New Report: How Clean is the U.S. Steel Industry?

An International Benchmarking of Energy and CO2 Intensities

The iron and steel industry accounts for around a quarter of greenhouse gas (GHG) emissions from the global industrial sector. Global steel production has more than doubled between 2000 and 2018. China accounted for 51 percent of global steel production in 2018. The energy use and GHG emissions of the steel industry is likely to continue increasing because the increased demand for steel, particularly in developing countries, is outpacing the incremental decreases in energy and CO2 emissions intensity of steel production that are happening under the current policy and technology regime.

In this study, which was supported by the BlueGreen Alliance Foundation, we conduct a benchmarking analysis for energy and CO2 emissions intensity of the steel industry among the largest steel-producing countries. Because of the difference in the composition of the steel industry across countries and the variation in the share of electric arc furnace (EAF) steel production, a single intensity value for the overall steel industry is not a good indicator of efficiency of the steel industry in a country. Therefore, in addition to calculating energy and CO2 intensities for the entire steel industry, we also calculated separately the intensities associated with the EAF and blast furnace–basic oxygen furnace (BF-BOF) production routes in each country.

Our results show that when looking at the entire steel industry, Italy and Spain have the lowest and China has the highest energy and CO2 emissions intensities among the countries studied. Among several reasons, this is primarily because of a significantly higher share of scrap-base EAF steel production from total steel production in Italy and Spain and a very low share of EAF steel production in China. The U.S. steel industry’s final energy and CO2 emissions intensities rank 4th lowest among the countries studied.

To read the full report and see complete results and analysis of this new study, Download the full report from this link.

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New Report: Deep Decarbonization Roadmap for California Cement Industry

California’s cement plants are the largest consumers of coal in the state. California is the second-largest cement producing state in the United States after Texas. More than 70 percent of the energy used in California’s cement industry is coal and petroleum coke, which are two of the most air-polluting fossil fuels.

In early 2019, we published a report titled “California’s Cement Industry: Failing the Climate Challenge”. In that report we analyzed the current status of cement and concrete production in California, and benchmarked the energy use and CO2 emissions intensity of the state’s cement industry in comparison to other key cement-producing countries. The study presented in this report is a follow up to that study.

The goal of this study supported by the ClimateWorks Foundation is to develop a roadmap for decarbonization of California’s cement and concrete production. In this study, we develop scenarios up to 2040 to analyze different decarbonization levers that can help to reduce CO2 emissions of cement and concrete production in California. We included four key major decarbonization levers in our analysis, which are: energy efficiency, fuel switching, clinker substitution, and carbon capture, utilization, and storage (CCUS).

Under the business-as-usual (BAU) scenario, the total CO2 emissions from California’s cement industry will increase from 7.9 MtCO2 per year in 2015 to 10.7 MtCO2 per year in 2040, a 36% increase. Under the study’s Advanced Technology and Policy (Advanced) scenario, the total CO2 emissions from California’s cement industry will decrease to about 2.5 MtCO2 per year in 2040, a 68% reduction compared to the 2015 level, while cement production increases by 42% from 9.9 Mt in 2015 to 14.1 Mt in 2040.

To read the full report and see complete results and analysis of this new study, download the report from this link.

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Report Release- California’s Cement Industry: Failing the Climate Challenge

Author: Ali Hasanbeigi, Ph.D.

Cement production is one of the most energy-intensive and highest carbon dioxide (CO2) emitting manufacturing processes in the world: On its own, the cement industry accounts for more than 5 percent of global anthropogenic CO2 emissions.

California is the second-largest cement producing state in the United States after Texas. California’s nine cement plants together produced about 10 million metric tonnes (Mt) of cement and emitted 7.9 Mt of GHG emissions in 2015. California’s cement factories are the largest consumers of coal in the state.

Global Efficiency Intelligence, LLC conducted a study supported by the Sierra Club and ClimateWorks Foundation to analyze the current status of cement and concrete production in California, and benchmarks the energy use and GHG emissions of the state’s cement industry in comparison to other key cement-producing countries.

The result of our benchmarking analysis shows that California’s cement industry has the second highest electricity intensity and fuel intensity among 14 countries/regions studied.

To read the full report and see the complete results and analysis, download the report from this link.

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Infographic: Chemical Industry’s Energy Use and Emissions

Author: Ali Hasanbeigi, Ph.D.

The chemical and petrochemical industry is the largest consumer of energy among industrial sectors and is one of the top GHG emissions-intensive industries as well. The infographic below is prepared by Global Efficiency Intelligence, LLC to summarize some key information on energy use and emissions in the chemical industry.

Don't forget to Follow us on LinkedIn and Facebook to get the latest about our new blog posts, projects, and publications.

Also read our related blog posts:

• Infographic: The Iron and Steel Industry’s Energy Use and Emissions

• Infographic: Energy Use and Emissions in the Cement Industry

• Infographic: Deep Electrification of Manufacturing Industries

Glass Industry: 16 Emerging Technologies for Energy-efficiency and GHG Emissions Reduction

Author: Ali Hasanbeigi, Ph.D.

Glass production is a highly energy-intensive industrial process. The container and flat glass industries (which combined account for 80% of glass production) emit over 60 million tonne of CO2 emissions per year. The global increase in glass consumption and production will drive significant growth in the industry’s absolute energy use and GHG emissions.

Studies have documented the potential to save energy by implementing commercially-available energy-efficiency technologies and measures in the glass industry worldwide. However, today, given the projected continuing increase in glass production, future reductions (e.g., by 2030 or 2050) in absolute energy use and GHG emissions will require further innovation in this industry. Innovations will likely include development of different processes and materials for glass production or technologies that can economically capture and store the industry’s GHG emissions. The development of these emerging technologies and their deployment in the market will be a key factor in the glass industry’s mid- and long-term climate change mitigation strategies.

Many studies from around the world have identified sector-specific and cross- energy-efficiency technologies for the glass industry that have already been commercialized. However, information is scarce and scattered regarding emerging or advanced energy-efficiency and low-carbon technologies for the glass industry that have not yet been commercialized.

In 2017, Cecilia Springer of Lawrence Berkeley National Laboratory and I wrote a report that consolidated available information on emerging technologies for the glass industry with the goal of giving engineers, researchers, investors, glass companies, policy makers, and other interested parties easy access to a well-structured database of information on this topic.

The information about the 16 emerging technologies for the glass industry was covered in the report and was presented using a standard structure for each technology. Table below shows the list of the technologies covered.

Table. Emerging energy-efficiency and GHG emissions-reduction technologies for the glass industry (Springer and Hasanbeigi, 2017)

Shifting away from conventional processes and products will require a number of developments including: education of producers and consumers; new standards; aggressive research and development to address the issues and barriers confronting emerging technologies; government support and funding for development and deployment of emerging technologies; rules to address the intellectual property issues related to dissemination of new technologies; and financial incentives (e.g. through carbon trading mechanisms) to make emerging low-carbon technologies, which might have a higher initial costs, competitive with the conventional processes and products.

Our report is published on LBNL’s website and can be downloaded from this Link. Please feel free to contact me if you have any question.

Don't forget to Follow us on LinkedIn and Facebook to get the latest about our new blog posts, projects, and publications.

Some of our related publications are:

1.     Springer, Cecilia and Hasanbeigi, Ali (2016). Emerging Energy Efficiency and Carbon Dioxide Emissions-Reduction Technologies for the aluminum Industry. Berkeley, CA: Lawrence Berkeley National Laboratory.

