sixth five-year environmental day| The green and low-carbon transformation of the steel industry has achieved remarkable results--Interview with relevant persons in charge of the China Iron and Steel Association
Steel is one of the most widely used materials in the world. The carbon emissions of my country's steel industry account for 15% of the country's total carbon emissions and is the industry with the largest carbon emissions among the 31 manufacturing categories in China.
In recent years, through the implementation of three major transformation projects: capacity replacement, ultra-low emissions, and extreme energy efficiency, what positive results have been achieved in the green and low-carbon transformation of the steel industry? In order to further promote the green development of the steel industry, what efforts need to be made in the future? Regarding the above issues, this newspaper interviewed the relevant person in charge of the China Iron and Steel Association.
China's Environment: In recent years, what positive progress has been made in the green and low-carbon transformation of my country's steel industry? How effective is energy conservation and emission reduction?
Relevant person in charge of China Steel Association:In recent years, the steel industry has accelerated its transformation, upgrading and transformation, taking multiple measures from aspects such as production structure, equipment technology, and innovation mechanisms to actively promote the green and sustainable development of the industry. The results of energy conservation and consumption reduction have been obvious, and the green development level of the industry has been greatly improved. From 2014 to 2023, key statistics show that the average comprehensive energy consumption per ton of steel enterprises dropped by 5.87%. Sulfur dioxide emissions per ton of steel fell by 81%; smoke and dust emissions per ton of steel fell by 70.8%.
In terms of environmental protection, under the guidance of the Ministry of Ecology and Environment, China Steel continues to promote ultra-low emission transformation in accordance with the world's strictest environmental protection standards. The company's environmental awareness and environmental management level have been greatly improved, and its appearance has been greatly improved. Up to now, 95 steel companies have completed the entire process of ultra-low emission transformation in my country's steel industry and announced it, involving approximately 450 million tons of crude steel production capacity;42 steel companies have completed some ultra-low emission transformation and publicity, involving crude steel production capacity of approximately 144 million tons; 32 steel companies have applied and are currently in the review process, involving approximately 54 million tons of crude steel production capacity. Edwin Basson, Director-General of the World Steel Council, visited the China Iron and Steel Association, China Baowu, Hegang Group, Shougang Group and other units from June 13 to 20, 2023, and gave a high degree of recognition to the green development of China's steel. He said in an interview: "China's steel industry currently pays very high attention to emissions issues. These questions are not only about carbon dioxide, but also many other waste gases such as nitrogen oxides, which are very comprehensive. In my opinion, China's steel industry is currently 'clean' to the extent that no other country can achieve."
In terms of energy conservation and efficiency improvement, the Steel Association launched the "Extreme Energy Efficiency" project in 2022. Taking the cultivation of the "Double Carbon Best Practice Energy Efficiency Benchmarking Demonstration Plant" in the steel industry as the starting point, we will conduct research and release a list of extreme energy efficiency technologies, capabilities, and policies to provide scientific basis for enterprises to improve their energy efficiency management levels. In 2023, the Steel Association will focus on cultivating 58 companies with a blast furnace process output of 377 million tons, and process energy consumption will be reduced by 0.47% year-on-year. The output of the converter process was 440 million tons, and the process energy consumption decreased by 7.97% year-on-year. The output of the coke oven process was 106 million tons, and the process energy consumption decreased by 4.65% year-on-year. The output of the electric furnace process was 20 million tons, and the energy consumption of the process was reduced by 5.58% year-on-year, both of which achieved the requirements of varying reductions in energy consumption levels.
In terms of low-carbon transformation, the China Iron and Steel Association organized more than 400 industry experts to study and release the "Steel Industry Dual Carbon Vision and Low-Carbon Technology Roadmap", proposing that China's steel industry will peak carbon in 2030 and total emissions in 2040. The vision plan is to reduce the carbon emissions by 40% compared with 2020, 85% in 2050, and 95% in 2060, and achieve carbon neutrality through CCUS and carbon sinks. Six low-carbon development technology paths are proposed: system energy efficiency improvement, resource recycling, process optimization and innovation, smelting process breakthroughs, product iterative upgrades, and capture, storage and utilization. Key organizations and industries carry out research and development around eight world-leading low-carbon technologies, including "hydrogen-rich/all-hydrogen-based direct reduction technology (including shaft furnace, fluidized bed, etc.), hydrogen-rich carbon cycle blast furnace technology, and hydrogen-based smelting reduction technology." Currently, a total of 57 projects in 23 units are being advanced.
