Techno-Economic Analysis of Induction and Hydrogen Reheating of Steel Billet

This article assessed the techno-economic considerations associated with the utilization of hydrogen and a novel induction heating approach as alternatives to natural gas in steel reheat furnaces. Conventional steel reheat furnaces rely on natural gas for thermal energy. However, environmental sustainability concerns have stimulated research into alternative heating technologies. Among these, induction heating augmented by a static field emerged as a promising candidate. The economic feasibility of this method is contingent upon factors such as electricity costs, initial capital expenditure, and operational flexibility. Although induction heating necessitates higher initial investments, potential long-term benefits, including improved efficiency and reduced emissions, may establish it as a competitive option. Consequently, a comprehensive techno-economic assessment was conducted to evaluate the viability of integrating alternating-current (AC)/direct-current (DC) inductive heating within a standard reheat furnace designed for structural steel production. A comparative analysis was conducted between induction heating as an alternative to hydrogen and the preferred fuel source, which is natural gas. The analysis indicated that the levelized cost of heat (LCOH) for hydrogen combustion was approximately $76 per tonne, which was more than double the $31 per tonne LCOH for natural gas. In contrast, induction heating exhibited an intermediate cost of $41 per tonne and reached economic break-even with natural gas earlier than hydrogen’s break-even threshold at prices of approximately $1.75/kg. Financial metrics are given in USD ($) (Conversion: 1 AUD = 0.65 USD).