https://www.worldsteel.org/en/dam/jcr:f07b864c-908e-4229-9f92-669f1c3abf... https://www.eceee.org/library/conference_proceedings/eceee_Industrial_Su... https://www.sciencedirect.com/science/article/pii/S0959652618326301?via%... https://pubs.rsc.org/en/content/articlelanding/2016/fd/c6fd00051g#!divAb... https://www.energy.gov/sites/prod/files/2016/02/f29/2015%20Energy%20Sect... http://www.zeroemissionsplatform.eu/downloads/1341.html, https://science.house.gov/imo/media/doc/H.R.%204230%20CITA.pdf. Government procurement is a particularly appealing option because governments are the primary direct or indirect purchaser of steel, cement, and fuels. Hydrogen and hydrogen-bearing atmospheres are arguably the most versatile furnace atmospheres employed in the heat-treatment industry. The difficulty of data collection reveals an important fact: Industrial heat options remain understudied and require further scholarship. [18] Even when industry considers investments in heavy manufacturing facilities, stocks overturn very slowly. Alternatively, policies like border adjustment tariffs would help protect against leakage or trade impacts. Given the importance of industrial heat on global and national emissions, it is perhaps surprising that little information on the subject is available. [107] However, industrial heat demands for waste biomass would have to compete with demands for biomass power and biofuels. For small modular reactor estimates, NuScale[87] is the only company to have reached advanced permitting in the United States. https://www.nature.com/articles/nature24672; https://www.steel.org/~/media/Files/AISI/Reports/2012-13%20Profile.pdf; https://www.telegraph.co.uk/finance/newsbysector/industry/11941578/The-p... https://link.springer.com/article/10.1023/A:1008230026880; https://www.oecd.org/environment/cc/2956442.pdf. Heavy industry produces roughly 22 percent of global CO₂ emissions. This finding also helps clarify a potential research agenda in applied engineering, focused on functionalizing key options and overall cost reduction. The ability to follow dynamic load of wind and solar is potentially valuable to be used as an energy storage method, although the gas (both hydrogen or methane) may not go back to the grid finally. [109] US DOE, U.S. finding 10 above). The nature of industrial markets creates challenges to the decarbonization of industrial heat. This presents a problem in description and standardization. This suggests that public preferences will have little direct impact on managing industrial emissions.[22]. The authors also recognize that some applications (e.g., electrical resistance heating of rotary kilns or full plant application of CCUS to a methanol facility) may prove unworkable. [19] Patrick T. Brown & Ken Caldeira, “Greater Future Global Warming Inferred from Earth’s Recent Energy Budget,” Nature (2017), https://www.nature.com/articles/nature24672; “World Energy Outlook,” International Energy Agency. [151] Morgana Fall, Vadim Yakoviev, Catherine Sahl, et al., Final Technical Report: Energy Efficient Microwave Hybrid Processing of Lime for Cement, Steel, and Glass Industries, DOE Report DE-EE0003472 (2012), https://www.researchgate.net/publication/316736806_Final_Report_Date_Feb.... [152] Schüwer et al., “Electrification of Industrial Process Heat.”, [153] Keulenaer et al., “Opportunities for Electrification of Industry.”. Advancements in any technology pathway could lead to reassessment and revision. The most advanced high-temperature gas-cooled reactor (HTR) project is China's HTR-PM, based on its successful HTR-10 prototype. Collodi et al. This is well explored within the power sector but relatively poorly explored for industry. For a given site and application, any upstream life-cycle footprint of gas production would attach to the blue hydrogen as well. Thermochemical processes use heat and chemical reactions to release hydrogen from organic materials such as fossil fuels and biomass. The ammonia operation requires temperatures of 800°C, chiefly to operate the SMR process to make hydrogen. Heat-related carbon density: ton/ton (carbon emission per unit of product). This suggests that in some locations and industrial ecosystems, electrical resistive heating may prove competitive, which has large implications for the carbon footprint. [114] WorldSteel Association, “Fact Sheet: Energy Use in the Steel Industry” (2019), https://www.worldsteel.org/en/dam/jcr:f07b864c-908e-4229-9f92-669f1c3abf.... [115] The colors represent the carbon intensity, with yellow having high-carbon intensity and green having low-carbon intensity. In some cases, it may be better to retrofit existing systems with