Why both Hydrogen and Carbon are Key for Carbon Neutral ...

carl de mare consult

Why both Hydrogen and Carbon are Key for Carbon Neutral Steelmaking

Key Note 2nd ESTEP Brokerage Event

Carl De Maré

November 17, 2021


Evolution of Annual CO2 emissions

CO2 emissions form fossil fuels and cement productionSource : Our World in Data


Announcement of Top 5 Steel Producers to become Carbon Neutral in 2050

Production in 2019 (mton) Announcement ArcelorMittal 97,31 September 2020

Baowu 95,47 January 2021Nippon 51,68 December 2020HBIS 46,56 March 2021

POSCO 43,12 December 2020

Announcement Top5 Steelmakers Carbon NeutralitySource : own analysis

carl de mare consultCOP26 announcement, November 2, 2021Source : own analysis

EU-US Green Steel Deal Announcement at COP26


Steel and Climate Change

[ton steel /MW*]

300

200

100

hydrogas-fired

nuclear

coal-fired

wind

CSP2019 Steel : 3,45 billion tons of CO2

1,85 tons CO2 per ton steel

9,5% of CO2 emissions related to fossil fuels and cement

Challenge and Opportunity

Steel demand per MW power capacity and Global Steel Emission dataSource : AM communication, World Steel data


Expected evolution of primary (BOF) and secondary (EAF) steelmaking in the 21th century

BOF : primary steelmaking (iron ore based including both BF and DRI)

EAF : secundary steelmaking (scrap based melting)

Evolution of Primary and Secundary Steel production in 21th CenturySource : KTH, AM publication


Major KPI’s for BF/BOF and DRI/EAF plants

Major KPI’s for the 2 main pathways to produce primary steelSource : own analysis


CO2 footprint per ton steel for BF/BOF and DRI /EAFwith the same system boundaries

1ton steel + 0,5MWh power +200kg cement clinker in case of natural gas based power as marginal power supply

BF/BOF DRI/EAF Coal Power

DRI/EAF Nat Gas Power

DRI/EAF Zero CO2

Power

0

500

1000

1500

2000

2500

CO-PRODUCTSPOWERPLANTREDUCTIONHEATING

CO

2 em

issi

on in

kg

per t

on c

rude

ste

el

1600

+25%

1600 +0%

-30%

Steel Footprint for BF/BOF and DRI/EAF for same system boundaries Source : own analysis


CO2 generation in BF/BOF plant and DRI /EAF plant with the same system boundaries

CoalNatura l Gas

Cleaned SynGas

HOT STOVES

Export Gas + Cement

Power + Cement Export

25%

Reduction40%

Heating35%

Power + Cement Import40%

Natural Gas Feed

Reduction27%

Recycled Top Gas

Heating33%

Cleaned Syngas

Reformer/Heater

1ton steel + 0,5MWh power +200kg cement clinker in case of natural gas based power as marginal power supply

Generation of CO2 in BF/BOF plant and DRI/EAF plant with same boundary conditionsSource : own analysis


Fe2O3 + 6 CO = 2 Fe + 3 CO + 3 CO2 + 26,6 kJ (1) Fe2O3 + 6 H2 = 2 Fe + 3 H2 + 3 H2O – 99,5kJ (2) C + O2 = CO2 + 394 kJ (3) H2 + O2 = H2O + 240 kJ (4)

The Hydrogen opportunity for the Iron Ore Reduction

Reduction Function :

Heating Function :

Substitution of C by H2 for Reduction and HeatingSource : own analysis

Step 1


The Circored plant in Point Lisas, Trinidad in 1999

Industrial Experience with Hydrogen Ironmaking

CircoRed Source : Dirk Nuber, Millenium Steel 2006


Consumption of Natural Gas and Hydrogen and related CO2 emissions in the DRI Shaft process

