An Economic Model to Assess Profitable Scenarios of EAF-Based Steelmaking Plants under Uncertain Conditions

The steelmaking processes are considered extremely energy-intensive and carbon-dependent processes. In 2018, it was estimated that the emissions from global steel production represented 7–9% of direct emissions generated by fossil fuels. It was estimated that a specific emissions value of 1.8 tCO<...

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Autores principales:	Francesco Facchini, Giorgio Mossa, Giovanni Mummolo, Micaela Vitti
Formato:	article
Lenguaje:	EN
Publicado:	MDPI AG 2021
Materias:	economic evaluation steel plant steelmaking process environmental cost direct reduction electric arc furnace Technology T
Acceso en línea:	https://doaj.org/article/581562ce36244cfa9716cf57a6d872b1
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spelling	oai:doaj.org-article:581562ce36244cfa9716cf57a6d872b12021-11-11T16:06:50ZAn Economic Model to Assess Profitable Scenarios of EAF-Based Steelmaking Plants under Uncertain Conditions10.3390/en142173951996-1073https://doaj.org/article/581562ce36244cfa9716cf57a6d872b12021-11-01T00:00:00Zhttps://www.mdpi.com/1996-1073/14/21/7395https://doaj.org/toc/1996-1073The steelmaking processes are considered extremely energy-intensive and carbon-dependent processes. In 2018, it was estimated that the emissions from global steel production represented 7–9% of direct emissions generated by fossil fuels. It was estimated that a specific emissions value of 1.8 tCO<sub>2</sub> per ton of steel was produced due to the carbon-dependent nature of the traditional blast furnace and basic oxygen furnace (BF-BOF) route. Therefore, it is necessary to find an alternative solution to the BF-BOF route for steel production to counteract this negative trend, resulting in being sustainable from an environmental and economic point of view. To this concern, the objective of this work consists of developing a total cost function to assess the economic convenience of steelmaking processes considering the variability of specific market conditions (i.e., iron ore price, scraps price, energy cost, etc.). To this purpose, a direct reduction (DR) process fueled with natural gas (NG) to feed an electric arc furnace (EAF) using recycled steel scrap was considered. The approach introduced is totally new; it enables practitioners, managers, and experts to conduct a preliminary economic assessment of innovative steelmaking solutions under market uncertainty. A numerical simulation has been conducted to evaluate the profitability of the investment considering the economic and environmental costs. It emerged that the investment is profitable in any case from an economic perspective. On the contrary, considering the environmental costs, the profitability of the investment is not guaranteed under certain circumstances.Francesco FacchiniGiorgio MossaGiovanni MummoloMicaela VittiMDPI AGarticleeconomic evaluationsteel plantsteelmaking processenvironmental costdirect reductionelectric arc furnaceTechnologyTENEnergies, Vol 14, Iss 7395, p 7395 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	economic evaluation steel plant steelmaking process environmental cost direct reduction electric arc furnace Technology T
spellingShingle	economic evaluation steel plant steelmaking process environmental cost direct reduction electric arc furnace Technology T Francesco Facchini Giorgio Mossa Giovanni Mummolo Micaela Vitti An Economic Model to Assess Profitable Scenarios of EAF-Based Steelmaking Plants under Uncertain Conditions
description	The steelmaking processes are considered extremely energy-intensive and carbon-dependent processes. In 2018, it was estimated that the emissions from global steel production represented 7–9% of direct emissions generated by fossil fuels. It was estimated that a specific emissions value of 1.8 tCO<sub>2</sub> per ton of steel was produced due to the carbon-dependent nature of the traditional blast furnace and basic oxygen furnace (BF-BOF) route. Therefore, it is necessary to find an alternative solution to the BF-BOF route for steel production to counteract this negative trend, resulting in being sustainable from an environmental and economic point of view. To this concern, the objective of this work consists of developing a total cost function to assess the economic convenience of steelmaking processes considering the variability of specific market conditions (i.e., iron ore price, scraps price, energy cost, etc.). To this purpose, a direct reduction (DR) process fueled with natural gas (NG) to feed an electric arc furnace (EAF) using recycled steel scrap was considered. The approach introduced is totally new; it enables practitioners, managers, and experts to conduct a preliminary economic assessment of innovative steelmaking solutions under market uncertainty. A numerical simulation has been conducted to evaluate the profitability of the investment considering the economic and environmental costs. It emerged that the investment is profitable in any case from an economic perspective. On the contrary, considering the environmental costs, the profitability of the investment is not guaranteed under certain circumstances.
format	article
author	Francesco Facchini Giorgio Mossa Giovanni Mummolo Micaela Vitti
author_facet	Francesco Facchini Giorgio Mossa Giovanni Mummolo Micaela Vitti
author_sort	Francesco Facchini
title	An Economic Model to Assess Profitable Scenarios of EAF-Based Steelmaking Plants under Uncertain Conditions
title_short	An Economic Model to Assess Profitable Scenarios of EAF-Based Steelmaking Plants under Uncertain Conditions
title_full	An Economic Model to Assess Profitable Scenarios of EAF-Based Steelmaking Plants under Uncertain Conditions
title_fullStr	An Economic Model to Assess Profitable Scenarios of EAF-Based Steelmaking Plants under Uncertain Conditions
title_full_unstemmed	An Economic Model to Assess Profitable Scenarios of EAF-Based Steelmaking Plants under Uncertain Conditions
title_sort	economic model to assess profitable scenarios of eaf-based steelmaking plants under uncertain conditions
publisher	MDPI AG
publishDate	2021
url	https://doaj.org/article/581562ce36244cfa9716cf57a6d872b1
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An Economic Model to Assess Profitable Scenarios of EAF-Based Steelmaking Plants under Uncertain Conditions

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