HIsarna, a Revolution in Steelmaking

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HIsarna, a Revolution in Steelmaking

• February 25, 2013 / Tim Peeters

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Paper Steel Common Ground?

• CO2 intensive (1.1 vs 4 of man made CO2)
• Energy intensive
• High recycling rate (70 vs 95)
• Capital intensive
• Major facilities gt 20 years life span
• Large sites, large installations
• Threshold for implementation of breakthrough
  technologies
• Trend of past 20 years
• Process efficiency, labour productivity increase
• From Fragmented to Consolidated industry
• Changing competitive landscape in major markets
• Sustainability and Climate Change challenge

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The Challenge in Steelmaking

• Growth Sustainability
• World steel consumption Ambition to cut CO2
  emissions
• will double in 2050 by 50 in 2050

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The International Approach

• Climate Change is Global
• Climate Change is Long Term
• Support at board level, governmental level, EU
  level
• Build industrial partnerships, bring people
  together
• Use a broad range of expertise
• Build a common language

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The ULCOS project

• Objective
• 50 reduction in CO2 emissions per ton of steel
  from iron ore based steel production by 2050
• Globally the largest steel industry project on
  Climate Change mitigation
• Core partners ArcelorMittal, Tata Steel,
  ThyssenKrupp, Ilva, Voestalpine, LKAB,
  DillingerHütte/Saarstahl, SSAB, Rautaruukki
• Co-partners 48 Institutes, Universities,
  Engineering companies, etc
• Budget 75 M
• Duration ULCOS I 2004 2010
• ULCOS II 2011 201

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ULCOS Consortium 48 partners
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Idea ? Experiment ? Pilot ? Demo ? Industry
201..
2010
2004
ULCOS - I Project
ULCOS - II Project
progress
CO2 and sustainability modelling
Selection
Pilot plant
Industrial Demo
Inventory of 200 process options

• Selection Criteria
• CO2
• Economical
• Technical maturity
• Social acceptance
• Other environmental aspects
• Fit with existing configurations

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Common approach, definitions, boundaries
Gate to Gate approach for the
Classical Integrated Steel Mill
Everything is assessed for one ton of Hot Rolled
Coiled (HRC)
Focus areaIronmaking is responsible for 85-90
of CO2 per HRC
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Selection Process Funnelling the Options
201..
2010
2004
ULCOS - I Project
ULCOS - II Project
4 processes selected
CO2 and sustainability modelling
Top Gas Recycling Blast Furnace
Better use of Carbon in retro-fitted plants
Inventory of 200 process options
Better use of Carbon in a new process
HIsarna
Replacing Carbon with Natural Gas or Hydrogen
Selection
Gas based reduction
Green power, mimic Aluminium production
Electrolysis of iron ore
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Top Three Hurdles to Manage

• Technical
• High intensity, high efficiency process
  development
• Focus on generic long-term solutions
• Financial
• High risk, high reward
• Partnering sharing benefit cost effort
  risk
• Industry contribution local / national /
  European funding
• Organisational
• Consortium
• People availability, expertise, critical mass
• Communication
• Public relations
• Intellectual property

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Steel Production Process RouteWhere does HIsarna
fit?
Iron ore
Steelmaking
coal
Ironmaking
Casting
Rolling Coating
Steel products
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HIsarna technologyComparison with the Blast
Furnace route
Blast furnace
sinter
Iron ore
coke
Liquid iron
coal
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HIsarna technologyComparison with the Blast
Furnace route
Blast furnace
sinter
Iron ore
coke
coal
Direct use of coal and ore No coking and
agglomeration
Liquid iron
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HIsarna pilot plant
2012
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Key Success Factors
Construction September 2010

• Commitment from all levels
• Financial support
• Logistical, Engineering and RD know-how on site
• Cooperation
• Perseverance
• Fast cycle of learning and improving

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Cold Commissioning, January 2011
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First Start-up, April 2011
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First HIsarna Hot Metal, May 2011
Production runner HIsarna pilot plant
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HIsarna Summary

• With the ULCOS and HIsarna project the European
  steel industry is proactively approaching the
  Climate Change issue
• In the HIsarna project knowledge and experience
  of steelmakers and equipment suppliers from all
  over Europe is brought together
• HIsarna is a high risk/high reward innovation
  with the potential to have a strong environmental
  and economical impact on the steel industry
• Environmental impact
• Without CO2 capture and storage 20 reduction
• With CO2 capture and storage 80 reduction
• Strong reduction of other emissions
• Economical impact
• Wider range of raw materials
• Lower CapEx, OpEx

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Challenges for HIsarna Future

• Demonstrate robustness of technology
• Further pilot plant campaigns people, time,
  funding
• Up-scaling to industrial size
• Transition from generic to specific
  (location, size, configuration)
• Investment 250 M ( 50 M)
• Demonstration scale should have a competitive
  business case
• Governments can support this
• Many potential innovations in ironmaking have not
  survived this step
• Sustainable industry future, supported by
  National and European policies
• Review the 2050 Roadmap (environmental,
  economical, social landscape)
• Develop business case for pushing out Blast
  Furnace technology

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What have we learned along the way?

• Think big Focus on breakthrough, not incremental
• Partnerships, collaboration, trust
• Set scope, targets, common definitions
• Clear funnelling selection process
• Generic, Long Term solutions
• Handle good ideas outside the scope
• Dont bet on one horse
• When stakes get higher, stay connected with the
  business strategy
• Innovation comes from people with expertise