The role of biomethane and hydrogen towards a climate friendly steel production in Italy

Steel production is an important sector in Europe, with more than 125 million tonnes of annual output in the continent, and Italy is the second country per steel output (21 Mt) after Germany (34 Mt). At the same time, the steel industry is responsible for around 5% of greenhouse gas emissions in the EU, representing one of the most critical segments for the decarbonization of industry. This work will present an analysis of the potential role of hydrogen and biomethane in supporting the decrease of steel emissions, through their integration with the steel production process. The paper anlyses and discusses the potential role that both biomethane and hydrogen could have for the decarbonization of the Italian steel sector, comparing their estimated demand in the sector with their supply levels based on official national strategies and scenarios and available estimates from the literature. The results show that depending on the technological solution that is adopted, biomethane and hydrogen could complement the contribution of renewable electricity for the decarbonization of the steel sector. The demand of biomethane remains lower than the expected supply, but attention must be paid on the competition with other sector and the distribution of production plants across the country. The potential hydrogen demand could instead be significant, especially on the medium term, and the choice of this solution should be carefully supported by a coherent strategy to scale-up its availability. The results of this work may support researchers and other stakeholders dealing with similar topics, as they will provide useful indications that can be integrated into energy system modelling and decarbonization scenarios at national level.