Reduction potential of natural gas usage by increased utilization of process gasses at Tata Steel IJmuiden, exploring both techno-economic and non-techno-economic barriers.

Tata Steel IJmuiden (TSIJ) is responsible for almost 0.7% (8.7 PJ) of the total Dutch natural gas use. There is an opportunity to reduce this amount by replacing natural gas with process gasses that are generated during the steelmaking process. The techno-economic potential of natural gas displacement through the use of process gas is investigated. After estimating future supply and demand of both natural gas and process gas, it was concluded that there is enough process gas (in terms of energy) to displace all natural gas use. However, the technical specifications of blast-furnace gas (a type of process gas) ensure that not all natural gas can be easily displaced under current circumstances. Several suggestions are made to increase the availability of the most valuable type of process gas (coke oven gas). Finally, it is proposed to combine multiple types of process gas into a mixed gas that is sufficient in terms of both availability and technical characteristics. At a total cost of 177 million euros, over 5.9 PJ (61%) worth of natural gas can be saved annually by converting to process gas. Though technically feasible, project profitability is highly sensitive to the relative cost of natural gas versus process gas. Predicted payback periods for individual plant cluster conversion range from 1.2 to 39.1 years. A large body of research suggests that seemingly economically viable energy efficiency improvements are often not implemented. Using the Cagno et al. (2013) framework, technologists at each natural gas using plant cluster were interviewed to identify which barriers inhibit the displacement of natural gas with process gas. Combined with techno-economic results, this provided a broad overview of the potential to displace natural gas with process gas at TSIJ. It was identified that most barriers to the conversion to process gas are economic in nature. Low capital availability forces an enhanced emphasis on profitability of projects. This leads to prioritizing production quality and quantity, and limits the time and resources available for energy efficiency projects. Similar results are found in literature. A notable difference from literature is the perception at TSIJ that neither competence nor informational issues inhibit conversion to process gas. Displacing natural gas with process gas is technically and economically viable under certain circumstances and can contribute significantly to the reduction of natural gas use at TSIJ. Barriers to adoption are mostly economic in nature and will likely diminish if energy prices go up