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White paper 06 · Annex A

Method, assumptions and ranges

This annex sets out how every derived figure in the paper was calculated, so that a reader can reproduce it. The calculations are implemented in a short script that reads the Cameroon Steel reference configuration RC-1 (planning estimate, edition of 10 October 2026) and writes one data file per exhibit; the data files are published with the web edition and printed in Annex D.

Reading
10 min
Length
2,289 words
Edition of
10 October 2026
In this chapter (9)
  1. A.1 Evidence status
  2. A.2 The footprint model
  3. A.3 Sensitivity analysis
  4. A.4 The 2025 grid cross-check
  5. A.5 Carbon border arithmetic
  6. A.6 Hydrogen and green-iron arithmetic
  7. A.7 Pathway arithmetic
  8. A.8 Other derivations
  9. A.9 Limitations

A.1 Evidence status

Each figure in the paper carries one of four statuses:

  • Sourced: taken directly from a cited document or dataset (Annex C).
  • Derived: calculated from sourced or assumed inputs by the method in this annex.
  • Assumed: a planning value chosen within a stated range, where no project-specific or published value is available.
  • Illustrative: arithmetic that shows a mechanism or an order of magnitude; not a forecast or a commitment.

RC-1 project values (capacities, units, layout reservations, indicative schedule) are planning values from the RC-1 reference configuration [S90] and are labelled planned or indicative.

A.2 The footprint model

For each phase, with finished output P (t/yr):

  • Liquid steel L = P / yr, where yr is the cast-and-roll yield (0.94).
  • Metallic charge M = L / ym, where ym is the metallic yield (0.88).
  • Purchased DRI/HBI D = M × s, where s is the DRI share of the charge (0.30); scrap = M − D.
  • Electricity E (kWh) = L × (eEAF + eaux) + P × eroll + P × eind (induction heating in Phase 1 only).
  • Gas G (GJ) = P × grh for Phases 2 and 3 (gas reheating); zero in Phase 1.
  • Scope 1 = L × fEAF + G × 0.0561 t CO2/GJ.
  • Scope 2 = E × grid factor.
  • Upstream iron units = D × fDRI.
  • Intensities divide by P (per tonne of product) or by L (per tonne of crude steel).
  • CBAM basis = (Scope 1 + upstream iron units) per tonne, excluding electricity, consistent with Annex II of the CBAM Regulation for iron and steel [S27].

The full build-out combines Phase 1 (300,000 t with induction heating) with 700,000 t of gas-reheated output. The model reproduces the balances in the RC-1 reference configuration to the tonne.

Table A.1 Parameters, central values and ranges

Parameter Symbol Central value Range tested Status Basis
Electric-arc furnace electricity eEAF 450 kWh/t liquid (planning value); about 490 with 30% DRI/HBI (upper planning value) 347 to 500 sourced IFC EHS Guidelines, 1,250 to 1,800 MJ/t [S20]; DRI penalty [S15]
Auxiliaries (ladle furnace, caster, oxygen, water, air) eaux 70 kWh/t liquid 50 to 100 assumed RC-1 reference configuration [S90]
Rolling electricity eroll 110 kWh/t product 70 to 140 sourced IFC EHS Guidelines [S20]
Induction billet heating (Phase 1) eind 300 kWh/t 150 to 400 assumed Partly hot-charged; RC-1 reference configuration [S90]
Gas reheating (Phases 2 and 3) grh 1.3 GJ/t product 1.1 to 1.6 assumed Walking-beam furnace; RC-1 reference configuration [S90]
Natural gas emission factor 0.0561 t CO2/GJ none sourced IPCC 2006 default [S57]
Furnace direct factor fEAF 0.10 t CO2/t liquid 0.06 to 0.15 assumed Electrodes, charge carbon, flux carbonates
Grid emission factor 226 g CO2e/kWh 200 to 300 (also 0 to 800 in Chapter 3) sourced (2024) Ember via Our World in Data [S48]
DRI share of charge s 30% 20% to 50% assumed RC-1 reference configuration [S90]
Upstream DRI/HBI intensity fDRI 0.70 t CO2/t DRI 0.5 to 0.9 (0.1 to 1.0 in Figure 4.5) assumed Gas-based shaft furnace
Metallic yield ym 0.88 0.85 to 0.91 assumed Scrap and DRI mix
Cast-and-roll yield yr 0.94 0.92 to 0.96 assumed Caster and mill
EAF electricity penalty for DRI +14.5 kWh/t per +10 points of DRI applied in sensitivity cases sourced EC Innovation Centre for Industrial Transformation [S15]
Operating hours for average load 8,000 h/yr none assumed Continuous operation with maintenance stops
Minor fuels (diesel, LPG), outside the RC-1 balances 0.015 t CO2/t liquid 0.01 to 0.02 assumed Mobile plant, ladle and tundish preheating, standby generators
SF6 leakage from switchgear, outside the RC-1 balances 0.5% a year of a 1.25 t inventory 0.5 to 2 t inventory assumed Global warming potential 23,500 [S105]