2.     Hasanbeigi, Ali (2013). Emerging Technologies for an Energy-Efficient, Water-Efficient, and Low-Pollution Textile Industry. Berkeley, CA: Lawrence Berkeley National Laboratory. LBNL-6510E

3.     Hasanbeigi, Ali; Arens, Marlene; Price, Lynn; (2013). Emerging Energy Efficiency and CO2 Emissions Reduction Technologies for the Iron and Steel Industry. Berkeley, CA: Lawrence Berkeley National Laboratory BNL-6106E.

4.     Kong, Lingbo; Hasanbeigi, Ali; Price, Lynn (2012). Emerging Energy Efficiency and Greenhouse Gas Mitigation Technologies for the Pulp and Paper Industry. Berkeley, CA: Lawrence Berkeley National Laboratory. LBNL-5956E.

5.     Hasanbeigi, Ali; Price, Lynn; Lin, Elina. (2012). Emerging Energy Efficiency and CO2 Emissions Reduction Technologies for Cement and Concrete  Production. Berkeley, CA: Lawrence Berkeley National Laboratory LBNL-5434E.

References:

• Springer, Cecilia; Hasanbeigi, Ali and Price, Lynn (2017). Emerging Energy Efficiency and CO2 Emissions Reduction Technologies for the glass Industry. Berkeley, CA: Lawrence Berkeley National Laboratory.

Infographic: Deep Electrification of Manufacturing Industries

Author: Ali Hasanbeigi, Ph.D.

Over 50% of final energy demand globally is for heating. Around half of that is for heating demands in the industry sector. When talking about electrification, the focus has mostly been on the transportation and to some extend building sectors. The industry sector has often been ignored when considering deep electrification. Even if we electrify the heat demand for the entire transportation sector and building sector in the world, that only covers 30% and 25% of world’s final energy use, respectively.

The infographic below highlights some general aspects of electrification in the industry sector. There is a substantial need for more research and analysis on electrification potential in different industry subsectors and electrification technology R&D for the manufacturing sector.

Don't forget to Follow us on LinkedIn and Facebook to get the latest about our new blog posts, projects, and publications. Also, you can join our Electrification & RE in Manufacturing group on LinkedIn to get more information.

To download the high resolution image file (JPEG) of the infographic, click here.

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What’s the Embodied Carbon in the U.S.-China Trade?

Authors: Ali Hasanbeigi, Daniel Moran

President Donald Trump has just signed an executive order to levy tariffs on a wide range of Chinese products worth an estimated $50 billion. This will certainly have major trade implications not only between China and the U.S., but globally. Perhaps, that’s why a major sell-off is happening in global stock markets. We thought to take this opportunity to look at it from climate change perspective. Do you know what’s the embodied carbon in the trade between the U.S. and China?

In our recent study on Embodied Carbon in Globally Traded Goods funded by the ClimateWorks Foundation, Global Efficiency Intelligence, LLC. and KGM & Associate Ltd. used the most recent available data and a cutting-edge model (Eora MRIO) to conduct a global assessment of the extent of the embodied carbon in globally traded goods, so-called carbon loophole.

The graph below highlights our finding related to embodied carbon in the trade between U.S. and China in 2015. As it is illustrated, the embodied carbon in goods that U.S. imports from China is around 502 million ton of CO2, while the embodied carbon in goods China imports from the U.S. is around 67 million ton of CO2. Therefore, the net import of embodied carbon by the U.S. from China is around 435 million ton of CO2.

To put this number in perspective, the entire GHG emissions in California (the 5th largest economy in the world) in 2015 was 440 million ton of CO2.

Source: KGM & Associate and Global Efficiency Intelligence analysis

Figure. Embodied Carbon in the U.S.-China Trade in 2015 (Million ton CO2)

It is hard, however, to quantify the carbon implication of this new U.S. tariff on imports from China without knowing the exact list of products affected and how the tariff will change the trade balance between the U.S. and China.

A tool like the U.S. tariff on imports could be good for the climate and the economy if it was based on the carbon footprint of the goods imported and was not just implemented as a blanket tariff. In fact, California recently passed the Buy Clean legislation (AB 262), which calls for the state to create rules for the procurement of infrastructure materials (steel, glass, etc.) purchased with state funds that take into account pollution levels during production. This could be an example of environmental- and climate-friendly procurement and trade tariffs that level the playing field and can benefit both industry and the environment and incentivize high polluting companies that are out-of-state or out-of-country to clean up their production in order to be able to trade with these states or countries.

The report of our study on Embodied Carbon of Globally Traded Goods which includes results for trade between other countries and regions of the world is available to download from this link.

Don't forget to Follow us on LinkedIn and Facebook to get the latest about our new blog posts, projects, and publications.

Also read our related blog posts:

• Infographic: The Embodied Carbon in Global Steel and Cement Trade

• Is Trump's Steel Trade War Good for the Climate?

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Infographic: The Embodied Carbon in Global Steel and Cement Trade

Authors: Ali Hasanbeigi, Daniel Moran, Prodipto Roy

President Trump just signed an executive order to impose a 25% tariff on steel imports and 10% on aluminum imports to the U.S. While many people are discussing how this can lead to a trade war between certain nations, we decided to take a look at it through the lens of embodied carbon in traded goods.

The UNFCCC’s greenhouse gas (GHG) accounting system works on the basis of national production rather than consumption of emissions. This means that when goods are traded, their embodied emissions (e.g. emissions associated with manufacture) are also traded. However, these imported emissions are not counted towards a country’s reported climate impacts. It is estimated that around 25% of global CO2 emissions comprise goods and services which have been internationally traded.

In the recent study on Embodied Carbon in Globally Traded Goods funded by the ClimateWorks Foundation, Global Efficiency Intelligence, LLC. and KGM & Associate Ltd. use the most recent available data and a cutting-edge model to conduct a global assessment of the extent of the embodied carbon in globally traded goods, so-called carbon loophole. In addition, we have conducted a series of higher-resolution, deeper dive case studies into a few key sectors and geographies of most importance, including steel and cement.

The infographic below summarizes some of our key findings related to deep-dive analysis we conducted for embodied carbon in global steel and cement trade. As it is illustrated, steel trade accounts for a significant amount of embodied carbon in trade. Even though China doesn’t feature in the top three steel import sources for the United States (Canada, Brazil, and South Korea occupy the top three spots), China still accounts for 40% of carbon embodied in the global commodity steel extra-regional trade, and 27% of carbon embodied in overall commodity steel trade.

One of the frustrations of U.S. steelmakers, which led to their support of the U.S. tariff, was China systematically overproducing subsidized steel and flooding the international markets. Furthermore, many steel manufacturers in China and other steel exporting countries like the Commonwealth of Independent States (CIS) produce a comparable unit of steel using significantly more carbon and energy than their cleaner counterparts in their own country or region. We see this disparity of carbon use in production not only in countries like China but also within different states in the U.S.

A tool like the U.S. tariff on steel imports could be good for the climate and the economy if it was based on the carbon footprint of the steel imported and was not just implemented as a blanket tariff. In fact, California recently passed the Buy Clean legislation (AB 262), which calls for the state to create rules for the procurement of infrastructure materials (including steel) purchased with state funds that take into account pollution levels during production. This could be an example of environmental- and climate-friendly procurement and trade tariffs that level the playing field and can benefit both industry and the environment and incentivize high polluting companies that are out-of-state or out-of-country to clean up their production in order to be able to trade with these states or countries.

