Wednesday, April 21, 2021

Will Sweden lead the way in hydrogen-powered steelmaking?

Boasting a sea port, an ore mine and lots of renewable energy, northern Sweden is an ideal location for producing hydrogen-powered steel. But there's no lack of challenges to tackle.




The mining town of Kiruna in northern Sweden has big plans

Lulea in northern Sweden is only about 100 kilometers (62 miles) away from the Arctic Circle. It has some 80,000 inhabitants, almost one-third of all people living in Norrbotten province.

In winter, you need icebreakers to access the port of Lulea. It's the second-biggest port on Sweden's eastern coast after Stockholm.

The port of Lulea predominantly handles coal, steel and ore iron. It's located on one end of the Scandinavian ore railroad track, with Narvik in Norway being on the on the opposite end. In between there's Lapland with its mining town Kiruna and an eponymous mine that is considered to be the world's most productive ore mine. In Lulea, steel is produced from Kiruna ore with the help of coal coming from across the Baltic Sea.

Steelmaking reinvented

But this way of making steel will soon come to an end as Sweden's steel industry aims to emulate national power utilities that have done completely without coal for almost a year now.

CO2 emissions from steelmaking will have to be reduced drastically in Sweden and elsewhere if the world wants to meet its emissions targets. Crude steel production accounted for 5.4% of global greenhouse gas emissions in 2018. According to the International Energy Agency (IEA), some 75% of all energy consumed in the process was generated from using coal.


According to mining company LKAB, Kiruna mines enough iron ore for six Eiffel towers per day

Water vapor instead of carbon dioxide?


But as in cement production, emissions from steelmaking cannot simply be reduced by using electricity from renewables. This is because carbon from coal binds oxygen which is necessary to make crude steel and later steel from iron ore. Carbon and oxygen together result in carbon dioxide.

Steelworkers have begun to develop new techniques enabling them to free the oxygen from iron ore with the help of hydrogen instead of carbon. This way you get water vapor as a waste gas, rather than carbon dioxide.

A number of companies are currently testing such techniques, including Thyssenkrupp and Salzgitter from Germany. Lulea in Sweden, however, is willing to take the lead in producing steel with the help of hydrogen.
Swedish pioneers and German partners

Sweden's SSAB is among the technology leaders in this field. Together with iron ore producer LKAB from Kiruna and power utility Vattenfall, SSAB launched the HYBRIT project in its Lulea plant. In September of last year, a test facility went operational there that started making steel without using coal.

Stockholm-based Vargas Holding, which is behind battery producer Northvolt, is also willing to make CO2-free steel in the region. The resulting consortium, H2 Green Steel, involves Swedish utility vehicle manufacturer Scania as well as German-based steelmaker Bilstein and plant manufacturer SMS Group, also from Germany.


The HYBRIT pilot plant is all about making fossil-free steel

First major project of its kind globally


H2 Green Steel wants to build the first global mass production plant for emissions-free steel. An entire production facility including a hydrogen production unit is to emerge in the town of Boden.

By 2026, the plant is to produce 2.5 million tons of hydrogen-powered steel annually, and 5 million tons from 2030. To put those figures in perspective: Germany makes some 40 million tons of steel per year.

The Boden plant is to produce hydrogen from water for which H2 Green Steel wants to build an 800-megawatt electrolyzer on the ground.
Large quantities of green electricity needed

The 800 megawatt mentioned above would currently be 2% of Sweden's total annual electricity consumption. On top of that, you need energy for the steelmaking process itself. During a recent online presentation of the project, H2 Chief Project Officer Maria Persson Gulda said that energy efficiency was key.

But the need to heat up the steel to over 1,000 degrees Centigrade (1832 degrees Fahrenheit) will require enormous amounts of energy no matter what. Part of the waste heat will be fed into the regional heating grid. The question remains where the required green electricity will come from. Without it, hydrogen-powered steelmaking would not be emissions-free.


Norrbotten abounds in hydroelectric power stations

Northern Sweden an ideal location?

Choosing the right location for such a project is crucial. In Norrbotten province alone, Vattenfall operates 15 hydroelectric power plants. Some 100 kilometers to the south, a group of companies is building the Markbydgen windfarm, which is to become Europe's largest onshore windfarm.

Together, both sources of energy would be in a position to come up with 25 terawatt-hours of renewable energy, almost one-fifth of Sweden's current total energy generation.

But there is even more going for Lulea and Boden. "The region really is Sweden's mining and metalworking mecca," H2 supervisory board member Harald Mix said during the online presentation, adding that this also meant being able to draw on the big expertise of employees.

This article was adapted from German.


