Abstract
The global demand of steel production is growing, and so are the carbon dioxide emissions from the sector. Research has confirmed that 15 to 20% further energy efficiency improvement is possible, which would reduce the sector’s greenhouse gas emissions and help meet global emission reduction initiatives. In this context, this research aims at developing a bottom-up system-based model to evaluate the long-term potential of energy efficiency alternatives in greenhouse gas mitigation. A case study was conducted for the Canadian iron and steel sector. The developed framework involves review of the state of the art in iron and steel production technologies, demand tree development, energy-environmental modeling, scenario development, and analysis. Twenty-six mitigation scenarios were developed in planning horizons ending in 2030 and 2050. A 13% improvement in Canadian iron and steel energy efficiency could be achieved by increasing the production share of the electric arc furnace route from 41% in the base year to 56% by 2050. The results of the analysis suggest that 19 and 38 million tonnes of greenhouse gas emission reduction are achievable in the 2010–2030 and 2010–2050 planning horizons, respectively. This translates to an approximately 6% reduction in emissions compared to the baseline scenarios at a cost of − $76 and − $51 per tonne of carbon dioxide equivalent in the 2010–2030 and 2010–2050 time periods, respectively. The results also reveal that more than 85% of the potential emission reductions are achievable with negative costs and are economically attractive. The study provides insights to decision makers at different levels of industry and government.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
Abbreviations
- BAU:
-
Business-as-usual
- BF:
-
Blast furnace
- BOF:
-
Basic oxygen furnace
- CAD:
-
Canadian dollar
- CF:
-
Cash flow
- COG:
-
Coke oven gas
- CSE:
-
Cost of saved energy
- DRI:
-
Direct reduced iron
- EAF:
-
Electric arc furnace
- EBT:
-
Electric bottom tapping
- EC:
-
Energy consumption
- EE:
-
Energy-efficient
- GHG:
-
Greenhouse gas
- GJ:
-
Gigajoule
- LEAP:
-
Long-range Energy Alternatives Planning
- NPV:
-
Net present value
- O&M:
-
Operation and maintenance
- PJ:
-
Petajoule
- SEC:
-
Specific energy consumption
- TJ:
-
Terajoule
- UHP:
-
Ultra-high power
- US:
-
United States
References
American Iron and Steel Institute (2005). Saving One Barrell of Oil per Ton (SOBOT). A new roadmap for transformation of steelmaking process. https://www.steel.org/~/media/Files/AISI/Public%20Policy/saving_one_barrel_oil_per_ton.pdf. Accessed 24/08/2017.
Arens, M., Worrell, E., & Schleich, J. (2012). Energy intensity development of the German iron and steel industry between 1991 and 2007. Energy, 45(1), 786–797.
Ates, S. A. (2015). Energy efficiency and CO2 mitigation potential of the Turkish iron and steel industry using the LEAP (Long-range Energy Alternatives Planning) system. Energy, 90, 417–428. https://doi.org/10.1016/j.energy.2015.07.059.
Bataille, C., Åhman, M., Neuhoff, K., Nilsson, L. J., Fischedick, M., Lechtenböhmer, S., Solano-Rodriquez, B., Denis-Ryan, A., Stiebert, S., Waisman, H., Sartor, O., & Rahbar, S. (2018). A review of technology and policy deep decarbonization pathway options for making energy-intensive industry production consistent with the Paris Agreement. Journal of Cleaner Production, 187, 960–973. https://doi.org/10.1016/j.jclepro.2018.03.107.
Birat, J.-P., Lorrain, J.-P., & de Lassat, Y. (2009). The “CO2 tool”: CO2 emissions & energy consumption of existing & breakthrough steelmaking routes. Revue de Métallurgie, 106(09), 325–336.
Bonyad, M., Shafique, H. U., Mondal, M. A. H., Subramanyam, V., Kumar, A., & Ahiduzzaman, M. (2018). The development of a framework for the assessment of energy demand-based greenhouse gas mitigation options for the agriculture sector. https://doi.org/10.13031/trans.12407.
