Technological Solutions to China's Carbon Neutrality in the Steel and Cement Sectors

Abstract

China has set Nationally Determined Contributions (NDCs) and carbon neutrality targets without providing expected industry-specific technological details. By focusing on the steel and cement industries in China, this study analyzes the energy consumption of different technology routes, decarbonization pathways of innovative technologies, and the synergistic impact of air pollutants. The study finds that the incumbent technology routes for steel and cement production have limited carbon reductions, and the deployment of innovative technologies (carbon capture, utilization, and storage [CCUS], electrolytic- and hydrogen-based, and scrap-based technologies) need to be accelerated to achieve carbon neutrality targets. We find that the net-zero emissions pathway relying upon innovative technologies needs less investment than the NDCs scenario. Furthermore, electric arc furnace deployment will be mainly concentrated in Jiangsu, Guangdong, and Sichuan, while CCUS should be mainly in Hebei, Shandong, Liaoning, and Jiangsu provinces. The increased electrification of innovative technologies in steel and cement requires a shift in energy inputs from fossil energy to electricity. A combination of strict climate change mitigation and air pollution control will have higher synergistic effects.