The study on Embodied Carbon of Globally Traded Goods will be published in September 2018.

Don't forget to Follow us on LinkedIn and Facebook to get the latest about our new blog posts, projects, and publications.

Also, read our other blog posts and projects related to energy use and GHG emissions in the steel and cement industry from this link.

Decarbonization Roadmap for California’s Cement and Concrete Industry

Author: Ali Hasanbeigi, Ph.D.

The cement industry accounts for over 5 percent of current man-made carbon dioxide emissions worldwide. World cement demand and production are increasing; annual world cement production is expected to grow from approximately 4,100 million tonnes (Mt) in 2015 to around 4,800 Mt in 2030 and grow even further after that. The largest share of this growth will take place in developing countries, especially in the Asian continent.

According to USGS, United States produced around 86 Mt of cement in 2016 making it the third largest cement producer in the world after China and India. The state of California has 10 cement plants that together produced around 10 Mt of cement in 2015 making it the second largest cement producing state in the U.S. after Texas. This significant cement production in California is associated with a substantial energy use and greenhouse gas (GHG) emissions in the state. The cement industry in California is the largest consumer of coal in the state. Therefore, there is a need to develop a roadmap on how to reduce energy use and GHG emissions related to cement and concrete production in California.

Given our extensive experience in this area, Global Efficiency Intelligence, LLC is conducting a study for the Sierra Club to develop a roadmap for decarbonizing California’s cement and concrete industry. In this study, we will look into current status of the cement and concrete production in California and conduct a benchmarking analysis for the energy use and emissions of the cement industry in California in comparison with some other key cement producing countries. In addition, we will look into options that can help to decarbonize the cement and concrete production in California such as energy efficiency, fuel switching, alternative raw material and products, and carbon capture, utilization, and storage (CCUS).

Don't forget to Follow us on LinkedIn and Facebook to get the latest about our new blog posts, projects, and publications.

Also read our related blog posts:

• Infographic: Energy Use and Emissions in the Cement Industry

• 19 Emerging Technologies for Energy-efficiency and GHG Emissions Reduction in the Cement and Concrete Industry

Some of our related publications are:

• Hasanbeigi, Ali; Agnes Lobscheid; Hongyou, Lu; Price, Lynn; Yue Dai (2013). Quantifying the Co-benefits of Energy-Efficiency Programs: A Case-study for the Cement Industry in Shandong Province, China. Science of the Total Environment. Volumes 458–460, 1 August 2013, Pages 624-636.

• Hasanbeigi, Ali; Morrow, William; Masanet, Eric; Sathaye, Jayant; Xu, Tengfang. 2013. Energy Efficiency Improvement Opportunities in the Cement Industry in China. Energy Policy Volume 57, June 2013, Pages 287–297

• Morrow, William; Hasanbeigi, Ali; Sathaye, Jayant; Xu, Tengfang. 2014. Assessment of Energy Efficiency Improvement and CO2 Emission Reduction Potentials in India’s Cement and Iron & Steel Industries. Journal of Cleaner Production. Volume 65, 15 February 2014, Pages 131–141

• Hasanbeigi, Ali; Menke, Christoph; Therdyothin, Apichit (2010). Technical and Cost Assessment of Energy Efficiency Improvement and Greenhouse Gas Emissions Reduction Potentials in Thai Cement Industry. Energy Efficiency. DOI 10.1007/s12053-010-9079-1

• Hasanbeigi, Ali; Menke, Christoph; Therdyothin, Apichit (2010). The Use of Conservation Supply Curves in Energy Policy and Economic Analysis: the Case Study of Thai Cement Industry. Energy Policy 38 (2010) 392–405

• Hasanbeigi, Ali; Price, Lynn; Hongyou, Lu; Lan, Wang (2010). Analysis of Energy-Efficiency Opportunities for the Cement Industry in Shandong Province, China: A Case-Study of Sixteen Cement Plants. Energy-the International Journal 35 (2010) 3461-3473.

Utilities and Governments are Wasting Millions of Dollars Subsidizing A Wrong Technology for Motor Systems Efficiency

Author: Ali Hasanbeigi, Ph.D.

According to the International Energy Agency (IEA), electric motor systems consume more than half of global electricity. Industrial electric motor systems account for over 70% of total global industrial electricity usage. Electric motors operate fans; pumps; and materials-handling, compressed-air, and processing equipment.

Because motor efficiency improvements will only marginally increase the motor system’s efficiency, we must look to improve the efficiency of the equipment and systems being driven by the motor. Optimization measures such as predictive maintenance, avoiding oversized motors, and matching motor systems to specific needs, etc. could improve the energy efficiency of motor-driven systems significantly. Even more savings can be achieved by looking not only beyond the motor to the whole motor system but beyond the system to the end-use device, as shown in Figure below.

Figure. Illustration of two industrial electric motor-driven systems: (a) normal and (b) efficient (IEA 2016)

The traditional approach in most states and countries has been to focus on motors only and not on entire motor systems. As shown above, while increasing motor efficiency saves energy, optimizing the entire pump system will save much more energy. There is a need to shift the paradigm to focus on systems rather than individual motor efficiency. Programs and policies that target systems can save more energy and CO2 emissions in a more cost-effective manner than programs that focus only on motors.

Many utilities in the U.S. and governments around the world give substantial rebate for replacing electric motors with more efficient ones. While this may sound like a good thing to do, our extensive studies for 30 states in the U.S. and over 10 countries around the world shows that it is a clear waste of money. Why? Because in most cases, replacing existing motor with a more efficient one can improve the entire system efficiency by 1% - 5% (depending on the baseline efficiency of the systems). On the other hand, there are many other systems efficiency/optimization measures that can result in up to 20% - 25% efficiency improvement in the system.

For example, in a pump system with a Low efficiency baseline, replacing motor can only improve system efficiency by 5%, while trimming or changing impeller to match output to requirements can save about 15%, removing sediment/scale buildup from piping can save about 10% and installing variable speed drive (VSD) can save about 25% of the electricity use.

There is another very important reason why giving rebate for replacing motors with more efficient ones is such a waste of money in a massive scale. Our analysis consistently showed that replacing motor with more efficient one is by far one of the least cost-effective efficiency measures that can be implement on a motor system (for example in a pump systems or a fan systems). In other words, it cost much higher to save a kWh of electricity by replacing motor than to implement other system efficiency/optimization measures.

So, you might ask why many utilities and government prioritize giving rebate for replacing motors? The answer is it’s easier to implement and measure the saving. Utilities and government staff and program managers often need to show the amount of electricity saved as a result of implementing a rebate program. This is easier to do with equipment replacement than with soft measures such as system optimization. Having this said, many of the system optimization measures are easy to implement by in-house staff in the facilities.

To sum up, our detailed and extensive studies for three major industrial motor systems (pump systems, fan systems, and compressor systems) shows that millions of dollars spent annually by utilities and governments on rebate program for replacing electric motors with more efficient one is clearly waste of public and private funding. The better way would be to provide rebate for system efficiency measures that can save sometime up to 10 times higher energy saving with lower cost.

If utilities and governments persist to keep their motor replacement rebate program, my suggestion to them, based on the findings of our reports, is to bundle one or two efficiency measures with the motor replacement rebate. In other words, for an applicant to quality for motor replacement rebate, they should also implement one or two other system optimization measures from a list of measures that is predefined by utilities or government agencies.

