Osaro Ehigiamusoe | MEL Candidate | Dec 16, 2022
Mentors: Daniel Brosig and Manuel Estandia, GCT
Abstract
Decarbonizing the steel industry is an impending necessity with an anticipated production shift to 100 percent low-carbon steel by 2050. This bipartite study attempts to first, evaluate the potential for CCS/CCUS to compete with other decarbonization prospects in the industry such as biomass and hydrogen based reduced iron in the blast furnace, or completely switching to scrap metal and Electric arc furnaces. Upon establishing a frame of reference for the applicability of CCS/ CCUS in steel
making, the next objective was to prove a market value for valorizing the captured carbon to a useful fuel (methanol) within the North America.
The research methodology involved qualitative examination of the competitive advantage of CCS/ CCUS as well as establishing a nexus with the usefulness of valorizing carbon to methanol in North America. Case studies and industry best practices were leveraged, calculated metrices deduced, and inferences were drawn upon after analysis with several business model tools.
The results of the study determined that for CCU/CCUS to prevail in the steel industry the regulatory framework must leverage the process appropriately by appropriating a favorable carbon pricing regime. On the Market side of the study, the market forces that control the prices of renewable methanol, are cost exponents accruing from reliable hydrogen sources for the hydrogenation process. These price differentials shift steep wards depending on grey, blue, or green hydrogen considerations. In summary CCU/CCUS in integrated steel making is feasible if the right levers are pulled and the vision is long term rather than immediate.