The EPD (Environmental Products Statement) platform for the Chinese steel industry has been established and put into operation, formulated rules strictly in accordance with international standards, relied on reliable third-party institutions to disclose environmental performance information, and is committed to enhancing the understanding of peers and downstream users in other countries in the environmental field of China's steel industry., promote the promotion and application of green and low-carbon products. At present, there are more than 3400 registered users on the platform, 122 EPD reports have been released, with a total of about 30,000 downloads, and 9 PCRs (Product Category Rules) have been released, promoting carbon emission methodology research, platform cooperation construction and mutual recognition work in industries such as construction, automobile, home appliances, power, and shipbuilding, and a Chinese steel carbon emission factor database is being built. In addition, the platform communicated, exchanged and mutually accepted with EPD platforms in Japan, Italy, Sweden and other countries.
China's environment: New productivity is itself green productivityHow can my country's steel industry cultivate new productivity? What key breakthroughs and innovations have been made in the field of green and low-carbon technologies? What are the shortcomings? How to focus on the future?
Relevant person in charge of China Steel Association:New quality productivity is an original concept put forward by General Secretary Xi Jinping from the inherent need to solve the main contradictions of society in the new era and achieve high-quality development. It has the characteristics of high-tech, high-efficiency, and high-quality, and is in line with the quality of advanced productivity that conforms to the new development concept. To develop new productive forces in the steel industry, we need to focus on the three major aspects of revolutionary technological breakthroughs, innovative allocation of production factors, and deep industrial transformation and upgrading, and achieve high-end, intelligent and green industrial development through innovation-driven efforts.
In terms of low-carbon technological innovation, Chinese steel companies have taken the initiative and actively tried. Baowu's 400 cubic meters industrial-grade oxygen-rich carbon cycle blast furnace was officially ignited and put into operation in July 2022. At present, fuel consumption has been reduced by 30%, and carbon emission reduction has been reduced by more than 20%. Baowu Group has also launched a 2500 thousand cubic meters traditional blast furnace. Transformation into HyCROF commercial equipment. Hegang Group's first 1.2 million-ton hydrogen metallurgy demonstration project achieved smooth and continuous iron production, pioneered the "coke oven gas zero reforming shaft furnace direct reduction" process technology, reducing carbon dioxide emissions by more than 70%. China Steel Research Institute has successfully applied the industrial application of low-carbon ironmaking technology by injecting hydrogen-rich gas into the blast furnace of Jinnan Iron and Steel, which can reduce carbon emissions by 10%. Shanxi Jianlong Iron and Steel has organized the development of CO2 capture and converter injection CO2 steelmaking technology, capturing 50,000 tons of carbon dioxide annually.
Compared with foreign countries, my country's steel industry's low-carbon transformation started late, with insufficient reserves of low-carbon technologies with independent intellectual property rights, relatively scattered research and development efforts, and no systematic support plan for core low-carbon common technologies has yet been formed at the national level. The top-level design and pre-plan layout of developed economies such as the European Union and the United States should enlighten and alert us to effectively change the current situation of my country's low-carbon technology research being divided, repeated investment, and fragmented, and form my country's low-carbon core technology research as soon as possible. Top-level design.
First, it is necessary to accelerate the construction of the National Steel Low-Carbon Technology Innovation Center in the steel industry. By establishing a National Steel Science and Technology Innovation Special Fund, increase financial support, and form scientifically oriented basic research in the fields of green and low-carbon, digital intelligence and multidisciplinary integration., cutting-edge oriented exploratory research and market-oriented applied research systems open up blockages in the innovation chain and industrial chain. The second is to pool the superior resources of the industry to establish an efficient mechanism for research and development and application promotion of new technologies. Gather industry forces such as leading steel companies and advantageous universities and institutes in the industry to clarify the rights and obligations of each entity, and build an operating mechanism for the coordinated connection of "scientific research and market". Provide continuous innovation capabilities and systematic solutions for the low-carbon development of the steel industry, support the independent control of the steel industry and achieve high-quality development.
China's Environment: So far, what is the overall situation of ultra-low emission transformation in the steel industry? Faced with the current changes in global supply chains and the reality of industry pressure, is the implementation of ultra-low emission transformation facing resistance?
Relevant person in charge of China Steel Association:Up to now, 95 steel companies in the steel industry have completed the entire process of ultra-low emission transformation and announced it, involving approximately 450 million tons of crude steel production capacity;42 steel companies have completed some ultra-low emission transformation and publicity, involving crude steel production capacity is approximately 144 million tons; 32 steel companies have applied and are currently in the review process, involving approximately 54 million tons of crude steel production capacity. In order to achieve ultra-low emissions, steel companies invest more than 400 yuan per ton of steel, and operate and maintain fees of more than 70 yuan per ton of steel.