Source: Cameroon Steel reference configuration RC-1 (planning estimate) [S90] and sources as listed.

A.3 Sensitivity analysis

The tornado (Figure 4.4) changes one parameter at a time across its range, holding the others at central values, and reports the change in the Phase 1 intensity including upstream iron units and in Scopes 1 and 2. The DRI-share case adds the furnace electricity penalty for DRI relative to the 30% base. The joint-extreme case in Table 4.5 sets the DRI share, upstream intensity and grid factor simultaneously to their low (20%, 0.5 t/t, 200 g/kWh) and high (50%, 0.9 t/t, 300 g/kWh) values. The heat map (Figure 4.5) varies the DRI share from 10% to 60% and the upstream intensity from 0.1 to 1.0 t/t at a grid factor of 226 g/kWh.

A.4 The 2025 grid cross-check

No 2025 grid intensity was published on the Ember basis at the time of writing. The cross-check in Chapter 3 proceeds in three steps:

  1. Total 2024 emissions = 225.9 g/kWh × 7.26 TWh = about 1,640 kt CO2e [S48][S49].
  2. Subtracting renewable generation at IPCC life-cycle medians (hydro 24, solar 48, bioenergy 230 g/kWh [S58]) leaves about 1,504 kt for 1.95 TWh of gas and oil generation, an implied fossil rate of about 771 g/kWh.
  3. Applying that rate to ARSEL’s 2025 fossil generation (559.7 GWh of gas, 153.9 GWh of light fuel oil, 66.7 GWh of heavy fuel oil) gives about 602 kt. Divided by 2025 generation of 8,119.9 GWh [S50], this is about 74 g/kWh on a combustion basis; adding hydro and solar at their life-cycle values gives about 96 g/kWh.

The cross-check assumes the 2024 fossil fleet performance applies in 2025 and that the Ember and ARSEL datasets have comparable coverage; neither is certain. It is used only as an indication that the published 2024 value is conservative against the average; it says nothing about the marginal factor (Chapter 3).

A.5 Carbon border arithmetic

The illustrative CBAM charge per tonne in Chapter 5 is:

charge = max(0, E − B × Ft) × price

where E is the embedded emissions used (t CO2/t) on the CBAM basis for steel, that is direct emissions plus the direct emissions of precursors, without purchased electricity [S27]; B the route benchmark (1.370, 0.481 and 0.072 t/t for blast-furnace, DRI-EAF and scrap-EAF routes, as reported for hot-rolled coil [S31] and used here as a proxy for long products, whose values in Implementing Regulation (EU) 2025/2620 [S104] were not extracted); Ft the CBAM factor for year t (97.5% in 2026 falling to 0% in 2034 [S28]); and the price a constant €82.32/t CO2 (third quarter of 2026 [S26]). For RC-1, E is the CBAM basis defined above, taking the DRI’s full upstream factor as its embedded direct emissions (a conservative simplification), and the scrap-EAF benchmark applies because more than half of its crude steel derives from scrap [S93]. The all-scrap case is the RC-1 model with no DRI, so that E equals Scope 1. For the ore-based routes, E is a range: the lower end is the IEA’s direct-emission estimate (1.0 t for gas-based DRI-EAF, 1.2 t for BF-BOF [S05]), which omits purchased precursors; the upper end is the worldsteel 2024 route average (1.47 and 2.34 t [S01]), which also counts electricity and other upstream inputs. Each 10 points of DRI in the RC-1 charge add 1 / (0.94 × 0.88) × 0.10 × 0.70 = 0.085 t per tonne of product. The arithmetic ignores any carbon price paid at origin, transport and exchange-rate effects.

