Manufacturing in a carbonconstrained world

1
Manufacturing in a carbon-constrained world

October 2009 Lianne Deeming
2
Presentation

• Introduction to Corus
• Climate change the steel industry
• Tata Steel Group climate change strategy
• CSPUK climate change strategy
• Breakthrough Technology Developments
• CSPUK Sustainability
• Summary

3
Presentation

• Introduction to Corus
• Climate change the steel industry
• Tata Steel Group climate change strategy
• CSPUK climate change strategy
• Breakthrough Technology Developments
• CSPUK Sustainability
• Summary

4
CorusOverview

• 2nd largest European steel producer
• Annual turnover of 12bn (2.5bn in Wales), with
  42,000 employees worldwide (8,000 in Wales) plus
  many more employed by contractors suppliers
• Major manufacturing sites in UK, Netherlands,
  Germany, France and Belgium sales
  offices/service centres in over 40 countries
• Supplier to many of the most demanding markets
  worldwide including construction, automotive,
  packaging, engineering
• Corus was acquired by Tata Steel in 2007 and is
  now part of Tata Steel Group, which is the 6th
  largest global steel producer
• Wales No.1 Company (Business in Wales/KPMG Top
  300 companies)

5
Tata Steel GroupGlobal reach
Western Europe
Teesside 3mt Rotherham 1mt Scunthorpe 4.5mt Port
Talbot 5mt
IJmuiden7mt
North America
South East Asia
Latin America
New Zealand
Jamshedpur5mt
Tata Steel Thailand 1mt
Orissa
Natsteel1mt
6
Presentation

• Introduction to Corus
• Climate change the steel industry
• Tata Steel Group climate change strategy
• CSPUK climate change strategy
• Breakthrough Technology Developments
• CSPUK Sustainability
• Summary

7
Global PictureGreenhouse gas emissions
Chemicals/ Petrochemicals 23
Cement 18
Iron Steel 15
Industry 21
Non Ferrous Metals 7
Machinery 5
Food Tobacco 5
Pulp/Paper/Printing 5
Other Industry 24
Source Navigating the Numbers Greenhouse Gas
Data and International Climate Policy Baumert et
al World Resources Institute 2005
8
Climate Change Steel Industry Production CO2
Emissions
8
CO2 Emissions (total 2.1 billion tonnes/year)
Steel Production (total 1.3 billion tonnes/year)
Source IISI
9
Presentation

• Introduction to Corus
• Climate change the steel industry
• Tata Steel Group climate change strategy
• CSPUK climate change strategy
• Breakthrough Technology Developments
• CSPUK Sustainability
• Summary

10
Tata Steel Group Vision

• To be the world steel industry benchmark for
  value creation and corporate citizenship

Corporate Citizenship
Value Creation

Our People
11
Climate Change StrategyLooking at the full value
chain
Climate Change Strategy
DIRECT
Manufacturing
Upstream
Customers
INDIRECT
Energy

• Direct emissions are physical emissions from the
  site.
• Indirect emissions are caused by the site, but
  generated somewhere else, e.g. emissions related
  to purchased electricity.

12
Tata Steel Group Vision 2012 Specific CO2
emissions
Tata Steel Group (consolidated, weighted average,
integrated sites only)
Gap 0.17
Gap 0.37
13
Presentation

• Introduction to Corus
• Climate change the steel industry
• Tata Steel Group climate change strategy
• CSPUK climate change strategy
• Breakthrough Technology Developments
• CSPUK Sustainability
• Summary

14
CSP UK Energy Strategy Vision

• To be self sufficient in Energy
• Increasing the overall energy efficiency of the
  sites by
• Applying Best Available Technology
• Good Housekeeping and raising Energy Awareness
• Minimising the flaring of indigenous Gases, to
  reduce direct CO2 emissions and natural gas
  Import
• Maximise the onsite Power Generation to reduce
  the Electricity import and direct CO2 emissions
  within CSP UK
• Reduce the reliance on the National Grid for the
  electricity supply
• Reducing the impact on the local community

15
Comparison with others Analysis world steel
reporting scope
Data from 2007, Product mix not taken into account
ArcelorMittal average 2.46
Tata Steel - 2.55
Corus average 2.0
Top 15
TSG average 2.1
Top 30
Scunthorpe
Teesside
Port Talbot
IJmuiden
Specific CO2 emission tCO2/tls
16
CSP UK Improving our current processes

