Quantitative assessment of energy conservation potential and environmental benefits of an iron and steel plant in China

Abstract

Iron and steel sector is the largest industrial energy consumer and emission source of greenhouse gas and air pollutants in China. Therefore, it is imperative to conduct a quantitative assessment for energy conservation potential and environmental benefits of China’s iron and steel industry. Energy efficiency improvement, EAF promotion and charcoal substitution are efficient measures to achieve cleaner and sustainable development. In this paper, five scenarios are designed for comprehensively analyzing the multiple factors influencing the potential for energy conservation and emission reduction. Furthermore, emissions reduction benefits of air pollutants are combined with Conservation Supply Curves to accurately evaluate the cost of the technology. A comprehensive emission inventory of air pollutants is established. The results show that under the synergistic effects of charcoal substitution, EAF improvement and energy efficiency improvement, significant environmental benefits have been achieved. Energy intensity was reduced obviously from 16.59 GJ/t-steel in 2017 to 14.46 GJ/t-steel in 2030 in integrated scenario, while the emission intensity of GHG, SO2, NOx, PM2.5, PM10, CO and VOCs in 2030 is decreased by 21.53%, 14.59%, 17.07%, 0.16%, 0.22%, 16.5% and 20.67% compared with business-as-usual scenario. In addition, combining Conservation Supply Curves with emissions reduction benefits can significantly reduce the cost of the technology, which has a great significance to the popularization and application of technologies. Sensitivity analysis in terms of discount rate and energy price is conducted. This study could help policy makers to cast light on the status quo and prompt more effective policies for China’s iron and steel industry.