To find out more about our detailed bottom-up studies for energy efficiency in industrial motor systems in the U.S., see our reports:

U.S. Industrial Motor Systems Energy Efficiency Reports Covering 30 States >>

Don't forget to Follow us on LinkedIn and Facebook to get the latest about our new blog posts, projects, and publications.

References:

IEA. 2016. World Energy Outlook 2016. Paris, France.
IEA, 2011. Energy efficiency policy opportunities for electric motor driven systems. Paris, France.

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Aluminum Industry: 10 Emerging Technologies for Energy-efficiency and GHG Emissions Reduction

Author: Ali Hasanbeigi, Ph.D.

Aluminum production is one of the most energy-intensive industrial processes worldwide. Although about a third of global aluminum production uses electricity from hydropower sources, the increasing use of coal as the primary fuel for electricity for aluminum production in many countries means that aluminum production is still a significant source of greenhouse gas (GHG) and greenhouse gas  emissions. According to the International Energy Agency (IEA), the aluminum industry accounts for about 1% of global GHG emissions (IEA 2012).

Annual world aluminum demand is expected to increase two- to three-fold by 2050. The bulk of growth in consumption of aluminum will take place in China, India, the Middle East, and other developing countries, where consumption is expected to nearly quadruple by 2025. To meet this increased demand, production is projected to grow from approximately 51 million tonnes (Mt) of primary aluminum in 2014 to 89-122 Mt in 2050 (IEA 2012). This increase in aluminum consumption and production will drive significant growth in the industry’s absolute energy use and GHG emissions.

Studies have documented the potential to save energy by implementing commercially-available energy-efficiency technologies and measures in the aluminum industry worldwide. However, today, given the projected continuing increase in absolute aluminum production, future reductions (e.g., by 2030 or 2050) in absolute energy use and GHG emissions will require further innovation in this industry. Innovations will likely include development of different processes and materials for aluminum production or technologies that can economically capture and store the industry’s GHG emissions. The development of these emerging technologies and their deployment in the market will be a key factor in the aluminum industry’s mid- and long-term climate change mitigation strategies.

Many studies from around the world have identified sector-specific and cross- energy-efficiency technologies for the aluminum industry that have already been commercialized. However, information is scarce and scattered regarding emerging or advanced energy-efficiency and low-carbon technologies for the aluminum industry that have not yet been commercialized.

In 2016, Cecilia Springer of Lawrence Berkeley National Laboratory and I wrote a report that consolidated available information on emerging technologies for the aluminum industry with the goal of giving engineers, researchers, investors, aluminum companies, policy makers, and other interested parties easy access to a well-structured database of information on this topic.

Information about 10 emerging technologies for the aluminum industry was covered in the report and was presented using a standard structure for each technology. Table below shows the list of the technologies covered.

Table 1. Emerging energy-efficiency and CO2 emissions-reduction technologies for the aluminum industry (Springer and Hasanbeigi, 2016)

Shifting away from conventional processes and products will require a number of developments including: education of producers and consumers; new standards; aggressive research and development to address the issues and barriers confronting emerging technologies; government support and funding for development and deployment of emerging technologies; rules to address the intellectual property issues related to dissemination of new technologies; and financial incentives (e.g. through carbon trading mechanisms) to make emerging low-carbon technologies, which might have a higher initial costs, competitive with the conventional processes and products.

Our report is published on LBNL’s website and can be downloaded from this Link. Please feel free to contact me if you have any question.

Don't forget to Follow us on LinkedIn and Facebook to get the latest about our new blog posts, projects, and publications.

Some of our related publications are:

1.     Hasanbeigi, Ali (2013). Emerging Technologies for an Energy-Efficient, Water-Efficient, and Low-Pollution Textile Industry. Berkeley, CA: Lawrence Berkeley National Laboratory. LBNL-6510E

2.     Hasanbeigi, Ali; Arens, Marlene; Price, Lynn; (2013). Emerging Energy Efficiency and CO2 Emissions Reduction Technologies for the Iron and Steel Industry. Berkeley, CA: Lawrence Berkeley National Laboratory BNL-6106E.

3.     Kong, Lingbo; Hasanbeigi, Ali; Price, Lynn (2012). Emerging Energy Efficiency and Greenhouse Gas Mitigation Technologies for the Pulp and Paper Industry. Berkeley, CA: Lawrence Berkeley National Laboratory. LBNL-5956E.

4.     Hasanbeigi, Ali; Price, Lynn; Lin, Elina. (2012). Emerging Energy Efficiency and CO2 Emissions Reduction Technologies for Cement and Concrete  Production. Berkeley, CA: Lawrence Berkeley National Laboratory LBNL-5434E.

References:

Springer, Cecilia; Hasanbeigi, Ali and Price, Lynn (2016). Emerging Energy Efficiency and CO2 Emissions Reduction Technologies for the Aluminum Industry. Berkeley, CA: Lawrence Berkeley National Laboratory. LBNL-1005789

·      International Energy Agency, and Organisation de coopération et de développement économiques. 2012. Energy Technology Perspectives: Scenarios & Strategies to 2050 : In Support of the G8 Plan of Action. Paris: OECD, IEA.

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Infographic: Textile and Apparel Industry’s Energy and Water Consumption and Pollutions Profile

Author: Ali Hasanbeigi, Ph.D.

Although the textile and apparel industry is not considered an energy-intensive industry, it comprises a large number of plants that, together, consume a significant amount of energy which result in substantial greenhouse gas (GHG) emissions too. 

The textile and apparel industry and especially textile wet-processing is one of the largest consumers of water in manufacturing and also one of the main producers of industrial wastewater. Since various chemicals are used in different textile processes like pre-treatment, dyeing, printing, and finishing, the textile wastewater contains many toxic chemicals which if not treated properly before discharging to the environment, can cause serious environmental damage.

With global population growth and the emergence of fast fashion, the worldwide textile and apparel production are increasing rapidly. In 2014, an average consumer bought 60% more clothing compared to that in 2000, but kept each garment only half as long.

The Infographic below shows the Textile and Clothing Industry’s Energy and Water Consumption and Pollutions Profile.

Don't forget to Follow us on LinkedIn and Facebook to get the latest about our new blog posts, projects, and publications. Also see below our related publications and tools.

Some of our related publications and tools are:

1.     Hasanbeigi, Ali; Price, Lynn; (2015). A Technical Review of Emerging Technologies for Energy and Water Efficiency and Pollution Reduction in the Textile Industry. Journal of Cleaner Production. 

2.   Hasanbeigi, Ali (2013). Emerging Technologies for an Energy-Efficient, Water-Efficient, and Low-Pollution Textile Industry. Berkeley, CA: Lawrence Berkeley National Laboratory. LBNL-6510E

3.     Hasanbeigi, Ali; Hasanabadi, Abdollah; Abdolrazaghi, Mohamad, (2012). Energy Intensity Analysis for Five Major Sub-Sectors of the Textile Industry. Journal of Cleaner Production 23 (2012) 186-194

4.     Hasanbeigi, Ali; Price, Lynn (2012). A Review of Energy Use and Energy Efficiency Technologies for the Textile Industry. Renewable and Sustainable Energy Reviews 16 (2012) 3648– 3665.

5.    Also, you can check out the Energy Efficiency Assessment and Greenhouse Gas Emission Reduction Tool for the Textile Industry (EAGER Textile), which I developed a few years ago while still working at LBNL. EAGER Textile tool allows users to conduct a simple techno-economic analysis to evaluate the impact of selected energy efficiency measures in a textile plant by choosing the measures that they would likely introduce in a facility, or would like to evaluate for potential use.

