Changing the "unit" of demand of useful energy and add new techs and all the inputs in Iron and Steel (INDUSTRY)

[sonja-sechi]

30/07/2026 Update and Pending Issues

• Useful Demand in IS is expected to be tons of steel. The elasticity of useful demand w.r.t. average fuel price of the sector should be examined
• Equipment/Capacity of each technology (region) - we need an initial value of the installed capacity of each technology for the base year (this should "close" with final energy consumption of the sector - also considering non-energy uses of the sector) - Sonja
• Technoeconomic parameters of each technology (region) - Capital cost, variable cost, lifetime, specific energy intensity per ton of steel for each technology (as defined in the equations) - Sonja
• We have introduced capacity factor (this is the technical capacity of the plant to operate) and we also have utilization factor. We need to consider the role of these two parameters. Do we want utilization rate to change or set it to 1?
• Cost has been split into capital cost, variable cost, and carbon cost - pending the fuel price in the prices update from Michalis (temporarily the VmPriceFuelSubsecCarVal is used, but will be adapted)
• As specific energy intensity is used, the efficiency for IS should be set to 1
• Share Blend for each technology (already defined and adds to 1) - this is multiplied with the specific energy intensity
• Share of feedstock of each energy form in the share blend - currently we have set the share of feedstocks to 0 Sonja
• Emission factor for feedstocks - Sonja
• Remove non-energy uses (feedstocks) from VmConsFuel and add process emissions --> to add to new variables Maro & Margarita
• Currently the share of each new technology is based on an annualized cost --> to convert to LCOX (steel in this case) - this will be done in parallel to the existing choice mechanism Maro
• Consider adding build year in the equipment and have premature scrapping as a percentage for old plants??? - TBD

21/07/2026 Update

• introduction of i02ShareFeed(allCy,DSBS,ITECH,EF,YTIME) and imCo2EmiFacFeed(allCy,DSBS,EF,YTIME)
• how to introduce levelised cost so we can include information about carbon policies (actual carbon price, scenarios)
• dummy data for specific energy intensity and capacity factor - Margarita

ΟΜΝΙΑ: https://ricardogroup.sharepoint.com/:w:/s/GlobalIntegratedAssessmentModels/IQBUqDJG0hJWRJtarMNuVOEGAWRhZtjxYmfLpBzbfuKcFKQ?e=0K6lbM

14/07/2026 Update
Margarita/Maro - work on the equations of the branch

• Align efficiency/energy intensity (currently two variables)

• Add technologies to CCSTECH

• Differentiate between feedstocks (process emissions) and fuels

• Sonja - work on the calculations of the historical years

OPEN-PROM branch: Industry_tons
mrprom branch:

18/06/2026 Update
We want to include the information of iProdHistIS.csv (Milliion tons of steel). Include this equation for all the historical years:
iProdHistIS(allcy,"IS",ITECH,YTIME) = V02EquipCapTechSubsec(allCy,"IS",ITECH,YTIME) * i02CapFactor(allCy,"IS",ITECH,YTIME)

V02EquipCapTechSubsec for IS is basically VmConsFuel so how to compare the capacity with the data?

For example, IProdHistIS for China in 2010 is around 1000 Million tons and V02DemSubUsefulSubsec is 119.11 Mtoe. Do we have the data for the specific energy so fuels can be translated to tons of steel?

17/06/2026 Update

Activity Graphs for key countries

26/05/2026 Meeting

• Mrprom technoeconomics and specific energy intesity - Sonja/Margarita+Fotis if needed
• Technologies update - Sonja
• Include production for the calibration year 2023/2024 and projections - Sonja
• Refine equations to match the units - Margarita
• Refine parameters: efficiency, capacity factor, energy intensity - Margarita/Sonja
  i02SpecificEnergyIntensity(DSBS,ITECH) "Specific energy intensity of each technology in each subsector (Mtoe/Million tons) - used only for IS"
  i02CapFactor(allCy,DSBS,ITECH,YTIME) "Capacity factor of each technology in each subsector (1) - used only for IS"

22/05/2026 Sonja: I arrange a meeting with Margarita and Maro on 26/05. needed to check what should be changed in the model to have the activity in a different unit for iron and steel (then for other sectors, but for now let's introduce only for IIS)
Moreover we can start read the new technoeconomics data for new tech in mrprom

Old:

• energy intensity for each sector to be defined (toe/ton of product) - Sonja: for now just for IRON and STEEL
• change capital/operating costs $/ton? Sonja: YES and also the Specific Energy Intensity for each Tech

Variable	Units	New units
V02DemSubUsefulSubsec(allCy,DSBS,YTIME)	Mtoe	Million tons	"Demand for useful substitutable energy demand in each subsector"
V02RemEquipCapTechSubsec(allCy,DSBS,ITECH,YTIME)	Mtoe	Million tons	"Remaining Equipment Capacity per Technology in each subsector (substitutable)"
V02DemUsefulSubsecRemTech(allCy,DSBS,YTIME)	Mtoe	Million tons	"Useful energy demand (substitutable) covered by remaining equipment
V02GapUsefulDemSubsec(allCy,DSBS,YTIME)	Mtoe	Million tons	"gap in useful energy demand per subsector (Mtoe)"
V02CapCostTech(allCy,DSBS,ITECH,YTIME)	k$/toe	k$/tons	"capital cost of each technology per subsector (final)"
V02VarCostTech(allCy,DSBS,ITECH,YTIME)	k$/toe	k$/tons	"variable cost of each technology per subsector (final)"
V02CostTech(allCy,DSBS,ITECH,YTIME)	k$/toe	k$/tons	"total cost of each technology per subsector (useful)"
V02ShareTechNewEquipUseful(allCy,DSBS,ITECH,YTIME)	%		"share of each technology in gap of useful energy"
V02EquipCapTechSubsec(allCy,DSBS,ITECH,YTIME)	%		"equipment capacity of each technology in each subsector"
V02UsefulElecNonSubIndTert(allCy,DSBS,YTIME)	Mtoe		"non-substitutable useful electricity"
V02FinalElecNonSubIndTert(allCy,DSBS,YTIME)	Mtoe		"final energy of non-substitutable electricity"
V02IndxElecIndPrices(allCy,TCHP,YTIME)	k$/toe		"Electricity index - a function of industry price - Estimate"
V02IndAvrEffFinalUseful(allCy,DSBS,YTIME)	%		"Average Efficiency"
V02PremScrpIndu(allCy,DSBS,ITECH,YTIME)	%		"premature scrapping"
V02RatioRem(allCy,DSBS,ITECH,YTIME)	%
*'                Interdependent Variables
VmConsFuel(allCy,DSBS,EF,YTIME)	Mtoe		"fuel consumption of fuels in each subsector"
VmConsFuelShare(allCy,DSBS,EF,YTIME)	%
VmConsFuelSum(allCy,DSBS,YTIME)	Mtoe