DRI fuel Natural gasFuel per ton DRI 10,5 GJ 84 kg 84 kg 84 kg

CO2 kg per unit fuel 59 kg 9,5 kg 1,05 kg 0 kgCO2 kg per ton DRI 620 kg 798 kg 88 kg 0 kg

% vs Natural Gas 129,00% 15,00% 0,00%

Hydrogen from SMR based

DRI

Hydrogen from SMR + CCS

(89%)

Green Hydrogen with

Renewable power

CO2 footprint for DRI ironSource : Dirk Nuber -Millenium Steel 2006, own analysis


Integration electrolysers in steelplants allows to use both hydrogen and oxygen

Review Low Carbon production of iron and steel Source : Joule 2021


Thermodynamics of CO- versus H2-reduction

Hydrogen more efficient at high temperatures(dotted lines)

CO gas utilisation higher at lower temperatures

(full lines)

CO/CO2

CO/CO2

H2/H2O

H2/H2O

Hydrogen Ironmaking, How it worksSource : Metals 2020

The Baur-Glässner Diagram


Hydrogen Injection in existing BF and DRI

CoalNatura l Gas

Cleaned SynGas

HOT STOVES

Export Gas + Cement


25%

Reduction40%

Heating35%

27,5 kg H2 / HM injection at TuyèresAvoiding 350 kg/t CO2

30 % replacement of natural gasAvoiding 250kg/t CO2


Natural Gas Feed

Reduction27%

Recycled Top Gas

Heating33%

Cleaned Syngas

Reformer/Heater

Source : Joule 2021, Own analysis

Upto 25 kg H2 per ton steel possible


Carbon Neutral Steelmaking

Hydrogeninjection

25 kg H2 injection-350 kg -250 kg

BF/BOF 1600 kg/t DRI/EAF 1100 kg/t

1250 kg 850 kg 80%

Today

2050

Step 1 – Hydrogen Injection

Does it make sense to move to Full-Hydrogen Steelmaking?

ResourcesRequired


Constraints to Move to Full Hydrogen Steelmaking

1ste : Green Hydrogen Availability

25kg/t H2 injection Blue Hydrogen Green HydrogenSteel production (billion tons) 1,38 1,38H2 demand (million tons) 34,5 34,5GHG reduction (million tons) 358 402Power Consumption (TWh) 1725Power Consumption (EJ) 6,2Full hydrogen steelmaking Blue Hydrogen Green HydrogenSteel production (billion tons) 1,38 1,38H2 demand (million tons) 115,9 115,9GHG reduction (million tons) 358 402Power Consumption (TWh) 5796Power Consumption (EJ) 20,9

Today consumption

Refineries : 38,5 MtAmmonia : 31,5 Mt

IEA Net Zero by 2050

Global wind + solar in 2050 = 110 EJ

Source : Own analysis, IEA 2019 The Future of Hydogen, IEA 2021 Net Zero by 2050


Constraints to Move to Full Hydrogen Steelmaking1ste : Green Hydrogen Availability

IEA Net Zero by 2050I & S : 35 million tons H2

Consumption of Hydrogen + H2 derived fuels for Iron and Steel is inline with 25kg per ton of crude steel

Source : Own analysis, IEA 2019 The Future of Hydogen, IEA 2021 Net Zero by 2050



2nd : Productivity Impact

ULCOS Research project on impact of H2/CO ratio on metallisation in DRI Shaft

“Hydrogen Ironmaking: How it works”Source : Fabrice Patisso, Metals 2020



3d : Productivity Impact on Steelmaking

BOF Size >300 ton per heatTap to Tap < 40 min

Transformer Size > 500 MVA

Specific Consumption > 550 kWh / ton Heat Size of EAF plants

”The Influence of metallics and EAF design”Source : Dec 2017, Steel Times International



