Decarbonisation of the Industrial Sector by means of Fuel Switching, Electrification and CCS

Abstract

The industrial sector will have to undergo major changes in order to reduce its emissions with the goal of climate change mitigation. In this context, the iron and steel subsector accounts for the highest CO2 emissions share. This work uses a simulation model of the global energy system and quantifies the impacts of different measures for CO2 reduction (such as fuel switching, electrification and Carbon Capture and Storage - CCS) on investment and operation decisions. The reported scenarios consider the implementation of a CO2 price as a policy instrument to decarbonise the industrial sector. The selected case study covers steel production in the USA up to the year 2050. The results show that single measures such as fuel switching, electrification and CCS adoption alone have a limited impact on the decarbonisation of the iron and steel sector and should be rather implemented all together in an integrated approach towards climate change mitigation.