Jianlong Group and several scientific research institutions, including the University of Science and Technology Beijing, codesigned the first generation of the hydrogen-based iron ore smelting and reduction production line, on the basis of some new technologies from home and abroad. All the key equipment and components are made in China.
The company also plans to start R&D on the second generation of the technology within the year, as well as to open a second hydrogen-based smelting reduction iron-making plant then.
Apart from Jianlong Group, some other enterprises are incorporating hydrogen into their corporate development strategies to reduce their carbon footprint.
State-owned China Baowu Steel Group, a top Chinese steelmaker, bought 60 heavy-duty hydrogen-powered trucks as part of a trial to test hydrogen as a fuel in logistics at the end of 2020. It hopes to reduce carbon emissions from the steel production and transportation chain.
It also plans to build about 100 hydrogen refueling stations within the next 10 years.
HBIS Group Co Ltd, another Chinese steel giant, based in Shijiazhuang, Hebei province, said it expects to have hydrogen metallurgy capacity of 3.6 million tons by the end of the 14th Five-Year Plan period (2021-25), and plans to use wind, solar and other renewable energies to electrolyze water to produce hydrogen.
The company has built the world's first pilot project for direct reduction of iron ore by hydrogen-rich gases in Zhangjiakou, Hebei province, which also adopts new technologies for distributed green energy application, low-cost hydrogen production and carbon dioxide removal.
Wang said steel enterprises, which take a lead in moves such as technological innovation and capital investment to reduce carbon emissions, will be well-positioned to upgrade their steelmaking and corporate operations, to meet the expected industrial and national compulsory requirements on carbon emissions under the carbon goals.
That means, those visionary enterprises will have a better position in market competition, which will likely help the most progressive companies to pursue excellence, and thus improve the performance of the whole industry, she said.
Huang Dao, deputy secretary-general of the CISA, also said it is good for the whole industry to optimize layout and upgrade. China's steel enterprises have taken certain initiatives to reduce carbon emissions, which can become a driving force for the whole industry.
This can advance technologies and enable businesses to survive based on orderly market competition, he said.
However, he also expressed concern over unfair competition, and said it is necessary to study policies to promote the healthy development of the industry while speeding up carbon emissions reduction.
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