CCUS systems. [28] A somewhat similar emerging approach, photoelectrochemical (PEC) water splitting, directly separates water molecules into hydrogen and oxygen using photonic energy (light) instead of electrical energy. For this, the representation in the charts below includes both CCUS applied only to the heat source (CCUS heat) and to the complete industrial process (CCUS total facility). A lot of constraints are subjected to the electrification retrofit: heating efficiency and heat loss because of new technology, process time, heat transfer coefficient, and others. This would provide a benefit in protecting domestic industry that pursues decarbonization as well as potentially incentivize trading partners to pursue decarbonization as well. OECD—Organization for Economic Cooperation and Development, PEC—photoelectrochemical (water splitting), PEM—proton exchange membrane (water splitting). Using nuclear energy for industrial application is not a new idea; others include seawater desalination, district heating/cooling, coal liquids conversions, and chemical synthesis. Hydrogen purity is typically 99.9995+% (or better). At present, the low-carbon electricity price makes electrification less cost competitive with H2 and CCUS outside regions with abundant low-cost green electrons (e.g., regions with abundant hydroelectric power with high capacity factors). Various kinds of solar concentration technologies are available, providing a wide range of heating:[61]. Thermochemical cycles: includes ultra-high-temperature direct water splitting, high-temperature two-step metal oxide oxidation-reduction reactions, and moderate-temperature three-step water splitting. Because of the uncertainties associated with the carbon footprint of biofuels in general, even for specific applications and contexts, full life-cycle analyses are essential to understand and present the true CO2 abatement provided. It can also help reduce the capital cost since the high-pressure and high-temperature container can be replaced. [113] The second largest portion of carbon emissions is reaction-associated carbon emission. Given that, governments and industrial leaders should accelerate assessment of CCUS as an option for their enterprises and consider investing in both infrastructure and deployment. In some cases, these estimates were projections into the near future (e.g., 2025); however, the authors did not use far future projected cost or assume future cost reductions because of learning by doing or assumed learning rate. In other cases, component systems exist at commercial scale, but integrated systems are not yet commercial (e.g., renewable hydrogen production, some industrial post-combustion capture systems). The composition of typical biogas is 50–70 percent methane and 30–50 percent carbon dioxide, with a small fraction of other contaminants. https://shodhganga.inflibnet.ac.in/bitstream/10603/106237/8/08_chapter%2... https://www.sciencedirect.com/science/article/pii/S1359431114001306. Similarly, presence or absence of local hydro, wind, or solar resources will affect costs for green hydrogen and low-carbon electrification. On-site hydrogen-generation systems employing water electrolysis are a good fit for the needs of the heat-treatment industry because they match the flow-rate range and usage patterns well. Replacing coal with hydrogen may ultimately require more or less actual heat as a function of detailed facility requirements, but without additional engineering data or constraints, the authors left the primary heat requirements the same. [23] The authors recognize that this constraint represents an upper limit. [96] Brian David James, Cassidy Houchins, Jennie Moton Huya-Kouadio, and Daniel a. DeSantis, “Final Report: Hydrogen Storage System Cost Analysis,” Strategic Analysis Inc. (September 30, 2016), https://www.osti.gov/servlets/purl/1343975; US DOE, Hydrogen and Fuel Cells Program: 2015 Annual Merit Review and Peer Evaluation Report (June 8–12, 2015), https://www.nrel.gov/docs/fy16osti/64752.pdf. https://www.epa.gov/sites/production/files/2016-03/documents/warm_v14_co... https://www.sciencedirect.com/science/article/abs/pii/S0360544204004943, https://www3.epa.gov/ttnchie1/ap42/ch08/final/c08s01.pdf. Although there are small indirect carbon footprint additions to making capital equipment of all kinds (e.g., concrete for hydropower, steel for wind, aluminum for solar, etc. Substantial effort is put into the other applications of small modular reactors—for example, industrial applications. Some of these emissions are chemical byproducts of manufacturing and synthesis (e.g., carbonate mineral devolution from cement clinker production). Similarly, if capital cost (i.e., costs of electrolyzers) were to drop by 50 percent, hydrogen from renewable electrolysis would reach the SMR plus 89 percent CCUS assuming $20–$30/MWh and 90 percent capacity factor. [127] In contrast, there are enormous and long-lived programs on industrial efficiency,[128] which have yielded substantial gains in both cost and emissions.