Abstract
The production of steel in the world is dominated by two types of technologies: BF + BOF (the blast furnace and basic oxygen furnace, also known as integrated steel plants) and EAF (the electric arc furnace). The BF + BOF process uses a lot of natural resources (iron ore is a feedstock for steel production) and fossil fuels. As a result, these steel mills have a significantly negative impact on the environment. In turn, EAF technology is characterised by very low direct emissions and very high indirect emissions. The raw material for steel production is steel scrap, the processing of which is highly energy-consuming. This paper analyses the energy intensity of steel production in Poland as a function of investments made in the steel industry in the years 2000–2019. Statistical data on steel production in the EAF process in Poland (which represents an approximately 50% share of the steel produced, as the rest is produced utilising the BF + BOF process) was used. Slight fluctuations are caused by the periodic switching of technology for economic or technical reasons. The hypothesis stating that there is a relationship between the volume of steel production utilising the EAF process and the energy consumption of the process, which is influenced by investments, was formulated. Econometric modelling was used as the research method and three models were constructed: (1) a two-factor power model; (2) a linear two-factor model; and (3) a linear one-factor model. Our findings show that the correlation is negative, that is, along with the increase in technological investments in electric steel plants in Poland, a decrease in the energy consumption of steel produced in electric furnaces was noted during the analysed period.
Highlights
The results indicate that reduction in energy intensity was mostly caused by a higher share of direct reduction of iron ore (DRI) and electric arc furnace (EAF) technologies
The final conclusion, which is the reference to the research hypothesis (H1), is that there is a relationship between the volume of steel production utilising the EAF process and the energy consumption of the process, which is influenced by investments
The issue of energy consumption in steel production utilising both BF + BOF and EAF technology has become a topic of wide scientific discussion, both among researchers as well as business managers
Summary
Improving the recovery of energy and material by-products in the steel industry should improve resource efficiency to 36% [4,5]. Improving energy efficiency is a complex process that should be carried out consciously and consistently. This means taking appropriate actions, especially in the field of production management. An energy efficiency policy (strategy) should be implemented systematically in relation to many components of the production processes and the entire supply chain. This is due to the fact that modern enterprises operate in a permanently dynamic environment [6]. External factors (e.g., economic, environmental, legal, tax and others) must be included in business decisions
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