Presentations - WindEurope Annual Event 2024

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OFFSHORE WIND POWER, GREEN HYDROGEN AND GREEN STEEL PRODUCTION: A TECHNICAL, ECONOMIC AND MARKET ANALYSIS

Mario Gonzalez, Researcher, Creation Research Group (UFRN)

Abstract

Countries are committed to directing efforts towards decarbonization, aiming to achieve the goals established by the Paris Agreement. In this context, hydrogen emerges as the central pillar of the necessary energy transformation to mitigate the global warming, as this energy source has a significant role in decarbonizing sectors, such as steel production. Although the technology of direct iron reduction by hydrogen (DRI-H2) for steelmaking is not yet commercially available, the number of demonstration projects is on the rise. The primary requirement for this industry is the availability of low-cost green hydrogen (GH2) and electricity. Considering that among renewable electricity options, offshore wind has the greatest potential for GH2 production. This research aims to analyze the international scenario of GH2 technologies and projects produced from offshore wind energy, focused on green steel production via DRI-H2. The research was conducted in three stages: (i) theoretical research, (ii) case study and (iii) Cross-referencing of information. As a result, we can infer that: (i) Commercial GH2 projects may already be observed between 2025-2030; (ii) The main requirement for the sector is the availability of a large amount of low-cost renewable electrical energy and GH2; (iii) In green steel production, solid oxide electrolysis (SOEC) is more efficient in energy conversion; (iv) DRI-H2 is technically feasible and has competitive advantages over the conventional route; and (v) The sector will make a significant contribution to green job creation and greenhouse gas emissions mitigation. Thus, it is concluded that the green steel market is in the planning phase and is preparing for considerable expansion in the coming years. Furthermore, due to the volume of renewable energy required in the process, offshore wind farms are identified as one of the main suppliers of this energy.


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