In 2024, the market situation of the domestic steel industry will remain severe, with challenges such as insufficient effective demand, rapid release of production capacity, weak social expectations, and hidden risks. Efforts are still needed to improve the dynamic adaptability of steel supply and demand. The benefits of steel companies have declined, and the current benefits of steel companies have sharply declined. As supply is stronger than demand and the actual downward shift in the cost center is less than the decline in steel prices, the operation of the steel industry has shown a trend of "weakening demand, falling prices, high costs, and falling profits". Improving quality and efficiency has become more difficult. Faced with the current severe market operating situation, as energy conservation and emission reduction in the steel industry continues to advance in depth, enterprises are under great financial pressure in promoting ultra-low emission transformation and carrying out low-carbon transformation exploration. They need to be guided in terms of policies to allow Enterprises that do well and achieve ultra-low emissions receive tangible support, achieve fair market competition, and avoid bad money driving out good money.
China's Environment: Under the "dual carbon" strategic goal, is the steel industry one of the industries with the largest carbon emissions in the industrial sector? Is the road to low-carbon transformation smooth and what obstacles need to be overcome?
Relevant person in charge of China Steel Association:First, due to resource constraints such as insufficient scrap accumulation, short-process steelmaking such as electric furnace steel and hydrogen energy metallurgy is still progressing slowly. At present, the crude steel output produced by my country's electric arc furnace short-process steelmaking process only accounts for about 10% of the total output, far below the development level of 68% in the United States and 40% in the European Union; the scrap ratio is only 18.7%, and there is still much room for improvement. The process structure dominated by the long process of blast furnaces and converters has led to the high carbonization of the energy structure of the steel industry. Coal and coke account for about 90% of the industry's total energy consumption. In the short term, energy transformation is more difficult than other industries.
Second, we are facing the dual pressures of environmental protection, energy conservation and carbon reduction. Environmental protection management mainly relies on end-of-end management. The energy consumption of environmental protection facilities caused by ultra-low emission transformation is very obvious. Especially in the situation where the economic benefits of the steel industry have dropped significantly, it is important for enterprises to promote ultra-low emission transformation and carry out green and low-carbon transformation exploration. Work has had a certain impact. At the same time, the added value of steel companies 'products continues to increase, the depth of product processing continues to deepen, the back-end processing industry chain continues to extend, and the number of steel energy enhancement links continues to increase.
Third, there are constraints in the research and development of low-carbon technologies. Low-carbon technologies have common attributes, most of which are cutting-edge technologies. Our country has a weak foundation in the early stage, but has large investment in R & D and long cycles in the later stage, and has high risks. Under the situation that the economic benefits of the steel industry have dropped significantly, it has had a certain impact on enterprises 'efforts to promote low-carbon technological transformation and carry out green and low-carbon transformation exploration.
Fourth, the "low-carbon barriers" in international steel trade urgently need to be strengthened. In 2023, the average import price of iron ore will increase by 4.3% year-on-year (denominated in RMB), further compressing the profits of my country's steel companies. From January to February this year, the strong export trend in 2023 continued, and steel exports still increased significantly by 32.6% year-on-year. However, the average export price dropped by 32.1% year-on-year, and steel exports continued to show a "price-for-volume" situation, which has triggered a new round of trade frictions. Since 2023, the United States has launched countervailing investigations on China's tinplate, India has delayed the renewal of its BIS certification certificate, Thailand has conducted anti-circumvention investigations on hot rolled products imported from China, and the European Union plans to conduct countervailing investigations against China, etc., This will bring huge challenges to China's steel product exports in the future. The implementation of CBAM has had a greater impact on China's steel participation in international trade and requires the entire industry to actively respond.
China's environment: The steel industry is on track to be integrated into the national carbon market. At the same time, external factors such as CBAM are added. Is the steel industry ready to welcome it? What impact will this have on the development of the industry?
Relevant person in charge of China Steel Association:Establishing and improving the national carbon emissions trading market is an important decision and deployment of the Party Central Committee and the State Council. General Secretary Xi Jinping clearly pointed out at the 2023 National Ecological Environmental Protection Conference that it is necessary to further develop the carbon market and steadily expand industry coverage. The national carbon emissions trading market takes the power generation industry as a breakthrough and officially launched online trading in July 2021. It has established a relatively complete market framework system and basically formed a carbon emission reduction incentive and restraint mechanism. In mid-May 2023, the Climate Department of the Ministry of Ecology and Environment launched a special research work on expanding the coverage of the national carbon market, and organized special research on expanding the coverage of the carbon market in seven major industries including steel, petrochemicals, chemicals, nonferrous metals, building materials, civil aviation, and papermaking. Accurately portray the industry, consolidate the work foundation, improve the operability of the plan, and provide key technical support for the national carbon market to expand the coverage of the industry. After a series of preliminary preparations and in accordance with the unified national deployment, the steel industry is expected to be included in the national unified carbon market this year. This is both a challenge and certain opportunities for steel companies.