How hydrogen could change the face of steel production as we know it



2019-05-29


How hydrogen could change the face of steel production as we know it

In order to reduce its emissions, the steel industry needs technical innovation. 

Sweden has one possible solution

The EU is taking climate protection very seriously. Both increasingly stricter environment and climate protection regulations and rising costs through emissions trading are turning up the heat for the industry. By 2030, greenhouse gas emissions in the European Union are to be reduced by at least 40 percent compared the corresponding levels from 1990. By 2050, they are to be cut by as much as 80 to 95 percent.

This affects the steel industry in particular, given that it is considered to be one of the main industrial sources of the climate-damaging gas carbon dioxide. As a result, European steel producing companies are trying to fundamentally change their manufacturing processes through a number of pilot projects and test facilities in order to reduce these unwanted emissions.

‘Hybrit’ – a game-changer for the traditional production process

The joint endeavours of a project of three Swedish companies, the steel group SSAB, the mining group LKAB and the energy group Vattenfall, are already coming along swimmingly. ‘Hybrit’, short for ‘Hydrogen Breakthrough Ironmaking Technology’, is set to produce zero carbon steel from 2020 onwards. At a plant in Luleå in northern Sweden, the conventional production method is being given a dramatic facelift.

The production of pig iron, which is later made into crude steel, uses iron ore as a basic material together with what is referred to as a reducing agent, which removes oxygen from the iron ore. Traditional pig iron manufacturing processes usually use coke as a reducing agent. However, in doing so carbon and oxygen produce the climate-damaging gas carbon dioxide.

Video explaining the function of Hybrit


The aforementioned new production process uses hydrogen instead of coke, which also reacts with the oxygen in the iron ore, but the result is water vapour rather than carbon dioxide. The hydrogen itself is produced climate-neutrally with electricity from renewables. As such, the process could ultimately produce genuinely ‘green steel’.
Hydrogen process to drastically reduce emissions

The Swedish Energy Agency has calculated that this process could reduce the CO2 emissions of the entire country by up to ten percent. It is supporting the development of the plant, which is costing around 150 million euros, with a subsidy of 50 million euros – according to the agency, this is the largest amount of funding ever allocated.

Initially, Hybrit will only produce a comparatively modest amount of one metric ton of steel per hour. Moving forward, however, production is to be expanded to churn out the usual industrial quantities of around 100 to 200 times this figure. According to the feasibility study, the associated costs are currently still 20 to 30 percent higher than those of the traditional process, mainly because hydrogen production is complex and energy-intensive. However, according to Mårten Görnerup, who heads up the project, this price tag should also become competitive by 2035. He bases this forecast on the fact that emission certificates will become significantly more expensive in coming years, while renewable energy will be available at increasingly affordable prices.

Difference between conventional steelmaking and the new Hybrit process: The Hybrit process uses hydrogen instead of coke, which produces no CO2 but only water (Source: Hybrit).

Difference between conventional steelmaking and the new Hybrit process: The Hybrit process uses hydrogen instead of coke, which produces no CO2 but only water (Source: Hybrit).

Difference between conventional steelmaking and the new Hybrit process: The Hybrit process uses hydrogen instead of coke, which produces no CO2 but only water (Source: Hybrit).

Difference between conventional steelmaking and the new Hybrit process: The Hybrit process uses hydrogen instead of coke, which produces no CO2 but only water (Source: Hybrit).

Difference between conventional steelmaking and the new Hybrit process: The Hybrit process uses hydrogen instead of coke, which produces no CO2 but only water (Source: Hybrit).

Blast furnaces in Duisburg to be extinguished by 2050


In Duisburg, things aren’t quite as far along as in Sweden. Thyssen Krupp Steel has created a ‘Roadmap for hydrogen-based steel production’, as Andreas Goss, Head of the Steel Division, explained to Handelsblatt earlier this year. All blast furnaces at the Duisburg-Bruckhausen site will have been extinguished by 2050 at the latest. Before then, the group plans on investing ten billion euros in the development of processes for zero carbon steel production.

Special reduction facilities, rather than blast furnaces, will be needed for the hydrogen process. This is why Thyssen Krupp is planning on slowly upgrading or replacing existing facilities with new ones. The company is still in the process of looking into things, and Dr. Arnd Köfler, head of production, sees “many unanswered questions” in the supply of hydrogen.

New blast furnace replaces coking plants


In the Netherlands, Tata Steel Europe, Europe’s second-largest steel producer, is testing another way to reduce emissions from steel production. According to the group, the production of one metric ton of steel at the Ijmuiden plant currently creates 1.7 metric tons of carbon dioxide. This is significantly less than other plants (which emit around 4 metric tons of CO2), but is also very close to the absolute baseline of what can be achieved with current production process.