4th : Economics

IEA Net Zero by 2050 Hydrogen Cost

On Site : 5 $ / kg

Off Site : 3 $ / kg

Source : IEA, 2021, Net Zero by 2050



4th : Economics

25kg Hydrogen InjectionCO2 abatement cost :342 to 474 $ per ton

IEA expected CO2 price in 2050 : 200 to 250 $ per ton

Per ton steel 25kg injection in BF 25 kg injection in DRIOff-side H2 generation from renewables (USD/kg) $3,00 $3,00H2 consumption for transport, temporary storage 44,00% 44,00%Total cost of Hydrogen`(USD/kg) $4,32 $4,32Green H2 cost` (USD/t steel) $113 $113Savings in coal and gas cost (USD/t steel) $10 $20CO2 abatement (kg/t steel) 300 195CO2 abatement cost (USD/t CO2) $342 $474

USD (2019) per tonne of CO2 2025 2030 2040 2050

Advanced economies 75 130 205 250

45 90 160 200

3 15 35 55

Selected emerging market and developing economies

Other emerging market and developing economies

Source : IEA, 2021, Net Zero by 2050


Electrification of High Temperature Heat

CoalNatura l Gas

Cleaned SynGas

HOT STOVES

Export Gas + Cement


25%

Reduction40%

Heating35%

1ton steel + 0,5MWh power +200kg cement clinker in case of natural gas based power system


Natural Gas Feed

Reduction27%

Recycled Top Gas

Heating33%

Cleaned Syngas

Reformer/Heater

Step 2

Generation of CO2 in BF/BOF plant and DRI/EAF plant with same boundary conditionsSource : own analysis


Electrification of High Temperature Heat

CoalNatura l Gas

Cleaned SynGas

HOT STOVES

Export Gas + Cement


25%

Reduction40%

Heating35%

Power consumption : 250 kWh / ton hot metalCO2 reduction : 220 kg / ton HM by reduced consumption of BF gas

Source : Ulcos research; ESTEP Workshop, Feb 2018; own analysis

Hot Blast of Blast Furnace


Superheat of the Hot Blast upto 1800 °C

-400

-300

-200

-100

0

100

200

300

400

1200 1400 1600 1800

Hot Blast Temperature (°C)

Coke (kg/t HM)PCI (kg/t HM)CO2 (kg/t hm)Power (kWh)

Power consumption : 110 kWh / ton hot metalCO2 reduction : 270 kg / ton HM by reduced consumption of coke

Source : ECIC 2016 Linz, Mitren Sukhram


Plasma Torch for Cracking and ReformingMonolith Materials – 16MW Plasma torch to

produce Carbon Black and HydrogenThermal Cracking of Methane

CH4 = C + 2 H2 – 74,5 kJ (4)

Thermal Reforming of Methane

CH4 + CO2 = 2 CO + 2 H2 – 247 kJ(5)

CH4 + H2O = CO + 3 H2 – 208 kJ (6)

Source : Ulcos research; ESTEP Workshop, Feb 2018; Monolith Materials


Plasma Torch for Thermal Reforming is Electrifying and using CO2 as alternative Carbon Source

Cleaned Syng

Plasma Reactor

Power Feed

Natural Gas Feed

Reduction

Recycled Top Gas

EXPORT GAS

Power replaces DRI Top Gas200 kg CO2 reduction per ton DRI

IGAR BF Shaft Injection100 kg of cokes and coal

can be replaced by Hot Syngas

Source : Ulcos Research; ArcelorMittal CAR June 2019, Own analysis



Hydrogeninjection

ElectrificationHT Heat



1MWh RE -300 kg -200 kg

950 kg 650 kg

Can we replace fossil carbon by alternative sources?

