Flexibility options in a decarbonising iron and steel industry

The decarbonisation of the iron and steel industry is expected to significantly increase its electricity consumption due to higher levels of electrification and the partial shift to hydrogen as iron reductant. With its batch processes, this industry offers large potential for the application of demand response strategies to achieve electricity cost savings. Previous research has primarily focused on investigating the demand response potential for currently operating manufacturing processes and partly for future low-carbon processes. This study aims to consolidate this knowledge and apply it to a modelling analysis that investigates the demand response potential of two new low-carbon technologies: the hydrogen-based direct reduction of iron with electric arc furnace technology (H2-DRI-EAF) and the blast furnace basic oxygen furnace technology retrofitted with carbon capture (BF-BOF-CCUS). A cost optimisation approach is applied to plant configurations with varying parameters relevant for flexibility, such as electrolyser and storage sizes, and in the context of future electricity prices. Multiple price profiles are selected to encompass uncertainties on the development of the power system. The potential for a H2-DRI-EAF plant is 3–27 times higher than for a BF-BOF-CCUS, with electricity costs savings potentials of 35% and 3%, respectively. The study finds that electricity prices have the most significant impact on the profitability of investing in electrolyser overcapacities, which enable operating costs reduction. Therefore, the profitability of these investments are strongly dependent on future power system configurations

Flexibility options in a decarbonising iron and steel industry

The decarbonisation of the iron and steel industry is expected to significantly increase its electricity consumption due to higher levels of electrification and the partial shift to hydrogen as iron reductant. With its batch processes, this industry offers large potential for the application of demand response strategies to achieve electricity cost savings. Previous research has primarily focused on investigating the demand response potential for currently operating manufacturing processes and partly for future low-carbon processes. This study aims to consolidate this knowledge and apply it to a modelling analysis that investigates the demand response potential of two new low-carbon technologies: the hydrogen-based direct reduction of iron with electric arc furnace technology (H2-DRI-EAF) and the blast furnace basic oxygen furnace technology retrofitted with carbon capture (BF-BOF-CCUS). A cost optimisation approach is applied to plant configurations with varying parameters relevant for flexibility, such as electrolyser and storage sizes, and in the context of future electricity prices. Multiple price profiles are selected to encompass uncertainties on the development of the power system. The potential for a H2-DRI-EAF plant is 3–27 times higher than for a BF-BOF-CCUS, with electricity costs savings potentials of 35% and 3%, respectively. The study finds that electricity prices have the most significant impact on the profitability of investing in electrolyser overcapacities, which enable operating costs reduction. Therefore, the profitability of these investments are strongly dependent on future power system configurations.</p

Flexibility options in a decarbonising iron and steel industry

The decarbonisation of the iron and steel industry is expected to significantly increase its electricity consumption due to higher levels of electrification and the partial shift to hydrogen as iron reductant. With its batch processes, this industry offers large potential for the application of demand response strategies to achieve electricity cost savings. Previous research has primarily focused on investigating the demand response potential for currently operating manufacturing processes and partly for future low-carbon processes. This study aims to consolidate this knowledge and apply it to a modelling analysis that investigates the demand response potential of two new low-carbon technologies: the hydrogen-based direct reduction of iron with electric arc furnace technology (H2-DRI-EAF) and the blast furnace basic oxygen furnace technology retrofitted with carbon capture (BF-BOF-CCUS). A cost optimisation approach is applied to plant configurations with varying parameters relevant for flexibility, such as electrolyser and storage sizes, and in the context of future electricity prices. Multiple price profiles are selected to encompass uncertainties on the development of the power system. The potential for a H2-DRI-EAF plant is 3–27 times higher than for a BF-BOF-CCUS, with electricity costs savings potentials of 35% and 3%, respectively. The study finds that electricity prices have the most significant impact on the profitability of investing in electrolyser overcapacities, which enable operating costs reduction. Therefore, the profitability of these investments are strongly dependent on future power system configurations.</p

Multi-objective scheduling of a steelmaking plant integrated with renewable energy sources and energy storage systems: Balancing costs, emissions and make-span