The group considers the opportunities in this area to be exhausted – significant reductions are only possible through the development of “groundbreaking new technologies”. One such technology could be what is known as the Hisarna process. Back in 2010, a plant based on this process was built at the Ijmuiden steelworks to the tune of 20 million euros. Since then, millions more have been invested and a number of test runs have been carried out.

A state-of-the-art cyclone-converter furnace is at the heart of the process, and reaches temperatures that allow direct feeding of iron ore and coal. Normally, the materials would have to be prepared before processing – with the help of this new furnace type, this is no longer necessary. “This process significantly reduces the number of energy-intensive steps required for the conventional steel-making process,” the company says. This also reduces energy consumption and emission levels. While in the beginning there was talk of “at least 20 percent” less CO2 emissions, long-term testing has shown that it could in fact be as much as 50 percent. According to the company, a plant is currently being planned that will use this process to produce liquid iron on an industrial scale. It will be operational in about seven years.

Which process is ultimately adopted across the board remains to be seen. A current study of the Fraunhofer Institute for System and Innovation Research initiated by the European Commission has come to a similar conclusion: emissions in the EU could be reduced by 95 percent through “innovative CO2-neutral technologies and far-reaching technical changes”. The steel industry has taken the first steps. ‘Green steel’ could one day become a reality.



‘World first’ as hydrogen used to power commercial steel production


Trial at a commercial steel mill in Sweden shows that clean-burning H2 can replace the fossil fuels currently used to produce high-temperature heat



A steel rolling mill in the UK.Photo: AFP/Getty


28 April 2020

By Leigh Collins


Hydrogen has been used to power commercial steel production for the first time, replacing liquefied natural gas (LNG) as the source of high-temperature heat at a pilot project in Sweden.

Swedish steel maker Ovako’s trial at its Hofors steel mill, in conjunction with hydrogen producer Linde Gas, showed that H2 had no affect on the quality of steel.


“This is a major development for the steel industry,” said Göran Nyström, executive vice-president of group marketing & technology at Ovako. “It is the first time that hydrogen has been used to heat steel in an existing production environment. Thanks to the trial, we know that hydrogen can be used simply and flexibly, with no impact on steel quality, which would mean a very large reduction in the carbon footprint.”

The company said that “this historic development for the steel industry proves that carbon dioxide emissions from rolling can be eliminated provided the right financial support and infrastructure are in place”.

“Given the right conditions, Ovako could therefore introduce hydrogen heating for furnaces at all its rolling mills and thereby drastically reduce its already world-leading low carbon footprint from cradle to gate.”

An Ovako spokesperson tells Recharge that to begin such a roll-out, the company would “need to get funding and collaborate with the right industrial partners”.

Ovako already uses electric-arc furnaces powered by renewable energy to melt scrap steel and produce its base product, but LNG to provide the heat at its rolling mills — where pre-produced steel is passed through pairs of rollers that reduce its thickness and makes the thickness uniform.

More than 95% of the world’s hydrogen is today derived from natural gas and coal, causing nine to 12 tonnes of CO2 emissions for every tonne of H2 produced. Although hydrogen is a clean gas, releasing only water vapour when burned, there is no point replacing the coke, coal or LNG used in steel production with H2 unless that hydrogen is produced from renewable energy (green) or if the CO2 emitted in its production is captured and stored (blue).

Both green and blue hydrogen are currently expensive to produce, available in limited quantities and would increase the cost of steel production, so companies are reluctant to make the switch — unless the clean H2 was subsidised in some way.

According to the World Steel Association, the steel industry generates 7-9% “of direct emissions from the global use of fossil fuel”.(Copyright)









Hydrogen steelmaking for a low-carbon economy


Three Swedish companies plan to implement fossil-free steel production. Understanding these key factors will help make this ambitious plan a reality.


2018

Åhman, M., Olsson, O., Vogl, V., Nyqvist, B., Maltais, A., Nilsson, L.J., Hallding, K., Skånberg, K. and Nilsson, M. (2018). Hydrogen steelmaking for a low-carbon economy: A joint LU-SEI working paper for the HYBRIT project. EESS report no 109 and SEI working paper WP 2018-07. Stockholm Environment Institute, Stockholm, and Lund University, Lund.



Photo: lagereek / Getty Images.

Steel production accounts for approximately 7 percent of global carbon dioxide emissions. To meet the targets set by the 2015 Paris Agreement, the steel sector must go through a systemic change that involves the full value chain, from production to recycling.