Today

2050 60%

Step 2 – Electrification HT HeatResourcesRequired


Solid Bio-char injection in the BF instead of Grinded Coal

Combustion Rate of Torrefied wood is typically higher vs PCI

Step 3 – Waste Based Carbon

Source : CANMET Energy Research


Solid Bio-Carbon from Torrefaction of Waste Wood

Torrefaction of Wood is done at lower temperature (300°C)Continuous process with rotating drum technology

Higher Yield versus Charcoal : 668 kg per ton dry wood waste

Source : TorrCoal; Joule, April 2021


Plastic Waste is an excellent source of hydro-carbons to replace Methane in the Plasma Reforming

Plastic WasteMunicipal Waste

Plastic Gasification

Source : Westinghouse; private conversations; own analysis


Constraints to Alternative Carbon SourcesSupply Constrained

20% recycling of all waste wood and waste plastics is equivalent to

50kg of PCI substitution per ton crude steel

3 GJ of natural gas substitution per ton crude steel

2018 Supply Waste Wood Waste PlasticsGlobal 367 million tonsEU 27 52,9 million tons 55 million tons Recycled rate 15,00% 9,00%2050 Demand for Steel Waste Wood Waste Plastics20% supply of waste to steel 10 mton 11 mtonEquivalent per ton steel 50 kg PCI replacement 3 GJ nat gas replacementCO2 avoided 150 kg per ton 200 kg per ton

Source : S. Nannoni, Nov 2019; The Economist March 2018



Hydrogeninjection


Waste based Carbon



1MWh -300 kg -200 kg

20% EU waste-350 kg -250 kg

700 kg/t 400 kg/t

Can we re-use the CO and CO2 in the waste gas which is exported to the power plants ?

40%2050

Today

Step 3 – Waste Based CarbonResourcesRequired


Electrification is increasing the amount of export gas in steelmaking

After Electrification DRI plant : +4 GJ per ton export

gas

BF plant: 7 GJ per ton export gas

Syngas production of global steel sector is 3x larger vs

natural gas consumption of the Chemical Sector!

Example DRI plant

Source : own analysis


CCU : New options for Syngas valorization

Source : Lanzatech, Steelanol website


Gasfermentation to chemicals for syngas valorisation

Flexible gas compositionDirect use of DRI, BF and BOF gas

Different molecules possibleHigh energy conservation

Source : Lanzatech, Steelanol website


CCU : New options for Syngas valorisation

Source : Steelanol Website



Hydrogeninjection


Torrefaction &Gasification

CCU



1MWh -300 kg -200 kg


Waste Gas to Chemicalsto polymers

-400 kg -200 kg

200 kg 200 kg

Today

2050 15-20%

Step 4 – CCU


How to walk the last mile to Net Zero?

ResourcesRequired


Carbon Capture and ExportLow-cost liquid CO2 for export

Amines washing of DRI and BF gas to capture CO2 with low pressure waste steam

200 kg / t CO2 capture with available waste heat sources

Opex cost for CO2 capture and liquifaction in the range of 15 to 25 USD/ton

Shipping liquid CO2 over 1000km in the range of 10 to 15 USD/ton (in case of >1mton/yr)

Exporting CO2 from Europe at 40 EUR/ton is possible

Shipping CO2 – UK Cost Estimation Study. Final Report for BEISSource : 3D CCUS website; own analysis; elementenergy, November 2018


Hydrogen Import Coalition – Import Renewable Energy for Energy Intensive Industries

Source : Hydrogen Import Coalition Final Report, Januari 2021


Hydrogen Import Coalition – Import Renewable Energy for Energy Intensive Industries

H2 Liquid

CH4 – 160

CH4 – 80

CH4 – 40

CH3OH – 120

CH3OH – 80

CH3OH – 400

500

1000

1500

2000

2500

3000

3500

LCOHFossil Reference

EU

R/to

n

Renewable Energy Import as Liquid Hydrogen, Methane or MethanolAs Function of CO2 cost : 40, 80 and 160 EUR/ton

Source : Hydrogen Import Coalition Final Report, Januari 2021; elementenergy November 2018



