Applications & Pathways
Prospects and Impediments for Hydrogen Fuel Cell Buses
Jun 2021
Publication
The number of demonstration projects with fuel cell buses has been increasing worldwide. The goal of this paper is to analyse prospects and barriers for fuel cell buses focusing on their economic- technical- and environmental performance. Our results show that the prices of fuel cell buses although decreasing over time are still about 40% higher than those of diesel buses. With the looming ban of diesel vehicles and current limitations of battery electric vehicles fuel cell buses could become a viable alternative in the mid-to long-term. With the requirements for a better integration of renewable energy sources in the transport system interest in hydrogen is rising. Hydrogen produced from renewables used in fuel cell buses has the potential to save about 93% of CO2 emissions in comparison to diesel buses. Yet from environmental point-of-view it has to be ensured that hydrogen is produced from renewables. Currently the major barrier for a faster penetration of fuel cell buses are their high purchase prices which could be significantly reduced with the increasing number of buses through technological learning. The final conclusion is that a tougher transport policy framework is needed which fully reflects the environmental impact of different buses used.
Performance, Emissions, and Combustion Characteristics of a Hydrogen-Fueled Spark-Ignited Engine at Different Compression Ratios: Experimental and Numerical Investigation
Jul 2023
Publication
This paper investigates the performance of hydrogen-fueled spark-ignited single-cylinder Cooperative Fuel Research using experimental and numerical approaches. This study examines the effect of the air–fuel ratio on engine performance emissions and knock behaviour across different compression ratios. The results indicate that λ significantly affects both engine performance and emissions with a λ value of 2 yielding the highest efficiency and lowest emissions for all the tested compression ratios. Combustion analysis reveals normal combustion at λ ≥ 2 while knocking combustion occurs at λ < 2 irrespective of the tested compression ratios. The Livenwood–Wu integral approach was evaluated to assess the likelihood of end-gas autoignition based on fuel reactivity demonstrating that both normal and knocking combustion possibilities are consistent with experimental investigations. Combustion analysis at the ignition timing for maximum brake torque conditions demonstrates knock-free stable combustion up to λ = 3 with increased end-gas autoignition at lower λ values. To achieve knock-free combustion at those low λs the spark timings are significantly retarded to after top dead center crank angle position. Engine-out NOx emissions consistently increase in trend with a decrease in the air–fuel ratio of up to λ = 3 after which a distinct variation in NOx is observed with an increase in the compression ratio.
Experimental Comparison of Hydrogen Refueling with Directly Pressurized vs. Cascade Method
Aug 2023
Publication
This paper presents a comparative analysis of two hydrogen station configurations during the refueling process: the conventional “directly pressurized refueling process” and the innovative “cascade refueling process.” The objective of the cascade process is to refuel vehicles without the need for booster compressors. The experiments were conducted at the Hydrogen Research and Fueling Facility located at California State University Los Angeles. In the cascade refueling process the facility buffer tanks were utilized as high-pressure storage enabling the refueling operation. Three different scenarios were tested: one involving the cascade refueling process and two involving compressor-driven refueling processes. On average each refueling event delivered 1.6 kg of hydrogen. Although the cascade refueling process using the high-pressure buffer tanks did not achieve the pressure target it resulted in a notable improvement in the nozzle outlet temperature trend reducing it by approximately 8 ◦C. Moreover the overall hydrogen chiller load for the two directly pressurized refuelings was 66 Wh/kg and 62 Wh/kg respectively whereas the cascading process only required 55 Wh/kg. This represents a 20% and 12% reduction in energy consumption compared to the scenarios involving booster compressors during fueling. The observed refueling range of 150–350 bar showed that the cascade process consistently required 12–20% less energy for hydrogen chilling. Additionally the nozzle outlet temperature demonstrated an approximate 8 ◦C improvement within this pressure range. These findings indicate that further improvements can be expected in the high-pressure region specifically above 350 bar. This research suggests the potential for significant improvements in the high-pressure range emphasizing the viability of the cascade refueling process as a promising alternative to the direct compression approach.
