Carbon Capture for Steel? 2

Carbon Capture for Steel? 6 Poor results at the only commercial-scale CCUS plant for steel The Al Reyadah CCUS facility is the first and only commercial-scale plant in the steel sector. [...] Carbon Capture for Steel? 9 Introduction In Dubai on 13 December 2023, almost 200 nations agreed on a need to increase climate action before the end of the decade, marking the key outcome of the 28th Conference of the Parties (COP28) climate conference.1 For the first time at a COP, parties agreed to transition away from fossil fuels.2 As part of the same global stocktake, parties also agreed to a. [...] Al Reyadah: How is the world’s only commercial-scale CCUS facility for steel performing? The Al Reyadah facility in the United Arab Emirates (UAE) is the first and only commercial-scale CCUS plant in the steel sector and has a nominal capacity to capture 0.8Mt of CO2 annually. [...] Nonetheless, in its investor presentation of November 2023, the company asserted that the CCS facility enabled them to capture approximately 45% of the CO2 emissions from direct reduction plants (Figure 4).41 In contrast, the investor presentation in May of the same year indicated a capture rate of only 30% was achieved in 2022.42 However, the direct reduction shaft furnaces are not the only point. [...] BNEF calculates a cost of carbon capture for steel of USD92-USD122 per tonne of CO2 for a US plant in real 2021 US dollars, including the cost of transportation and storage.63 Due to the high cost of CCUS, potential developers of the technology often state that a significant carbon price is needed to stimulate its implementation.64 Meaningful carbon prices are few and far between, with the EU’s ca.