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Available Now: Reports on Electricity Saving Potentials in U.S. Industrial Motor Systems

Author: Ali Hasanbeigi, Ph.D.

See Reports: U.S. Industrial Motor Systems Energy Efficiency Reports Covering 30 States >>

In the U.S., industrial electric motor systems account for over 70% of manufacturing electricity consumption. Motors are used to drive pumps, fans, compressed air systems, material handling, processing systems and more. Industrial motor systems represent a largely untapped cost-effective source for industrial energy efficiency savings that could be realized with existing commercialized technologies. A major barrier to effective policy making for government and utilities in the U.S. related to energy efficiency improvement in industrial motor systems is the lack of information and data on the magnitude and cost-effectiveness of these energy savings potential in each state in the U.S. and a comprehensive strategy and roadmap.

Global Efficiency Intelligence, LLC has been working on an initiative to study and analyze the industrial motor systems in different states in the United States. We have 30 States from different regions in the U.S. that are included in this initiative. All top 20 U.S. states in terms of industrial energy consumption are included in this initiative. We work with various public and private stakeholders on this project. This initiative focuses on industrial pumps, fans, and compressed air systems which together account for over 80% of electricity use in industrial motor systems in the U.S. We conduct various analyses at the state-level such as analyzing the energy use by each motor system type and system size at manufacturing subsector level (e.g. chemical, food, textile, steel, machinery, pulp and paper, etc.), analyzing energy saving potentials and cost by technology and system size for each state, analyzing barriers and drivers to energy efficiency and system optimization in industrial motor systems in each state, and analyzing policy making and market implications for each state.

Don't forget to Follow us on LinkedIn and Facebook to get the latest about our new blog posts, projects, and publications.

Quantifying The Embodied Carbon Of Traded Goods

Author: Ali Hasanbeigi, Ph.D.

Globalization has resulted in substantial increase in global trade of goods and services across countries around the world. Often, goods are produced in developing countries where labor cost is lower, and developed countries are often net importers.

The UNFCCC’s greenhouse gas (GHG) accounting system works on the basis of national production rather than consumption of emissions. This means that when goods are traded, their embodied emissions (e.g. emissions associated with manufacture) are also traded. However, these imported emissions are not counted towards a country’s reported climate impacts. It is estimated that around 22% of global CO2 emissions comprise goods and services which have been internationally traded. Better understanding and providing solutions to address the embodied carbon of traded goods will be critical in global and national efforts to decarbonize industry. In addition, large and multinational companies are paying more attention to the energy and carbon footprint of their supply chain. Also, with higher consumer awareness, end users of products are also paying increasing attention to energy and carbon footprint of the goods they use.

Global Efficiency Intelligence, LLC. has partnered with the ClimateWorks Foundation and KGM & Associate Ltd. to use the most recent available data and a cutting-edge model to conduct a global assessment of the extent of the embodied carbon in globally traded goods, so-called carbon loophole. In addition, we will conduct a series of higher-resolution, deeper dive case studies into a few key sectors and geographies of most importance.

The report of this study is expected to be published in the spring of 2018.

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Global Efficiency Intelligence and Rocky Mountain Institute are Assisting Chinese Cities To Peak Their GHG Emissions

Author: Ali Hasanbeigi, Ph.D.

In September 2015 at the first U.S.-China Climate-Smart/Low-Carbon Cities Summit, China’s Alliance of Pioneer Peaking Cities (APPC) announced that 23 cities and provinces are now members and committed to peaking emissions by or before 2030. In addition, these cities committed to report on greenhouse gas (GHG) inventories, establish climate action plans, and enhance bilateral and multilateral partnership and cooperation. These cities and provinces represent about 16.8 percent of China’s population, 27.5 percent of national GDP, and 15.6 percent of national carbon dioxide emissions. By 2050, over 80% of Chinese population will be living in cities.

With industry sector accounting for over 65% of primary energy use and about 70% of total GHG emissions in China, it is quite common to find manufacturing plants (including heavy industries) within the boundary of many cities in China. Therefore, peaking GHG emissions in Chinese cities will not be possible without addressing the energy use and GHG emissions in industries located in those cities.

One of the APPC cities is Wuhan, the capital of Hubei province. Wuhan committed to achieve the peaking of GHG emissions by 2022. Global Efficiency Intelligence (GEI) has joined Rocky Mountain Institute (RMI) in their effort to help the city of Wuhan to peak its industrial GHG emissions by 2022. In this project, RMI and GEI are working with local partners to conduct both technical and policy analysis in order to come up with a concrete action plan and practical suggestions for the city of Wuhan to achieve its emission peaking goal. The aim is to develop methodologies and tools that can be replicated across other cities in China to help them with their GHG emissions peaking targets. 

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36 Emerging Technologies for Energy-efficiency and GHG Emissions Reduction in the Pulp and Paper Industry

Author: Ali Hasanbeigi, Ph.D.

The pulp and paper industry accounted for approximately 5 percent of total industrial final energy consumption and 2 percent of direct carbon dioxide (CO2) emissions from the industrial sector worldwide (IEA 2011). (Note: Direct CO2 emissions are emissions from fossil fuel use and chemical reactions produced onsite and do not include emissions associated with purchased steam and electricity.) World paper and paperboard demand and production are increasing; annual production is expected to grow from approximately 365 million tonnes (Mt) in 2006 to between 700 Mt (low estimate) and 900 Mt (high estimate) in 2050. The largest share of this growth will take place in China, India, and other developing countries (see Figure below). This significant increase in paper production will cause a corresponding significant increase in the pulp and paper industry’s absolute energy consumption and greenhouse gas (GHG) emissions.

Note: OECD is an acronym for the Organization for Economic Co-operation and Development

Figure 1. Annual world paper and paperboard production (IEA 2009)

Studies have documented the potential to save energy by implementing commercially-available energy-efficiency technologies and measures in the pulp and paper industry worldwide. However, today, given the projected continuing increase in absolute paper production, future reductions (e.g., by 2030 or 2050) in absolute energy use and CO2 emissions will require further innovation in this industry. Innovations will likely include development of different processes and materials for paper production or technologies that can economically capture and store the industry’s CO2 emissions. The development of these emerging technologies and their deployment in the market will be a key factor in the pulp and paper industry’s mid- and long-term climate change mitigation strategies.

Many studies from around the world have identified sector-specific and cross- energy-efficiency technologies for the pulp and paper industry that have already been commercialized (See figure below). However, information is scarce and scattered regarding emerging or advanced energy-efficiency and low-carbon technologies for the pulp and paper industry that have not yet been commercialized.

Figure: Commercialized energy efficiency technologies and measures for pulp and paper industry (Source: IIP, 2012)

My colleagues at Lawrence Berkeley National Laboratory and I wrote a report that consolidated available information on emerging technologies for the pulp and paper industry with the goal of giving engineers, researchers, investors, paper companies, policy makers, and other interested parties easy access to a well-structured database of information on this topic.

The information about the 36 emerging technologies for the pulp and paper industry was covered in the report and was presented using a standard structure for each technology. Table below shows the list of the technologies covered.

