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Technological Innovation Systems for Decarbonisation of Steel Production

Axelson, Matilda LU (2016) FMI820 20152
Environmental and Energy Systems Studies
Abstract (Swedish)
Den europeiska stålindustrin står för en betydande del av EUs CO2-utsläpp, men har samtidigt begränsade
möjligheter att minska utsläppen från befintliga produktionsmetoder. Det krävs därför nya, banbrytande
processinnovationer för att åstadkomma verkligt stora utsläppsminskningar. Denna rapport ger en översiktlig
beskrivning av den europeiska stålindustrin teknologiska innovationssystem, belyst genom ett nytt ramverk
kallat “The 4W-framework”. The 4W-framework bygger på fyra grundstenar; where (var äger innovation rum?),
who (vem påverkar innovationskraften?), why (varför äger innovation rum?) och what (vad gör industrin i fråga
om innovation?). I rapporten diskuteras även den europeiska stålindustrins förmåga att uppnå nollutsläpp... (More)
Den europeiska stålindustrin står för en betydande del av EUs CO2-utsläpp, men har samtidigt begränsade
möjligheter att minska utsläppen från befintliga produktionsmetoder. Det krävs därför nya, banbrytande
processinnovationer för att åstadkomma verkligt stora utsläppsminskningar. Denna rapport ger en översiktlig
beskrivning av den europeiska stålindustrin teknologiska innovationssystem, belyst genom ett nytt ramverk
kallat “The 4W-framework”. The 4W-framework bygger på fyra grundstenar; where (var äger innovation rum?),
who (vem påverkar innovationskraften?), why (varför äger innovation rum?) och what (vad gör industrin i fråga
om innovation?). I rapporten diskuteras även den europeiska stålindustrins förmåga att uppnå nollutsläpp med
nuvarande produktionsmetoder, liksom vilka förbättringar som krävs för att uppnå de europeiska utsläppsmålen
till 2050.

Syften med studien har varit att sammanställa ett antal nyckelrekommendationer till beslutsfattare som har
möjlighet att påverka stålindustrins utveckling av banbrytande processinnovationer och därmed bidra till
framtida utsläppsminskningar. Tio semistrukturerade intressentintervjuer och en benchmark-intervju
genomfördes och resultatet kompletterades med en litteraturstudie samt en analys av officiella
industridokument. Fyra huvudaktörer med särskilt inflytande över industrins innovationsförmåga kunde
identifieras; stålproducenter, industriorganisationer, politiska beslutsfattare och akademiska aktörer. Det är
främst till dessa aktörer som rekommendationerna riktas.

Den europeiska stålindustrins inställning till innovation för minskade koldioxidutsläpp beskrivs som
pessimistisk och nuvarande incitament för att sträva mot nollutsläpp beskrivs som enbart finansiella - och svaga.
Effektiv prissättning av utsläppsrätter, i kombination med innovativa affärsmodeller för stärkt europeisk
konkurrenskraft gentemot andra regioner, kan därför förväntas spela en avgörande roll för att på sikt uppnå
nollutsläpp inom den europeiska stålindustrin. Resultaten visar på ett starkt behov av förbättrad kommunikation
och samarbete mellan industriaktörer och deras intressenter. I dagsläget finns begränsade möjligheter att
förbättra nuvarande produktionsmetoder genom befintlig teknik och ULCOS-konsortiet sägs vara ett
nyckelinitiativ för framtida utveckling av nya, banbrytande processinnovationer.

Vidare kan flera innovativa affärsmöjligheter och affärsmodeller identifieras genom studien. Bland dessa finns
nya marknader för biprodukter, genom Carbon Capture and Usage, ökad efterfrågan hos slutkonsument på
’hållbart stål’ samt ökad produktion av stål från skrot genom sekundärproduktion. Dessa affärsmöjligheter
förväntas kräva ökat engagemang från slutkonsumenten, liksom större gemensamma kraftansträngningar av
samtliga industriaktörer. (Less)
Abstract
The EU steel industry is a major contributor to human-induced CO2 emissions and has limited possibilities to
improve incumbent production methods further. The industry is therefore strongly dependent on new
breakthrough decarbonisation technologies in order to further mitigate emissions. This report provides an
overview of the EU steel industry’s technological innovation system, through a new mapping method named
the 4W-framework. The 4W-framework is built upon four main pillars; where innovation takes place, who the
influencers of innovation are, why the industry innovates and what the industry does, in terms of innovation. The
report also discusses the EU steel industry’s ability to decarbonise through incumbent technologies, and... (More)
The EU steel industry is a major contributor to human-induced CO2 emissions and has limited possibilities to
improve incumbent production methods further. The industry is therefore strongly dependent on new
breakthrough decarbonisation technologies in order to further mitigate emissions. This report provides an
overview of the EU steel industry’s technological innovation system, through a new mapping method named
the 4W-framework. The 4W-framework is built upon four main pillars; where innovation takes place, who the
influencers of innovation are, why the industry innovates and what the industry does, in terms of innovation. The
report also discusses the EU steel industry’s ability to decarbonise through incumbent technologies, and which
improvements are required in order to meet the current emission mitigation goals for year 2050.