Borba, B. S. M. C., Lucena, A. F. P., Rathmann, R., Costa, I. V. L., Nogueira, L. P. P., Rochedo, P. R. R., Castelo Branco, D. A., Júnior, M. F. H., Szklo, A., & Schaeffer, R. (2012). Energy-related climate change mitigation in Brazil: potential, abatement costs and associated policies. Energy Policy, 49, 430–441. https://doi.org/10.1016/j.enpol.2012.06.040.
Canada Energy Regulator (2019). Canada’s Energy Future 2019: energy supply and demand projections to 2040. https://www.cer-rec.gc.ca/nrg/ntgrtd/ftr/2019/index-eng.html.
Canadian Steel Producers Association (2007). Benchmarking energy intensity in the Canadian steel industry. http://198.103.48.133/industrial/technical-info/benchmarking/csi/documents/SteelBenchmarkEnglish.pdf. Accessed 24/08/2017.
Canadian Steel Producers Association (2014). Steel facts. http://canadiansteel.ca/steel-facts/. Accessed 6/4/2014.
Carbon Capture Use and Storage Action Group (2013). CCUS AG Working Group on CCS in industrial applications background paper. http://www.iea.org/media/workshops/2013/ccs/industry/backgroundpaper.pdf. Accessed 07/12/2017.
Davis, M., Ahiduzzaman, M., & Kumar, A. (2018a). How will Canada’s greenhouse gas emissions change by 2050? A disaggregated analysis of past and future greenhouse gas emissions using bottom-up energy modelling and Sankey diagrams. Applied Energy, 220, 754–786. https://doi.org/10.1016/j.apenergy.2018.03.064.
Davis, M., Ahiduzzaman, M., & Kumar, A. (2018b). Mapping Canadian energy flow from primary fuel to end use. Energy Conversion and Management, 156, 178–191. https://doi.org/10.1016/j.enconman.2017.11.012.
Davis, M., Ahiduzzaman, M., & Kumar, A. (2019). How to model a complex national energy system? Developing an integrated energy systems framework for long-term energy and emissions analysis. International Journal of Global Warming, 17(1), 23–58. https://doi.org/10.1504/IJGW.2019.096759.
De Beer, J. (2000). Potential for industrial energy-efficiency improvement in the long term (Vol. 5). Kluwer Academic.
Energetics (2000). Energy and environmental profile of the U.S. iron and steel indusry. https://energy.gov/sites/prod/files/2013/11/f4/steel_profile.pdf. Accessed 07/17/2017.
Energetics (2004). Steel Industry Energy Bandwidth Study. https://energy.gov/sites/prod/files/2013/11/f4/steelbandwidthstudy.pdf. Accessed 24/08/2017.
Fischedick, M., Marzinkowski, J., Winzer, P., & Weigel, M. (2014). Techno-economic evaluation of innovative steel production technologies. Journal of Cleaner Production, 84, 563–580. https://doi.org/10.1016/j.jclepro.2014.05.063.
Gielen, D. (2003). CO2 removal in the iron and steel industry. Energy Conversion and Management, 44(7), 1027–1037. https://doi.org/10.1016/S0196-8904(02)00111-5.
Gielen, D., & Moriguchi, Y. (2001). Environmental strategy design for the Japanese iron and steel industry, a global perspective. https://www.gtap.agecon.purdue.edu/resources/download/461.pdf. Accessed 07/17/2017.
Gielen, D., & Moriguchi, Y. (2002). CO2 in the iron and steel industry: an analysis of Japanese emission reduction potentials. Energy Policy, 30(10), 849–863. https://doi.org/10.1016/S0301-4215(01)00143-4.
Government of Manitoba (2011). Emissions tax on coal and petroleum coke. https://www.gov.mb.ca/finance/taxation/taxes/coal.html.
Government of Quebec (2018). Clean Air Regulation-Environment Quality Act. http://legisquebec.gouv.qc.ca/en/ShowDoc/cr/Q-2,%20r.%204.1. .
Hasanbeigi, A., Price, L., & McKane, A. (2010). The State–of-the-Art Clean Technologies (SOACT) for steelmaking handbook (2nd ed.). Asia-Pacific Partnership on Clean Development and Climate.
Hasanbeigi, A., Arens, M., & Price, L. (2014). Alternative emerging ironmaking technologies for energy-efficiency and carbon dioxide emissions reduction: a technical review. Renewable and Sustainable Energy Reviews, 33(0), 645–658. https://doi.org/10.1016/j.rser.2014.02.031.
