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Taking in house and up stream CO2 emission into account in charge optimization for scrap based steelmaking
Pages: 1-6+20
Year: Issue:  6
Journal: World Iron & Steel

Keyword:  steelscrapoptimizationenergyCO 2GHGLCAEPD;
Abstract: The scrap and ferroalloy purchases are by far the biggest costs for scrap based steelmaking. In search for lower prices,merchant steel producers tend to increase the amount of low grade scrap thereby increasing CO 2 emissions and energy use and decreasing productivity. For high alloy steel producers the profitability is often determined by the use of alloys in scrap since such alloys are discounted compared to ferroalloys. Costs for CO 2 emissions will probably go up in the decade to come,most probably increasing the prices for raw materials making decisions about the choice of raw materials even more critical. For certain applications where different materials compete,like in the building sector,the importance of having a low total CO 2 load might be crucial due to new regulations like the Construction Product Regulation and standards for Life Cycle Assessment. With alloy production generating CO 2 emissions five to twenty times that of iron and scrap having no inherent CO 2 load the discount for scrap alloys might be questioned in the future provided the accuracy of the scrap analysis increases. These trends will most likely change the way the scrap market works. This paper discusses optimal scrap charging and value in use for different raw materials assuming increased costs for in house CO 2 emissions and a wider interest in the total CO 2 load,i. e. including emissions for raw material and energy production,for certain product groups. Calculations are performed with RAWMATMIXTM,a free Internet tool for charge optimization,launched in Spring 2011,with energy and CO 2 calculations using average values and standard deviations for raw material data. Different scenarios are assumed with different types of scrap,sources of electricity and allocation principles for environmental load. Data used has been supplied by Swedish steel makers and raw material suppliers. Scenarios show improved incentives for better scrap pre treatment as well as concern about the origin of electricity.
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