ONE TONNE OF CRUDE STEEL

Integrated Steel Mill (Coke Oven > Blast Furnace > Basic Oxygen Furnace)

Molten Oxide Electrolysis

5.5 MWh COAL

4 MWh ELECTRICITY

Source: World Steel Association

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But the sheer volume (and energy) is immense

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1.2 Bt Integrated Steel production requires:

Today Nearly 1 Bt of Coal

(~15% of 2018 consumption)

100% MOE 4,800 TWh of Electricity

(~20% of 2018 consumption)

Source: World Steel Association

Aluminium production used 870 TWh

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Transportation will be demand far more electricity

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Fossil Fuel Retirement (TWh)

Electricity Growth (TWh)

Steel Production (100% MOE Adoption) 6,600 (Coal) 4,800

Transport (2° Scenario) 15,900 (Oil) 7,100

Transport (Beyond 2° Scenario) 22,900 (Oil) 10,200

TWh (2014 vs 2060)

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In US, LED savings could power all MOE steel

10 Boston Metal | 2019 Source: American Council for an Energy-Efficient Economy New Horizons for Energy Efficiency: Major Opportunities to Reach Higher Electricity Savings by 2030

26 Mt US Integrated Steel production 2017

MOE Production 104 TWh Electricity needed

ACEEE: US LED Lighting Electricity Savings (2030 vs 2019)

45 TWh Residential

56 TWh Commercial

+

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$200

$400

$600

Lower cost and lower volatility

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Steel Raw Materials Cost

$ per tonne steel

Blast / Basic Oxygen

Furnace

Iron Ore

Coking Coal

Scrap

2004 2006 2008 2010 2012 2014 2016 2018

“Green” steel premium

equivalent to $30/t-CO2

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$200

$400

$600

$0

$200

$400

$600

Lower cost and lower volatility

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Steel Raw Materials Cost

$ per tonne steel

“Green” steel premium

equivalent to $30/t-CO2

Blast / Basic Oxygen

Furnace

Iron Ore

Coking Coal

Scrap

2004 2006 2008 2010 2012 2014 2016 2018

$35/MWh

$15/MWh

$15-35/MWh Electricity (Typical for aluminum industry)

$15/MWh = 35% lower materials cost (2004-2018)

Molten Oxide

Electrolysis

Iron Ore

Electricity

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World-class partners

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Tavarua International

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Emissions free steel Lower commodity cost Industrial-scale modularity

Electrifying the largest industrial source of CO2 Competitive without a carbon tax Efficient allocation of capital

Metals made better

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