Technoeconomic, Environmental and Multi-criteria Decision Making Investigations for Optimisation of Off-grid Hybrid Renewable Energy System with Green Hydrogen Production
Jan 2024
Publication
The current study presents a comprehensive investigation of different energy system configurations for a remote village community in India with entirely renewable electricity. Excess electricity generated by the systems has been stored using two types of energy storage options: lithium-ion batteries and green hydrogen production through the electrolysers. The hybrid renewable energy system (HRES) configurations have been sized by minimising the levelised cost of energy (LCOE). In order to identify the best-performing HRES configuration economic and environmental performance indicators has been analysed using the multi-criteria decision-making method (MCDM) TOPSIS. Among the evaluated system configurations system-1 with a photovoltaic panel (PV) size of 310.24 kW a wind turbine (WT) size of 690 kW a biogas generator (BG) size of 100 kW a battery (BAT) size of 174 kWh an electrolyser (ELEC) size of 150 kW a hydrogen tank (HT) size of 120 kg and a converter (CONV) size of 106.24 kW has been found to be the best-performing system since it provides the highest relative closeness (RC) value (∼0.817) and also has the lowest fuel consumption rate of 2.31 kg/kWh. However system-6 shows the highest amount of CO2 (143.97 kg/year) among all the studied system configurations. Furthermore a detailed technical economic and environmental analysis has been conducted on the optimal HRES configuration. The minimum net present cost (NPC) LCOE and cost of hydrogen (COH) for system 1 has been estimated to be $1960584 $0.44/kWh and $22.3/kg respectively.
Design of a Hydrogen Aircraft for Zero Persistent Contrails
Jul 2023
Publication
Contrails are responsible for a significant proportion of aviation’s climate impact. This paper uses data from the European Centre for Medium-Range Weather Forecasts to identify the altitudes and latitudes where formed contrails will not persist. This reveals that long-lived contrails may be prevented by flying lower in equatorial regions and higher in non-equatorial regions. Subsequently it is found that the lighter fuel and reduced seating capacity of hydrogen-powered aircraft lead to a reduced aircraft weight which increases the optimal operating altitude by about 2 km. In non-equatorial regions this would lift the aircraft’s cruise point into the region where long-lived contrails do not persist unlocking hydrogen-powered low-contrails operation. The baseline aircraft considered is an A320 retrofitted with in-fuselage hydrogen tanks. The impacts of the higher-altitude cruise on fuel burn and the benefits unlocked by optimizing the wing geometry for this altitude are estimated using a drag model based on theory proposed by Cavcar Lock and Mason and verified against existing aircraft. The weight penalty associated with optimizing wing geometry for this altitude is estimated using Torenbeek’s correlation. It is found that thinner wings with higher aspect ratios are particularly suited to this high-altitude operation and are enabled by the relaxation of the requirement to store fuel in the wings. An example aircraft design for the non-equatorial region is provided which cruises at a 14 km altitude at Mach 0.75 with a less than 1% average probability of generating long-lived contrails when operating at latitudes more than 35◦ from the equator. Compared to the A320 this concept design is estimated to have a 20% greater cruise lift–drag ratio due to the 33% thinner wings with a 50% larger aspect ratio enabling just 5% more energy use per passenger-km despite fitting 40% fewer seats.