A.6 Hydrogen and green-iron arithmetic

Electricity for hydrogen-based reduction = DRI output × 54 kg H2 per tonne of DRI [S17] × 45 to 52 MWh per tonne of H2 [S05]. For RC-1’s full build-out need of about 362,700 t of DRI a year this gives about 0.88 to 1.02 TWh; for a 1 Mt/yr module, about 2.43 to 2.81 TWh. The electricity used by the direct-reduction plant itself is excluded. Gas for a 1 Mt/yr gas-based module = 9.2 to 10 GJ per tonne [S16][S15], compared with 2025 national gas production of 75.5 billion cubic feet [S83], converted at about 1.09 GJ per thousand cubic feet.

The hydrogen-based iron intensity of about 0.2 t CO2 per tonne of DRI used in Chapters 4, 6, 8 and 10 is derived from Energiron’s stated reductions relative to the blast-furnace route (53% with natural gas, 86% with hydrogen [S15]): the hydrogen route emits about 0.14 / 0.47 ≈ 30% of the gas route, and 30% of 0.7 t is about 0.2 t. The derivation is approximate because the stated reductions refer to the whole DRI-EAF route.

A.7 Pathway arithmetic

The pathway in Chapter 10 applies the following parameter changes cumulatively to the full build-out, recomputing the model at each step: furnace electricity 450 to 420 kWh/t, auxiliaries 70 to 60 kWh/t and rolling 110 to 95 kWh/t; furnace direct factor 0.10 to 0.08 t/t; gas reheating 1.3 to 1.15 GJ/t; grid factor 226 to 100 g/kWh; DRI share 30% to 25% (with the furnace electricity penalty); upstream DRI intensity 0.7 to 0.5 t/t; and finally 0.5 to 0.2 t/t for hydrogen-based iron units. All values except the last lie within the ranges of the RC-1 reference configuration or the 2025 grid cross-check.

A.8 Other derivations

  • Residues: slag 140 kg, dust 15 kg per tonne of liquid steel and mill scale 20 kg per tonne of product [S90]. The slag value sits within the IFC benchmark for solid residue, 110 to 180 kg per tonne of product, mostly slag [S20]; the dust value sits within a planning range of 10 to 20 kg (the European reference document reports 10 to 30 kg) [S19]. Zinc in dust at 20% to 30% Zn.
  • Standards thresholds at RC-1’s scrap share: IEA near-zero = 0.40 − 0.35 × scrap share [S06]; ResponsibleSteel Progress Level 1 interpolated linearly between 2.34 t at 20% scrap and 0.96 t at 80% scrap [S37].
  • Minor sources: liquid steel × 0.01 to 0.02 t CO2/t for diesel and LPG, plus an SF6 inventory of 0.5 to 2 t × 0.5% a year × 23,500 [S105]; about 3,250 to 6,620 t CO2e a year in Phase 1 (central 4,934 t).
  • Lender threshold crossing: the grid factor at which Phase 1 Scopes 1 and 2 reach 100,000 t = (100,000 − Scope 1) / Phase 1 electricity = about 236 g/kWh on the RC-1 model, or (100,000 − 31,915 − 4,934) / 288,957 MWh = about 219 g/kWh with the central minor sources.
  • Furnace electricity at the upper planning value: +40 kWh/t × 319,149 t of liquid steel = about 12,800 MWh a year in Phase 1, or about 2,900 t CO2 at 226 g/kWh, +0.010 t per tonne of product.
  • Billet basis: per tonne of cast steel, Scope 1 = 0.10 t; melt-shop Scope 2 = 520 kWh × 226 g/kWh = 0.118 t; upstream DRI = 0.30 / 0.88 × 0.70 = 0.239 t.
  • Rainfall uplift: station return values × 1.07 per additional degree of global warming [S59].
  • Currency: where US dollar equivalents are given, a planning rate of 600 FCFA per US dollar is used [S90]; the FCFA is pegged to the euro at 655.957.

