Título

THE POTENTIAL USE OF H2 IN BRAZILIAN BLAST FURNACES AS A LEVER TO REDUCE CO2 EMISSIONS

THE POTENTIAL USE OF H2 IN BRAZILIAN BLAST FURNACES AS A LEVER TO REDUCE CO2 EMISSIONS

Autoria

Alencar, Jean Philippe Santos Gherardi de; Campos, Leandro Dijon de Oliveira; Souza, Amaury de Melo; Freitas, Juliana de Moraes Marreco de

DOI

10.5151/5463-5463-35032

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Resumo

Hydrogen has gained attention from policy makers and private sector as a viable alternative substitute of fossil fuels for the decarbonization of transportation, aviation, steel and other industries. In the energy sector, for instance, it has shown great potential to be used as source of energy storage within a scenario of major renewables penetration, such as solar and wind. In the present work, we have evaluated the economic impact of using hydrogen to reduce carbon emissions of the steel industry in Brazil. We have highlighted the main cost components of green hydrogen production, such as Capex, utilization factor, electricity cost, weighed averaged cost of capital and storage, and we have found that with levelized cost of production of $2.5/kg, hydrogen becomes economically unfeasible to be used as reductant gas injected in replacement of PCI in the blast furnaces. However, by achieving costs below $1.5/kg, the abatement cost given certain prices of PCI and the cost of CO2 practiced in the external market would make this route economically viable. Finally, by considering a scenario where blast furnaces in Brazil would operate with 27.5 Kg H2/t hot metal, we estimate emissions cut by at least 11 Mt/y.

 

Hydrogen has gained attention from policy makers and private sector as a viable alternative substitute of fossil fuels for the decarbonization of transportation, aviation, steel and other industries. In the energy sector, for instance, it has shown great potential to be used as source of energy storage within a scenario of major renewables penetration, such as solar and wind. In the present work, we have evaluated the economic impact of using hydrogen to reduce carbon emissions of the steel industry in Brazil. We have highlighted the main cost components of green hydrogen production, such as Capex, utilization factor, electricity cost, weighed averaged cost of capital and storage, and we have found that with levelized cost of production of $2.5/kg, hydrogen becomes economically unfeasible to be used as reductant gas injected in replacement of PCI in the blast furnaces. However, by achieving costs below $1.5/kg, the abatement cost given certain prices of PCI and the cost of CO2 practiced in the external market would make this route economically viable. Finally, by considering a scenario where blast furnaces in Brazil would operate with 27.5 Kg H2/t hot metal, we estimate emissions cut by at least 11 Mt/y.

Palavras-chave

Steel making, Blast furnaces, Hydrogen injection, decarbonization, Emissions reduction, PCI substitution.

Steel making, Blast furnaces, Hydrogen injection, decarbonization, Emissions reduction, PCI substitution.