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Economic Evaluation of Renewable Hydrogen Integration into Steelworks for the Production of Methanol and Methane


This work investigates the cost-efficient integration of renewable hydrogen into steelworks for the production of methane and methanol as an efficient way to decarbonize the steel industry. Three case studies that utilize a mixture of steelworks off-gases (blast furnace gas, coke oven gas, and basic oxygen furnace gas), which differ on the amount of used off-gases as well as on the end product (methane and/or methanol), are analyzed and evaluated in terms of their economic performance. The most influential cost factors are identified and sensitivity analyses are conducted for different operating and economic parameters. Renewable hydrogen produced by PEM electrolysis is the most expensive component in this scheme and responsible for over 80% of the total costs. Progress in the hydrogen economy (lower electrolyzer capital costs, improved electrolyzer efficiency, and lower electricity prices) is necessary to establish this technology in the future.

Funding source: The work carried out was funded by the European Union through the Research Fund for Coal and Steel (RFCS), within the project entitled “i3upgrade: Integrated and intelligent upgrade of carbon sources through hydrogen addition for the steel industry” (grant agreement no. 800659). This paper reflects only the author’s view and the European Commission is not responsible for any use that may be made of the information contained therein.
Related subjects: Applications & Pathways
Countries: Austria ; Germany ; Greece ; Italy ; Poland

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