The objective of the study has been to conclude some key implications for decision makers, who are in a
position to affect the EU steel industry’s innovation through breakthrough decarbonisation technologies. Ten
semi-structured stakeholder interviews and one benchmark interview have been conducted, and the outcomes
are complemented by a literature review and an analysis of official industry documents. Four key influencers of
innovation are identified, and the key implications are mainly directed to these actors; steel producers, industry
organisations, policy makers and academia.

The industry’s attitude towards decarbonisation is described as pessimistic and current incentives are purely
financial, and weak. Successful carbon pricing, in combination with innovative business models for elevated EU
competitiveness, could therefore be expected to play an essential role in decarbonisation of the industry. The
key findings of this study show a strong need for improved communication and collaboration between industry
actors and their stakeholders. There are currently limited possibilities to improve incumbent production
methods, and the ULCOS consortium is said to be a key initiative for development of breakthrough
decarbonisation technologies.

Several new business opportunities are identified through this study. Among them are new markets for byproducts
through Carbon Capture and Usage, increased end-user demand for ‘sustainable steel’, and increased
production of steel from scrap through secondary steel production. These business opportunities can be
expected to require increased end-user involvement as well as improved collaborative efforts. (Less)
Please use this url to cite or link to this publication:
author
Axelson, Matilda LU
supervisor
organization
alternative title
- Implications for European Decision Makers
course
FMI820 20152
year
type
H3 - Professional qualifications (4 Years - )
subject
keywords
Carbon Capture and Usage, Carbon Capture and Storage, Technology Readiness Level, Emission Mitigation, Low-Carbon Steelmaking, Technological Innovation System, Breakthrough Process Technologies, Innovation, Industrial Decarbonisation, The 4W-Framework, Circular Economy, Industrial Symbiosis
report number
ISRN LUTFD2/TFEM-- 16/5114--SE + (1-112)
ISSN
1102-3651
language
English
id
8886714
date added to LUP
2016-07-06 13:03:45
date last changed
2016-07-06 13:03:45
@misc{8886714,
  abstract     = {The EU steel industry is a major contributor to human-induced CO2 emissions and has limited possibilities to
improve incumbent production methods further. The industry is therefore strongly dependent on new
breakthrough decarbonisation technologies in order to further mitigate emissions. This report provides an
overview of the EU steel industry’s technological innovation system, through a new mapping method named
the 4W-framework. The 4W-framework is built upon four main pillars; where innovation takes place, who the
influencers of innovation are, why the industry innovates and what the industry does, in terms of innovation. The
report also discusses the EU steel industry’s ability to decarbonise through incumbent technologies, and which
improvements are required in order to meet the current emission mitigation goals for year 2050.

The objective of the study has been to conclude some key implications for decision makers, who are in a
position to affect the EU steel industry’s innovation through breakthrough decarbonisation technologies. Ten
semi-structured stakeholder interviews and one benchmark interview have been conducted, and the outcomes
are complemented by a literature review and an analysis of official industry documents. Four key influencers of
innovation are identified, and the key implications are mainly directed to these actors; steel producers, industry
organisations, policy makers and academia.

The industry’s attitude towards decarbonisation is described as pessimistic and current incentives are purely
financial, and weak. Successful carbon pricing, in combination with innovative business models for elevated EU
competitiveness, could therefore be expected to play an essential role in decarbonisation of the industry. The
key findings of this study show a strong need for improved communication and collaboration between industry
actors and their stakeholders. There are currently limited possibilities to improve incumbent production
methods, and the ULCOS consortium is said to be a key initiative for development of breakthrough
decarbonisation technologies.

Several new business opportunities are identified through this study. Among them are new markets for byproducts
through Carbon Capture and Usage, increased end-user demand for ‘sustainable steel’, and increased
production of steel from scrap through secondary steel production. These business opportunities can be
expected to require increased end-user involvement as well as improved collaborative efforts.},
  author       = {Axelson, Matilda},
  issn         = {1102-3651},
  keyword      = {Carbon Capture and Usage,Carbon Capture and Storage,Technology Readiness Level,Emission Mitigation,Low-Carbon Steelmaking,Technological Innovation System,Breakthrough Process Technologies,Innovation,Industrial Decarbonisation,The 4W-Framework,Circular Economy,Industrial Symbiosis},
  language     = {eng},
  note         = {Student Paper},
  title        = {Technological Innovation Systems for Decarbonisation of Steel Production},
  year         = {2016},
}