Consequently, the steel industry requires to have tax deductions and subsidy policies related to investments in steel CCUS; stimulate investments in CCUS hubs in a cluster format, namely the CO2 transportation and storage infrastructure; and pursue technological developments to improve carbon capture efficiency and processing capacity.
Executive Summary
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As BF-BOF facilities, accounting for 70% of global steel production, still exist, daunting tasks remain to achieve CO2 reduction goals. The carbon capture, utilization, and storage (CCUS) technology serves as a realistic alternative, but there is a long way to go before commercialization.
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Challenges hindering the widespread adoption of CCUS in the steel industry include: 1) the practical constraint lies in a technology to capture a massive amount of CO2 from the offgas of large blast furnaces, where the CO2 content is less than 25%; 2) economic burdens from energy costs and investment in CO2 capture infrastructure; and 3) insufficient infrastructure that results in high transportation costs and limited storage space.
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While predicting the future of CCUS in the steel industry is challenging, achieving net-zero without CCUS is exceptionally difficult. Therefore, continuous technological development and policy support for CCUS are imperative.
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To promote and expand CCUS implementation, concerted efforts are required, including: 1) tax deductions and subsidy policies akin to those in the United States; 2) investment in carbon transport and storage infrastructure, such as CCUS Hubs integrated in clusters; and 3) industry-led technological advancements to enhance carbon capture efficiency and processing capacity.
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