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Potential for CO2 emissions reduction in MIDREX direct
reduction process
Presented by
Hidetoshi TanakaIron Unit Division
KOBE STEEL, LTD.November 6, 2013
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Contents
1. World DRI Production
2. Gas-based DRI Production Technology (MIDREX Process)
3. CO2 emissions reduction in EAF
4. CO2 emissions reduction in BF
5. Conclusions
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World DRI Production
DRI (Direct Reduced Iron)Direct Reduction: The removal of oxygen from iron ore without meltingTFe%:90-94, MFe%:83-89, Met%:92-95, Carbon%:1.0-3.5, Gang%:2.8-6.0
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World DRI Production & Shipment
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
0
10
20
30
40
50
60
70
80
1975 1980 1985 1990 1995 2000 2005 2010
DR
I R
atio in EA
F (%)
DR
I P
roduction, D
RI Shipm
ent(M
t/y) World DRI Production
Total DRI Shipment
DRI Ratio in EAF(%) 54
� World DRI production was 74 million tons in 2012
� World DRI shipment increase gradually due to strong demands of DRI in advanced country.
� Total DRI shipment was 14.8 million tons in 2012.
� DRI ratio in EAF becomes 16% of total EAF charging materials.
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World DRI Production by Process
� MIDREX is a wholly owned subsidiary company of Kobe Steel� Kobe Steel is a leading company of this DRI production field
Why MIDREX ?
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� Of the 67 MIDREX Plants built and started-up since 1969, only 3 have been dismantled and taken completely out of service (Fig.1)
Fig.1
� The reason why MIDREX process covers 60% of world DRI production is due to high performance of stable and simple operation.(Fig.3) Fig.3 World Direct Reduction Capacity
and Production per technology in 2011
� MIDREX plants have achieved high performance
� 33 MIDREX Plants have been operating more than 20 years (Fig.2)
Fig.233 plants
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Natural Gas Based DR Process(MIDREX)
MIDREX® DR Plant Qatar Steel (II)
Country : QatarStart-Up : Dec., 2007Capacity : 1,500,000 t/y
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CH4 + H2O → 3H2 + CO
CH4 + CO2 → 2H2 + 2CODRI/HBI
Fe2O3 + 3H2 → 2Fe + 3H2O
Fe2O3 + CO → 2Fe + 3CO2
Reformer
Shaft Furnace
Standard Process Flow of MIDREX® Process
Heat Recovery
Reformer
ShaftFurnace
Process Gas SystemFlueGas
EjectorStack
NaturalGas
Main AirBlower
Reducing Gas
FuelGas
Feed Gas
Combustion Air
Process GasCompressors
Top GasScrubber
FlueGas
MIDREX ® DirectReduced Iron
Cooling GasScrubber
Cooling GasCompressor
IronOxide
� Natural Gas is used as a reductant.
� Coke is not required.(Pellets/Lump Ore are reduced to produce DRI without being melt in the shaft furnace.)
� DRI is fed to EAF to produce steel.
As the iron oxide descends through the furnace, the iron oxide is heated and reduced
Reason why MIDREX is less CO2 Emission
� As FuelTable shows the CO2 emission rates for combusting methane versus two types of coal.
As the table shows, natural gas emits only about one-half the CO2 per unit of energy as does coal.
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� As Reductant� C + O2 → CO2 :Carbon can remove one mole O2 and produce one mole CO2
� CH4 +2O2→ CO2 + 2H2O :Methane can remove two mole O2 and produce one mole CO2
These characteristics make natural gas an ideal energy source for ironmaking.
Energy Source
CO2 Emissions
(kg/GJ)
Natural gas (CH4) 49
Bituminous metallurgical coal 90
Bituminous steam coal 94
Decrease in natural gas consumption with MIDREX Process development
DIRECT FROM MIDREX 2nd QUARTER 200410
� Energy usage in direct reduction shaft furnaces has decreased by about 30% over the past forty years.
� This has occurred gradually over the years in the course of overall process development.
