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Feasibility Study and Analysis of Hydrogen Production Technologies in Steel Production Processes in Iran

Asghari Asl, Mohammad Amin | 2025

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  1. Type of Document: M.Sc. Thesis
  2. Language: English
  3. Document No: 58320 (51)
  4. University: Sharif University of Technology, International Campus, Kish Island
  5. Department: Science and Engineering
  6. Advisor(s): Rafiee, Majid; Mostafavi, Mostafa
  7. Abstract:
  8. The steel industry, as a key sector in the global economy, has consistently faced environmental and economic challenges. Given the necessity of reducing carbon emissions and moving towards sustainable production, the use of hydrogen as an alternative to fossil fuels in the steelmaking process has garnered attention. This research investigates the feasibility of hydrogen production through various methods and its application in the steel industry to identify the most suitable option from economic and environmental perspectives. This thesis examines the feasibility of producing and utilizing hydrogen in the steelmaking process, focusing on three hydrogen production methods (green, blue, and grey) in comparison to the traditional method. The primary objective of this study is to evaluate the economic viability and associated risks of each method based on engineering economy indicators. This study has investigated the economic feasibility of hydrogen production for the steel industry using quantitative and analytical methods. In this regard, standard capital project evaluation tools, including the calculation of Net Present Value (NPV), Internal Rate of Return (IRR), break-even point, sensitivity analysis, and payback period, have been utilized. The cash flows for each production method (green, blue, grey) and the traditional method were modeled considering investment costs, operational expenses, and projected revenues. Sensitivity analysis was performed to examine the impact of changes in key variables such as hydrogen price, production costs, and discount rate. Based on the final results, grey hydrogen was identified as the optimal economic option with a positive Net Present Value of $1.11 billion. Following that, blue hydrogen, with an NPV of $0.88 billion, demonstrates relative viability. In contrast, green hydrogen, with an NPV of -$0.43 billion and the traditional method, with an NPV of -$0.51 billion, were assessed as economically unfavorable. The results indicate that although green hydrogen is environmentally attractive, its high production costs reduce its economic viability under current conditions. Meanwhile, grey and blue hydrogen are more suitable options for the steel industry due to their lower costs and higher efficiency
  9. Keywords:
  10. Green Steel Production ; Fossil Fuels ; Fuel Consumption Reduction ; Technical Analysis ; Economic Analysis ; Mitigation ; Greenhouse Gases ; Environment Improving

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