Decarbonization of BF-BOF steel industry in Brazil: position on low-carbon transition trajectory
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2022-09-01
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Monzoni, Mario
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Actions against climate change were announced in the most diverse sectors, including the iron and steel industry, which currently accounts for about 9% of global anthropogenic carbon dioxide (CO2) emission. Alternatives to reduce CO2 emissions in the steel production process have been discussed by the sector, as well as initiatives to accelerate this decarbonization process. However, a deep decarbonization of this industry requires joint work for a radical change in its main production route: primary steel production with BF–BOF (blast furnace–basic oxygen furnace) routes using coking coal, which is the most used route for steel production worldwide and is the most carbon-intensive. Countries with large steel production based on this production route face considerable challenges, among these countries is Brazil, the ninth largest steel producer in the world, producing about 75% of its steel through BF–BOF routes in 2021. However, how does the BF/BOF steel industry in Brazil work for decarbonization? Using case studies of three large BF–BOF steel industries in Brazil, this research explores the decarbonization process to verify actions in place and the dynamics of the industry from a multilevel perspective of the low-carbon transition trajectory. The results show incremental actions for decarbonization occurring currently and the BF–BOF steel industry in Brazil positioned in phase two of the low-carbon transition trajectory, noting actions needed mainly in policies and market spheres to enable industry proceeds towards phase three. The research limitations and suggestions for further studies are presented in the concluding section.