In the spring of 2016, three Swedish companies – LKAB (iron ore mining), SSAB (steel manufacturer) and Vattenfall (power utility) – announced their ambition to develop and implement a novel process for fossil-free steel production in Sweden. This process would use hydrogen (instead of coal) for the direct reduction of iron oxide/ore (H-DR), combined with an electric arc furnace (EAF). It would be almost completely fossil-free when the hydrogen is produced from electrolysis of water by use of renewable electricity. The concept is called Hydrogen Breakthrough Ironmaking Technology, or HYBRIT for short.

This joint report from SEI and Lund University provides an overview and analysis of the H-DR concept and the key aspects that makes it a promising route for decarbonisation of the steel industry. The overall objective is to identify key factors – technical, economic and political – that need to be better understood in order to develop industrial strategies and public policies for decarbonising the steel industry.

Read the working paper
Effect of Hydrogen on Iron and Steel During Production, Fabrication, and Use, 1962



View on ScienceDirect

Hydrogen in Steel

1st Edition

Effect of Hydrogen on Iron and Steel During Production, Fabrication, and Use

Author: Michael Smialowski
Paperback ISBN: 9780080096971
eBook ISBN: 9781483213712
Imprint: Pergamon
Published Date: 1st January 1962
Page Count: 468


Description


Hydrogen in Steel: Effect of Hydrogen on Iron and Steel During Production, Fabrication, and Use focuses on the effect of hydrogen on iron and steel during production, fabrication, and use. Topics covered range from the solubility of hydrogen in iron and ferrous alloys to the diffusion and permeation of hydrogen through iron and steel. Electrochemical problems related to the ability of iron to absorb hydrogen from aqueous solutions are also considered. Comprised of 19 chapters, this book begins with a detailed treatment of the nature and properties of metal-hydrogen systems, paying particular attention to the behavior of hydrogen in the bulk of the metal phase and the mechanism of reactions between metals and hydrogen or hydrogen-producing compounds. The reader is then introduced to the solubility of hydrogen in iron and ferrous alloys as well as the nature of the final product of the hydrogen-iron interaction. Subsequent chapters deal with dimensional changes and stresses produced in steel by cathodically evolved hydrogen; the effects of hydrogen on the physical, mechanical, and chemical properties of iron and steel; influence of welding on hydrogen; and sulfide corrosion cracking of steel. The effects of pickling on steel are also examined, along with the blistering and embrittlement caused by hydrogen on the base metal during electroplating. This book will be of value to students and practitioners in the field of physical chemistry.

Table of Contents

Another nail in coal’s coffin? German steel furnace runs on renewable hydrogen in world first

Michael Mazengarb 13 November 2019 




German manufacturing giant Thyssenkrupp has completed a successful, first-of-its-kind demonstration of running a steel furnace completely on hydrogen, a development that is likely to further dent the future prospects for the global coal industry.

The company successfully demonstrated the ability for hydrogen to be used to fuel a steel blast furnace, and Thyssenkrupp sees the achievement as the first step towards transitioning the manufacturing industry towards zero-emissions steel production.

The use of hydrogen to fuel the blast furnaces in steel production also provides a pathway for using renewable hydrogen, potentially eliminating the dependence of the industry on coal.

“Today is a groundbreaking day for the steel industry,” chairman of thyssenkrupp Steel Europe Premal Desai told RenewEconomy in an interview in Sydney.

“We are doing pioneering work here. The use of hydrogen is the key lever for climate-neutral steel production. Today’s test is another step in the transformation of our production, which will culminate in green steel.

“At the same time, we see what is possible when business and government work together towards a common goal. We are very grateful to the state of North Rhine-Westphalia for supporting the project.”

As part of the demonstration conducted in its ‘furnace 9’, thyssenkrupp fed hydrogen into one of 28 tuyeres, or nozzles, that otherwise supply coal into the blast furnace.

Following the successful trial, Thyssenkrupp plans to scale up the injection to all 28 tuyeres within the furnace and aims to eventually run at least three furnaces completely on hydrogen by 2023.

“We want to reduce emissions with hydrogen while continuing to produce pig iron of the same quality,” thyssenkrupp’s chief technical officer Dr Arnd Köfler said.


“At the same time we are breaking new ground with the tests on blast furnace 9, so it is now a question of continuously analyzing and evaluating the furnace’s operation. The results will help us to widen the use of hydrogen to all 28 tuyeres.”

The demonstration project was funded with the support of the North Rhine-Westphalia state government, with the direction to commence the injection of hydrogen fuel into the steel furnace being issued by the state economics and digital minister Dr Andreas Pinkwart.

