Comparison of iron and steel production energy use and energy intensity in China and the U.S.

The goal of this study was to develop a methodology for making an accurate comparison of the energy intensity of steel production in China and the U.S. Such values are often sought by policy-makers when making decisions related to energy, greenhouse gases, and competitiveness. The methodology addresses issues related to boundary definitions, conversion factors, and technology structure. In addition to the base case analysis, four sensitivity and two factor analyses were developed to assess the effect of different factors on energy intensities. The results of the analysis show that for the whole iron and steel production process, the final energy intensity in 2006 was equal to 14.90 GJ/t crude steel in the U.S. and 23.11 GJ/t crude steel in China in the base-case analysis. In another factor analysis that assumed the Chinese share of electric arc furnace production in 2006 (10.5%) in the U.S., the energy intensity of steel production in the U.S. increased by 54% to 22.96 GJ/t crude steel. This result highlights the fact that when comparing the energy intensity of the U.S and Chinese steel industry, the technology structure, especially the share of electric arc furnace should be taken into account. A number of policy implications are also discussed.