Tim Morris, Head of Public Affairs; Dr Paul Brooks, Group Director - Environment

The Steel Industry & Climate Change

Climate Change Commission Meeting

Norwegian Church Arts Centre, Cardiff, 17th April 2015

Slide Tata Steel 2 Presentation to Climate Change Commission

Integrity

• Fair, honest and transparent

Understanding

• Care, respect and genuine interest

Excellence

• Highest standards, right first time

Unity

• Working together

Responsibility

• Commitment and ownership

Operating Responsibly

Integral with the Tata values

Jamsetji Tata,

Founder, Tata Group

“In a free enterprise, the

community is not just

another stakeholder in

business but is in fact

the very purpose of its

existence”

Slide Tata Steel

Tata Steel – a global company

3

11th largest steel group

Turnover: ~€20 billion1

EBITDA: ~€2 billion1

Crude steel capacity: ~30 mtpa

Operations in 26 countries

~80,000 employees

Key assets

Raw material projects

Steel making

(iron ore)

India

SE Asia

South Africa

Ivory Coast (iron ore)

Mozambique

(coal)

Oman

(limestone)

Canada

Australia

CDJV (coal)

Sedibeng

(iron ore)

1. Tata Steel Group annual report: FY13/14

Presentation to Climate Change Commission

Slide Tata Steel 4 Presentation to Climate Change Commission

Port Talbot

Slide Tata Steel 5 Presentation to Climate Change Commission

Our approach to climate change issues

‘Transition’ ‘End state’

Time horizon

Products

Processes

Highlighting steel as a sustainable material of choice, e.g.

•Resource efficiency

•Circular economy

Steel products essential to a low carbon, resource efficient world, e.g.

•Light weighting for cars and transport (pound for pound and formability)

• Intrinsic to key new markets such as renewable energy

Safeguarding

competitiveness: to 2020

Behavioural & incremental

improvement

Reforming the current EU

ETS framework (e.g.

benchmarks, CSCF, MSR)

Safeguarding

competitiveness: 2020+

‘Reshaping the now’

Setting a better framework

(e.g. EU ETS reform,

dynamic allocation)

Achieving ‘breakthroughs’:

2030-2050+

Technology paradigm

change

Fit-for-purpose public funding

for ‘breakthroughs’ and infra-

structure development

Grounded in Tata values, governed by group wide vision

Slide Tata Steel 6 Presentation to Climate Change Commission

Tata Steel Group

Climate Change Vision

Climate change is one of the most pressing issues the world faces today.

In response to this challenge, Tata Steel will be part of the solution and

will achieve a leading position within the steel industry whilst creating

value through:

(1) continuing to improve its current processes, improving energy efficiency & reducing emissions

(2) investing in breakthrough technologies

(3) developing new products and services to reduce environmental impact over the product lifecycle, offsetting emissions in manufacture

(4) actively engaging its workforce

(5) further developing its pro-active role in global steel sector initiatives.

Slide Tata Steel 7 Presentation to Climate Change Commission

CO2 Intensity

Need for new technology in the medium to long term

The ironmaking process (primarily based on chemical reduction of iron ore to iron using carbon) emits 80 – 90 % of CO2

Present operation close to “best practice”

Further energy saving will not deliver long term target

Breakthrough technology development needed

Blast Furnace – Reductant Usage

Approaching the limits

Slide Tata Steel 8 Presentation to Climate Change Commission

Steelmaking & Climate Change

The challenge

Growth Sustainability World steel consumption Ambition to cut CO2 emissions

will double by 2050 by at least 50 % by 2050

Slide Tata Steel 9 Presentation to Climate Change Commission

Climate Change Vision & Strategy

Improving current processes: MoniCA

Approach:

• Calculation method developed, aligned to

external reporting standards

• Software tool MoniCA internally developed

• Network of ~100 colleagues at 30 sites in EU,

USA and India

• Best practices defined to allow benchmarking

Slide Tata Steel 10 Presentation to Climate Change Commission

Natural gas consumption Zone 7

0

50

100

150

200

250

300

350

01/01/10 02/04/10 02/07/10 01/10/10 31/12/10 01/04/11 01/07/11

Date

Natu

ral

gas f

low

[N

m3/h

]

Dry furnace transport rolls for Direct Sheet Plant at IJmuiden

• High alloy steel rolls remove need for water cooling

• Reduces natural gas consumption by 50% (18 MW and 25 ktCO2/y)

Climate Change Vision & Strategy

Improving current processes: DSP dry rolls

Slide Tata Steel 11 Presentation to Climate Change Commission

• Blast Furnace 5 mid campaign

repair

• New Pickle Line

• Blast Furnace 4 rebuild

• BOS off gas heat recovery

• Rotary hearth furnace to

recover by products

• New power plant

Reliable Operations & Efficiency

• Blast furnace 4 rebuild

• Blast furnace 5 mid campaign

repair

• BOS gas recovery

• BOS gas heat recovery

• Heavy gauge de-coiler

• New acid pickle line

• New power plant

• Steel grade developments –

Ladle metallurgy furnace

• Premium product range –

caster 2 upgrade

• Line pipe & Advanced High

Strength Steel – HSM

transformation

• Laser welding and slitting

facility

• ZODIAC temper mill & furnace

upgrade: Inc. Auto

• Laser welding and slitting facility

for Auto Full Finish

• Line pipe (sour) & advanced

high strength steels – Ladle

metallurgy furnace

• Premium product range – caster

2 upgrade

• Heavy gauge structural grades

– Hot strip mill development

Smart Product Offering

Elo

ng

ati

on

(%

)

Tensile Strength (MPa)

0

10

20

30

40

50

60

70

0 600 1200300 900 1600

MART

Mild

BHBH

Compliance & essential replacement

• New visitor centre, stores &

training centre

• Replace ageing coke oven gas

holder

• Hot strip mill revamp – motors,

drives, spindles & coilers

• Coke ovens life extension

• Sinter & BOS emissions reductions

• BOS vessel shell upgrade

• Electrical infrastructure upgrades

• Rotary hearth furnace to recover

waste

Improvement Programme for Strip Products UK Investment schemes to 2017/18

KEY: Completed Approved/Ongoing In plan

Slide Tata Steel 12 Presentation to Climate Change Commission

HIsarna – Comparison with the BF route

Iron ore

coal

coke

sinter

Liquid iron

Blast furnace

Direct use of coal and ore

No coking and agglomeration

Slide Tata Steel 13 Presentation to Climate Change Commission

• Possible products: Biodiesel, biomass, animal feed, etc

• To date:

(1) Partnering with University of Sheffield (micro-bubble technology), using 2m3 pilot reactor using off-gas from Scunthorpe on-site power station

(2) Working with Swansea University and others on ACCOMPLISH (Algal carbon capture and biomass production), which will capture CO2 from the coke ovens at Port Talbot to produce algae at a small facility located at site to test the viability of the technology.

+ CO2 + + + O2 ++ CO2 + + + O2 +

Strategic Studies: CO2 Utilisation (Algae)

Slide Tata Steel 14 Presentation to Climate Change Commission

• Automotive – High strength steels/advanced high strength steels

– Low friction engineering steels for gearboxes/engines

• Construction – Light-framed steel housing

– Carbon neutral cladding, roofing & housing, sustainable

construction, flood defences

• Power – Offshore/onshore wind turbines

– Photovoltaic coatings, which have the potential, based on

the surface area of coated steel cladding sold, to generate

significant quantities of electricity

– High strength & special steels for power generation.

We are continuing to develop products and

solutions that will help our customers and their

customers to reduce their carbon footprint

Product & Market Developments