As an energy-intensive industry, the steel industry grapples with increasing energy costs and decarbonisation pressures. Therefore, multi-objective optimisation is widely applied in the production scheduling of the steelmaking plant. However, the optimal solution prioritising energy savings and emission reductions may lead to impractical or less economically efficient solutions, since the processing time requirement (PTR) of steel production orders in real-world production is neglected. This study fills the research gap by discussing the impact of PTR on the make-span of the steelmaking process and incorporating it into the optimisation model. Considering the variability of PTR, the solving of the multi-objective scheduling problem is transformed into the selection from Pareto solutions with different make-spans. To better leverage the temporal flexibility of the steelmaking process, a what-if-analysis-based strategy coupled with the Normal Boundary Intersection method is proposed to generate a series of evenly distributed Pareto solutions. The energy storage system is integrated to improve the time granularity of the steelmaking plant's flexibility. Our case studies demonstrate that the electricity and emission costs are reduced by 68.5%, indirect emissions are reduced by 83.5%, and the on-site renewable energy self-consumption rate increases by 12.1%. The effectiveness of the proposed method implies that it is of great relevance to the development of a cleaner steel industry in the future

Demand-Side Flexibility in Power Systems:A Survey of Residential, Industrial, Commercial, and Agricultural Sectors

In recent years, environmental concerns about climate change and global warming have encouraged countries to increase investment in renewable energies. As the penetration of renewable power goes up, the intermittency of the power system increases. To counterbalance the power fluctuations, demand-side flexibility is a workable solution. This paper reviews the flexibility potentials of demand sectors, including residential, industrial, commercial, and agricultural, to facilitate the integration of renewables into power systems. In the residential sector, home energy management systems and heat pumps exhibit great flexibility potential. The former can unlock the flexibility of household devices, e.g., wet appliances and lighting systems. The latter integrates the joint heat&ndash;power flexibility of heating systems into power grids. In the industrial sector, heavy industries, e.g., cement manufacturing plants, metal smelting, and oil refinery plants, are surveyed. It is discussed how energy-intensive plants can provide flexibility for energy systems. In the commercial sector, supermarket refrigerators, hotels/restaurants, and commercial parking lots of electric vehicles are pointed out. Large-scale parking lots of electric vehicles can be considered as great electrical storage not only to provide flexibility for the upstream network but also to supply the local commercial sector, e.g., shopping stores. In the agricultural sector, irrigation pumps, on-farm solar sites, and variable-frequency-drive water pumps are shown as flexible demands. The flexibility potentials of livestock farms are also surveyed

Electrification of the basic materials industry – Implications for the electricity system

The European energy-intensive basic materials industry must achieve deep reductions in CO2 emissions to meet the targets set out in the Paris Agreement. The rapid decline in the cost of renewable electricity makes expanded electrification an attractive option for eliminating the dependence of the industry on fossil fuels. This work applies techno-economic optimisation modelling to investigate how electrification of the basic material intensive industry in EU can interact with the electricity system. In particular, this work examines the ability of basic material industry to take advantage of flexibility options in the production processes to avoid high-cost electricity and facilitate the integration of wind and solar power. The thesis considers flexibility options which can meet an uneven distribution of electricity in time and space, including options to invest in overcapacity in electrolysers for hydrogen production and storage (flexibility in time) and the ability to export commodities (flexibility in location) for the industries included (ammonia, cement, plastics, and steel). For the electrified process of plastics production, flexibility in terms of CO2 utilisation is used to describe the ability of industrial units to vary their CO2 utilisation modes, i.e., through carbon capture and utilisation and carbon capture and storage.The modelling results show that an energy-intensive basic materials industry that has flexibility in relation to time, location, and CO2 utilisation provides lower production costs compared to a non-flexible industry. This is despite the lower capacity utilisation rate (60%) of the electrolysers used for hydrogen production, i.e., it is cost-efficient with investment in over-capacity in electrolysers. The modelling results also show that availability of low-cost electricity generation is the main determining parameter for geographical location of new industries with high operational flexibility and high hydrogen intensity (in this work presented by ammonia industry). With present-day locations of the industry, a hydrogen pipelines network allows for moving the electrolyser capacity from industry-intensive regions to regions with access to low-cost electricity which reduces hydrogen production costs by 3%. With the modelled optimal geographical location of new industries, hydrogen production is in the same region as the hydrogen-consuming units and, thus, a hydrogen pipeline has no significant impact on the hydrogen production cost.It was found that the electrification of the energy-intensive basic materials industry in the EU increases the electricity demand by around 44% (by 1,200 TWh). The future EU electricity demand with the present-day locations of the industrial plants is primarily met by solar, wind and nuclear power. If changes in annual production volumes and relocation of industries are allowed, more commodities are produced in regions that have both existing industries and access to low-cost electricity, thereby increasing the levels of electricity generation from wind and solar power. All the modelled scenarios require a substantial and rapid increases in renewable electricity capacity