Construction of an abatement benefit model for the steel industry driven by technological innovation: A perspective on emerging technology factors

Low-carbon production of iron and steel: Technology options, economic assessment, and policy

As problems such as the increase in extreme weather, rising sea levels, and social inequality continue to sharpen with the intensifying climate change, changes are demanded. The cement and iron and steel industries are among the major spheres responsible for the rising global temperature. Carbon reduction methods cannot fully solve the problem and help these industries reach carbon-neutral emissions. Therefore, carbon capture (CC) technology is urgently needed. This article introduces the application of pre-combustion carbon capture (PreCCC), post-combustion carbon capture (PostCCC), and oxyfuel combustion carbon capture in the cement industry and the iron and steel industry. Research has shown that oxyfuel combustion is one of the most assuring pathways to reach carbon neutrality in cement plants since problems of temperature management can be solved by recycling part of the fuel gases, and its cost is relatively lower than the other methods. However, PostCCC is a better solution in the iron and steel industries. Although technological innovations in physical absorption and chemical absorption are still needed, PostCCC can mitigate a large portion of steel plants carbon footprint. Carbon capture intensity can be increased with further technological development in combining PostCCC and oxygen-rich combustion. The combination of different pathways may be a novel hypothesis, but it has a great possibility of alleviating the carbon emission of the industrial sector.

The green and low-carbon transformation of the iron and steel industry stands as a pivotal cornerstone in the development of China. It is an inevitable trajectory guiding the future of industry. This study examined the energy consumption and carbon emission trends in the iron and steel industry. Variations under different scenarios were analyzed while emphasizing production control, changes in production structure and energy efficiency improvement. The analysis integrated the extreme energy efficiency model. This study proposed methods to enhance energy efficiency in the iron and steel industry. The costs of energy efficiency improvement and production structure changes were assessed using marginal energy saving and abatement cost curves. The findings showed that the carbon emission reduction contribution of crude steel production decline is the highest, while energy efficiency improvement technology offers the smallest, whose contribution, however, is substantial and cannot be overlooked by 2030. Energy efficiency improvement in the Chinese iron and steel industry results in an average unit energy saving and abatement cost of 27.0 yuan. It results in a total abatement cost of 21.02 billion yuan and a potential abatement of 780 Mt. Considering abatement potential, altering production structure offers significantly higher cumulative abatement compared to energy efficiency improvement technology. This is because the per unit abatement cost of production structure change is 702.7 yuan. However, this high cost poses a challenge to widespread adoption. The integration of the iron and steel industry into the carbon trading system necessitates reinforcing market constraints and expediting process adjustments. These steps are crucial to achieving the green and low-carbon transformation of the industry.

Steel Research Institutions in China

In recent years, the iron and steel industry has achieved satisfactory results in de-capacity. How this effect affects the economic benefits of listed companies in iron and steel industry is the goal of this paper. This paper collects the data of de-capacity index in iron and steel industry from 2013 to 2018, collecting the data of internal control and improving quality and efficiency of 32 listed companies in iron and steel industry from 2014 to 2018, and using regression analysis method to determine the impact of de-capacity and internal control on the economic benefits of listed companies in iron and steel industry. Empirical research shows that the 5-year task of de-capacity in the iron and steel industry has been completed in 3 years, which has promoted the ratio of return on common stockholder's equity of the iron and steel industry's superior companies to rise continuously; the bigger the internal control index of the listed companies in the iron and steel industry, the better the economic benefits of the company; under the background of de-capacity, the listed companies in the iron and steel industry have increased the sales revenue of products and accelerated the process of capital turnover and improving profitability will promote the economic efficiency of the company. The listed companies in the iron and steel industry should be guided by the world steel market demand, based on the high-quality transformation and development, enhance the scientific and technological attractiveness and innovation of iron and steel products, and lead the continuous, healthy, and high-quality development of the iron and steel industry.

The iron and steel industry (ISI) plays a significant role in carbon emissions, contributing approximately 15% of the nation’s total emissions in China. Transitioning to low-carbon practices is crucial for achieving the country’s carbon neutrality goals. This paper reviews the current state of China’s ISI and assesses the feasibility of various decarbonization technologies, including hydrogen utilization, biomass substitution, zero-carbon electricity, Carbon Capture, Utilization, and Storage (CCUS), as well as their combinations. The blast furnace–basic oxygen furnace (BF-BOF) process currently dominates the industry with an overwhelming share of around 90%, presenting significant challenges for decarbonization. In contrast, the Direct Reduced Iron–Electric Arc Furnace (DRI-EAF) process is still at the demonstration project stage, but it is rapidly growing and shows great potential for achieving net-zero emissions. Electric arc furnaces (EAFs) that use scrap steel account for about 9% of production and have the lowest energy consumption. However, their production capacity is limited by the availability of scrap steel. Among numerous options, blue hydrogen, carbon-neutral biomass, and CCUS technologies have relatively low costs and high technological maturity. Nevertheless, no single technology can currently achieve deep decarbonization while significantly reducing costs. The nation needs to select the most suitable decarbonization strategies based on geographical location, infrastructure, and economic conditions. The government should enact corresponding policies, provide economic incentives, and ensure mitigation of the environmental and social impacts during the decarbonization transition.

