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First-Ever Cross-Sector Modeling: ITOM Framework for Steel, Petrochemicals, and Cement
The steel, petrochemical, and cement industries are among the world’s largest industrial CO₂ emitters. Decarbonizing these sectors is one of the central challenges of the energy transition and cannot be viewed in isolation. This is because the three sectors compete for the same scarce resources: biomass, waste streams, and geological CO₂ storage capacities.
This is precisely where the new study by Agora Industry comes in, in which the Sustainable Technology Design department at the University of Kassel played a key role. In collaboration with the Wuppertal Institute, the ITOMmodel framework was applied in parallel to all three sectors for the first time—thereby systematically examining how interactions between the industries influence the pathways to transformation.
The modeling work for the steel and petrochemical industries yields concrete technological insights:
- Direct reduction plants (DRI) are a central component of the steel transition—but only if accompanied by ambitious climate policy to avoid long-term dependence on natural gas.
- Electric arc furnaces (EAF) will increasingly shape European steel production and require new approaches to production planning and supply chain management.
- The electrification of heat supply in the petrochemical industry offers significant strategic advantages despite greater regional energy market integration.
- A post-petrochemical industry requires not only a shift away from fossil raw materials but also a significant increase in carbon efficiency—for example, through chemical recycling and carbon looping.
- Based on conservative assumptions regarding CO₂ storage capacity, significant conflicts of use arise between sectors; from a cost perspective, the cement industry should be granted priority access to CCS.
The full study is available on the Agora Industry website: https://www.agora-industry.org/publications/a-strategic-path-for-eu-industry
SusTec Team: