7 Development of Low Carbon Technology in China’s Iron …
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7.6 Conclusions and Recommendations
7.6.1 Key Conclusions
(1) Pressure exists in low carbon development of China’s iron and steel
industry.
• Massive production and emissions: China, as “world factory”, contributes
to over 50% of the world’s total iron and steel output. The progress in
industrialization and urbanization are boosting domestic demand for iron
and steel;
• Small proportion of short process steel: constrained by the reality, only a
small portion of iron and steel output in China is attributable to short process
ironmaking technique, which is difficult to reverse within a short time;
• Low concentration: approximately 20% of the production capacity is
contributed by small- and medium-sized iron and steel plants, prompting
a rise in average energy consumption/emissions;
• Risk of surplus capacity and excessive inventory: considerable surplus in
production capacity and inventory is produced by incentives aiming at
tackling economic crisis;
• Risk of industrial transfer and shrinking international trade: conservatism is
rife in countries like US, attempting to lure back their overseas industrial
establishments; while underdeveloped regions are gradually joining market
competition as their economic growth picks up.
(2) Multiple options and vast potentials are available for technical renovation.
• Multiple options for technical renovation and vast potentials for comprehensive abatement: from both consumption and production side, multiple
energy-saving and abatement technological options exist in every phase
of iron and steel production, with total theoretical abatement of 43% by
mainstream technology upgrade;
• Excellent cost effectiveness of some renovative techniques: recovery
and reuse of waste heat and waste gas from ironmaking and technology
upgrades in rolling/casting can reduce emissions while improving production
efficiency, demonstrating desirable cost effectiveness.
(3) Zero carbon technologies, with their respective competitiveness, have
captured wide attention.
• Universality of CCUS: be it traditional BF/BOF ironmaking or COG/syngas
DRI, CCUS technology can slash carbon emissions;
• Less material consumption by hydrogen steelmaking: compared to material consumption from CCS process as well as material consumption and
land occupation from CCS facility construction, material consumption from
275
7.6 Conclusions and Recommendations
7.6.1 Key Conclusions
(1) Pressure exists in low carbon development of China’s iron and steel
industry.
• Massive production and emissions: China, as “world factory”, contributes
to over 50% of the world’s total iron and steel output. The progress in
industrialization and urbanization are boosting domestic demand for iron
and steel;
• Small proportion of short process steel: constrained by the reality, only a
small portion of iron and steel output in China is attributable to short process
ironmaking technique, which is difficult to reverse within a short time;
• Low concentration: approximately 20% of the production capacity is
contributed by small- and medium-sized iron and steel plants, prompting
a rise in average energy consumption/emissions;
• Risk of surplus capacity and excessive inventory: considerable surplus in
production capacity and inventory is produced by incentives aiming at
tackling economic crisis;
• Risk of industrial transfer and shrinking international trade: conservatism is
rife in countries like US, attempting to lure back their overseas industrial
establishments; while underdeveloped regions are gradually joining market
competition as their economic growth picks up.
(2) Multiple options and vast potentials are available for technical renovation.
• Multiple options for technical renovation and vast potentials for comprehensive abatement: from both consumption and production side, multiple
energy-saving and abatement technological options exist in every phase
of iron and steel production, with total theoretical abatement of 43% by
mainstream technology upgrade;
• Excellent cost effectiveness of some renovative techniques: recovery
and reuse of waste heat and waste gas from ironmaking and technology
upgrades in rolling/casting can reduce emissions while improving production
efficiency, demonstrating desirable cost effectiveness.
(3) Zero carbon technologies, with their respective competitiveness, have
captured wide attention.
• Universality of CCUS: be it traditional BF/BOF ironmaking or COG/syngas
DRI, CCUS technology can slash carbon emissions;
• Less material consumption by hydrogen steelmaking: compared to material consumption from CCS process as well as material consumption and
land occupation from CCS facility construction, material consumption from