“The project is an important step on the path to a greenhouse gas-neutral industry and a good example of how innovative key technologies can be developed in North Rhine-Westphalia. We need to keep driving the use of hydrogen in industry because it offers great opportunities, especially in steel production,” Pinkwart said.

Thyssenkrupp is one of the world’s largest steel producers and produces around 12 million tonnes of crude steel annually. The company has committed to achieving a 30 per cent reduction in the company’s emissions by 2030. The company is also aiming to become carbon neutral by 2050.

“We’ve set ourselves a clear goal with our climate strategy,” thyssenkrupp executive board member Dr Klaus Keysberg said.

“Steel production will play an important part in reaching our climate targets because the potential for reducing emissions is huge. That’s why we’re working flat out to drive the transition to hydrogen technology.”

It’s a huge development in the use of zero-emissions and renewable energy supplies in the manufacture of industrial products like steel and presents a major threat to the coal industry.

In conventional blast furnaces around 300 kilograms of coking coal and 200 kilograms of pulverised coal are used in the production of a tonne of pig iron.

Many have argued, including the leaders of both major Australian political parties and various members of the coal lobby, that coal will be required for decades to come, citing the need for coal in steel production to supply materials to the renewables industry.

Federal Labor leader Anthony Albanese recently told a CEDA conference in Perth that the growth in renewable electricity projects will drive demand for Australian coal.

“It takes more than 200 tonnes of metallurgical coal to produce one wind turbine,” Albanese said. “According to forecasts of global growth in wind power capacity to 2030, Australia could be exporting 15.5 million tonnes of coking coal to build these turbines.”

But this weeks demonstration by a major steel producer in thyssenkrupp puts that contention into question.

Thyssenkrupp has led research into the use of renewable hydrogen in steel production, work commencing in April to undertake preliminary research and simulations of injecting hydrogen into the steel furnace.

Thyssenkrupp sees the successful demonstration of hydrogen injection as a crucial step to transitioning this research into fully-fledged industrial application.

The company intends to commission new steel furnaces in the mid-2020s, that will initially use hydrogen to produce ‘sponge-iron’, that will be separately converted into crude steel using renewably powered electric-arc furnaces.



Michael Mazengarb  is a journalist with RenewEconomy, based in Sydney. Before joining RenewEconomy, Michael worked in the renewable energy sector for more than a decade.

Why Hydrogen Will Never Be The Future Of Electric Cars


James Morris
Contributor FORBES
Sustainability
I write about the rapidly growing world of electric vehicles
JULY 4,2020

A decade ago, it seemed like there were two potential contenders to replace fossil fuel for personal transportation – electricity and hydrogen. The hydrogen option had a lot going for it. You could fill your car up just like fossil fuel, but instead of noxious gases coming out of the tailpipe, the exhaust would just be pure water vapour. It sounded like the perfect step forward towards a greener future where we could carry on using our vehicles as before, only without the environmental downsides. Compared to waiting around for an EV’s battery to recharge, hydrogen appeared to be the much more convenient option.


Why hasn't hyrdogen delivered on its promise of being the green car fuel of the future? GETTY

But ten years later, it’s very clear that battery electric vehicles (BEVs) are dominating the shift towards more environmentally friendly transport instead. By the end of 2019, only 7,500 hydrogen cars had been sold around the world. But by the end of 2018, there were already over 5 million plug-in electric vehicles (PEVs) globally, and sales have been accelerating considerably since then. The BEV segment within this has never been less than 55% and is now more like 75%. In the UK, according to the Society of Motor Manufacturers and Traders, BEVs were up to 4.3% of the overall car market year-on-year by May 2020, representing a 131.8% increase since 2019. The BEV is starting to challenge fossil fuel cars, and their fuel cell alternatives are getting nowhere.


The new Toyota Mirai, a hydrogen fuel cell electric vehicle, on display at the 2019 Los Angeles Auto ... [+] AFP VIA GETTY IMAGES


Toyota was one company that truly believed in the hydrogen future, and produced the very credible FCV-R concept in 2011 that developed into the Mirai, which became commercially available in 2015. A second generation will be released in 2021. Honda has also produced a couple of fuel cell vehicles, the Clarity Fuel Cell and FCX Clarity. Hyundai has the Tucson Fuel Cell. So there are some choices available, and these vehicles are all quite viable for everyday usage, with the Mirai offering a range of 312 miles on a tank, and the Honda Clarity Fuel Cell managing a very healthy 366 miles.

