Optimal Scheduling of Electrolytic Hydrogen-Based Steelmaking Facility Participating in Capacity Auction Market

The adoption of electrolytic hydrogen-based steelmaking technology has recently garnered increasing attention as a promising solution for reducing carbon emissions within the framework of industrial decarbonization. Nonetheless, the high costs associated with hydrogen production via electrolysis stand as a key challenge to the widespread deployment of this technology, necessitating strategies to improve its economic feasibility. To that end, this paper introduces an optimal scheduling model for a hydrogen-based steelmaking facility equipped with an on-site electrolysis-based hydrogen production and storage system. The model mainly aims to: 1) exploit lower electricity prices to minimize the overall operating costs of the entire system, 2) contribute to the capacity auction market as a demand response resource for the joint benefit of the steel sector and electricity grid operator, and 3) ensure the safe operation of the hydrogen production system via keeping the hydrogen content in oxygen within safety permissible limits. As such, the economic feasibility of the hydrogen-based steelmaking technology would be further improved due to energy cost savings and extra financial settlements from capacity auction participation. The efficacy of the proposed model is validated using numerical case studies, demonstrating its potential to support the transition to low-carbon steel production.