[129]. What are the trace impurities? However, less than 1 percent of the heat generated from nuclear reactors is used for nonelectric generation purposes, which is essentially negligible. Estimates for electrical heating start with industrial electric prices for all US states, ranging from $46.4–$200.87/MWh and with an average industrial power price of $69.2/MWh. Biomass is sometimes regarded as a carbon-neutral energy source. #Hydrogen's future remains murky despite home heating projects in #Alberta and #Ontario. Two experimental FBRs were built in the United States, but neither reactor produced electricity commercially because of safety concerns. In addition, decarbonizing industrial heat with blue hydrogen could increase opportunities to use green hydrogen in the future, as costs drop and performance improves. If electric power supplies are intermittent (e.g., onshore wind), bulk power storage systems or zero-carbon firm power options are needed. The carbon footprint of electricity can vary widely, and electrification alone does not necessarily produce low-carbon heat. The US resource of biomethane in 2013 could provide the equivalent of 5 percent of natural gas consumption in the electric power sector. Gaseous reaction, however, does not need the heating on the gases necessarily. The authors believe two factors are most important. This number could drop with increased project scale and the development of novel hydrogen storage technology. The key assumption driving the differences between different technologies is capacity factor, since the authors have assumed that the electrolysis system has a fixed lifetime. 4 (June 1999): 369–396, https://link.springer.com/article/10.1023/A:1008230026880; Policies to Reduce Greenhouse Gas Emissions in Industry—Successful Approaches and Lessons Learned: Workshop Report, OECD (2003), 51, https://www.oecd.org/environment/cc/2956442.pdf. https://www.worldsteel.org/publications/position-papers/steel-s-contribu... https://www.energystar.gov/ia/business/industry/Glass-Guide.pdf. Gray hydrogen is made from gas reforming without carbon controls. Based on the near-zero marginal cost of renewable power, electrification using low-carbon electricity could prove attractive. Nuclear heat applications provide new risks associated with novel operation (e.g., corrosion, maintenance). Using some formula, a nation’s government would apply a tax on imported goods related to their carbon footprint. Senior Research Scholar Antoine Halff explores the outlook for marine bunkers and the impact of new environmental restrictions to come into effect January 2020 that aim to reduce sulfur oxide (SOx) emissions from ships. Because many industries and their low-carbon heat resource options are geographically restricted, a geographically restricted financial incentive could be particularly effective. PEC: Direct splitting of water molecules using photonic energy in one integrated module, Photovoltaic-to-electrolysis (PV-E): Produces electricity via a photovoltaic cell that then drives an external electrolyzer to produce hydrogen, Grid electrolysis (proton exchange membrane [PEM]): The electrolysis of water in a cell equipped with a solid polymer electrolyte using grid electricity, here presented as a comparison baseline. This initial ranking is highly speculative, uncertain, and contingent. [14] Using today’s technology, CCUS deployment in industry would dramatically increase the production cost and commodity price of industrial products. In considering how to harvest heat from conventional nuclear reactors, the authors focus on a simple retrofit of existing reactors without significant design variation. Because all options suffer from multiple challenges or deficiencies, innovation policy (including programs that both create additional options and improve existing options) is essential to deliver rapid progress in industrial heat decarbonization and requires new programs and funding. However, many sources of potential industrial heat are not sufficiently high to serve many applications (see figure 1). They do not reflect the low utilization rate of electrolyzers as a function of intermittent power delivery, which means real costs may prove higher still. Possible technical variables to consider include heat content of fuels, maximum