The steel industry, which relies heavily on primary energy, is one of the industries with the highest CO2 emissions in China. It is urgent for the industry to identify ways to embark on the path to “green steel”. Hydrogen metallurgy technology uses hydrogen as a reducing agent, and its use is an important way to reduce CO2 emissions from long-term steelmaking and ensure the green and sustainable development of the steel industry. Previous research has demonstrated the feasibility and emission reduction effects of hydrogen metallurgy technology; however, further research is needed to dynamically analyze the overall impact of the large-scale development of hydrogen metallurgy technology on future CO2 emissions from the steel industry. This article selects the integrated MARKAL-EFOM system (TIMES) model as its analysis model, constructs a China steel industry hydrogen metallurgy model (TIMES-CSHM), and analyzes the resulting impact of hydrogen metallurgy technology on CO2 emissions. The results indicate that in the business-as-usual scenario (BAU scenario), applying hydrogen metallurgy technology in the period from 2020 to 2050 is expected to reduce emissions by 203 million tons, and make an average 39.85% contribution to reducing the steel industry’s CO2 emissions. In the carbon emission reduction scenario, applying hydrogen metallurgy technology in the period from 2020 to 2050 is expected to reduce emissions by 353 million tons, contributing an average of 41.32% to steel industry CO2 reduction. This study provides an assessment of how hydrogen metallurgy can reduce CO2 emissions in the steel industry, and also provides a reference for the development of hydrogen metallurgy technology.

Size of Firm, Market Structure, and Innovation

The iron and steel industry is one of the world’s as well as China’s largest energy CO2 emission sources. We calculated the cost of CO2 abatement (CCA), and give the marginal abatement cost curve of the main process of iron and steel production. Based on this, we analyse the cost-effectiveness of CO2 abatement technologies. Also, we define a two-country (home and foreign), two-goods (home goods and foreign goods) partial equilibrium model to simulate China’s iron and steel industry, and analyse the influence of CO2 price and free allocation to the production, price, income, profit and total emissions of China’s iron and steel industry. We found that a carbon market would increase the abatement cost and then increase the domestic price, but a reasonable free allocation could offset the profit loss partly, so it would not result in a huge profit loss to the industry.

The evolving landscape of digital technologies and technological innovations is reshaping our relationship with the environment. While empirical studies at the micro level have extensively examined the separate impacts of these advancements on environmental attitudes, a significant gap persists in understanding their collective influence at the macro level. To address this gap, our study investigates the impact of digital technology and technological innovation on environmental attitudes using data from 44,622 surveys across 28 countries, sourced from the International Social Survey Program. Our analysis reveals that country-level digital technology and technological innovation significantly influence individuals’ environmental attitudes. At the individual level, factors such as air pollution, the quality of the individual’s living environment, and education level play crucial roles in shaping these attitudes. Additionally, public trust in the media plays a significant moderating role in the relationship between digital technology and environmental attitudes. Our research contributes to the literature by simultaneously examining these factors at both individual and national levels. To gain citizens’ attitudes toward environmental protection, there is a need to strengthen the integration of technological innovation and environmental protection and to improve the authenticity of mass media materials while focusing on environmental governance.

Decarbonizing the iron and steel industry: A systematic review of sociotechnical systems, technological innovations, and policy options

An integrated analysis of China’s iron and steel industry towards carbon neutrality

Decarbonization technology plays a crucial role in reducing carbon emissions in the energy sector, addressing climate change concerns, and achieving sustainability goals. This paper explores the latest innovations in decarbonization technologies, including carbon capture and storage (CCS), direct air capture (DAC), renewable energy integration, green hydrogen production, and smart grid systems. The study analyzes the feasibility, efficiency, and challenges associated with implementing these technologies at a large scale. Furthermore, the paper discusses policy frameworks, economic implications, and technological advancements that drive the successful deployment of decarbonization strategies. By leveraging machine learning, artificial intelligence, and optimization models, modern energy systems can enhance their efficiency and reduce their carbon footprint. The research also highlights case studies of countries that have successfully implemented decarbonization technologies and provides recommendations for future developments. The findings suggest that a combination of innovative technologies, strong policy support, and strategic investments is necessary to accelerate the transition toward a low-carbon energy system.

The potential for carbon abatement in Taiwan’s steel industry and an analysis of carbon abatement trends

Can an emission trading scheme promote the withdrawal of outdated capacity in energy-intensive sectors? A case study on China's iron and steel industry