Discussion on energy conservation strategies for steel industry: Based on a Chinese firm

This study proposed three optimization strategies for metallurgical plants and compared their effects on energy conservation and cost saving in China's metallurgical industry. These strategies include 1) the complete outsourcing of the coking process, 2) the decrease of the iron/steel ratio and 3) substitution of BF/BOF (Blast Furnace/Basic Oxygen Furnace) with DR/EAF (Direct Reduction/Electric Arc Furnace). The simulation was accomplished by constructing a system dynamics model that included cost, energy consumption and production sub-systems. The result indicated that DR/EAF is the fundamental solution for energy conservation and cost control, but the huge demand by this process for scrap will limit its development into the near future. Therefore, at present, establishment of large-scaled independent coking plants and control of the iron/steel ratio by technical means are more suitable. In addition, policy advice was given.