The concept of techno-economic pathways is used to investigate the potential implementation of CO₂ abatement measures over time towards zero-emission steelmaking in Sweden. The following mitigation measures are investigated and combined in three pathways: top gas recycling blast furnace (TGRBF); carbon capture and storage (CCS); substitution of pulverized coal injection (PCI) with biomass; hydrogen direct reduction of iron ore (H-DR); and electric arc furnace (EAF), where fossil fuels are replaced with biomass. The results show that CCS in combination with biomass substitution in the blast furnace and a replacement primary steel production plant with EAF with biomass (Pathway 1) yield CO₂ emission reductions of 83% in 2045 compared to CO₂ emissions with current steel process configurations. Electrification of the primary steel production in terms of H-DR/EAF process (Pathway 2), could result in almost fossil-free steel production, and Sweden could achieve a 10% reduction in total CO₂ emissions. Finally, (Pathway 3) we show that increased production of hot briquetted iron pellets (HBI), could lead to decarbonization of the steel industry outside Sweden, assuming that the exported HBI will be converted via EAF and the receiving country has a decarbonized power sector.

In Europe, electrification is considered a key option to obtain a cleaner production of steel at the same time as the electricity system production portfolio is expected to consist of an increasing share of varying renewable electricity (VRE) generation, mainly in the form of solar PV and wind power. We investigate cost-efficient designs of hydrogen-based steelmaking in electricity systems dominated by VRE. We develop and apply a linear cost-minimization model with an hourly time resolution, which determines cost-optimal operation and sizing of the units in hydrogen-based steelmaking including an electrolyser, direct reduction shaft, electric arc furnace, as well as storage for hydrogen and hot-briquetted iron pellets. We show that the electricity price following steelmaking leads to savings in running costs but to increased capital cost due to investments in the overcapacity of steel production units and storage units for hydrogen and hot-briquetted iron pellets. For two VRE-dominated regions, we show that the electricity price following steel production reduces the total steel production cost by 23% and 17%, respectively, as compared to continuous steel production at a constant level. We also show that the cost-optimal design of the steelmaking process is dependent upon the electricity system mix.