Hasanbeigi, A., Jiang, Z., & Price, L. (2013a). Analysis of the past and future trends of energy use in key medium and large-sized Chinese steel enterprises, 2000-2030. https://china.lbl.gov/publications/analysis-past-and-future-trends. Accessed 24/08/2017.
Hasanbeigi, A., Morrow, W., Sathaye, J., Masanet, E., & Xu, T. (2013b). A bottom-up model to estimate the energy efficiency improvement and CO2 emission reduction potentials in the Chinese iron and steel industry. Energy, 50, 315–325.
Hasanbeigi, A., & Price, L. (2013). Emerging energy-efficiency and carbon dioxide emissions-reduction Technologies for the Iron and Steel Industry http://china.lbl.gov/sites/all/files/6106e-steel-tech.pdf. Accessed 24/08/2017.
Hasanbeigi, A., Price, L., Aden, N., Chunxia, Z., Xiuping, L., & Fangqin, S. (2011). A comparison of iron and steel production energy use and energy intensity in China and the U.S. http://china.lbl.gov/sites/all/files/lbl-4836e-us-china-steeljune-2011.pdf. .
Heaps, C. G. (2016). Long-range Energy Alternatives Planning (LEAP) system. [Software version: 2018.1.40]. Somerville: Stockholm Environment Institute https://www.energycommunity.org.
Hidalgo, I., Szabo, L., Calleja, I., Císcar, J. C., Russ, P., & Soria, A. (2003). Energy consumption and CO2 emissions from the world iron and steel industry. JRC-IPTS. EUR, 20686.
IEA (2016). Energy technology perspectives 2016: towards sustainable urban energy system. https://webstore.iea.org/download/direct/1057.
IEA (2019). Tracking Industry. https://www.iea.org/reports/tracking-industry.
Institute for Industrial Productivity (2017). Industrial efficiency technology database. http://ietd.iipnetwork.org/content/iron-and-steel. Accessed 05/29/2017.
International Energy Agency (2007). Tracking industrial energy efficiency and CO2 emissions. https://www.iea.org/publications/freepublications/publication/tracking_emissions.pdf. Accessed 24/08/2017.
International Energy Agency (2013). Tracking Clean Energy Progress 2013: IEA Input to the Clean Energy Ministerial. http://www.iea.org/publications/tcep_web.pdf. Accessed 24/08/2017.
Janzen, R., Davis, M., & Kumar, A. (2020). An assessment of opportunities for cogenerating electricity to reduce greenhouse gas emissions in the oil sands. Energy Conversion and Management, 211, 112755.
Johansson, M. T. (2013). Bio-synthetic natural gas as fuel in steel industry reheating furnaces–a case study of economic performance and effects on global CO2 emissions. Energy, 57, 699–708.
Johansson, M. T., & Söderström, M. (2011). Options for the Swedish steel industry – Energy efficiency measures and fuel conversion. Energy, 36(1), 191–198. https://doi.org/10.1016/j.energy.2010.10.053.
Johansson, T. B., Patwardhan, A. P., Nakićenović, N., & Gomez-Echeverri, L. (2012). Global energy assessment: toward a sustainable future. Cambridge University Press.
Katta, A. K., Davis, M., & Kumar, A. (2020). Development of disaggregated energy use and greenhouse gas emission footprints in Canada’s iron, gold, and potash mining sectors. Resources, Conservation and Recycling, 152, 104485. https://doi.org/10.1016/j.resconrec.2019.104485.
Katta, A. K., Davis, M., Subramanyam, V., Dar, A. F., Mondal, M. A. H., Ahiduzzaman, M., & Kumar, A. (2019). Assessment of energy demand-based greenhouse gas mitigation options for Canada’s oil sands. Journal of Cleaner Production, 241, 118306. https://doi.org/10.1016/j.jclepro.2019.118306.
Kirschen, M., Risonarta, V., & Pfeifer, H. (2009). Energy efficiency and the influence of gas burners to the energy related carbon dioxide emissions of electric arc furnaces in steel industry. Energy, 34(9), 1065–1072. https://doi.org/10.1016/j.energy.2009.04.015.
