CO2 emissions mitigation strategy in the Brazilian iron and steel sector–From structural to intensity effects

Abstract

This study estimates the potential and costs for mitigating CO2 emission in Brazil´s steelmaking industry. Two main scenarios were developed: (1) a reference scenario considering the actual trends of the steel industry; and (2) a scenario where the use of charcoal from planted forests is stimulated for the additional steelmaking capacity. In addition, the effects of 13 Best Available Technologies (BAT) and one disruptive technology (TGRBF) on the industrial sector were calculated for both scenarios. Findings show that the increase in charcoal usage in pig iron production from 23.0% to 32.5% can reduce the total CO2 emissions in 11.3% in 2050, while the adoption of the BAT and TGRBF in new steel plants can reduce the CO2 emission levels in 15.6%. If both effects are considered, the CO2 reduction potential would reach 23.2% in 2050. As the TGRBF technology was developed to a coke based-route, a simply structural change towards charcoal (without using BATs) can be less effective in reducing cumulative CO2 emissions than applying BATs in a scenario without structural change. However, in terms of costs, the switch towards an increasing use of charcoal is less expensive. Correct incentives are needed in the industry to achieve such reduction levels.