HIsarna, a Revolution in SteelmakingFebruary 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 > 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

The Brand:

Ultra Low CO2 Steelmaking

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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

CO2 and sustainability modelling

Selection Industrial Demo

ULCOS - I Project 2010 201..2004

Selection Criteria

• CO2

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

Pilot plant

progress

ULCOS - II Project

Inventory of 200 process options

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Common approach, definitions, boundaries

Everything is assessed for one ton of Hot Rolled Coiled (HRC)

Coke Oven

Power PlantBlast

Furnace

Basic Oxygen Furnace

Hot Rolling

Sintering Plant Coke Oven

Power PlantBlast

Furnace

Basic Oxygen Furnace

Hot Rolling

Sintering Plant

Classical Integrated Steel Mill

Gate to Gate approach for the

Focus area:Ironmaking is responsible for 85-90% of CO2 per HRC

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Selection Process: Funnelling the Options

CO2 and sustainability modelling

Selection

ULCOS - I Project 2010 201..2004 ULCOS - II Project

Top Gas Recycling Blast Furnace

Gas based reduction

Electrolysis of iron ore

HIsarna

4 processes selected

Inventory of 200 process options

Better use of Carbon in retro-fitted plants

Better use of Carbon in a new process

Replacing Carbon with Natural Gas or Hydrogen

Green power, mimic Aluminium production

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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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Iron ore

coal

Steel Production Process RouteWhere does HIsarna fit?

IronmakingSteelmaking

CastingRolling &

CoatingSteelproducts

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Iron ore

coal

coke

sinter

Liquid iron

Blast furnace

HIsarna technologyComparison with the Blast Furnace route

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Iron ore

coal

coke

sinter

Liquid iron

Blast furnace

Direct use of coal and ore

No coking and agglomeration

HIsarna technologyComparison with the Blast Furnace route

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2012

2004

2009

20102011

2007

7 years of preparation before the first experiments

HIsarna pilot plant

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Key Success Factors

• Commitment from all levels

• Financial support

• Logistical, Engineering and R&D know-how on site

• Cooperation

• Perseverance

• Fast cycle of learning and improving

Construction

September 2010

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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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• 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

HIsarna Summary

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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

• Don’t bet on one horse

• When stakes get higher, stay connected with the business strategy

• Innovation comes from people with expertise