Hydrogeninjection



CCU



1MWh -300 kg -200 kg


Waste Gas to Chemicalsto polymers

-400 kg -200 kg

0 kg 0 kg

Today

2050 Net-Zero

Step 5 – CCE


CCE Export CO2 and Import RE as molecule

-200 kg -200 kg

ResourcesRequired


To Summarize – Net Zero Steel Pathway


Hydrogeninjection


Gasfermentation CCE

CelllulosicWaste150kg

RecycledPolymer120 kg

Zero EmissionPolymer120kg

Zero EmissionMethanol

150kg

Zero EmissionSteel

1000 kg

Zero EmissionCement200kg

BECCS(option)

Negative Emission

(option 150kg)

2 MWh RE

1600 -350 -300 -350 -400 -200(-150)

0(-150)

1100 -250 -200 -250 -200 -200 0

Today Steel Emissions

Kg / ton steel

BF/BOF

DRI/EAF

Carbon Neutral Steel emissions

Kg / ton steel


Net Zero Steel - Key Enabling Technologies

Are commercial or currently in demonstration at scale

Are compatible with both BF and DRI

Are scaled upto realistic supply constraintsat optimal costs

Can be deployed stepwise and in parallel without risk of carbon lock-ins


Hydrogeninjection


Gasfermentation CCE

CelllulosicWaste150kg

RecycledPolymer120 kg

Zero EmissionPolymer120kg

Zero EmissionMethanol

150kg

Zero EmissionSteel

1000 kg

Zero EmissionCement200kg

BECCS(option)

Negative Emission

(option 150kg)

2 MWh RE

1600 -350 -300 -350 -400 -200(-150)

0(-150)

1100 -250 -200 -250 -200 -200 0

Today Steel Emissions

Kg / ton steel

BF/BOF

DRI/EAF

Carbon Neutral Steel emissions

Kg / ton steel


Carbon Neutral Steelmaking needs a New Narrative

Two conflicting narratives are paralyzing climate actions in the Steel Industry

CCS Narrative Hydrogen Narrative

1. Lack of FlexibililtyDeterministic

Fit with 1 EndgameNot Robust for “Black Swans”

2. ”Law of Diminishing Return”Increasing costs with scaling up to 100%

Source : Int J. of Greenhouse Gas Control, December 2020


0 10 20 30 40 50 60 70 80 90 100

Abatement cost per ton steel

CO2 surplus to CCS

%H2 in the reduction gas

100% Carbon basedLow Revenu from CCUHigh cost for CO2 export

100% Hydrogen basedZero Revenue from CCUHigh cost of reduction gas

Optimal Carbon:Hydrogen MixHigh revenu from CCULow cost for CO2 export

The Smart Carbon Narrative


A.

Hydrogen Narrative (B)100% Hydrogen based

High cost H2 + costly adaptations to iron and steelmaking process

Zero revenu from CCU

Smart Carbon Narrative (C)Mixed carbon and hydrogen

High revenu from CCU and waste recyclingOptimal scale for each key enabling

technology

CCS Narrative (A)100% Carbon based

High cost for CCSLow revenu from CCU by-products

B.

C.

100% Carbon based 100% Hydrogen based


To Conclude

Carbon Neutral Steelmaking is creating new opportunities to use hydrogen and carbon.

Traditional CCS and Hydrogen Narratives are conflicting and paralyzing Climate Actions in the steel sector.

This new Smart Carbon Narrative is integrating existing key technologies at their optimal scale and bringing new solutions for Climate as well as for Circular Economy at the lowest cost for society.

Deployment of the key technologies is compatible with both BF as DRI plants and can be done stepwise and in parallel without risk of carbon lock-ins.

The Steel Sector will be in the center of the “Just Transition” to a Carbon Neutral Eco system, creating jobs and prosperity in a sustainable way.

“Why both Hydrogen and Carbon are Key for Carbon Neutral Steelmaking”


Thank you for your Attention

Mail: [email protected]

@carl_mare

LinkedIn: Carl De Maré

Why both Hydrogen and Carbon are Key for Carbon Neutral ...

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