Factors Driving the Decarbonisation of Industrial Clusters: A Rapid Evidence Assessment of International Experience
Sep 2023
Publication
Reducing industrial emissions to achieve net-zero targets by the middle of the century will require profound and sustained changes to how energy intensive industries operate. Preliminary activity is now underway with governments of several developed economies starting to implement policy and providing funding to support the deployment of low carbon infrastructure into high emitting industrial clusters. While clusters appear to offer the economies of scale and institutional capacity needed to kick-start the industrial transition to date there has been little systematic assessment of the factors that may influence the success of these initiatives. Drawing from academic and grey literature this paper presents a rapid evidence assessment of the approaches being used to drive the development of low carbon industrial clusters internationally. Many projects are still at the scoping stage but it is apparent that current initiatives focus on the deployment of carbon capture technologies alongside hydrogen as a future secondary revenue stream. This model of decarbonisation funnels investment into large coastal clusters with access to low carbon electricity and tends to obscure questions about the integration of these technologies with other decarbonisation interventions such as material efficiency and electrification. The technology focus also omits the importance that a favourable location and shared history and culture appears to have played in helping progress the most advanced initiatives; factors that cannot be easily replicated elsewhere. If clusters are to kick-start the low-carbon industrial transition then greater attention is needed to the social and political dimensions of this process and to a broader range of decarbonisation interventions and cluster types than represented by current projects.
Toward Green Steel: Modelling and Environmental Economic Analysis of Iron Direct Reduction with Different Reducing Gases
Sep 2023
Publication
The objective of the paper is to simulate the whole steelmaking process cycle based on Direct Reduced Iron and Electric Arc Furnace technologies by modeling for the first time the reduction furnace based on kinetic approach to be used as a basis for the environmental and techno-economic plant analysis by adopting different reducing gases. In addition the impact of carbon capture section is discussed. A complete profitability analysis has been conducted for the first time adopting a Monte Carlo simulation approach.<br/>In detail the use of syngas from methane reforming syngas and hydrogen from gasification of municipal solid waste and green hydrogen from water electrolysis are analyzed. The results show that the Direct Reduced Iron process with methane can reduce CO2 emissions by more than half compared to the blast furnace based-cycle and with the adoption of carbon capture greenhouse gas emissions can be reduced by an additional 40%. The use of carbon capture by amine scrubbing has a limited economic disadvantage compared to the scenario without it becoming profitable once carbon tax is included in the analysis. However it is with the use of green hydrogen from electrolyzer that greenhouse gas emissions can be cut down almost completely. To have an environmental benefit compared with the methane-based Direct Reduced Iron process the green hydrogen plant must operate for at least 5136 h per year (64.2% of the plant's annual operating hours) on renewable energy.<br/>In addition the use of syngas and separated hydrogen from municipal solid waste gasification is evaluated demonstrating its possible use with no negative effects on the quality of produced steel. The results show that hydrogen use from waste gasification is more economic with respect to green hydrogen from electrolysis but from the environmental viewpoint the latter results the best alternative. Comparing the use of hydrogen and syngas from waste gasification it can be stated that the use of the former reducing gas results preferable from both the economic and environmental viewpoint.
Identification of Hydrogen-Energy-Related Emerging Technologies Based on Text Mining
Dec 2023
Publication
As a versatile energy carrier hydrogen possesses tremendous potential to reduce greenhouse emissions and promote energy transition. Global interest in producing hydrogen from renewable energy sources and transporting storing and utilizing hydrogen is rising rapidly. However the high costs of producing clean hydrogen and the uncertain application scenarios for hydrogen energy result in its relatively limited utilization worldwide. It is necessary to find new promising technological paths to drive the development of hydrogen energy. As part of technological innovation emerging technologies have vital features such as prominent impact novelty relatively fast growth etc. Identifying emerging hydrogen-energy-related technologies is important for discovering innovation opportunities during the energy transition. Existing research lacks analysis of the characteristics of emerging technologies. Thus this paper proposes a method combining the latent Dirichlet allocation topic model and hydrogen-energy expert group decision-making. This is used to identify emerging hydrogen-related technology regarding two features of emerging technologies novelty and prominent impact. After data processing topic modeling and analysis the patent dataset was divided into twenty topics. Six emerging topics possess novelty and prominent impact among twenty topics. The results show that the current hotspots aim to promote the application of hydrogen energy by improving the performance of production catalysts overcoming the wide power fluctuations and large-scale instability of renewable energy power generation and developing advanced hydrogen safety technologies. This method efficiently identifies emerging technologies from patents and studies their development trends. It fills a gap in the research on emerging technologies in hydrogen-related energy. Research achievements could support the selection of technology pathways during the low-carbon energy transition.