Table. Emerging energy-efficiency and CO2 emissions-reduction technologies for the pulp and paper industry (Kong and Hasanbeigi, et al. 2013 and 2015)

Shifting away from conventional processes and products will require a number of developments including: education of producers and consumers; new standards; aggressive research and development to address the issues and barriers confronting emerging technologies; government support and funding for development and deployment of emerging technologies; rules to address the intellectual property issues related to dissemination of new technologies; and financial incentives (e.g. through carbon trading mechanisms) to make emerging low-carbon technologies, which might have a higher initial costs, competitive with the conventional processes and products.

Our report is published on LBNL’s website and can be downloaded from this Link. Please feel free to contact me if you have any question.

Don't forget to Follow us on LinkedIn and Facebook to get the latest about our new blog posts, projects, and publications.

Some of our related publications are:

1. Kong, Lingbo; Hasanbeigi, Ali; Price, Lynn, Huanbin Liu (2015). Energy conservation and CO2 mitigation potentials in the Chinese pulp and paper industry. Resource Conservation and Recycling (Accepted- In Press. Available online 29 May 2015).

2. Kong, Lingbo; Price, Lynn; Hasanbeigi, Ali; Liu, Huanbin; Li, Jigeng. (2013) Potential for Reducing Paper Mill Energy Use and Carbon Dioxide Emissions through Plant-wide Energy Audits: A Case Study in China. Applied Energy, Volume 102, February 2013, Pages 1334–1342

3. Kong, Lingbo; Hasanbeigi, Ali; Price, Lynn, Huanbin Liu (2013). Analysis of Energy-Efficiency Opportunities for the Pulp and Paper Industry in China. Berkeley, CA: Lawrence Berkeley National Laboratory. LBNL-6107E

References:

• Kong, Lingbo; Hasanbeigi, Ali; Price, Lynn (2015). Assessment of emerging energy-efficiency technologies for the pulp and paper industry: A technical review. Journal of Cleaner Production. Volume 122, 20 May 2016, Pages 5–28

• Kong, Lingbo; Hasanbeigi, Ali; Price, Lynn (2013). Emerging Energy Efficiency and Greenhouse Gas Mitigation Technologies for the Pulp and Paper Industry. Berkeley, CA: Lawrence Berkeley National Laboratory. LBNL-5956E.

• Institute for Industrial Productivity, 2012. Pulp and paper energy efficiency technologies.

• International Energy Agency (IEA). 2011. Energy Transition for Industry: India and the Global Context. Paris, France.

• International Energy Agency (IEA). 2009. Energy Technology Transitions for Industry - Strategies for the Next Industrial Revolution. Paris, France.

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Infographic: The Profile of Energy Use in Industrial Motor Systems

Author: Ali Hasanbeigi, Ph.D.

According to International Energy Agency, around half of the electricity used globally is consumed in electric motor systems. Industrial motor systems account for around 70% of manufacturing electricity consumption in different countries. The inforgraphic below is prepared by Global Efficiency Intelligence, LLC to summarize some key information on energy use in motor systems worldwide.

Global Efficiency Intelligence, LLC is working on Global Motor Systems Efficiency Initiative and the U.S. Motor Systems Efficiency Initiative (covers 30 states in the U.S.) to analyze the energy use in industrial motor systems and energy efficiency potentials in these systems at manufacturing subsectors level in different countries or states in the U.S. For more information, click on the links above to see our projects page.

Available Now: U.S. Industrial Motor Systems Energy Efficiency Reports >>

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Available Now: U.S. Industrial Motor Systems Energy Efficiency Reports >>

18 Emerging Technologies and 180 Commercialized Technologies and Measures for Energy and Water Efficiency, and GHG Emissions Reduction in the Textile Industry

Author: Ali Hasanbeigi, Ph.D.

The textile industry uses large amounts of electricity, fuel, and water, with corresponding greenhouse gas emissions (GHGs) and contaminated effluent.  With regard to energy use, the textile industry’s share of fuel and electricity use within the total final energy use of any one country depends on the structure of the textile industry in that country. For instance, electricity is the dominant energy source for yarn spinning whereas fuels are the major energy source for textile wet processing.

In addition to using substantial energy, textile manufacturing uses a large amount of water, particularly for wet processing of materials, and produces a significant volume of contaminated effluent. Conserving water and mitigating water pollution will also be part of the industry’s strategy to make its production processes more environmentally friendly, particularly in parts of the world where water is scarce.

In 2016, the world’s population was 7.4 billion; this number is expected to grow to 9.5 billion by 2050. The bulk of this growth will take place in underdeveloped and developing countries. As the economy in these countries improves, residents will have more purchasing power; as a result, per-capita consumption of goods, including textiles, will increase. In short, future population and economic growth will stimulate rapid increases in textile production and consumption, which, in turn, will drive significant increases in the textile industry’s absolute energy use, water use, and carbon dioxide (CO2) and other environmentally harmful emissions.

Having the higher education background in both textile technology engineering and energy efficiency technologies, I wrote a report on commercially available energy-efficiency technologies and measures for the textile industry several years ago. This report included a review of over 180 commercialized energy efficiency technologies and measures for the textile industry based on case-studies around the world. In addition to conserving energy, some of the technologies and measures presented also conserve water. The report can be downloaded from this Link (Hasanbeigi 2010).

Several other reports also document the application of commercialized technologies. However, today, given the projected continuing increase in absolute textile production, future reductions (e.g., by 2030 or 2050) in absolute energy use and CO2 emissions will require further innovation in this industry. Innovations will likely include development of different processes and materials for textile production or technologies that can economically capture and store the industry’s CO2 emissions. The development of these emerging technologies and their deployment in the market will be a key factor in the textile industry’s mid- and long-term climate change mitigation strategies.

However, information is scarce and scattered regarding emerging or advanced energy-efficiency and low-carbon technologies for the textile industry that have not yet been commercialized. That was why a few years ago, I wrote another report that consolidated available information on 18 emerging technologies for the textile industry with the goal of giving engineers, researchers, investors, textile companies, policy makers, and other interested parties easy access to a well-structured database of information on this topic. Table below shows the list of the technologies covered.

Table. Emerging energy-efficiency, water efficiency, and GHG emissions reduction technologies for the textile industry (Hasanbeigi 2015)

A few years ago when I conducted several day-long training on energy efficiency in the textile industry for hundreds of engineers and manager of textile companies in China, one major feedback we received, which did not surprise me, was that they did not know about most of the commercialized and emerging technologies we introduced. Engineers and manager are busy with day-to-day routine which rarely involves energy efficiency improvement.  

Also, you can check out the Energy Efficiency Assessment and Greenhouse Gas Emission Reduction Tool for the Textile Industry (EAGER Textile), which we developed a few years ago. EAGER Textile tool allows users to conduct a simple techno-economic analysis to evaluate the impact of selected energy efficiency measures in a textile plant by choosing the measures that they would likely introduce in a facility, or would like to evaluate for potential use.

Don't forget to Follow us on LinkedIn and Facebook to get the latest about our new blog posts, projects, and publications.

Some of our related publications are:

1.     Hasanbeigi, Ali; Price, Lynn; (2015). A Technical Review of Emerging Technologies for Energy and Water Efficiency and Pollution Reduction in the Textile Industry. Journal of Cleaner Production. DOI 10.1016/j.jclepro.2015.02.079.

2.     Hasanbeigi, Ali; Hasanabadi, Abdollah; Abdolrazaghi, Mohamad, (2012). Energy Intensity Analysis for Five Major Sub-Sectors of the Textile Industry. Journal of Cleaner Production 23 (2012) 186-194

3.     Hasanbeigi, Ali; Price, Lynn (2012). A Review of Energy Use and Energy Efficiency Technologies for the Textile Industry. Renewable and Sustainable Energy Reviews 16 (2012) 3648– 3665.

