Potential of energy efficiency measures in the world steel industry.

SUMMARY The world steel industry plays a major role in energy use and Greenhouse Gas (GHG) emissions now and in the future. Implementing energy efficiency measures is among one of the most cost-effective investments that the industry could make in improving efficiency and reducing GHG emissions. The goal of this thesis was to analyse the potential of energy efficiency measures in the world steel industry. Through characterizing energy-efficiency technology costs and improvement potentials, energy savings and carbon mitigation have been developed and presented for energy efficiency measures for the world steel industry in 2006. In order to properly analyse the total world steel industry, specific regions have been identified; the United States (US), Western Europe (WEU), Former Sovjet Union (FSU), India (IND), China (CHI), Japan (JAP) and Central- and South America (CSA). These regions together are responsible for over 80% of the world steel production. First, an in depth study of 72 identified energy efficiency measures in the US steel industry in 2006 was conducted. Data for energy efficiency measure was collected from case studies, scientific reports, energy audits, etc. Measures were evaluated on cost-effectiveness by calculating Cost of Conserved Energy (CCE) and total energy savings. Once each measure was characterized individually, its applicability to the US iron and steel industry as a whole was assessed. The total of energy savings calculated for each measure represents the total potential for the US. Next, the potential of only cost-effective measures was calculated by adding only the energy savings potential of measures which were identified as cost-effective by CCE calculation. From the energy savings, the carbon mitigation was calculated. In summary, implementing all energy efficiency measures in the US steel industry showed major reduction potentials for both the energy use (385 PJ) and carbon emissions (7.2 MtC). Even if only cost-effective measures are taken into account, the energy and carbon reductions add up to 300 PJ and 6.2 MtC, respectively (equals 26% and 22% of total US steel industry energy use and carbon emissions). The assessment of energy efficiency measures in the US lead to a number of assumptions on key factors influencing the energy efficiency measures for the steel industry in different world regions. From the assessment in the US, it was clear that the energy use, production, industry structure and average weighted energy price were the most important factors influencing the potential of (cost-effective) energy efficiency measures. With these key factors, the analysis was expanded to the other identified world regions. For these world regions estimations were made of the effects of energy efficiency measures in in their steel industry, using the identified key factors and an adaptation of costs data by the PPP-index. The results of these estimations are provided in Table 1. The results of the in depth analysis of the US, the estimations for the selected world regions and an assumption for the remaining other world regions, provided an estimation of the potential for the world steel industry. Apparently, the application of energy efficiency measures all over the world resulted in a total potential energy savings of about 5.7 EJ in 2006 (5.3-6.0 EJ when uncertainties are included). The cost-effective energy savings for the world steel industry are about 4.1 EJ in 2006 (3.5-5.4 EJ, uncertainties included). The total potential for energy efficiency measures is about 23% of the world steel final energy consumption. The cost-effective energy savings add up to about 16% of the final energy consumption. For carbon mitigation the application of energy efficiency measures all over the world resulted in a total potential carbon reduction of about 107 MtC in 2006 (101-113 MtC, uncertainties included). The cost-effective carbon reductions for the world steel industry are about 82 MtC in 2006 (76-101 MtC, uncertainties included). The total potential for energy efficiency measures is about 20% of the world steel carbon emission mitigation. The cost-effective carbon reductions add up to about 15% of the total carbon emissions. In short, the application of energy efficiency measures in the world steel industry offers a major potential for final energy savings and carbon emission reductions.