China moots action plan to enhance energy efficiency, cut emissions in steel production

The steel industry is critical to the national economy but is also a major consumer of energy and emitter of carbon dioxide. This action plan aims to enhance energy conservation and reduce carbon emissions, supporting the targets of the "14th Five-Year Plan."

The policy is mainly to implement the steel production capacity replacement, and no new steel production capacity shall be added in the name of mechanical processing, casting, ferroalloys, etc.

In the ferroalloys sector, reports have emerged that the government has requested producers to provide detailed information on their production and capacity, specifically for silico manganese, ferro manganese, and ferro chrome. This move could indicate plans to halt the addition of new ferro alloys capacity.

Main Objectives

By 2025:

• Reduce blast furnace and converter energy consumption by >1% and arc furnace smelting by >2% compared to 2023.
  
  
• Decrease comprehensive energy consumption per ton of steel by >2%.
  
  
• Increase self-generation rate of waste energy by >3%.
  
  
• Aiming to save 20 mnt of standard coal and reduce carbon emissions by 53 mnt.
  
  

By 2030:

• Achieve advanced energy efficiency in main processes and equipment.
  
  
• Significantly reduce energy consumption and carbon emissions.
  
  
• Optimize energy structure and achieve breakthrough in technologies like blast furnace oxygen enrichment and hydrogen metallurgy.
  
  

Key Tasks

Capacity Regulation and Output Management:

• No new steel capacity shall be added in the name of mechanical processing, casting, ferroalloys, etc.
  
  
• By 2025, 30% of production should meet advanced energy efficiency standards.
  
  
• Eliminate outdated processes and equipment.
  
  

Energy Conservation and Carbon Reduction for New Projects:

• Assess and approve new projects based on energy efficiency and environmental impact.
  
  
• Promote integrated layout of steel, coking, and sintering.
  
  

Transformation and Equipment Renewal:

• Upgrade coke ovens, sintering, and pelletizing equipment.
  
  
• Update energy-consuming equipment and improve clean transportation.
  
  

Utilization of Surplus Energy:

• Enhance the efficiency of surplus energy use and by-product gas
  
  
• Promote waste heat power generation and urban heating/cooling from low-grade waste heat.
  
  

Increase Electric Furnace Steelmaking:

• Develop new electric furnace equipments and transition from blast furnace to electric furnace.
  
  
• Aim for 300 mnt of scrap steel utilization and increase electric furnace steel output to 15% by 2025.
  
  

Implementation

Organizational Leadership:

• Coordinate efforts among various governmental bodies and industry associations.
  
  

Project Implementation:

• Conduct energy efficiency diagnostics and establish a project reserve library.
  
  

Supervision and Management:

• Enforce strict energy conservation supervision and address non-compliance.
  
  

Publicity and Guidance:

• Promote a culture of energy conservation and carbon reduction in the industry.
  
  

By adhering to this action plan, the steel industry aims to significantly enhance its energy efficiency and reduce its carbon footprint, contributing to sustainable economic growth.