A Comprehensive Review on Condition Monitoring and Fault Diagnosis in Fuel Cell Systems: Challenges and Issues
Jan 2024
Publication
The complexity of Fuel Cell (FC) systems demands a profound and sustained understanding of the various phenomena occurring inside of it. Thus far FCs especially Proton Exchange Membrane Fuel Cells (PEMFCs) have been recognized as being among the most promising technologies for reducing Green House Gas (GHG) emissions because they can convert the chemical energy bonded to hydrogen and oxygen into electricity and heat. However their efficiency remains limited. To enhance their efficiency two distinct factors are suggested. First the quality of materials plays a significant role in the development of more robust and efficient FCs. Second the ability to identify mitigate and reduce the occurrence of faults through the use of robust control algorithms is crucial. Therefore more focused on the second point this paper compiles distinguishes and analyzes several publications from the past 25 years related to faults and their diagnostic techniques in FCs. Furthermore the paper presents various schemes outlining different symptoms their causes and corresponding fault algorithms.
A Complete Assessment of the Emission Performance of an SI Engine Fueled with Methanol, Methane and Hydrogen
Feb 2024
Publication
This study explores the potentiality of low/zero carbon fuels such as methanol methane and hydrogen for motor applications to pursue the goal of energy security and environmental sustainability. An experimental investigation was performed on a spark ignition engine equipped with both a port fuel and a direct injection system. Liquid fuels were injected into the intake manifold to benefit from a homogeneous charge formation. Gaseous fuels were injected in direct mode to enhance the efficiency and prevent abnormal combustion. Tests were realized at a fixed indicated mean effective pressure and at three different engine speeds. The experimental results highlighted the reduction of CO and CO2 emissions for the alternative fuels to an extent depending on their properties. Methanol exhibited high THC and low NOx emissions compared to gasoline. Methane and even more so hydrogen allowed for a reduction in THC emissions. With regard to the impact of gaseous fuels on the NOx emissions this was strongly related to the operating conditions. A surprising result concerns the particle emissions that were affected not only by the fuel characteristics and the engine test point but also by the lubricating oil. The oil contribution was particularly evident for hydrogen fuel which showed high particle emissions although they did not contain carbon atoms.
Role of a Unitized Regenerative Fuel Cell in Remote Area Power Supply: A Review
Aug 2023
Publication
This manuscript presents a thorough review of unitized regenerative fuel cells (URFCs) and their importance in Remote Area Power Supply (RAPS). In RAPS systems that utilize solar and hydrogen power which typically include photovoltaic modules a proton exchange membrane (PEM) electrolyzer hydrogen gas storage and PEM fuel cells the cost of these systems is currently higher compared to conventional RAPS systems that employ diesel generators or batteries. URFCs offer a potential solution to reduce the expenses of solar hydrogen renewable energy systems in RAPS by combining the functionalities of the electrolyzer and fuel cell into a single unit thereby eliminating the need to purchase separate and costly electrolyzer and fuel cell units. URFCs are particularly well-suited for RAPS applications because the electrolyzer and fuel cell do not need to operate simultaneously. In electrolyzer mode URFCs function similarly to stand-alone electrolyzers. However in fuel cell mode the performance of URFCs is inferior to that of stand-alone fuel cells. The presented review summarizes the past present and future of URFCs with details on the operating modes of URFCs limitations and technical challenges and applications. Solar hydrogen renewable energy applications in RAPS and challenges facing solar hydrogen renewable energy in the RAPS is discussed in detail.
