China’s Steel Industry Faces Urgent Shift to Cleaner Production Methods

China’s steel industry, a cornerstone of its economy, faces a critical juncture as it grapples with high energy consumption and significant carbon emissions. A recent article published in the journal ‘Engineering’ highlights the urgent need for transformation within this sector, particularly through the development of Direct Reduced Iron (DRI). Chengzhi Wei, the lead author from the School of Minerals Processing and Bioengineering at Central South University, emphasizes the pressing nature of this transition: “The steel sector in China accounts for 15% of national CO2 emissions, making it imperative to explore cleaner production methods.”

Traditionally, the dominant method for steel production in China has been the blast furnace–basic oxygen furnace (BF–BOF) route, heavily reliant on coking coal. This process is not only energy-intensive but also a significant contributor to greenhouse gas emissions. As the country strives to meet decarbonization targets, the DRI plus scrap–electric arc furnace (EAF) process emerges as a viable alternative. This method is anticipated to reduce both carbon emissions and dependence on iron ore and coking coal.

However, the current landscape shows a stark reality: China produces almost no DRI, which hampers the development of the EAF route. Wei points out, “In the short term, utilizing coke oven gas and byproduct gas from the integrated refining and chemical sector can provide a cleaner and more economically feasible means to develop a gas-based route.” This approach not only aligns with environmental goals but also opens new avenues for energy utilization within the steel industry.

The research indicates that as the energy revolution unfolds, a combination of fossil fuels with carbon capture, utilization, and storage (CCUS), alongside hydrogen, could offer an economically viable pathway. Wei notes, “In the long term, we envision DRI being produced using 100% hydrogen sourced from renewable energy, which would mark a significant leap toward sustainability.”

To realize this vision, advancements in deep processing technologies and the development of novel binders for high-quality pellets are essential. Additionally, further research into a one-step gas-based process is crucial for streamlining production methods. The implications of this research are profound, potentially reshaping the commercial landscape of the energy sector by fostering innovation and reducing reliance on traditional fossil fuels.

As the steel industry embarks on this transformative journey, the findings from Chengzhi Wei and his team at Central South University serve as a critical guide. The shift toward DRI not only promises to enhance environmental sustainability but also positions China at the forefront of a new era in steel production, one that could influence global energy markets for years to come.

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