19JUNE 2024melted down. For this, however, electricity must also come, at least to a large extent, from renewable energy sources. Then, direct reduction plants, producing sponge iron from the ore, which could then be shipped, could utilize green hydrogen, replacing the natural gas used so far after a transition period. And finally, it would be possible to keep existing LD (BOF) steelworks running and store or convert the CO2 produced. This method is known as CCUS ­ Carbon Capture Utilization and Storage.How complex is CO2-free steel production with hydrogen?This technology is available, and our plants are already "hydrogen ready." The problem rests in the enormous quantities of "green" hydrogen required. A direct reduction plant with an annual production of 2.5 million tons would need about 175,000 tons of hydrogen annually. To achieve this, an electrolysis unit with a capacity of 1.2 gigawatts would have to run continuously for more than 8,000 hours and generate an electricity requirement of 10 terawatt hours.What is the current status of most steel plants worldwide?As mentioned, most are producing steel using the conventional coal-based process. Every 15 years or so, a blast furnace requires a major upgrade--relining. This 15-year cycle also means that for about 70% of all blast furnaces, a decision will have to be made by 2030 whether to invest another 3-digit million-euro amount in another campaign or to convert directly to one of the green alternative process routes. The switch will probably only be made gradually and with huge investments: The International Energy Agency estimates it will take about $1.3 trillion by 2050, the equivalent of about 50 billion euros a year, not including the energy and hydrogen plants required worldwide. Primetals Technologies is a leading technology provider for all these transformation technologies. We are investigating an industrial demonstration plant in Linz, Austria, with Voestalpine and the mining company Fortescue for a unique fluidized bed-based direct reduction technology (HYFOR), including a smelting furnace for the production of green pig iron based on 100% hydrogen.What role can digitalization play in the conversion process, and are there enough technicians?Digitization is essential in plants' material and energy efficiency, from measurement technology to data management. People no longer look at individual plants but optimize the entire production process from raw material input to finished steel. Digitization also facilitates plant maintenance, e.g., via QR codes on components, through which information can be called up immediately or spare parts can be ordered. Are you satisfied with the level of support for the steel industry over the past 12 months (at the EU or member state level)?The politicians have finally recognized that the steel sector is one of the most important to transition to green production if we want to see the pledged CO2 reduction levels in the EU. New mechanisms like the Emissions Trading System (ETS), the Carbon Border Adjustment Mechanism (CBAM), funding regulations like the Clean Steel Partnership (CSP) and Carbon Contracts for Difference (CCfD), and the intended green steel labeling to create a premium price segment ­ these are all instruments to drive the transition of the steel industry in the EU. Additionally, we have seen significant public funding commitments for ArcelorMittal, ThyssenKrupp Steel Europe, and Salzgitter. The transition process has been moving from pledges to execution mode. This transition toward execution makes Primetals Technologies confident that the EU steel sector will achieve the set targets for decarbonizing the steel industry. Digitization is essential in plants' material and energy efficiency, from measurement technology to data management. People no longer look at individual plants but optimize the entire production process from raw material input to finished steelThis article is based on an interview between Metals and Mining Review APAC and Dr. Alexander Fleischanderl.
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