Kumar Katta, A., Davis, M., & Kumar, A. (2020). Assessment of greenhouse gas mitigation options for the iron, gold, and potash mining sectors. Journal of Cleaner Production, 245, 118718. https://doi.org/10.1016/j.jclepro.2019.118718.
Kuramochi, T. (2016). Assessment of midterm CO2 emissions reduction potential in the iron and steel industry: A case of Japan. Journal of Cleaner Production, 132, 81–97. https://doi.org/10.1016/j.jclepro.2015.02.055.
Li, Y., & Zhu, L. (2014). Cost of energy saving and CO2 emissions reduction in China’s iron and steel sector. Applied Energy, 603–616. https://doi.org/10.1016/j.apenergy.2014.04.014.
Morfeldt, J., & Silveira, S. (2014). Capturing energy efficiency in European iron and steel production—comparing specific energy consumption and Malmquist productivity index. Energy Efficiency, 7(6), 955–972.
Morfeldt, J., Nijs, W., & Silveira, S. (2015). The impact of climate targets on future steel production – an analysis based on a global energy system model. Journal of Cleaner Production, 103, 469–482. https://doi.org/10.1016/j.jclepro.2014.04.045.
Morrow, W. R., Hasanbeigi, A., Sathaye, J., & Xu, T. (2014). Assessment of energy efficiency improvement and CO2 emission reduction potentials in India’s cement and iron & steel industries. Journal of Cleaner Production, 65, 131–141. https://doi.org/10.1016/j.jclepro.2013.07.022.
Natural Resources Canada (2020). Coal facts. https://www.nrcan.gc.ca/science-data/data-analysis/energy-data-analysis/energy-facts/coal-facts/20071.
Natural Resources Canada Office of Energy Efficiency (2017). Comprehensive energy use database, 1990 to 2015. http://oee.nrcan.gc.ca/corporate/statistics/neud/dpa/menus/trends/comprehensive/trends_agg_ab.cfm. Accessed 24/08/2017.
Nyboer, J., & Bennett, M. (2013). Energy use and related data: Canadian iron and steel and ferro-alloy manufacturing industries 1990 to 2011. http://www3.cieedac.sfu.ca/CIEEDACweb/mod.php?mod=pub&op=user. Accessed 24/08/2017.
Ooi, T. C., Thompson, D., Anderson, D. R., Fisher, R., Fray, T., & Zandi, M. (2011). The effect of charcoal combustion on iron-ore sintering performance and emission of persistent organic pollutants. Combustion and Flame, 158(5), 979–987. https://doi.org/10.1016/j.combustflame.2011.01.020.
Organization for Economic Cooperation and Development (2011). Making steel more green: challenges and opportunities. http://www.oecd.org/sti/ind/48328101.pdf. Accessed 24/08/2017.
Orth, A., Anastasijevic, N., & Eichberger, H. (2007). Low CO2 emission technologies for iron and steelmaking as well as titania slag production. Minerals Engineering, 20(9), 854–861. https://doi.org/10.1016/j.mineng.2007.02.007.
Pardo, N., & Moya, J. A. (2013). Prospective scenarios on energy efficiency and CO2 emissions in the European Iron & Steel industry. Energy, 54, 113–128. https://doi.org/10.1016/j.energy.2013.03.015.
Porzio, G. F., Fornai, B., Amato, A., Matarese, N., Vannucci, M., Chiappelli, L., & Colla, V. (2013). Reducing the energy consumption and CO2 emissions of energy intensive industries through decision support systems – an example of application to the steel industry. Applied Energy, 112(0), 818–833. https://doi.org/10.1016/j.apenergy.2013.05.005.
Remus, R., Monsonet, M. A. A., Roudier, S., & Sancho, L. D. (2013). Best available techniques (BAT) reference document for iron and steel production. http://eippcb.jrc.ec.europa.eu/reference/BREF/IS_Adopted_03_2012.pdf. Accessed 24/08/2017.
Rogelj, J., D. Shindell, K. Jiang, S. Fifita, P. Forster, V. Ginzburg, et al. (2018). Mitigation pathways compatible with 1.5°C in the context of sustainable development. In V. Masson-Delmotte, P. Zhai, H.-O. Pörtner, D. Roberts, J. Skea, P.R. Shukla, et al. (Eds.), Global warming of 1.5°C. An IPCC special report on the impacts of global warming of 1.5°C above pre-industrial levels and related global greenhouse gas emission pathways, in the context of strengthening the global response to the threat of climate change, sustainable development, and efforts to eradicate poverty In Press.