So why haven’t hydrogen fuel cell vehicles (FCVs) taken off in the same way as BEVs, considering their convenience? June 2019 could be the month that scrawled the writing on the wall. No sooner had a chemical plant producing hyrdogen in Santa Clara exploded, leaving FCV users in California short of fuel, but just a few days later a refuelling station in Sandvika, Norway also went up in flames. This really brought home the truth that hydrogen can be a dangerously explosive gas – as if we didn’t know it already. I haven’t heard of any cases of the cars themselves detonating, and the fuel tanks are now Kevlar-lined to protect against this explosive possibility. But it was hardly a confidence-inspiring series of events.


We've known that hydrogen can be a dangerous gas for transportation since the Hindenberg disaster... ... [+] CORBIS VIA GETTY IMAGES 
AHHH THAT OLD TROPE WHICH HAS FOREVER TAINTED AND DAMAGED BOTH HYDROGEN AND AIRSHIPS

However, the safety concerns are not the main reason why hydrogen is a far inferior option for personal transportation than BEVs. If one of your main goals is to save the planet, BEVs are considerably more energy efficient than FCVs, when you take into account the whole series of steps between power generation and propulsion. With a BEV, once the electricity is generated – hopefully from a renewable source – the supply of this to your vehicle charging location loses about 5%. The charging and discharging of the battery then lose another 10%. Finally, the motor wastes another 5% driving the vehicle. That makes for a total loss of 20%.

With a hydrogen fuel cell, however, you first have to convert the electricity to hydrogen via electrolysis, which is only 75% efficient. Then the gas has to be compressed, chilled and transported, which loses another 10%. The fuel cell process of converting hydrogen back to electricity is only 60% efficient, after which you have the same 5% loss from driving the vehicle motor as for a BEV. The grand total is a 62% loss – more than three times as much. Or, to put it another way, for every kW of electricity supply, you get 800W for a BEV, but only 380W for an FCV – less than half as much. That’s a huge inefficiency if you’re hoping for a greener future, and doesn’t even take into account the fact that 95% of hydrogen is currently generated from fossil fuel sources.


Despite its inefficiences, hydrogen can still make sense as a fuel type for large commercial ... [+] PICTURE ALLIANCE VIA GETTY IMAGES


Nevertheless, hydrogen still has niches where its main strengths – lightness and quick refuelling – give it a clear advantage. While you can fit your personal driving lifestyle around strategic battery charging stops, this is not ideal for a commercial vehicle that needs to run for very long periods and distances with only short waits to refuel. The weight of batteries for eight hours of continual usage would also be prohibitive in a train, for example. So, for industrial vehicles, hydrogen seems like a viable option, despite the inefficiency. Nevertheless, in the UK, there were only ten hydrogen-powered buses in service in March 2019, alongside 155 electric ones (with more arriving) and 3,669 hybrid ones. But a hydrogen double-decker is also coming into service in London, with hydrogen diggers and trains also already in use. Stock market darling Nikola Motor is working on hydrogen semi-trailer trucks alongside electric and hybrid variants.

But for personal car users, it’s no contest. Hydrogen evangelists are still arguing that FCVs are the future of personal transport and the technology will take off in 2020. It’s likely that FCV energy supply-chain efficiency will be improved over time and more renewable energy sources used in hydrogen production. However, considering the number of BEVs already on the road, FCVs have lost this battle already and will never catch up. A BEV is a viable form of personal transportation right now in most developed Western nations. There are lots of options with over 200 miles of range, and Tesla +0.6%TSLA has even hit 400 miles. There are charging points springing up all the time, with more than twice as many EV charging points in the UK as petrol stations. The battle for the future of green personal transportation is over, and battery electric vehicles have already won.

ROAD TO 2050] Doable, cool, but very expensive

[SHUTTERSTOCK]

[SHUTTERSTOCK]

APRIL 18, 2021

Korea’s transition to a carbon neutral society will be tough for many. But no industries face more of a challenge than steel, petrochemicals and oil refining, where greenhouse gas emissions are intrinsically linked to the ways of production.  
 
According to the Korea Energy Agency, manufacturing was responsible for 59.8 percent of Korea’s greenhouse emissions in 2019. By industry, steelmaking was the biggest culprit: It produced 38.2 percent of greenhouse emissions by manufacturers. Petrochemicals and oil refineries followed at 19 and 10.9 percent, respectively.
 
 
The government says tech development will help these companies reach a carbon neutral state by 2050 — by innovating production methods and adopting ecofriendly energy sources.  
 
In other words, there’s a plan. But the question is feasibility. Replacing production equipment will take massive investments. Technologies to reduce emissions or produce hydrogen in great quantities are still under development or far too expensive for immediate application at industrial sites.  
 
Experts say it’s time to sit down and have a serious talk about the costs we have to pay as Korea’s manufacturing industry goes through a difficult transition to carbon neutrality.  
 
