Environmental and Economic Impact Study of a Complete Fuel Switch from Heavy Oil to Natural Gas at Libyan Iron and Steel Company Plants

Abstract

This paper investigates the utilization of natural gas and heavy fuel oil in the combustion processes of furnaces and boilers across various production facilities and power generation units at the Libyan Iron and Steel Company. The study aims to quantify fuel consumption, assess current utilization patterns, and evaluate comparative efficiency regarding operational costs and environmental emissions. Furthermore, it explores the company's strategic efforts and technical capabilities to transition fully to natural gas, highlighting its benefits in optimizing operation and maintenance, maximizing production rates, and minimizing both pollutant emissions and expenditures. Additionally, the paper addresses local supply-chain constraints and proposes actionable recommendations to facilitate this energy transition. To achieve these objectives, a descriptive-analytical methodology was employed, involving systematic data collection, quantitative calculations, and comparative evaluations. Concurrently, a pilot case study was implemented on the full conversion to natural gas within the lime and dolomite plant to examine its direct impact on cost and productivity. The findings estimate the company's total annual natural gas requirement at 1.832 billion cubic meters, which would yield an estimated financial saving in annual fuel expenditure of approximately 23 million Libyan Dinars. Moreover, the transition demonstrates a significant reduction in pollutant emissions, enhanced combustion stability, and a mitigation of carbon deposits within boilers and furnaces—thereby minimizing operational downtime, lowering maintenance costs, and increasing production rates.