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February Preview

New Initiative for Steel and Chemicals Co-Production

A technology brief at COP27 suggested the cement, iron and steel, and chemicals and petrochemicals industries as the most significant industrial CO2 emitters. To pursue carbon neutrality, ITRI has recently worked with leading steel producer China Steel Corporation (CSC) to verify some of its carbon capture and utilization technology innovations at the newly-launched pilot plant for steel and chemicals co-production in Kaohsiung, Taiwan.

ITRI and CSC are collaborating on the field verification of carbon capture and utilization technology at the steel and chemicals co-production pilot plant.

ITRI and CSC are collaborating on the field verification of carbon capture and utilization technology at the steel and chemicals co-production pilot plant.

The collaboration will verify:

  1. the carbon dioxide capture and purification system, which will capture the CO and CO2 generated in CSC’s manufacturing process, and then separate and purify the gas;
  2. a catalytic conversion system to transform the captured CO and CO2 into green chemical materials such methanol and methane; and
  3. an electrolysis hydrogen production system, in conjunction with the catalytic conversion system, to alleviate the need and cost for downstream chemical plants to import raw materials.

With these technologies, the steel and chemicals co-production plant will convert gas by-products from the manufacturing process into low-carbon chemicals, which is estimated to reduce 4,900 tons of carbon output a year. CSC plans to cooperate with chemical industry partners in forming a steel and chemicals alliance, and will launch a demonstration factory to prove the viability of this business model. Following verification, they will participate in the establishment of a carbon circular economy industrial park. Some 2.9 million tons of carbon emissions will be reduced annually, which may generate great value in the green industrial chain.

“The net zero transition will have a major impact on economic development over the next 30 years.”
ITRI President Edwin Liu

“Kaohsiung is home to the steel and chemical industry, which offers great geographic advantages for the development of steel and chemicals co-production along with the integration of carbon resources,” said ITRI President Edwin Liu. “ITRI’s cooperation with CSC on this venture will see the joint development of carbon recycling technology to realize low-carbon production. We will further work together on establishing a new cross-industry cooperation model, expanding the scope of regional energy resource integration and creating new output value.” Dr. Liu also pointed out that it would take time and engage multiple fields and industries to reach the 2050 net zero goals, and that the transition would have a major impact on economic development over the next 30 years.

CSC Chairman Chao-Tung Wong commented that co-production of steel and chemicals is one of the highlighted paths his company will take in moving towards carbon neutrality by 2050. CSC, he said, is particularly appreciative of the government’s support of the steel and chemicals co-production initiative, as well as advanced technologies provided by ITRI. CSC will further cooperate with more partners in the petrochemical industry to accelerate the net zero transition and establish a new industrial ecosystem for carbon utilization.

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