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A bottom-up technology-level analysis for assessing the energy efficiency potential in China’s iron and steel industry
Panel: 4. Undertaking high impact actions: The role of technology and systems optimisation
This is a peer-reviewed paper.
Authors:
William Morrow, Lawrence Berkeley National Laboratory, USA
Ali Hasanbeigi, Environmental Energy Technologies Division, Lawrence Berkeley National Laboratory, USA
Jayant Sathaye, Environmental Energy Technologies Division, Lawrence Berkeley National Laboratory, USA
Eric Masanet, Environmental Energy Technologies Division, Lawrence Berkeley National Laboratory, USA
Tengfang Xu, Environmental Energy Technologies Division, Lawrence Berkeley National Laboratory, USA
Abstract
China’s annual crude steel production in 2010 was 638.7 Mt accounting for nearly half of the world’s annual crude steel production in the same year. Around 461 TWh of electricity and 14,872 PJ of fuel were consumed to produce this quantity of steel in 2010. We identified and analyzed 23 energy efficiency technologies and measures applicable to the processes in the iron and steel industry. The Conservation Supply Curve (CSC) used in this study is an analytical tool that captures both the engineering and the economic perspectives of energy conservation. Using a bottom-up electricity CSC model, the cumulative cost-effective electricity savings potential for the Chinese iron and steel industry for 2010-2030 is estimated to be 251 TWh, and the total technical electricity saving potential is 416 TWh. The CO2 emissions reduction associated with cost-effective electricity savings is 139 Mt CO2 and the CO2 emission reduction associated with technical electricity saving potential is 237 Mt CO2. The FCSC model for the iron and steel industry shows cumulative cost-effective fuel savings potential of 11,999 PJ, and the total technical fuel saving potential is 12,139. The CO2 emissions reduction associated with cost-effective and technical fuel savings is 1,191 Mt CO2 and 1,205 Mt CO2, respectively. In addition, a sensitivity analysis with respect to the discount rate used is conducted to assess the effect of changes in this parameter on the results. The result of this study gives a comprehensive and easy to understand perspective to the Chinese iron and steel industry and policy makers about the energy efficiency potential and its associated cost.
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Panels of
1. Programmes to promote industrial energy efficiency
2. Sustainable production design and supply chain initiatives
3. Matching policies and drivers: Policies and Directives to drive industrial efficiency
4. Undertaking high impact actions: The role of technology and systems optimisation
5. The role of energy management systems, education, outreach and training
6. The role of financing to improve industrial efficiency, global perspective