Rogelj, J., den Elzen, M., Höhne, N., Fransen, T., Fekete, H., Winkler, H., Schaeffer, R., Sha, F., Riahi, K., & Meinshausen, M. (2016). Paris Agreement climate proposals need a boost to keep warming well below 2 °C. Nature, 534(7609), 631–639. https://doi.org/10.1038/nature18307.
Sakamoto, Y., Tonooka, Y., & Yanagisawa, Y. (1999). Estimation of energy consumption for each process in the Japanese steel industry: a process analysis. Energy Conversion and Management, 40(11), 1129–1140. https://doi.org/10.1016/S0196-8904(99)00025-4.
Scotia Bank (2020). Commodity Price Index. https://www.scotiabank.com/content/dam/scotiabank/sub-brands/scotiabank-economics/english/documents/commodity-price-index/SCPI_2019-12-18.pdf. Accessed 25/03/2020.
Statistics Canada (2010). Population projections for Canada, provinces and territories (2009-2036). http://www.statcan.gc.ca/pub/91-520-x/91-520-x2010001-eng.pdf. Accessed 07/02/2017.
Subramanyam, V., Ahiduzzaman, M., & Kumar, A. (2017a). Greenhouse gas emissions mitigation potential in the commercial and institutional sector. Energy and Buildings, 140, 295–304. https://doi.org/10.1016/j.enbuild.2017.02.007.
Subramanyam, V., Kumar, A., Talaei, A., & Mondal, M. A. H. (2017b). Energy efficiency improvement opportunities and associated greenhouse gas abatement costs for the residential sector. Energy, 118, 795–807. https://doi.org/10.1016/j.energy.2016.10.115.
Talaei, A., Ahiduzzaman, M., & Kumar, A. (2018). Assessment of long-term energy efficiency improvement and greenhouse gas emissions mitigation potentials in the chemical sector. Energy, 153, 231–247. https://doi.org/10.1016/j.energy.2018.04.032.
Talaei, A., Pier, D., Iyer, A. V., Ahiduzzaman, M., & Kumar, A. (2019). Assessment of long-term energy efficiency improvement and greenhouse gas emissions mitigation options for the cement industry. Energy, 170, 1051–1066. https://doi.org/10.1016/j.energy.2018.12.088.
Talaei, A., Oni, A. O., Ahiduzzaman, M., Roychaudhuri, P. S., Rutherford, J., & Kumar, A. (2020). Assessment of the impacts of process-level energy efficiency improvement on greenhouse gas mitigation potential in the petroleum refining sector. Energy, 191, 116243. https://doi.org/10.1016/j.energy.2019.116243.
U.S. Energy Information Administration (2019). Coal explained: Coal prices and outlook. https://www.eia.gov/energyexplained/coal/prices-and-outlook.php. .
UNFCCC. (2015a). Adoption of the Paris Agreement. Report no. FCCC/CP/2015/L.9/rev.1.
UNFCCC. (2015b). INDCs as communicated by parties.
Vogl, V., Åhman, M., & Nilsson, L. J. (2018). Assessment of hydrogen direct reduction for fossil-free steelmaking. Journal of Cleaner Production, 203, 736–745. https://doi.org/10.1016/j.jclepro.2018.08.279.
Wang, K., Wang, C., Lu, X., & Chen, J. (2007). Scenario analysis on CO2 emissions reduction potential in China’s iron and steel industry. Energy Policy, 35(4), 2320–2335. https://doi.org/10.1016/j.enpol.2006.08.007.
Warell, L., & Olsson, A. (2009). Trends and developments in the intensity of steel use: An econometric analysis. https://www.diva-portal.org/smash/get/diva2:1001923/FULLTEXT01.pdf. Accessed 24/08/2017.
Warrian, P. (2010). The importance of steel manufactoring to Canada-a research study. http://munkschool.utoronto.ca/wp-content/uploads/2013/05/CSPA_report_web.pdf. Accessed 07/21/2017.