A New Generation of Hydrogen-Fueled Hybrid Propulsion Systems for the Urban Mobility of the Future
Dec 2023
Publication
The H2-ICE project aims at developing through numerical simulation a new generation of hybrid powertrains featuring a hydrogen-fueled Internal Combustion Engine (ICE) suitable for 12 m urban buses in order to provide a reliable and cost-effective solution for the abatement of both CO2 and criteria pollutant emissions. The full exploitation of the potential of such a traction system requires a substantial enhancement of the state of the art since several issues have to be addressed. In particular the choice of a more suitable fuel injection system and the control of the combustion process are extremely challenging. Firstly a high-fidelity 3D-CFD model will be exploited to analyze the in-cylinder H2 fuel injection through supersonic flows. Then after the optimization of the injection and combustion process a 1D model of the whole engine system will be built and calibrated allowing the identification of a “sweet spot” in the ultra-lean combustion region characterized by extremely low NOx emissions and at the same time high combustion efficiencies. Moreover to further enhance the engine efficiency well above 40% different Waste Heat Recovery (WHR) systems will be carefully scrutinized including both Organic Rankine Cycle (ORC)-based recovery units as well as electric turbo-compounding. A Selective Catalytic Reduction (SCR) aftertreatment system will be developed to further reduce NOx emissions to near-zero levels. Finally a dedicated torque-based control strategy for the ICE coupled with the Energy Management Systems (EMSs) of the hybrid powertrain both optimized by exploiting Vehicle-To-Everything (V2X) connection allows targeting H2 consumption of 0.1 kg/km. Technologies developed in the H2-ICE project will enhance the know-how necessary to design and build engines and aftertreatment systems for the efficient exploitation of H2 as a fuel as well as for their integration into hybrid powertrains.
The Role of Hydrogen Storage in an Electricity System with Large Hydropower Resources
Feb 2024
Publication
Hydrogen is considered one of the key pillars of an effective decarbonization strategy of the energy sector; however the potential of hydrogen as an electricity storage medium is debated. This paper investigates the role of hydrogen as an electricity storage medium in an electricity system with large hydropower resources focusing on the Swiss electricity sector. Several techno-economic and climate scenarios are considered. Findings suggest that hydrogen storage plays no major role under most conditions because of the large hydropower resources. More specifically no hydrogen storage is installed in Switzerland if today’s values of net-transfer capacities and low load-shedding costs are assumed. This applies even to hydrogen-favorable climate scenarios (dry years with low precipitation and dam inflows) and economic assumptions (high learning rates for hydrogen technologies). In contrast hydrogen storage is installed when net-transfer capacities between countries are reduced below 30% of current values and load-shedding costs are above 1000 EUR/MWh. When installed hydrogen is deployed in a few large-scale installations near the national borders.
Optimal Scheduling of an Electric-Hydrogen-Integrated Energy System Considering Virtual Energy Storage
Jan 2024
Publication
In this paper a two-layer optimization approach is proposed to facilitate the multi-energy complementarity and coupling and optimize the system configuration in an electric-hydrogen-integrated energy system (EH-IES). Firstly an EH-IES with virtual energy storage is proposed to reduce the cost of physical energy storage equipment. Secondly a two-layer optimal allocation method is proposed under a multi-timescale strategy to examine the comprehensive evaluation index of environmental protection and economy. The upper layer utilizes the NSGA-II multi-objective optimization method for system capacity allocation while the lower layer performs economic dispatch at the lowest cost. Ultimately the output includes the results of the equipment capacity allocation of the EH-IES that satisfies the reliability constraint interval and the daily scheduling results of the equipment. The results demonstrate that the electric-hydrogen-integrated energy system with the coupling of multiple energy equipment not only enhances the utilization of renewable energy sources but also reduces the usage of fossil energy and improves the system’s reliability.