“Carbon neutrality is a global trend. It’s no question that we have to go in that direction,” said Lim Jae-kyu, a senior researcher at Korea Energy Economics Institute (KEEI). “But in terms of pace, we need a clear assessment of where we stand and how much we could do realistically. What we need is milestones. Setting the goal at zero for everybody will only spur unrealistic plans and eventually pull down credibility in government policies.”
 
 
Betting on green technology
 
The reason steel, petrochemical and oil companies produce massive amounts of carbon dioxide is because of the way its products are made. They all involve combustion of fossil fuels like coal and naphtha.  
 
Without it, manufacturing would be impossible. That’s why companies will need facility upgrades of a fundamental nature -- upgrades that root out the old equipment and replace with new technology.  
 
In the short term, steelmakers have pledged to increase energy efficiency and reuse materials. In the long-term, a coal alternative steelmakers are eyeing is hydrogen.  
 
A Posco employee working in a steel mill in Pohang [YONHAP]

A Posco employee working in a steel mill in Pohang [YONHAP]

The traditional method of producing steel is burning ironstone with coal in high heat at above 1,500 degrees Celsius. In this process, 2 tons of carbon dioxide is produced for every 1 ton of steel. Burning hydrogen, on the other hand, produces water as a by-product instead of carbon dioxide.
 
But hydrogen-based steelmaking is years away from mass production as the technology is still in its infancy, globally. In Korea, the government is co-developing the technology with local steelmakers Posco and Hyundai Steel with a goal of running tests in production sites in 2025.  
 
Carbon capture, utilization and storage (CCUS) is technology that could benefit all industries that rely on fossil fuel. It starts by extracting carbon dioxide from the gas produced from combusting fossil fuel. The carbon is then liquefied and transferred to a storage deep underground or undersea where it can’t harm the environment.  
 
Unlike hydrogen-based steelmaking, the technology for CCUS is already mature and is at use in many places around the world. including the United States, Europe, China and Japan.  
 
Korea's issue with CCUS is not the technology, says Yoon Yeo-il, a researcher at the Korea Institute of Energy Research. It’s the lack of storage.  
 
“The full chain of CCUS technology--from extracting, liquefying, transporting and storing carbon-- can be put to use immediately,” he said. “The problem is there’s nowhere to store the liquefied carbon dioxide. Unlike the United States or China, Korea has very small territory. Building a carbon storage facility could easily trigger 'not in my backyard protests' from residents in any region.”
 
That leaves no choice but to drill the seabed. But that would cost around one billion won per hole, Yeo said.  
 
Korea already has failed attempts of building CCUS storage facilities in the country. In 2016, two CO2 storage facilities on a test run-- one on the ground and one offshore in Pohang--were shut after an earthquake. Operations never resumed as a study released soon after suggested the CCUS facilities could have caused the earthquake.
 
 
Hydrogen production is a silver lining
 
As such, it’s no question that the global drive for zero carbon puts a great deal of pressure on steel, chemical and oil companies. But ironically, the increasing demand for ecofriendly fuel also creates a new opportunity in an era where combustibles will have to be replaced.
 
These industries have an advantage when it comes to producing hydrogen which is created as a natural by-product in their manufacturing. Hydrogen can also be made by processing natural gas, which is another resource steel and oil companies have more access to than other industries.  
 
Previously, steel makers, oil refiners and petrochemical companies re-used most of the byproduct hydrogen art the manufacturing sites. As demand is sure to go up, local companies have released ambitious plans to sell hydrogen.
 
Hyundai Steel's hydrogen factory in Dangjin, South Chungcheong [HYUNDAI STEEL]

Hyundai Steel's hydrogen factory in Dangjin, South Chungcheong [HYUNDAI STEEL]

Posco has annual capacity to produce 7,000 tons of hydrogen per year. In February, the company announced it would establish a manufacturing system to produce 5 million tons a year and generate 30 trillion won from hydrogen businesses alone by 2050. Hyundai Steel has a hydrogen factory in Daesan which can produce up to 3,500 tons of hydrogen per year. The company's chief executive said in October that Hyundai may invest up to 250 billion won to enlarge capacity, without suggesting a definite time line.
 
SK Inc., the largest shareholder of SK Innovation, announced in March plans to build a hydrogen factory with annual capacity of 30,000 tons in 2023. The oil refining subsidiary will supply the byproduct hydrogen created in its Incheon plant. SK E&S will also produce hydrogen from imported liquefied natural gas, which would bring SK’s total hydrogen production capacity to 280,000 tons a year by 2025.    
 