Wen, Z., Meng, F., & Chen, M. (2014). Estimates of the potential for energy conservation and CO2 emissions mitigation based on Asian-Pacific integrated model (AIM): The case of the iron and steel industry in China. Journal of Cleaner Production, 65, 120–130. https://doi.org/10.1016/j.jclepro.2013.09.008.
World Bank (2020). Commodity prices. https://www.worldbank.org/en/research/commodity-markets. Accessed 25/03/2020.
World Steel Association (2013). World Steel in Figures 2013. https://www.worldsteel.org/en/dam/jcr:7bb9ac20-009d-4c42-96b6-87e2904a721c/Steel-Statistical-Yearbook-2013.pdf. Accessed 24/08/2017.
World Steel Association (2016). Energy use in the steel industry. https://www.worldsteel.org/en/dam/jcr:f07b864c-908e-4229-9f92-669f1c3abf4c/fact_energy_2016.pdf07/01/2017.
World Steel Association (2017). Steel statistical yearbook 2016. https://www.worldsteel.org/en/dam/jcr:37ad1117-fefc-4df3-b84f-6295478ae460/Steel+Statistical+Yearbook+2016.pdf. Accessed 05/17/2017.
World Steel Association. (2018). Steel statistical yearbook, 2018 https://www.worldsteel.org/en/dam/jcr:e5a8eda5-4b46-4892-856b-00908b5ab492/SSY_2018.pdf. .
World Steel Association (2019). World Steel in Figures 2019. https://www.worldsteel.org/en/dam/jcr:96d7a585-e6b2-4d63-b943-4cd9ab621a91/World%2520Steel%2520in%2520Figures%25202019.pdf. Accessed 25/03/2020.
World Steel Association (2020). About Steel. https://www.worldsteel.org/about-steel.html. .
Worrell, E. (2011). Energy efficiency improvement and cost saving opportunities for the US Iron and steel industry an ENERGY STAR (R) guide for energy and plant managers. https://www.energystar.gov/ia/business/industry/Iron_Steel_Guide.pdf. Accessed 24/08/2017.
Worrell, E., Blinde, P., Neelis, M., Blomen, E., & Masanet, E. (2011). Energy efficiency improvement and cost saving opportunities for the US iron and steel industry an ENERGY STAR (R) guide for energy and plant managers.
Worrell, E., Price, L., & Martin, N. (2001). Energy efficiency and carbon dioxide emissions reduction opportunities in the US iron and steel sector. Energy, 26(5), 513–536. https://doi.org/10.1016/S0360-5442(01)00017-2.
Worrell, E., Price, L., Neelis, M., Galitsky, C., & Zhou, N. (2007). World best practice energy intensity values for selected industrial sectors. Lawrence Berkeley National Laboratory.
Xu, C., & Cang, D.-q. (2010). A brief overview of low CO2 emission technologies for Iron and steel making. Journal of Iron and Steel Research, International, 17(3), 1–7. https://doi.org/10.1016/S1006-706X(10)60064-7.
Acknowledgments
We thank the representatives from Alberta Innovates (AI), Cenovus Energy Inc., Suncor Energy Inc., Environment and Climate Change Canada (ECCC), Natural Resources Canada (NRCan), and Alberta Department of Energy for their inputs in various forms. As a part of the University of Alberta’s Future Energy Systems (FES) research initiative, this research was made possible in part thanks to funding from the Canada First Research Excellence Fund (CFREF). The authors also thank Astrid Blodgett for the editorial assistance.
Funding
The NSERC/Cenovus/Alberta Innovates Associate Industrial Research Chair in Energy and Environmental Systems Engineering and the Cenovus Energy Endowed Chair in Environmental Engineering provided financial support for this project.
Author information
Authors and Affiliations
Corresponding author
Ethics declarations
Conflict of interest
The authors declare that they have no conflict of interest.
Additional information
Publisher’s note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Appendix
Appendix
Cost of saved energy results
Sensitivity analysis results
Sensitivity of the results to input parameters
Rights and permissions
About this article
Cite this article
Talaei, A., Ahiduzzaman, M., Davis, M. et al. Potential for energy efficiency improvement and greenhouse gas mitigation in Canada’s iron and steel industry. Energy Efficiency 13, 1213–1243 (2020). https://doi.org/10.1007/s12053-020-09878-0
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s12053-020-09878-0