Green hydrogen in the iron and steel industry increases resilience against shocks in energy prices
Geopolitical tensions and conflicts can disrupt energy markets, threatening international energy supply security and imposing financial stress on energy-intensive industries reliant on imported fossil fuels. Exploring the challenges and opportunities associated with supply diversification is crucial...
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| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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IOP Publishing
2025-01-01
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| Series: | Environmental Research Letters |
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| Online Access: | https://doi.org/10.1088/1748-9326/ada2b3 |
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| author | Nicola Leuratti Giacomo Marangoni Laurent Drouet Linda M Kamp Jan Kwakkel |
| author_facet | Nicola Leuratti Giacomo Marangoni Laurent Drouet Linda M Kamp Jan Kwakkel |
| author_sort | Nicola Leuratti |
| collection | DOAJ |
| description | Geopolitical tensions and conflicts can disrupt energy markets, threatening international energy supply security and imposing financial stress on energy-intensive industries reliant on imported fossil fuels. Exploring the challenges and opportunities associated with supply diversification is crucial for understanding the potential for hard-to-abate industry decarbonization under the risk of future energy price shocks. In this context, we investigate the role of green hydrogen as a viable and sustainable alternative to natural gas applications in iron and steel manufacturing. We first quantify how the integration of green hydrogen into the existing infrastructure can complement stringent climate action ambitions in reducing CO _2 emissions over the next five decades. We find that green hydrogen acts as a transitional technology, enabling a gradual shift towards electrification of heat supply while bridging the gap until low-carbon steel technologies become commercially feasible. Furthermore, we assess the benefits of timely green hydrogen investments in mitigating the economic repercussions of unforeseen natural gas price surges. Overall, this study underscores the potential of green hydrogen in decarbonizing the iron and steel industry while promoting energy independence, but it also highlights its contingency on sufficiently ambitious climate policies and adequate technological advancements. |
| format | Article |
| id | doaj-art-69502601e9894c75aada94fcbaaf3bd4 |
| institution | Kabale University |
| issn | 1748-9326 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | IOP Publishing |
| record_format | Article |
| series | Environmental Research Letters |
| spelling | doaj-art-69502601e9894c75aada94fcbaaf3bd42025-01-17T10:47:52ZengIOP PublishingEnvironmental Research Letters1748-93262025-01-0120202402110.1088/1748-9326/ada2b3Green hydrogen in the iron and steel industry increases resilience against shocks in energy pricesNicola Leuratti0https://orcid.org/0009-0006-5401-5293Giacomo Marangoni1https://orcid.org/0000-0003-3994-380XLaurent Drouet2https://orcid.org/0000-0002-4087-7662Linda M Kamp3https://orcid.org/0000-0001-9992-9220Jan Kwakkel4https://orcid.org/0000-0001-9447-2954Faculty of Technology, Policy and Management, Delft University of Technology , Jaffalaan 5, Delft 2628 BX, The Netherlands; CMCC Foundation - Euro-Mediterranean Center on Climate Change , Via Bergognone 34, Milan 20158, Italy; RFF-CMCC European Institute on Economics and the Environment , Via Bergognone 34, Milan 20158, ItalyFaculty of Technology, Policy and Management, Delft University of Technology , Jaffalaan 5, Delft 2628 BX, The Netherlands; CMCC Foundation - Euro-Mediterranean Center on Climate Change , Via Bergognone 34, Milan 20158, Italy; RFF-CMCC European Institute on Economics and the Environment , Via Bergognone 34, Milan 20158, ItalyCMCC Foundation - Euro-Mediterranean Center on Climate Change , Via Bergognone 34, Milan 20158, Italy; RFF-CMCC European Institute on Economics and the Environment , Via Bergognone 34, Milan 20158, ItalyFaculty of Technology, Policy and Management, Delft University of Technology , Jaffalaan 5, Delft 2628 BX, The NetherlandsFaculty of Technology, Policy and Management, Delft University of Technology , Jaffalaan 5, Delft 2628 BX, The NetherlandsGeopolitical tensions and conflicts can disrupt energy markets, threatening international energy supply security and imposing financial stress on energy-intensive industries reliant on imported fossil fuels. Exploring the challenges and opportunities associated with supply diversification is crucial for understanding the potential for hard-to-abate industry decarbonization under the risk of future energy price shocks. In this context, we investigate the role of green hydrogen as a viable and sustainable alternative to natural gas applications in iron and steel manufacturing. We first quantify how the integration of green hydrogen into the existing infrastructure can complement stringent climate action ambitions in reducing CO _2 emissions over the next five decades. We find that green hydrogen acts as a transitional technology, enabling a gradual shift towards electrification of heat supply while bridging the gap until low-carbon steel technologies become commercially feasible. Furthermore, we assess the benefits of timely green hydrogen investments in mitigating the economic repercussions of unforeseen natural gas price surges. Overall, this study underscores the potential of green hydrogen in decarbonizing the iron and steel industry while promoting energy independence, but it also highlights its contingency on sufficiently ambitious climate policies and adequate technological advancements.https://doi.org/10.1088/1748-9326/ada2b3green hydrogenhard-to-abate sectorsclimate policysteel industry decarbonizationenergy securityintegrated assessment model |
| spellingShingle | Nicola Leuratti Giacomo Marangoni Laurent Drouet Linda M Kamp Jan Kwakkel Green hydrogen in the iron and steel industry increases resilience against shocks in energy prices Environmental Research Letters green hydrogen hard-to-abate sectors climate policy steel industry decarbonization energy security integrated assessment model |
| title | Green hydrogen in the iron and steel industry increases resilience against shocks in energy prices |
| title_full | Green hydrogen in the iron and steel industry increases resilience against shocks in energy prices |
| title_fullStr | Green hydrogen in the iron and steel industry increases resilience against shocks in energy prices |
| title_full_unstemmed | Green hydrogen in the iron and steel industry increases resilience against shocks in energy prices |
| title_short | Green hydrogen in the iron and steel industry increases resilience against shocks in energy prices |
| title_sort | green hydrogen in the iron and steel industry increases resilience against shocks in energy prices |
| topic | green hydrogen hard-to-abate sectors climate policy steel industry decarbonization energy security integrated assessment model |
| url | https://doi.org/10.1088/1748-9326/ada2b3 |
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