Table A.2 Key derived values used in the text

Quantity Value Where used
RC-1 Phase 1 electricity per tonne of product about 963 kWh/t Chapters 3 and 4
Phase 1 Scopes 1+2 per t product at 226 g/kWh 0.324 t CO2 Throughout
Phase 1 total incl. upstream DRI per t product 0.578 t CO2 (0.543 per t crude steel) Throughout
Full build-out Scopes 1+2 / total per t product 0.328 / 0.582 t CO2 Chapters 4 and 10
Grid factor at which Phase 1 total equals the scrap-EAF average (0.69) about 343 g/kWh Chapter 3
Grid factor at which Phase 1 Scopes 1+2 reach 100,000 t (RC-1 model / with central minor sources) about 236 / 219 g/kWh Chapters 4 and 9
Phase 1 Scopes 1+2 with minor fuels and SF6 about 100,000 to 104,000 t a year Executive summary; Chapters 4 and 9
Phase 1 intensity with the furnace at 490 kWh/t (Scopes 1+2 / total) 0.334 / 0.588 t CO2 per t product Chapters 3 and 4
CBAM basis, all-scrap furnace (RC-1 model, no DRI) 0.106 t CO2 per t product Chapter 5
Fossil generation rate implied by 2024 grid data about 771 g/kWh Chapter 3
2025 grid cross-check (estimate) about 74 to 96 g/kWh Chapters 2 and 3
CBAM basis, Phase 1 / full build-out 0.360 / 0.411 t CO2 per t Chapter 5
Effect of 10 more points of scrap in the charge about −0.088 t per t product Chapters 4 and 8
Hydrogen electricity, RC-1 iron units / 1 Mt module 0.88 to 1.02 / 2.43 to 2.81 TWh per year Chapter 6

Source: WP06 model on the Cameroon Steel reference configuration RC-1 (planning estimate) [S90].

A.9 Limitations

The model is a steady-state balance at nameplate output. It does not represent ramp-up, part-load operation, product-mix effects on rolling energy, seasonal grid variation, the emissions of purchased inputs other than iron units, transport, or construction. Benchmarks are drawn from international guidelines and planning assumptions, not from supplier guarantees. All results should be read with the ranges shown and will be replaced by engineering and then measured data (Chapter 11).

Sources cited in this chapter

Bracketed markers refer to these sources; the full list is in the annex. Full list of sources