References:

·      Hasanbeigi, Ali (2013). Emerging Technologies for an Energy-Efficient, Water-Efficient, and Low-Pollution Textile Industry. Berkeley, CA: Lawrence Berkeley National Laboratory. LBNL-6510E

·      Hasanbeigi, Ali, (2010). Energy Efficiency Improvement Opportunities for the Textile Industry. Berkeley, CA: Lawrence Berkeley National Laboratory. LBNL-3970E

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56 Emerging Technologies for Energy-efficiency and GHG Emissions Reduction in the Iron and Steel Industry

Author: Ali Hasanbeigi, Ph.D.

Iron and steel manufacturing is one of the most energy-intensive industries worldwide. In addition, use of coal as the primary fuel for iron and steel production means that iron and steel production has among the highest carbon dioxide (CO2) emissions of any industry. According to the International Energy Agency, the iron and steel industry accounts for the largest share – approximately 27 percent – of CO2 emissions from the global manufacturing sector.

Figure 1: World steel production in 2015 by countries and regions (worldsteel 2016)

China accounts for around half of the world’s steel production. Annual world steel demand is expected to grow from approximately 1,410 million tonnes (Mt) of crude steel in 2010 to approximately 2,200 Mt in 2050. The bulk of this growth will take place in China, India, and other developing countries in Asia (Bellevrat and Menanteau 2008). This significant increase in steel consumption and production will drive a significant increase in the industry’s absolute energy use and CO2 emissions.

Studies have documented the potential to save energy by implementing commercially-available energy-efficiency technologies and measures in the iron and steel industry worldwide. However, today, given the projected continuing increase in absolute steel production, future reductions (e.g., by 2030 or 2050) in absolute energy use and CO2 emissions will require further innovation in this industry. Innovations will likely include development of different processes and materials for steel production or technologies that can economically capture and store the industry’s CO2 emissions. The development of these emerging technologies and their deployment in the market will be a key factor in the iron and steel industry’s mid- and long-term climate change mitigation strategies.

Many studies from around the world have identified sector-specific and cross- energy-efficiency technologies for the iron and steel industry that have already been commercialized (See figure below). However, information is scarce and scattered regarding emerging or advanced energy-efficiency and low-carbon technologies for the steel industry that have not yet been commercialized.

Figure 2: Commercialized energy efficiency technologies and measures for iron and steel industry (Source: IIP, 2012)

My colleagues at Lawrence Berkeley National Laboratory and I wrote a report that consolidated available information on emerging technologies for the iron and steel industry with the goal of giving engineers, researchers, investors, steel companies, policy makers, and other interested parties easy access to a well-structured database of information on this topic.

The information about the 56 emerging technologies for the steel industry was covered in the report and was presented using a standard structure for each technology. Table below shows the list of the technologies covered.

Table 1. Emerging energy-efficiency and CO2 emissions-reduction technologies for the iron and steel industry (Hasanbeigi et al. 2013)

Shifting away from conventional processes and products will require a number of developments including: education of producers and consumers; new standards; aggressive research and development to address the issues and barriers confronting emerging technologies; government support and funding for development and deployment of emerging technologies; rules to address the intellectual property issues related to dissemination of new technologies; and financial incentives (e.g. through carbon trading mechanisms) to make emerging low-carbon technologies, which might have a higher initial costs, competitive with the conventional processes and products.

Our report is published on LBNL’s website and can be downloaded from this Link. Please feel free to contact me if you have any question.

Don't forget to Follow us on LinkedIn and Facebook to get the latest about our new blog posts, projects, and publications.

Some of our related publications are:

1. Hasanbeigi, Ali; Arens, Marlene; Rojas-Cardenas, Jose; Price, Lynn; Triolo, Ryan. (2016). Comparison of Carbon Dioxide Emissions Intensity of Steel Industry in China, Germany, Mexico, and the United States. Resources, Conservation and Recycling. Volume 113, October 2016, Pages 127–139

2. Zhang, Qi; Hasanbeigi, Ali; Price, Lynn; Lu, Hongyou; Arens, Marlen (2016). A Bottom-up Energy Efficiency Improvement Roadmap for China’s Iron and Steel Industry up to 2050. Berkeley, CA: Lawrence Berkeley National Laboratory. LBNL- 1006356

3. Morrow, William; Hasanbeigi, Ali; Sathaye, Jayant; Xu, Tengfang. 2014. Assessment of Energy Efficiency Improvement and CO2 Emission Reduction Potentials in India’s Cement and Iron & Steel Industries. Journal of Cleaner Production. Volume 65, 15 February 2014, Pages 131–141

4. Hasanbeigi, Ali; Price, Lynn, Aden, Nathaniel; Zhang Chunxia; Li Xiuping; Shangguan Fangqin. 2014. Comparison of Iron and Steel Production Energy Use and Energy Intensity in China and the U.S. Journal of Cleaner Production, Volume 65, 15 February 2014, Pages 108–119

5. Hasanbeigi, Ali; Morrow, William; Sathaye, Jayant; Masanet, Eric; Xu, Tengfang. (2013). A Bottom-Up Model to Estimate the Energy Efficiency Improvement and CO2 Emission Reduction Potentials in the Chinese Iron and Steel Industry. Energy, Volume 50, 1 February 2013, Pages 315-325

6. Hasanbeigi, A., Price, L., Aden, N., Zhang C., Li X., Shangguan F. 2011. A Comparison of Iron and Steel Production Energy Use and Energy Intensity in China and the U.S. Berkeley CA: Lawrence Berkeley National Laboratory Report LBNL-4836E.

References:

• Bellevrat, E., P. Menanteau. 2008. “Introducing carbon constraint in the steel sector: ULCOS scenarios and economic modeling.” Proceedings of the 4th Ulcos seminar, 1-2 October.

• Hasanbeigi, Ali; Arens, Marlene; Price, Lynn; (2013). Emerging Energy Efficiency and CO2 Emissions Reduction Technologies for the Iron and Steel Industry. Berkeley, CA: Lawrence Berkeley National Laboratory BNL-6106E.

• Institute for Industrial Productivity. 2012. Iron and Steel technologies http://ietd.iipnetwork.org/content/iron-and-steel

• worldsteel Association. 2016. World steel in figures.

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Structural Change in Chinese Steel Industry and Its Impact on Energy Use and GHG Emissions up to 2030

Author: Ali Hasanbeigi, Ph.D.

Production of iron and steel is an energy-intensive and air polluting manufacturing process. In 2014, the iron and steel industry accounted for around 28 percent of primary energy consumption of Chinese manufacturing (NBS 2015a). Steel production in 2015 was 804 Mt (worldsteel, 2016), representing 49.5% of the world production that year (Figure 1).

Figure 1. China’s Crude Steel Production and Share of Global Production (1990-2015) (EBCISIY, various years; NBS, 2015b, worldsteel 2016)

China is a developing country and the iron and steel industry, as a pillar industry for Chinese economic development, has grown rapidly along with the national economy. The average annual growth rate of crude steel production was around 18% between 2000 and 2010. China’s steel production in 2014 consumed around 580 TWh of electricity and 18,013 PJ of fuel (NBS 2015a).

