Effect of location on green steel production using Australian resources
Yuki Rhee, Keelan O’Neill, Saif Z.S. Al Ghafri, Eric F. May, Michael L. Johns
Abstract
Hydrogen is being increasingly considered as a chemical feedstock and energy storage vector within the iron and steel industry. This study compares the cost and CO 2 emissions associated with green steel production as a function of location for the components in its supply chain between Australia (Pilbara) and China (Beijing). Results are benchmarked against a new facility using conventional coal-based technology, producing Hot Rolled Coil (HRC) steel in China as a common final product. Green steel production in Australia using hydrogen is considerably cheaper and presents lower emissions than exporting the hydrogen and iron ore to China for subsequent processing. Costs are comparable when intermediate Hot Briquetted Iron (HBI) is exported but with increased emissions. However, utilising blue hydrogen produced in China is the most immediately dispatchable with a 35% reduction in CO 2 emissions and an increase in levelised cost of steel (LCOS) of only 11% relative to current practice. • Steel production using Chinese blue H 2 (Blue Steel) is currently cost competitive. • Exporting green steel is cheaper than exporting hydrogen for steel manufacture. • Exporting Hot Briquetted Iron (HBI) does not provide a cost reduction.