  1. S90Cameroon Steel reference configuration RC-1 (planning estimate): phases, planning values, balances and indicative schedule, edition 10 October 2026. Cameroon Steel, 10 Oct 2026.Cited by title and date
  2. S27Regulation (EU) 2023/956 establishing a carbon border adjustment mechanism, Annexes I and II. Official Journal of the EU, L 130, 16 May 2023.eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32023R0956
  3. S20Environmental, Health, and Safety Guidelines for Integrated Steel Mills. IFC / World Bank Group, 30 Apr 2007.ifc.org/content/dam/ifc/doc/2000/2007-integrated-steel-mills-ehs-guide…
  4. S15ENERGIRON technology: DRI-EAF production route using natural gas or H2. European Commission, Innovation Centre for Industrial Transformation, ref. 12 Feb 2026.innovation-centre-for-industrial-transformation.ec.europa.eu/innovativ…
  5. S572006 IPCC Guidelines for National Greenhouse Gas Inventories, Volume 2: Energy. IPCC, 2006.ipcc-nggip.iges.or.jp/public/2006gl/vol2.html
  6. S48Carbon intensity of electricity generation (Ember data). Our World in Data, dataset accessed 10 Oct 2026.ourworldindata.org/grapher/carbon-intensity-electricity
  7. S105Climate Change 2013: The Physical Science Basis, Chapter 8, Anthropogenic and natural radiative forcing (global warming potentials; SF6 = 23,500). IPCC Working Group I, 2013.ipcc.ch/report/ar5/wg1/
  8. S49Electricity production by source (Ember and Energy Institute data). Our World in Data, dataset accessed 10 Oct 2026.ourworldindata.org/grapher/electricity-prod-source-stacked
  9. S58Climate Change 2014: Mitigation, Annex III: Technology-specific cost and performance parameters. IPCC Working Group III, 2014.ipcc.ch/site/assets/uploads/2018/02/ipcc_wg3_ar5_annex-iii.pdf
  10. S50Rapport d’activités 2025 de l’ARSEL. ARSEL (electricity regulator, Cameroon), 7 Sep 2026.arsel-cm.org/wp-content/uploads/2026/09/Rapport-ARSEL-2025.pdf
  11. S31EU Commission finalizes CBAM benchmarks, default values ahead of January 2026 launch. EUROMETAL, Dec 2025.eurometal.net/eu-commission-finalizes-cbam-benchmarks-default-values-a…
  12. S104CBAM legislation and guidance: implementing acts, including Implementing Regulation (EU) 2025/2620 (benchmarks) and Implementing Regulation (EU) 2025/2621 (default values). European Commission, DG TAXUD.taxation-customs.ec.europa.eu/carbon-border-adjustment-mechanism/cbam-…
  13. S28Directive (EU) 2023/959 amending the EU Emissions Trading System Directive. Official Journal of the EU, L 130, 16 May 2023.eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32023L0959
  14. S26Price of CBAM certificates. European Commission, DG TAXUD, latest 5 Oct 2026.taxation-customs.ec.europa.eu/carbon-border-adjustment-mechanism/price…
  15. S93CBAM steel 2026: CN codes, emission factors, costs and compliance guide (route classification), secondary source. CBAMguide.cbamguide.com/sectors/steel/
  16. S05Iron and Steel Technology Roadmap. International Energy Agency, Oct 2020.iea.blob.core.windows.net/assets/eb0c8ec1-3665-4959-97d0-187ceca189a8/…
  17. S01Sustainability Indicators 2025 report (2024 data; route table added February 2026). worldsteel, Nov 2025; upd. Feb 2026.worldsteel.org/wider-sustainability/sustainability-indicators/
  18. S17Hydrogen uses in ironmaking (Midrex presentation, H2@Scale). US Department of Energy, 1 Aug 2018.energy.gov/sites/prod/files/2018/08/f54/fcto-h2-scale-kickoff-2018-8-c…
  19. S16Suez Steel sets new benchmark in energy consumption for DRI production. Danieli, 16 Apr 2026.danieli.com/en/news-media/news/suez-steel-sets-new-benchmark-energy-co…
  20. S83Données pétrolières 2025. Société Nationale des Hydrocarbures (SNH), Jun 2026.snh.cm/wp-content/uploads/2026/06/Donnees-petrolieres-2025.pdf
  21. S19Best Available Techniques Reference Document for Iron and Steel Production (EUR 25521). European Commission, Joint Research Centre, 2013.bureau-industrial-transformation.jrc.ec.europa.eu/sites/default/files/…
  22. S06Achieving Net Zero Heavy Industry Sectors in G7 Members. International Energy Agency, 19 May 2022.iea.blob.core.windows.net/assets/c4d96342-f626-4aea-8dac-df1d1e567135/…
  23. S37The Decarbonisation Progress Levels. ResponsibleSteel, 23 Sep 2024.responsiblesteel.org/resources/the-decarbonisation-progress-levels
  24. S59Climate Change 2021: The Physical Science Basis, Summary for Policymakers. IPCC Working Group I, 2021.ipcc.ch/report/ar6/wg1/downloads/report/IPCC_AR6_WGI_SPM.pdf

Cite this chapter

Cameroon Steel (2026). Lower-carbon steel from Cameroon: it could reach a third of the world’s carbon intensity. White paper 06, annex A: Method, assumptions and ranges. CS-WP-06. https://www.cameroon-steel.com/en/library/lower-carbon-steel/annex-method/