Sustainable Steel Production: A Comprehensive LCA Approach for Reducing Environmental Costs and Impacts

The life cycle assessment (LCA) is a powerful tool for evaluating environmental impacts and costs. In this study, LCA was applied to steel production, specifically focusing on the electric arc furnace (EAF) and the Midrex direct reduction of iron ore. The functional unit considered is one tonne of molten steel extracted from the EAF. EAF inputs mainly consist of sponge iron with a 90:10 proportion of sponge iron to scrap. The study employs the ReCiPe (H) 2016 V1.1 method for LCA, and environmental cost calculations utilize the Environmental Prices method. The total environmental costs, normalized midpoint impacts, and normalized endpoint impacts amount to 462.72 euros, 8.11 pt and, 0.13 pt, respectively. The analysis of steel production identifies three principal stages: Sponge Iron Consumption, Electricity Consumption, Other Inputs and Outputs Associated with Steel Production. Notably, electricity consumption and sponge iron usage account for approximately 70% and 75% of the impacts on midpoints and endpoints, respectively, as well as 75% of the total environmental costs. Making specific choices—such as using solar power instead of traditional gas-based electricity and scrap instead of sponge iron—can effectively enhance the sustainability of the steel-making process. The scenario VI, when compared to other scenarios, results in the following reductions: Midpoint Impacts: 5.03 pt, Endpoint Impacts: 0.04 pt, Environmental Costs: 167.69 euros. Regarding the ReCiPe method, it was assessed from various perspectives. The egalitarian perspective consistently demonstrated the highest value at the endpoint level, followed by the hierarchist and individualist viewpoints.