1: 480°C combustion air preheat2: in situ reforming3: 540°C combustion air preheat and 400°C process gas preheat4: 650°C combustion air preheat and 540°C process gas preheat5: Top gas fuel preheat6: Preheat of natural gas used for transition zone and enrichment
� Six stages of natural gas reduction are indicated, which equate to the following process upgrades:
Hot Charging DRI to the EAF Options
DIRECT FROM MIDREX 2nd QUARTER 200711
GET IT WHILE IT’S HOT
� Carbon emissions can be further reduced by hot charging the DRI to the EAF
� MIDREX has developed three methods for discharging the DRI at elevated temperature, transporting it hot to the meltshop, and charging it to the EAF at 600-700° C
� These methods lower the electricity required per ton of steel produced, which also reduces CO2 emissions from the power plant.
� Electricity consumption can be reduced about 20 kWh/t liquid steel for each 100° C increase in DRI charging temperature.
� Thus, the savings when charging at over 600° C are 120 kWh/t or more.
� Traditionally, MIDREX Plants have cooled the DRI and stored it for later charging to the EAF.
MIDREX Plant Rated Capacities by Year
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0
0.5
1
1.5
2
2.5
1960 1970 1980 1990 2000 2010 2020
Pro
du
ctio
n C
ap
aci
ty(M
t/y
)
Year
Operating
Construction
SUPER
MEGAMOD
MEGAMOD
Series750
Series500
MINIMOD
� Production capacity of MIDREX plant has been increased year by year.� New MIDREX “SUPER MEGAMOD” DR plant is designed for an annual capacity of 2
million tons of HBI. It will be the largest single HBI producing module in the world.
VoestalpineCorpus Christi, Texas, USA.
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1
2 3
45
6
7
8
91011
12
13
14
15
16
171819
2021
22
2324
25
26
2728
29
30
31
3233
34
35
36
37
1. Acindar2. ArcelorMittal Montreal 1
ArcelorMittal Montreal 23. ArcelorMittal Hamburg4. ArcelorMittal Lazaro Cardenas5. ArcelorMittal Pt. Lisas 1-36. ArcelorMittal South Africa7. Antara Steel Mills8. Arfa Steel9. Comsigua10.DRIC 1-2
11. ESISCO12. Essar Steel 1-613. EZDK 1-314. Ferrominera Orinoco15. Global Steel Holdings16. Hadeed A - E17. HOSCO 1-218. IGISCO19. IMPADCO20. JSW Ispat Steel
21. JSW Steel22. Jindal Steel & Power23. Khorasan Steel24. Khouzestan Steel 1-525. LGOK 2, 326. Lion DRI27. LISCO 1-328. Mobarakeh Steel A - F29. Nu-Iron30. OEMK 1-4
31. Qatar Steel Co. 1-232. Jindal Shadeed33. SULB34. Tenaris Siderca35. Sidor 1
Sidor 2 A - C36. Tuwairqi Steel Mills37. Venprecar
Locations of MIDREX® DR Plants
Natural Gas Producing Countries
Total 62 plants are under operation
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Potential for CO2 emissions reduction by using DRI/HBI
(1) In EAF Steelmaking Process(2) In BF/BOF Steelmaking Process
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Difference between BF -BOF steelmaking process and EAF steelmaking process
0 500 1000 1500 2000
BF-BOF
EAF
CO2 Emission (kg/ton-Steel)
・・・・ CO2 Emission for EAF is approximately 25% of that for blast furnace.
• The steel scrap normally contains impurities such as Cu, Sn, Pb, etc. which often limit its usage to satisfy the product quality
BF-BOF
高品位鉄鉱石+高品位石炭(原料炭)から高品位の鉄源を製造する。
Iron Ore
Coking Coal
Sintering
Blast Furnace (BF)
Molten Iron
Basic Oxygen Furnace (BOF)
Coke OvenRolling
EAF EAF
RollingSteel Scrap
DRI, HBI, Pig Iron
Ironmaking at a low investment cost
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EAF Crude Steel Production Ratio
・ EAF steelmaking is rising due to more scrap in advanced countries.