• Energy Climate Change Policy
• Minimise flaring of works arising gases, to
  reduce direct CO2 emissions and reduce natural
  gas import
• Maximise on-site power generation to reduce
  electricity import and reduce indirect CO2
  emissions
• Increase overall energy efficiency by
• applying Best Available Technique technology
• good housekeeping and raise energy awareness
• working with Welsh Universities local council
• Potential help from EA RDT (Bristol)
• - Centre of Excellence in Energy/Waste
  Optimisation (Cardiff)
• - Key process modeling/development work (Swansea)

17
(No Transcript)
18
CSP UKImproving our current processes

• BOS Plant Gas Recovery at Port Talbot (an
  investment of 60m)
• Increases on-site generation from 61MW to 76MW
  reduces electricity natural gas imports
• Reduces CO2 emissions by 290,000 t/year
  reduces particulate emissions by 40 t/year.

19
CSP UKImproving our current processes
Zero Flaring Strategy
Now
2010
2018
Blast Furnace Gas Flare
0
0
3,400,000 GJ/yr
Coke Oven Gas flare
0
0
1,500,000 GJ/yr
BOS Gas flare
0
0
3,350,000 GJ/yr
To be evaluated
3,000,000 GJ/yr
Natural Gas import
7,100,000 GJ/yr
On-Site Electricity Generation
61 MW
76 MW
gt 150 MW
20
Presentation

• Introduction to Corus
• Climate change the steel industry
• Tata Steel Group climate change strategy
• CSPUK climate change strategy
• Breakthrough Technology Developments
• CSPUK Sustainability
• Summary

21
Climate Change StrategyBreakthrough Technology
Development
Ultra Low CO2 Steelmaking A groundbreaking 59m
part EU funded multi-phased RD project, advanced
by 48 European companies and institutes, to
identify and develop breakthrough technologies
that could enable a significant (50) reduction
in CO2 emissions from ore-based steel production
by 2050.

• Example Blast furnace gas capture recycling
• MEFOS / LKAB (Sweden)
• Pilot blast furnace (Ø 1.2m)
• Top gas recycle
• Operation of CO2 capture (VPSA)
• 8 M
• Successful 1st campaign in 2007

22
Climate ChangeSustainable Solutions

• Automotive
• High strength steels/advanced high strength
  steels
• (1kg AHSS saves 8kg CO2 over vehicle lifecycle)
• Low friction engineering steels for
  gearboxes/engines
• Construction
• Light-framed steel housing
• Carbon neutral housing, sustainable construction,
  
• flood defence
• Power
• Offshore/onshore wind turbines
• Photovoltaic coatings, which have the potential,
  based on the surface area of coated steel
  cladding currently sold, to generate significant
  quantities of electricity.

23
Presentation

• Introduction to Corus
• Climate change the steel industry
• Tata Steel Group climate change strategy
• CSPUK climate change strategy
• Breakthrough Technology Developments
• CSPUK Sustainability
• Summary

24
Corporate Social Responsibility

• Tata Steel Group We aspire to be the world
  steel industry benchmark for value creation and
  corporate citizenship
• For Corus Strip Products this means
• Creating a self-sustaining business in Port
  Talbot, which realises its vision for long term
  success
• Creating fulfilling jobs and making a vital,
  positive contribution to the local economy
• Contributing to the community and the environment
  in which we live, for the benefit of our
  families, our neighbours and for the future

25
Energy Valley Neath-Port Talbot
N Power Wind Farm
Total benefits to Environment, Community,
Businesses and other stakeholders are larger than
the sum of its parts
N
Western Bio Energy
MARGAM
GE Baglan Bay
Baglan Hospital
BOC
Hot Strip Mills
CHP Power Plant
Link Mill /CAPL
Corus
Hydrogen Research Centre
Blast Furnaces
BOS Plant
MORFA Coke Ovens
Sinter Plant
Beach
ABP / PreEnergy
26
Energy Valley Activities

• Feasibility study district heating
• Partners Arup, Carbon Trust Neath Port Talbot
  County Borough Council
• Hydrogen production and generation infrastructure
• Partners Hydrogen Research Centre, Carbon Trust
  Neath Port Talbot County Borough Council

27
Presentation

• Introduction to Corus
• Climate change the steel industry
• Tata Steel Group climate change strategy
• CSPUK climate change strategy
• Breakthrough Technology Developments
• CSPUK Sustainability
• Summary

28
Summary

• Technologically exciting
• Cuts across traditional boundaries
• Sector
• Members of the community
• Challenges
• Access to skills finance a never ending cycle
• Rate scale of change

29
Thank You