Usage of Natural Gas in Modern Steel-making : A Financial and Environmental Evaluation of Available Steel-making Technology in Sweden

Sammanfattning: A method of producing steel that is not used in Sweden today is direct reduction using natural gas, a method which could has enormous potential in the future of steelmaking. Historically, steelmaking prioritized productivity and profitability. However, other aspects such as safety, sustainability, and environmentally friendliness have become increasingly important to Swedish steelmakers. This study evaluates the usage of natural gas to  directly reduce iron ore into the porous form known as iron sponge, then finally processing that sponge into crude steel. The technology available today is assessed through a literature review, then two calculative data-based model: using DRI sponge in a traditional integrated steelmaking line or replacing steel scrap with it in an electric arc furnace. While this technology is used in many regions where natural gas is plentiful, it has not yet been used in Sweden. Now, when the Swedish natural gas network is expanding and the vehicular transportation of liquid natural gas is becoming more and more viable, it is a prime situation to evaluate direct reduction in Sweden. While models require assumptions and estimations, they suggest that DRI will absolutely be a viable option in the years to come. Integrated plant operators can reduce their immense carbon emissions for a reasonable price, while DRI sponge melting in an electrical arc furnace can either help steelmakers escape the volatile scrap market or be used to replace the blast furnace as a whole in the future.