Consequences of the Direct Reduction and Electric Steelmaking Grid Creation on the Italian Steel Sector

Abstract

The consequences on the Italian steel sector following the conversion of the sole integrated steel plant and the establishment of a direct reduction/electric arc furnace (DR/EAF) grid in the period 2022–2050 were analyzed. Imported natural gas (pathway 0), green hydrogen (pathway 1) and biomethane (pathway 2) were studied as possible reducing gases to be exploited in the DR plant and to be introduced as a methane substitute in EAFs. The results showed that the environmental targets for the sustainable development scenario could be achieved in both 2030 and 2050. In particular, the main reduction would occur by 2030 as a result of the cease of the integrated plant itself, allowing for an overall reduction of 71% of the CO2 emitted in 2022. On the other hand, reaching the maximum production capacity of the DR plants by 2050 (6 Mton) would result in final emission reductions of 25%, 80% and 35% for pathways 0, 1 and 2, respectively. Finally, the creation of a DR/EAF grid would increase the energy demand burden, especially for pathway 1, which would require three times as much green energy as pathway 0 and/or 2 (36 TWh/y vs. ca. 12 TWh/y).