Techno-Economic Analysis of Steel Recycling

Making use of steel scrap in steel production decreases the emission of greenhouse gases as well as the depletion of natural resources. Compared to hydrogen-based reduction of iron ores, scrap use requires less electrical energy. Consequently, ambitious climate policies will lead to an increased demand for steel scrap on a global scale. Scrap availability, however, is limited by technological and economic factors.

The project TEASR (Techno-Economic Analysis of Steel Recycling) investigates the future of scrap use and scrap availability in Europe. In order to achieve this aim, techno-economic methods are employed which consider technological limitations and innovations as well as economic scrap market mechanisms.

The potential scrap availability in Europe depends primarily on the steel production of the past. This potential is quantified based on material flow analyses in the scientific literature which consider historical steel production and trade data on the one hand and scenarios regarding future steel market developments on the other.

The extent to which this potential scrap reserve can be utilized hinges on technological and economic conditions. TEASR develops a European Scrap Market Model (ESMM) which describes the interconnection of steel scrap supply, scrap demand, scrap trade, and scrap pricing. The model is able to quantify the influence of factors such as fluctuating steel scrap demand in Asia or political intervention on the European scrap market. The ESMM will be implemented as an interactive app with a graphical user interface.

Publication

"European post-consumer steel scrap in 2050: A review of estimates and modeling assumptions", published in Jenaer Beiträge zur Wirtschaftsforschung. (pdf file)