Hydrogen Solutions for Decarbonizing Steel and Cement Industries (Dr. Hao Ngo from NEUMAN & ESSER Presentation)

Hydrogen Solutions for Decarbonizing Steel and Cement Industries (Based on presentation by Dr. Hao Ngo from NEUMAN & ESSER)

Prepared For: Stakeholders in Steel, Cement, Construction, and Clean Energy at VAHC Clean Hydrogen Seminar on June 27 2025 in HCMC, Vietnam
Presented By: Dr. Hao Ngo (NEUMAN & ESSER)
Date: June 27, 2025

Executive Summary

NEUMAN & ESSER (NEA), leveraging its 190+ years of engineering expertise and decades in hydrogen compression, proposes hydrogen as a critical solution for decarbonizing the highly emission-intensive steel and cement industries. These sectors contribute ~15% of global CO₂ emissions, primarily from inherent chemical processes and fossil fuel reliance. Hydrogen offers a pathway to eliminate process emissions in steelmaking and significantly reduce combustion emissions in cement production. Successful implementation requires addressing stringent requirements for hydrogen purity, pressure, supply security, and infrastructure integration. Decarbonizing steel and cement could reduce the construction industry's carbon footprint by approximately 50%, representing a major step towards global climate neutrality.

1. Introduction to NEUMAN & ESSER (NEA)

• Heritage: Founded 1830 in Aachen, Germany; led by the Peters family since 1891.

• Core Competency: World-leading expertise in gas compression (including decades in hydrogen).

• Global Reach: €400 million group; 30 operating companies across 10 strategic countries; ~1,600 employees.

• Diversified Applications: Active across energy (Oil & Gas, Power-to-X), chemicals, renewables, mobility, and industrial gases.

• H₂ Focus: Offers integrated hydrogen solutions, including the NEA|HYTRON PEM Electrolyzer.

2. Climate Imperative & Industrial Challenge

• EU Targets: 55% GHG reduction by 2030 (vs. 1990); Climate neutrality by 2050.

• Steel & Cement Relevance: Collectively responsible for ~15% of global CO₂ emissions.

• Decarbonization Challenges:

  • Process-Inherent Emissions:

    • Steel: CO₂ from coke-based reduction of iron ore (Fe₂O₃ + 3C → 2Fe + 3CO₂).

    • Cement: CO₂ released during limestone calcination (CaCO₃ → CaO + CO₂).

  • Long Asset Lifespan: Plants operate for 20-40 years, hindering rapid tech replacement.

  • Lack of Viable Alternatives: Economical, scalable low-carbon alternatives are limited.

3. Hydrogen as the Decarbonization Solution

3.1. In the Steel Industry:

• Mechanism: Hydrogen replaces coke as the reducing agent (Fe₂O₃ + 3H₂ → 2Fe + 3H₂O), eliminating process CO₂.

• Pathway: Compatible with Direct Reduced Iron (DRI) plants coupled with Electric Arc Furnaces (EAF). Retrofitting existing plants is possible.

• Key Projects: SALCOS® (Salzgitter), tkH₂Steel® (Thyssenkrupp, Duisburg).

• Advantages over Alternatives: Offers true decarbonization of the core reduction process, unlike Carbon Capture and Storage (CCS) which manages emissions, or biomass which faces scalability/sustainability issues.

3.2. In the Cement Industry:

• Mechanism: Replaces fossil fuels (coal, pet coke) used to heat the rotary kiln (~1450°C), reducing combustion CO₂. Can operate in hybrid mode with alternative fuels.

• Advantages:

  • Directly tackles a major emission source (~40% of cement CO₂).

  • Enables decentralized on-site production (e.g., via PEM electrolysis).

• Advantages over Alternatives: More direct and potentially scalable than CCS for combustion emissions; avoids sustainability concerns of some biomass; complements material efficiency gains.

