GTAP Resources: Resource Display
| GTAP Resource #7535 |
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"Decarbonization Pathways and Value Chain Restructuring in the Global Iron and Steel Industry" by Dong, Zheng, Yuyan Weng, Valerie Karplus, Frank Jotzo and Xiliang Zhang Abstract The iron and steel industry is a cornerstone of economic development and industrialization, but it is also the second-largest industrial energy consumer and the top emitter of direct CO2 among all industrial sectors. Decarbonizing this sector is essential for achieving global carbon neutrality. The main steelmaking technologies—Blast Furnace-Basic Oxygen Furnace (BF-BOF), scrap-based Electric Arc Furnace (EAF), and Direct Reduced Iron (DRI)-based EAF—differ in input needs, emissions, and cost structures. Their adoption varies significantly across countries. Key decarbonization strategies include increasing EAF use, deploying hydrogen-based ironmaking, and applying carbon capture and storage (CCS). Green transformation of the sector will require expanded green DRI production, which depends on low-cost renewable electricity, competitive green hydrogen, and high-quality iron ore. Studies suggest that reconfiguring steel assets and producing green DRI at mining sites with abundant renewables and hydrogen could reduce costs and potentially replace iron ore exports, altering global steel trade if cost advantages are achieved. Most Computable General Equilibrium (CGE) models simplify the steel sector, often as a single node or split into BF-BOF and EAF based on power inputs. These simplifications assume full scrap reliance for EAF and overlook the structural and emission differences across production routes. Ironmaking and steelmaking are frequently treated as a unified process, preventing accurate modeling of emissions, outputs, and future DRI trade. Low-carbon technologies and high scrap utilization are also often excluded. This study develops a CGE model covering both upstream and downstream steel value chains, integrating hydrogen-based metallurgy and CCS. It explores: (1) the roles of high scrap use, hydrogen ironmaking, and CCS in decarbonizing steel production across regions, and (2) how H2-DRI may reshape the global steel value chain in a low-carbon transition. |
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- Climate change policy - Trade and the environment - GTAP Data Base and extensions - Other data bases and data issues - Supply chains - Dynamic modeling - Model extension/development - Global |
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Public Access  Paper (173.8 KB) Replicated: 0 time(s) Paper (576.6 KB) Replicated: 0 time(s)Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
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Last Modified: 9/15/2023 2:05:45 PM