Applying a 2 kW Polymer Membrane Fuel-Cell Stack to Building Hybrid Power Sources for Unmanned Ground Vehicles
Nov 2023
Publication
The novel constructions of hybrid energy sources using polymer electrolyte fuel cells (PEMFCs) and supercapacitors are developed. Studies on the energy demand and peak electrical power of unmanned ground vehicles (UGVs) weighing up to 100 kg were conducted under various conditions. It was found that the average electrical power required does not exceed ~2 kW under all conditions studied. However under the dynamic electrical load of the electric drive of mobile robots the short peak power exceeded 2 kW and the highest current load was in the range of 80–90 A. The electrical performance of a family of PEMFC stacks built in open-cathode mode was determined. A hydrogen-usage control strategy for power generation cleaning processes and humidification was analysed. The integration of a PEMFC stack with a bank of supercapacitors makes it possible to mitigate the voltage dips. These occur periodically at short time intervals as a result of short-circuit operation. In the second construction the recovery of electrical energy dissipated by a short-circuit unit (SCU) was also demonstrated in the integrated PEMFC stack and supercapacitor bank system. The concept of an energy-efficient mobile and environmentally friendly hydrogen charging unit has been proposed. It comprises (i) a hydrogen anion exchange membrane electrolyser (ii) a photovoltaic installation (iii) a battery storage (iv) a hydrogen buffer storage in a buffer tank (v) a hydrogen compression unit and (vi) composite tanks.
Eco-Sustainable Energy Production in Healthcare: Trends and Challenges in Renewable Energy Systems
Oct 2023
Publication
The shift from fossil fuels to renewable energy systems represents a pivotal step toward the realization of a sustainable society. This study aims to analyze representative scientific literature on eco-sustainable energy production in the healthcare sector particularly in hospitals. Given hospitals’ substantial electricity consumption the adoption of renewable energy offers a reliable low-CO2 emission solution. The COVID-19 pandemic has underscored the urgency for energyefficient and environmentally-responsible approaches. This brief review analyzes the development of experimental simulation and optimization projects for sustainable energy production in healthcare facilities. The analysis reveals trends and challenges in renewable energy systems offering valuable insights into the potential of eco-sustainable solutions in the healthcare sector. The findings indicate that hydrogen storage systems are consistently coupled with photovoltaic panels or solar collectors but only 14% of the analyzed studies explore this potential within hospital settings. Hybrid renewable energy systems (HRES) could be used to meet the energy demands of healthcare centers and hospitals. However the integration of HRES in hospitals and medical buildings is understudied.
Current Status and Economic Analysis of Green Hydrogen Energy Industry Chain
Feb 2024
Publication
Under the background of the power system profoundly reforming hydrogen energy from renewable energy as an important carrier for constructing a clean low-carbon safe and efficient energy system is a necessary way to realize the objectives of carbon peaking and carbon neutrality. As a strategic energy source hydrogen plays a significant role in accelerating the clean energy transition and promoting renewable energy. However the cost and technology are the two main constraints to green hydrogen energy development. Herein the technological development status and economy of the whole industrial chain for green hydrogen energy “production-storage-transportation-use” are discussed and reviewed. After analysis the electricity price and equipment cost are key factors to limiting the development of alkaline and proton exchange membrane hydrogen production technology; the quantity scale and distance of transportation are key to controlling the costs of hydrogen storage and transportation. The application of hydrogen energy is mainly concentrated in the traditional industries. With the gradual upgrading and progress of the top-level design and technology the application of hydrogen energy mainly including traffic transportation industrial engineering energy storage power to gas and microgrid will show a diversified development trend. And the bottleneck problems and development trends of the hydrogen energy industry chain are also summarized and viewed.
