Multi-Energy MILP Model for Iron Production with Electrolysis Storage Dynamics & Flexibility Services

Sammanfattning

This thesis presents a comprehensive MILP (Mixed-Integer Linear Programming) model for a hydrogen-based direct reduced iron (DRI) production system. The model integrates electrolyzers (PEM and alkaline), hydrogen storage, and energy sourcing (nuclear, PPA, and spot market electricity) into a unified framework to evaluate both technical and economic performance. Scenarios include a baseline (no storage), hydrogen storage integration, and various sensitivity analyses to capture market volatility and system behavior. The results highlight the critical role of flexible operation, optimal sizing of compressors and storage, and strategic energy procurement. Although green hydrogen DRI is technically feasible and environmentally promising, the study reveals significant economic trade-offs. Profitability is highly sensitive to electricity prices, hydrogen production efficiency, and system flexibility, especially under real-time market conditions. The thesis proposes techno-economic optimization strategies to support the transition to carbon-neutral steelmaking.