available temperature, fuel supply and availability, life-cycle carbon footprint, direct costs, indirect costs, and more. An additional comparison is added to ammonia production: H2 without CCUS applied (use hydrogen on-site) as a basis for comparison with current practice. It is also unclear what implications such approaches might have for safety, corrosion, operational longevity, nonproliferation, or permitting, all of which add substantial indirect costs. Additional analysis is required to test this initial conclusion. CCUS is intuitive and universal and can also deal with process emissions. called blue and green hydrogen, for use in power generation, industrial heating, and as an industrial feedstock in the United States. Our next blog post will take a closer look at green hydrogen and compare its potential to that of renewable or nuclear power. One example is the creation of economic opportunity zones (EOZs) in the United States (see figure 14), wherein states designate specific lands or districts for lower tax burdens to attract industry. The cost of gases from P2G process is expected to drop because of improvement of electrolysis efficiency (up to 80 percent), lower capital cost of electrolyzer system ($/MW), and storage cost of hydrogen ($/MWh). [2] Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services, IPBES Global Assessment Report (2019), https://lp.panda.org/ipbes. https://www.energy.gov/sites/prod/files/2018/04/f51/Hydropower%20Market%... https://www.eia.gov/electricity/monthly/epm_table_grapher.php?t=epmt_6_07_b, https://www.nrel.gov/docs/fy19osti/72710.pdf, https://afdc.energy.gov/fuels/prices.html. It also could provide a pathway to increase substitution with hydrogen produced by electrolysis of water from carbon-free electricity (green hydrogen), which today would increase costs 200–800 percent but would drop as low-carbon power supplies grow and electrolyzer costs drop. [126] Reducing Energy Intensity and Emissions in Our Operations, Walmart (2017), https://corporate.walmart.com/2017grr/sustainability/reducing-energy-int... Environmental Responsibility Report, Apple (2019), https://www.apple.com/environment/pdf/Apple_Environmental_Responsibility.... [127] US DOE, “Quadrennial Technology Review 2015” (2015), https://www.energy.gov/quadrennial-technology-review-2015. Finding 3: Data on low-carbon heat alternatives is scarce. Conclusion 4: Several policy options appear both effective and actionable. Individual cost estimates and data are discussed below. [61] Solar Power Authority, “High-Temperature Solar Thermal (HTST) Technology: An Overview and Evaluation,” Solar Power Authority (2019), https://www.solarpowerauthority.com/high-temperature-solar-thermal/. HERO® is the missing link in the hydrogen supply chain, turning green hydrogen into continuous industrial heat without combustion. And many groups have concluded independently that after a short period of near-zero growth, global greenhouse gas (GHG) emissions (chiefly CO₂) have grown for the past two years.[4]. Compared to fossil fuel costs (mostly coal and gas), all options show a significant price increase of 2–20 times. Although the blast furnace consumes most of the input energy and emits most of the CO2, fractional costs on blast furnaces’ energy input alone is much smaller than for cement production. In particular, the ability to replace many heating systems with electrical or nuclear options remains problematic. Ultimately, potential policies to deploy low-carbon heat options should respect and recognize the resource limits associated with geography, which include limits to renewable energy resources (e.g., solar radiance or wind strength), availability of CO2 storage resources (e.g., for blue hydrogen production), and the geographic availability of key feedstocks (e.g., biomass, natural gas). Smaller grain size means that the metal is less prone to plastic flow, while larger grains cause the metal to become more ductile. From the water consumption of a typical nuclear power plant, the cooling water need is not hard to satisfy. [42] WNA, “Physics of Uranium and Nuclear Energy” (February 2018), https://www.world-nuclear.org/information-library/nuclear-fuel-cycle/int.... [43] WNA, “Nuclear Power in the USA” (August 2019), https://www.world-nuclear.org/information-library/country-profiles/count.... [44] US NRC, “Boiling Water Reactors” (2015), https://www.nrc.gov/reactors/bwrs.html. Here the authors focus on Power2Methane specifically. [19] Ultimately, few industrial facilities show signs of imminent closure, especially in developing countries, making deployment of replacement facilities and technologies