Techno-economic Analysis and Predictive Operation of a Power-to-hydrogen for Renewable Microgrids
Oct 2023
Publication
To enhance renewable energy (RE) generation and maintain power balance energy storage systems are of utmost importance. This research introduces a cutting-edge Power-to-Hydrogen (PtH) framework that harnesses hydrogen as a clean and versatile energy storage medium. The primary focus of this study lies in optimizing power flow within a microgrid (G) equipped with RE and energy storage systems considering various factors such as RE generation power demand battery charge cycles and operational costs. To achieve the optimal balance between power generation and consumption a sophisticated mathematical solution is devised. This solution governs the charging and discharging patterns for both battery and electrolyzer ensuring a harmonious power equilibrium. The use of short-term forecasting further refines the optimization process adapting the parameters based on anticipated RE sources and load requirements. To fine-tune the power management solution for day-to-day operations an artificial neural fuzzy inference system (ANFIS)-based shortterm prediction model is employed. The predictive analysis provides confidence intervals for crucial aspects including power generation demand battery charging cycles and hydrogen generation. This facilitates precise cost estimation across various hydrogen and heat price ranges. the proposed PtH optimization framework offers an efficient approach to balance power generation and consumption in Gs driven by RE sources and energy storage. To validate the proposed approach numerical simulations are performed based on data from wind and solar farms load requirements and cost of energy. The results show that the proposed energy management strategy significantly reduces operational costs and optimizes PtH generation while maintaining power balance within the microgrid (G). The predictive approach helps fine-tune the optimization process improving efficiency and cost-effectiveness. The research convincingly demonstrate the economic advantages of adopting hydrogen as an energy storage medium paving the way for a cleaner and more sustainable energy future.
Three-Stage Modeling Framework for Analyzing Islanding Capabilities of Decarbonized Energy Communities
May 2023
Publication
Contrary to microgrids (MGs) for which grid code or legislative support are lacking in the majority of cases energy communities (ECs) are one of the cornerstones of the energy transition backed up by the EU’s regulatory framework. The main difference is that unlike MGs ECs grow and develop organically through citizen involvement and investments in the existing low-voltage (LV) distribution networks. They are not planned and built from scratch as closed distribution systems that are independent of distribution system operator plans as assumed in the existing literature. An additional benefit of ECs could be the ability to transition into island mode contributing to the resilience of power networks. To this end this paper proposes a three-stage framework for analyzing the islanding capabilities of ECs. The framework is utilized to comprehensively assess and compare the islanding capabilities of ECs whose organic development is based upon three potential energy vectors: electricity gas and hydrogen. Detailed dynamic simulations clearly show that only fully electrified ECs inherently have adequate islanding capabilities without the need for curtailment or additional investments.
On the Green Transformation of the Iron and Steel Industry: Market and Competition Aspects of Hydrogen Biomass Options
Feb 2024
Publication
The iron and steel industry is a major emitter of carbon dioxide globally. To reduce their carbon footprint the iron and steel industry pursue different decarbonization strategies including deploying bio-based materials and energy carriers for reduction carburisation and/or energy purposes along their value-chains. In this study two potential roles for biomass were analysed: (a) substituting for fossil fuels in iron-ore pellets induration and (b) carburisation of DRI (direct reduced iron) produced via fully hydrogen-based reduction. The purpose of the study was to analyse the regional demand-driven price and allocative effects of biomass assortments under different biomass demand scenarios for the Swedish iron and steel industry. Economic modelling was used in combination with spatial biomass supply assessments to predict the changes on relevant biomass markets. The results showed that the estimated demand increases for forest biomass will have significant regional price effects. Depending on scenario the biomass demand will increase up to 25 percent causing regional prices to more than doubling. In general the magnitude of the price effects was driven by the volumes and types of biomasses needed in the different scenarios with larger price effects for harvesting residues and industrial by-products compared to those of roundwood. A small price effect of roundwood means that the incentives for forest-owners to increase their harvests and thus also the availability of harvest residues are small. Flexibility in the feedstock sourcing (both regarding quality and geographic origin) will thus be important if forest biomass is to satisfy demands in iron and steel industry.
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