The promotion and application of energy-saving technologies has become an important step for increasing energy efficiency and reducing energy consumption of steel enterprises, especially during the 11th Five Year Plan (FYP) (2006-2010) and 12th FYP (2011-2015). During this time, energy-efficiency technologies adopted in China’s steel industry included: Coke Dry Quenching (CDQ), Top-pressure Recovery Turbine (TRT), recycling converter gas, continuous casting, slab hot charging and hot delivery, Coal Moisture Control (CMC), and recycling waste heat from sintering. The penetration level of energy-efficiency technologies in the steel industry has improved greatly in China, improving its energy efficiency and emissions reductions (Hasanbeigi et al. 2011).

Couple of years ago, my colleagues and I conducted a study that aimed to analyze influential factors that affected the energy use of steel industry in the past in order to quantify the likely effect of those factors in the future. For the first time, we developed a decomposition analysis method that can be used for the steel industry to analyze the effect of different factors including structural change on energy use of the steel industry.

The factors we analyzed were:

1. Activity: Represents the total crude steel production.

2. Structure: Represents the activity share of each process route (Blast Furnace/Basic Oxygen Furnace (BF-BOF) or Electric Arc Furnace (EAF) route).

3. Pig iron ratio: The ratio of pig iron used as feedstock in each process route. This is especially important for the EAF process because the higher the pig iron ratio in the feedstock of the EAF, the higher the energy intensity of EAF steel production.

4. Energy intensity: Represents energy use per ton of crude steel

In that study, a bottom-up analysis of the energy use of key medium- and large-sized Chinese steel enterprises (which account for around 85% of steel production in China) was performed using data at the process level. Both retrospective and prospective analyses were conducted in order to assess the impact of factors that influence the energy use of the steel industry in the past and estimate the likely impact in the future up to 2030.

Three scenarios were developed as follows:

o   Scenario 1: Low scrap usage: the share of EAF steel production grows slower and the pig iron feed ratio in EAF drops slower than other scenarios

o   Scenario 2: Medium scrap usage: the rate of growth in the share of EAF steel production and the drop in the pig iron feed ratio in EAF production is medium (between scenario 1 and 3)

o   Scenario 3: High scrap usage: the share of EAF steel production grows faster and the pig iron feed ratio in EAF production drops faster than other scenarios.

Figure 2 shows the energy intensities calculated for different steel production route up 2030

Figure 2. Final energy intensities calculated for key medium- and large-sized Chinese steel enterprises (2000-2030)

The results of our analysis showed that although total annual crude steel production of key Chinese steel enterprises (and most likely entire Chinese steel industry) is assumed to peak in 2030 under all scenarios, total final energy use of the key Chinese steel enterprises (and most likely the entire Chinese steel industry) peaks earlier, i.e. in year 2020 under low and medium steel scrap usage scenarios and in 2015 under high scrap usage scenario (Figure 3).

Figure 3. Total final energy use in key medium- and large-sized Chinese steel enterprises under each scenario (2000-2030)

Energy intensity reduction of the production processes and structural shift from Blast Furnace/Basic Oxygen Furnace (BF-BOF) to Electric Arc Furnace (EAF) steel production plays the most significant role in the final energy use reduction. The decomposition analysis results showed what contributed to the reduction in the final energy use and its peak under each scenario. Figure 4 shows an example of results for Medium scrap usage scenario. 

The three scenarios produced for the forward looking decomposition analysis up to 2030 showed the structural effect is negative (i.e. reducing the final energy use) during 2010-2030 because of the increase in the EAF share of steel production in this period. Similarly, the pig iron ratio effect reduces the final energy use of key steel enterprises because of reduction in the share of pig iron used as feedstock in EAF steel production during this period. High scrap usage scenario had the largest structural effect and pig iron ratio effect because of higher EAF steel production and lower pig iron use in EAFs in this scenario.

Figure 4. Medium scrap usage scenario: Results of prospective decomposition of final energy use of key medium- and large-sized Chinese steel enterprises up to 2030

The intensity effect also played a significant role in reducing final energy use of steel manufacturing during 2010-2030. This is primarily because of the energy intensity assumptions for production processes in 2020 and 2030. While the realization of such energy intensity reduction is uncertain and remains to be seen in the future, the aggressive policies by the Chinese government to reduce the energy use per unit of product of the energy intensive sectors, especially the steel sector, are a promising sign that the Chinese steel industry is moving towards those energy intensity targets. The “Top-10,000 Enterprises Energy Saving Program” and the “10 Key Energy Saving Projects Program” along with other policies and incentives in the coming years will significantly help to reduce the energy intensity of the steel industry in China.

More details of our analysis and results are presented in our report that is published on LBNL’s website and can be downloaded from this Link.

Please feel free to contact me if you have any question. Don't forget to follow us on LinkedIn, Facebook, and Twitter to get the latest about our new blog posts, projects, and publications.

Some of our related publications are:

1. Hasanbeigi, Ali; Arens, Marlene; Rojas-Cardenas, Jose; Price, Lynn; Triolo, Ryan. (2016). Comparison of Carbon Dioxide Emissions Intensity of Steel Industry in China, Germany, Mexico, and the United States. Resources, Conservation and Recycling. Volume 113, October 2016, Pages 127–139

2. Zhang, Qi; Hasanbeigi, Ali; Price, Lynn; Lu, Hongyou; Arens, Marlen (2016). A Bottom-up Energy Efficiency Improvement Roadmap for China’s Iron and Steel Industry up to 2050. Berkeley, CA: Lawrence Berkeley National Laboratory. LBNL- 1006356

3. Morrow, William; Hasanbeigi, Ali; Sathaye, Jayant; Xu, Tengfang. 2014. Assessment of Energy Efficiency Improvement and CO2 Emission Reduction Potentials in India’s Cement and Iron & Steel Industries. Journal of Cleaner Production. Volume 65, 15 February 2014, Pages 131–141

4. Hasanbeigi, Ali; Price, Lynn, Aden, Nathaniel; Zhang Chunxia; Li Xiuping; Shangguan Fangqin. 2014. Comparison of Iron and Steel Production Energy Use and Energy Intensity in China and the U.S. Journal of Cleaner Production, Volume 65, 15 February 2014, Pages 108–119

5. Hasanbeigi, Ali; Morrow, William; Sathaye, Jayant; Masanet, Eric; Xu, Tengfang. (2013). A Bottom-Up Model to Estimate the Energy Efficiency Improvement and CO2 Emission Reduction Potentials in the Chinese Iron and Steel Industry. Energy, Volume 50, 1 February 2013, Pages 315-325

6. Hasanbeigi, Ali; Arens, Marlene; Price, Lynn; (2013). Emerging Energy Efficiency and CO2 Emissions Reduction Technologies for the Iron and Steel Industry. Berkeley, CA: Lawrence Berkeley National Laboratory BNL-6106E.

References

Editorial Board of China Iron and Steel Industry Yearbook (EBCISIY). Various years. China Iron and Steel Industry Yearbook. Beijing, China (in Chinese).

Hasanbeigi, A., Price, L., Aden, N., Zhang C., Li X., Shangguan F. 2011. A Comparison of Iron and Steel Production Energy Use and Energy Intensity in China and the U.S. Berkeley CA: Lawrence Berkeley National Laboratory Report LBNL-4836E.

NBS. 2015a. China Energy Statistics Yearbook 2015. Beijing: China Statistics Press.

NBS. 2015b. China Statistical Yearbook 2015. Beijing: China Statistics Press.

World Steel Association (worldsteel). 2016. Steel Statistical Yearbook 2016. 

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