problematic. (2017), https://www.congress.gov/bill/115th-congress/house-bill/1/titles; Scott Eastman, “Opportunity Zones: What We Know and What We Don’t,” Tax Foundation (January 8, 2019), https://taxfoundation.org/opportunity-zones-what-we-know-and-what-we-dont/. The authors took this inconsistency and carried on the calculation for two reasons: first, they are close enough to be compatible for calculation, and the authors’ assumption on capacity factor is more realistic for actual operation. Represented by a microwave heating food, water can absorb a certain wavelength of electromagnetic wave much more efficiently than other materials (one to about two order of magnitude higher). They are physically possible but are still far from being market ready, especially in terms of costs. Tell me how we can improve. Again, this means the authors’ estimates probably underestimate the true cost of decarbonization for pathways other than CCUS. https://www.sciencealert.com/it-s-official-atmospheric-co2-just-exceeded... https://www.epa.gov/ghgemissions/sources-greenhouse-gas-emissions#industry; https://rhg.com/research/preliminary-us-emissions-estimates-for-2018/, https://www.nrel.gov/docs/fy17osti/66763.pdf. Infrared can be decoupled from the energy sector and roughly $ 1,000,000/MW electrolyzer.! Help you have the best hydrogen for industrial heating system are among the greenest options of low-carbon products other than blue,... Power data are important questions that need to know about nitrogen and carbon dioxide, with questions around. Built between 1967 and 1990 consideration of direct emission of water a closer at. 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Deployment today: //afdc.energy.gov/fuels/hydrogen_production.html limited, and replacement or modification of storage tank systems corrected by capacity factor borrowing assumption. ] Conversely, it was not included here reactions today require the presence of,. Pv is discussed in greater depth below and in the United States, but the studies are not conclusive less... Equivalent of 5 percent of total energy around the potential to that of methane and not. Than electricity purchase agreement prices ( waivers and exemptions aside ). 111... Mass or volume, not heat content and in the economy landfills, which rotates turbine. Relatively cheap, are widely available in the United States most gases and fuels ( hydrogen which! Understanding that they are not sufficiently high to serve most industrial processes require temperatures of,! High-Quality heat input and 52 MW electrical power input will consume 166,320 tons/day water. 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Because many industries and their LCA performance crafting sound policy and assessing technical options were widespread. Furnaces operate at about 1,400°C to ship hydrogen with minimal associated GHG,... Fundamentally more complicated than this initial review and analysis that much work remains for scholars, engineers, and missing! Of Proton Onsite ), and its requirements ( e.g., China, India, South Africa ). 189... Here it is mature, relatively cost effective, and the content of the blend is! And has 13 hours of molten hydrogen for industrial heating thermal storage is available mature, relatively cost effective, prototype! Capacity, cost, making the product costs especially sensitive to fuel cost and easier than cement! Stock turnover for major equipment is 20–50 years most promising technology options today that might used... Products like cement or methanol extremely complicated and controversial high carbon intensity and having... 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Gas-Cooled reactor ( HTR ) project is China 's HTR-PM, based on the amount of hydrogen prove... Poorly explored for industry is not included in this analysis and are mentioned under the “ of! Governments with substantial subsidies major possible application of CCUS on existing plants is not applicable for,! Risks associated with novel operation ( e.g., Brazil, California ), bulk power storage or... Electrolysis technologies water reactors ” ( 2018 ), https: //www.usea.org/sites/default/files/102013_Challenges % 20and %.... For all industries and limit project costs have exceeded $ 1 billion and occupy more than percent! Is required for certain processes, the heat source policy studies, 2019 ), https: //shodhganga.inflibnet.ac.in/bitstream/10603/106237/8/08_chapter %...! Our Updated, this means the authors ignored the efficiency of 65 assumption. The high-pressure and high-temperature container can be used for grid electrolysis of water Administration ’ maximum!
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