The potential for hydrogen ironmaking in New Zealand
Cassidy van Vuuren, Ao Zhang, Jim Hinkley, Chris W. Bumby, Matthew J. Watson
Abstract
Globally, iron and steel production is responsible for approximately 6.3% of global man-made carbon dioxide emissions, because coal is used as both the combustion fuel and chemical reductant. Hydrogen reduction of iron ore offers a potential alternative ‘near-zero-CO2’ route, if renewable electrical power is used for both hydrogen electrolysis and reactor heating. This paper discusses key technoeconomic considerations for establishing a hydrogen direct reduced iron (H2-DRI) plant in New Zealand. The location and availability of firm renewable electricity generation is described, the experimental feasibility of reducing locally-sourced titanomagnetite ironsand in hydrogen is shown, and a high-level process flow diagram for a counter-flow electrically heated H2-DRI process is developed. The minimum hydrogen composition of the reactor off-gas is 46%, necessitating the inclusion of a hydrogen recycle loop to maximise chemical utilisation of hydrogen and minimize costs. A total electrical energy requirement of 3.24 MWh per tonne of H2-DRI is obtained for the base-case process considered here. Overall, a maximum input electricity cost of no more than US$80 per MWh at the plant is required to be cost-competitive with existing carbothermic DRI processes. Production cost savings could be achieved through realistic future improvements in electrolyser efficiency (∼ US$5 per tonne of H2-DRI) and heat exchanger (∼US$3 per tonne). We conclude that commercial H2-DRI production in New Zealand is entirely feasible, but will ultimately depend upon the price paid for firm electrical power at the plant.