Hyosung teamed up with Ireland-based Linde to build a liquefied hydrogen factory in Ulsan. Both companies will be investing 300 billion won each. Once the site is completed in 2022, it will have maximum capacity of 13,000 tons a year, which Hyosung claims would make it the largest liquefied hydrogen factory in the world.  
 
But whether it’s using byproduct hydrogen or processing natural gas, achieving hydrogen that can be commercialized for charging stations and fuel vehicles requires additional equipment. That will take years of investment and construction before fruition.
 
“There are limits to the amount of byproduct hydrogen that can be produced with current facilities, which means if we want more, we need to expand oil refining facilities,” said an SK Innovation spokesman. “The factories at the moment are not focused on producing hydrogen but oil, so there will need to be additional investments for that shifted focus.”
 
Researcher Yoon Wang-rae of the Korea Institute of Energy Research agrees that the amount of hydrogen produced at industrial sites like oil refiners and steel mills can be substantial. Technology has also reached a point where mass production is possible as well. But hydrogen supply lacks cost-effectiveness, says Yoon, mainly due to transportation costs.
 
“Transporting hydrogen through pipelines is cheap but prices jump the minute they’re loaded on tube trailers,” he said. “The most feasible way at the moment is selling hydrogen on-site to regions nearby production facilities.”
 
Hydrogen has to be liquefied for transportation. But this is an expensive task as hydrogen as a liquid is a volatile substance that requires storage at extremely low temperature of minus 253 degrees Celsius and high pressure. If the conditions are not met, storage tanks could explode.  
 
Moreover, it would take a much longer time for hydrogen produced by manufacturing companies to be completely green. Hydrogen produced at the moment is gray or brown hydrogen, meaning it comes from burning combustible fuel. To produce “green hydrogen,” the energy will have to be electricity generated from natural resources like solar or wind power, which at the moment is still very expensive.  
 
 
Haste will do harm
 
In short, technologies suggested by companies and the government are still at the very early stages. They have not reached the point to be applied in the manufacturing field, lack feasibility and will take years of investment in technology and production equipment.  
 
Some experts raise doubt on the government’s 2050 due date for carbon neutrality. According to a carbon reduction plan submitted to the United Nations in December, Korea aims to reduce carbon emissions by 24.4 percent in 2030, compared to 2017, and reach the point of carbon neutrality by 2050.  
 
But forcing a uniform standard may be an impractical initiative that doesn't consider the respective circumstance each industry is facing--which for steel, petrochemical and oil refinery is a little more desperate than others.  
 
“This isn’t something that can be done by the private sector alone,” says Jung Eun-mi, a senior researcher at the Korea Institute for Industrial Economics & Trade. “As a whole, we’ll need infrastructure to use more electricity as we burn less fossil fuel. There will have to be a consumer market is are willing to pay more for products that emit less carbon.”
 
Jung adds that these industries will likely lose competitiveness in the global market if they are not offered the right incentives, while the government carries out plans for carbon neutrality.  
 
In Europe where efforts to pull down carbon emissions started long before Korea, governments have offered support for industries that are vulnerable to the transition for zero carbon. Steelmakers, for example, were offered discounts in electricity fees.  
 
Another reason Korea should be careful in setting an execution plan is because steel, oil and petrochemicals take up a significant portion of Korea’s exports and are fields whose rise and fall could affect other industries as well, like automaking and shipbuilding.  
 
Steel, oil and petrochemicals were among Korea’s top five export categories last year. According to government data, four energy-intensive industries including cement took up 8.4 percent of Korea’s 2019 gross domestic product. This was much higher than the 5.6 percent in the United States, Japan’s 5.8 percent and the European Union’s 5 percent.
 
“These industries are sure to be affected as the society shifts towards carbon neutrality and their fall will affect our country as a whole,” Lim Jae-kyu, a senior researcher at KEEI.  
 
“Some say ‘green industries will make up for that loss and create new jobs. But nobody knows what this 'green industry' will be like. It has no substance.”
 
According to Lim, who advises to government officials on energy policy, discussions have just started to set action plans for carbon neutrality. Now that there’s a goal, what they need is a serious calculation on the costs that will have to be paid.
 
“Even if the technology is ready, the costs will be immense to apply them to manufacturing sites, and nobody is willing to say how much this costs and who will take on that financial burden,” he said. “Companies are announcing investment volumes, but there will be hidden costs that nobody knows yet.
 
“The cost issue is something that hasn’t been addressed yet but we'll get there at one point. The investments will be impossible to be handled by a single party. We also need to deliberate how those costs will affect our economy as a whole.”
 
BY SONG KYOUNG-SON  [song.kyoungson@joongang.co.kr]