Integrated assessment of co-benefits between energy efficiency improvement and emission mitigation in Chinese iron and steel industry

Panel: 6. Business models to improve industrial efficiency, global perspective

This is a peer-reviewed paper.

Authors:
Shaohui Zhang, Copernicus Institute of Sustainable Development, Utrecht University, The Netherlands
Ernst Worrell, Utrecht University, The Netherlands
Wina Graus, Utrecht University, The Netherlands

Abstract

The iron and steel industry is one of the largest energy users and sources of greenhouse gas and air pollutant emissions worldwide. In 2010, China accounted for 45% of the global steel production, and consumed 15.8 EJ in final energy and emitted 1344 Mt CO2eq of greenhouse gases, 8433 kt of PM, and 5279 of kt of SO2. China is facing severe challenges with respect to energy security, greenhouse gas and air pollutant emission mitigation. In this paper we analyse the co-benefits of best available energy efficiency measures that jointly tackle the above problems, in comparison to end of pipe technology. We analyse the co-benefits in Chinese iron and steel industry using energy conservation supply curve (ECSC) and the Greenhouse Gas and Air Pollution Interactions and Synergies (GAINS) model. First, the ECSC was made to examine the costs and benefits of the energy efficiency measures, and to estimate the cost-effective potentials. The results of the ECSC were introduced exogenously to the GAINS model. The findings show that the largest energy saving potential for Chinese iron and steel industry for 2010-2030 is 6.3 EJ and the corresponding mitigation of greenhouse gas emission is 512 Mt CO2eq, 178 kt of PM, and 1071 kt of SO2. Investments and savings were calculated for different scenarios, showing that energy efficiency investments will result in a reduction in air pollution control costs.