4. Critical Requirements for Hydrogen Implementation

4.1. Steel Industry Requirements:

• Quantity: High demand (~50-60 kg H₂ per ton of steel). Example: 2.5 Mtpa plant requires ~400 tons H₂/day.

• Purity: > 99.9% essential. Impurities (CO, CO₂, S-compounds) risk:

  • Impaired steel metallurgical quality.

  • Corrosion/embrittlement.

  • Disrupted high-temperature reactions.

• Pressure: Typical range 30-100 bar. Needed for reactor feed control, reaction optimization, and volume reduction for storage/transport.

• Supply Security: Continuous, uninterrupted supply mandatory to prevent production downtime or quality issues.

• Infrastructure Integration: Requires conversion from blast furnaces to DRI/EAF systems – significant long-term investment and planning.

4.2. Cement Industry Requirements:

• Energy Content & Flame Behavior: Must provide sufficient heat and stable flame characteristics for the kiln.

• Supply Security & Continuity: Consistent supply needed for continuous kiln operation.

• Pressure & Volume: Adequate pressure/volume to integrate with burner systems and fuel handling.

• Purity: Sufficient purity to avoid damaging kiln linings or affecting clinker quality.

• Infrastructure Integration: Adaptation of existing kiln burners and fuel systems.

• Cost-Effectiveness: Critical for adoption given cost pressures in the industry.

5. NEUMAN & ESSER's Proposed Solution: NEA|HYTRON

• Core Offering: NEA|HYTRON PEM Electrolyzer positioned as a turn-key solution.

• Key Strength: Delivers the high-purity (>99.9%) hydrogen essential for steelmaking applications.

• Synergy: Leverages NEA's core historical competency in gas compression to handle the hydrogen post-production (compression for storage, transport, and use at required pressures).

• Value Proposition: Provides an integrated solution (electrolysis + compression) tailored to meet the stringent requirements identified for industrial decarbonization.

6. Impact on the Construction Industry

• Current Emissions: Construction accounts for ~34% of global CO₂ emissions.

• Material Dominance: Cement (~8%) and Steel (~9%) are the largest individual contributors within construction.

• Decarbonization Potential: Fully decarbonizing cement and steel could reduce the construction sector's carbon footprint by ~50%.

• Remaining Challenges: Even after material decarbonization, the sector must address:

  • Emissions from transportation, machinery, and energy use on sites.

  • Emissions from other materials (e.g., glass, plastics).

  • Operational emissions of buildings (heating, cooling, electricity).

• Opportunity: Represents a massive climate action lever through material innovation and circular economy strategies in construction.

7. Conclusion

Hydrogen is not just an alternative but a necessary solution for deep decarbonization of the steel and cement industries, addressing their inherent process emissions. NEUMAN & ESSER, with its proven expertise in hydrogen handling and compression, positions its NEA|HYTRON PEM electrolyzer as a key enabler. Success hinges on meeting stringent technical requirements (purity, pressure, supply) and overcoming infrastructure transition challenges. The potential reward is immense: cutting the construction industry's emissions footprint in half and making a substantial contribution to achieving global climate neutrality goals by 2050. Collaboration across industry, technology providers, and policymakers is essential to accelerate this transition.

Key Open Questions / Areas for Further Discussion:

1. Cost Competitiveness: Detailed economic analysis of green hydrogen production (via PEM electrolysis) vs. current processes and alternative decarbonization routes (CCS, biomass).

2. Renewable Energy Scale-Up: Securing sufficient, cost-effective renewable electricity to power large-scale electrolysis for industry.

3. Hydrogen Infrastructure: Development of large-scale H₂ storage (e.g., salt caverns) and transport networks (pipelines, shipping) to industrial hubs.

4. Regulatory Frameworks: Policy mechanisms (carbon pricing, subsidies, mandates) needed to incentivize the significant capital investment required.

5. Cement Specifics: Optimal hydrogen co-firing ratios, long-term impact on clinker quality/kiln refractory, and total system efficiency.

Please write to contact@vahc.com.vn to have the full presentation