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New Energy World
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‘World’s first’ trial begins to recycle CO2 captured at steel plant in Belgium
17/7/2024
News
ArcelorMittal and Mitsubishi Heavy Industries (MHI), together with climate tech company D-CRBN, are trialling a new technology to convert CO2 captured at ArcelorMittal’s steel manufacturing plant in Ghent, Belgium, into carbon monoxide (CO) that can be used in steel and chemical production. Meanwhile, new analysis suggests that the auto manufacturing industry could become a lead market for low-carbon steel production in Europe if lawmakers set content requirements.
The new trial expands the current multi-year carbon capture pilot taking place at the Ghent site to evaluate the feasibility of full-scale deployment of MHI’s Advanced KM CDR Process carbon capture technology. That process uses an amine-based chemical absorption technology.
Antwerp-based D-CRBN’s technology uses plasma, powered by renewable electricity, to break the carbon-oxygen bond and convert CO2 into CO. The CO can be used as a reductant in the steelmaking process – replacing part of the coke or metallurgical coal used in the blast furnace – or as a basic ingredient at ArcelorMittal’s neighbouring Steelanol plant, for chemicals or alternative fuel production.
The D-CRBN process requires high-purity CO2, supplied by MHI’s carbon capture unit which captures CO2 from the facility’s blast furnace off-gases and off-gases from the hot strip mill reheating furnace.
This is the first industrial testing of D-CRBN’s plasma technology, making ArcelorMittal Gent the first steel plant in the world to trial the process. The pilot project is key to verifying that any impurities that accompany the CO2 produced during steelmaking do not negatively impact the process and product gas.
ArcelorMittal is pursuing a number of decarbonisation routes in order to achieve its climate targets, which include a 35% reduction in CO2 emissions from its European operations by 2030. One key strategy is ‘smart carbon’ steelmaking, which uses circular carbon in the blast furnace, carbon capture and storage (CCS) or utilisation (CCU).
Gill Scheltjens, CEO at D-CRBN, comments: ‘Electrifying steel production is challenging, but [our] process, which recycles CO2 emissions back into CO, offers a cost-effective and scalable solution.’ He continues: ‘Our technology can electrify and decarbonise existing blast furnaces and significantly reduce their coal use. The conversion of CO2 back into CO for steel production will limit the need for green hydrogen in the future and reduce the costs of emission-free products. Moreover, some of the CO produced can be supplied to neighbouring chemical companies as feedstock.’
Green steel can cut climate impact of car production for just €57 a vehicle
Meanwhile, the European automotive industry has the potential to significantly reduce its CO2 emissions by adopting low-carbon steel, but this shift requires legislative support in the form of content requirements, according to new analysis by Transport & Environment (T&E). Based on a study by consultancy Ricardo, the analysis suggests that using green steel could cut the CO2 emissions of car production in Europe by 6.9mn tonnes by 2030, equivalent to the annual emissions of 3.5 million fossil fuel cars.
Green steel, produced using green hydrogen, electric arc furnaces or recycled scrap, offers a viable path to decarbonising car production, says T&E. The analysis predicts that integrating 40% green steel into car manufacturing would only add €57 to the cost of an electric vehicle by 2030. Moreover, transitioning to 100% green steel by 2040 would result in an incremental cost increase of just €8 per vehicle, driven by CO2 pricing mechanisms and decreasing green steel production costs.
To meet the substantial investment needs for low-carbon steel production, a reliable market demand is crucial. The automotive sector, which is the second biggest (17%) consumer of steel in the EU, is well-positioned to generate this demand, says T&E. [The largest is the construction sector, according to Statista.] T&E urges European lawmakers to establish targets requiring car manufacturers to incorporate increasing amounts of green steel in new vehicles starting from 2030. This regulatory framework would provide the market certainty needed to secure billions of euros in investment for green steel infrastructure.
T&E recommends that at least 40% of steel used in new cars be green by 2030, increasing to 75% by 2035 and reaching 100% by 2040. To facilitate this transition, an average target for green steel usage should be set across all new cars, allowing manufacturers to offset initial costs through premium models. These targets could be enforced through the EU End-of-Life Vehicles (ELV) regulation, which is currently under revision, it says.
The report by Ricardo indicates that Europe could produce up to 172mn tonnes of low-carbon steel annually by 2030, surpassing the automotive sector’s total steel consumption, which was 36mn tonnes in 2022. The analysis also anticipates that advancements in lightweighting technologies will reduce the overall steel usage in car production over the next decade.
Adopting green steel offers significant benefits for both the automotive and steel industries. For automakers, sourcing green steel would enhance sustainability credentials and comply with increasingly stringent environmental regulations. Steel producers would gain a stable market for their low-carbon products, fostering further innovation and reducing production costs over time.
Alex Keynes, Cars Policy Manager at T&E, emphasises the minimal economic impact of this transition, stating: ‘For less than a tyre change, Europe can build a green steel industry. The extra cost will be negligible and in time it will be cheaper than conventional steel. But we first need lawmakers to kick start the shift to low-carbon steel in the automotive industry.’
T&E’s analysis of CO2 savings and cost is based on the findings of Ricardo’s study for T&E, The use of green steel in the automotive industry (2024). Green steel should be defined as having a climate impact of between 50–400 kg of CO2 equivalent per tonne of steel produced, says T&E. This compares with between 1,800–2,250 kg CO2eq/t typically associated with producing conventional steel.