Compared with the power industry, factors such as process structure, raw fuel structure, and product types are much more complex in the steel industry. The formulation of quota allocation plans and carbon emission accounting verification are also more difficult. At present, steel companies vary greatly in size, number, and carbon management levels are uneven. Carbon emission statistical accounting capabilities need to be improved. Carbon data and carbon asset management professionals are not adequately allocated. In the early regional pilot carbon market, about 80 steel companies were included. These companies have certain relevant experience in carbon asset management, carbon trading and performance performance, but only cover 13% of crude steel output. Most steel companies do not have practical experience in carbon trading. Moreover, there is a large gap in the activity of local carbon markets. Some companies 'carbon trading models are mainly based on performance and do not fully participate in market transactions. Therefore, inclusion in the national carbon emissions trading market is a challenge for steel companies.
Inclusion in the carbon market is also an opportunity on the other hand. The carbon emissions trading mechanism is a means to promote enterprises to reduce carbon emissions through carbon pricing and economic means. A healthy and stable carbon market can reflect carbon value, add carbon benefits, and improve the competitiveness of low-carbon emission enterprises; at the same time, it will make Low-carbon process technology will receive economic incentives, generate a premium for low-carbon products, and promote the application of new technologies and new processes. In addition, carbon assets are emerging assets, and companies with sufficient preparations will gain more opportunities.
China's Environment: What other aspects of efforts are needed to further promote the green development of the steel industry in the future?
Relevant person in charge of China Steel Association:The first is to improve the "double carbon" standard measurement system and deepen the research on the carbon accounting system to achieve a real reduction in the carbon footprint of the steel industry. Collect and collate relevant data resources in related industries in accordance with laws and regulations, organize and carry out peer reviews, cross-verification and data traceability verification in a timely manner, and establish a carbon footprint background database of commercial steel products with Chinese characteristics. Strengthen the construction of EPD platforms in the steel industry and promote upstream, downstream and international mutual recognition. and low carbon steel standards research. Carry out research on China's low-carbon emission steel standards and strive to release them within the year. Strengthen research on relevant management systems, certification rules and EPD systems for low-carbon emission products in international organizations and major economies, promote connection and mutual recognition with major trading countries, and give full play to the advantages of low-carbon steel materials in international trade.
The second is to carry out differentiated incentive and restraint policies in the implementation of multiple policies. Support enterprises that meet energy efficiency benchmarks and achieve A-level environmental performance. Encourage all regions to carry out differentiated management of project construction, and implement differentiated management for construction projects that can reach energy efficiency benchmarks, as well as high-end special steel such as superalloy steel and short-process production capacity projects of full scrap steel. Comprehensively consider energy consumption and environmental protection performance levels, and implement tiered electricity prices and differentiated electricity prices policies. In terms of the design of various policies, various incentive policies will be provided to enterprises that can achieve ultra-low emission transformation and energy efficiency benchmarks, and various binding policies will be provided to enterprises that fail to achieve them, forcing enterprises to strive to improve the concept of green carbon reduction and consciously carry out energy conservation and carbon reduction transformation.
The third is to support the improvement of standards and technological innovation in the steel industry, and accelerate the revision of energy consumption limit standards for crude steel and electric furnaces. Further improve the level of standard formulation and revision to make standards more in line with the actual conditions of the industry and enterprises. Accelerate the formulation and improvement of relevant standards for energy efficiency benchmarking assessment and acceptance specifications as the main starting point to support the green carbon reduction goal of the steel industry.
The fourth is to increase policy support for enterprises to use and build green electricity to promote the healthy and orderly development of new energy sources. On the one hand, it is recommended that the government provide support in power reform and increasing the proportion of green electricity, and break through the restrictions on electricity sales across partitions for green electricity projects built around enterprises to increase the enthusiasm of enterprises to use green electricity; on the other hand, formulate policies to encourage enterprises to build distributed power generation such as photovoltaics, wind energy, and biomass energy can obtain green certificates and include supporting policies such as carbon emission reductions to increase the enthusiasm of enterprises to build new energy power generation.