0%
10%
20%
30%
40%
50%
60%
70%
1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012
EA
F C
rude Steel P
roduction R
atio
USAUSAUSAUSA
KoreaKoreaKoreaKorea
EU15EU15EU15EU15
WorldWorldWorldWorld
JapanJapanJapanJapan
ChinaChinaChinaChina
Energy Requirements and Carbon Emissions for Steelmaking Routes
Reference : MILLENNIUM STEEL 2007
1959
1140
1033
713
784
1175
466
6.2
10.8
11.6
10.6
16.8
18.1
16.8
0
500
1000
1500
2000
2500
B
F
-
B
O
F8
0
%
-
C
o
ld
D
R
I8
0
%
-
H
o
tD
R
I
3
0
%
-
C
o
ld
D
R
I
3
0
%
-
H
B
I
3
0
%
-
Iro
n
N
u
g
ge
t
1
0
0
%
-
S
c
ra
p
Kg C
O2/tLS (C
arbon em
issions)
0
2
4
6
8
10
12
14
16
18
20
GJ/tLS (Total energy)
Carbon emissions
Total energy
� Steelmaking by feeding either the DRI or the HBI to the EAF together with the scrap can significantly decrease the CO2 emissions while satisfying the steel quality by diluting the impurities containing in the scrap.
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Potential for CO2 emissions reduction by using DRI/HBI
(1) EAF Steelmaking Process(2) BF/BOF Steelmaking Process
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US DRI Projects Status
World DRI and Pellet Congress 2013, 101
Company Location Capacity(kt) Status Start-up
Nucor Lousiana 2,500 Confirmed 2013
Nucor Lousiana 2,500 Permitted- not approved 2015+
voestalpine Texas 2,000 Confirmed- needs permitting 2016
Bluescope Ohio 1,000 Under consideration 2016+
Essar Steel Minnesota 2,500 Permitted - not approved 2016+
Severstal NA Mississippi & Trinidad n/a 1.5m tpy project rejected
US Steel Minnesota n/a Under consideration 2016+
� Falling gas prices a boon to DRI production in the U.S.A.
� There are two movements
(1) BF substitute
(2) HBI utilization in BF
World DRI and Pellet Congress 2013, 104
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Original Plan BF
Iron Ore
Coking Coal
Sinter Plant
BF
Hot Metal
Basic Oxygen Furnace
Coke Oven
Rolling Mill
Current Plan Gas-DR
EAF
Nucor Louisiana Project in the U.S.A. (2.5Mt/y)
Rolling Mill
Scrap
DRI
Pellet Plant
Iron Ore
Gas-BasedDR Plant
Shale Gas
• Lower capital cost of a DRI plant – around half that for an equivalent blast furnace
• Lower greenhouse gas emissions.
•Reduction Cost EvaluationCoking coal=175$/t Gas=4$/mmBTUBF:144$/tGas-DR:44$/t ↓↓↓↓Diff. 100$/t
•1st Phase:2.5Mt/y mid-2013 •2nd Phase:6-7Mt/y
� With the cheap shale gas, construction of the large-sized gas DR plant was started in the U.S. instead of construction of the BF
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HBI utilized in BF• The use of HBI in Blast Furnaces is not new
• AK Steel began using HBI in their Middletown blast furnace in 1989
• Blast furnaces in Canada, Western Europe and Japan have also begun using HBI
• HBI is typically less than 30% of the charge
• HBI is often used when additional hot metal is required
• For each ten percent (10%) of the iron charged into the blast furnace as metallic iron:(1) Productivity is increased by 8%(2) Fuel rate is decreased by 7%
• HBI also lowers the CO2 emissions perton of hot metal produced
SSS NYC - Midrex Presentation 6-18-12
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Voestalpine constructing MIDREX direct reduction plant in Texas, USA
Corpus Christi, Texas,
Brazil iron ore mine
Austrian steel production sites in Linz and Donawitz
Iron ore pellet
HBI
� The decision on the construction of the Voestalpine direct reduction plant in North America has been made.
� The plant will be constructed on just outside the city of Corpus Christi, Texas, USA.
� The planned facilities are designed for an annual capacity of around 2 million tons of HBI and DRI.
� The investment volume is around EUR 550 million.
� The plant is due to begin operations in early 2016.
� This will provide the Austrian steel production sites in Linz and Donawitz with access to cost-efficient and environmentally-friendly HBI and DRI pre-materials, ensuring their competitiveness over the long-term.
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� Overseas shift of the reduction energy and utilizat ion of HBI as energy container can realize significant CO2 reduction in the consumer site.
� Transportation weight and related CO2 emission beco mes half.
Future ironmaking Model
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ConclusionsConclusions1. MIDREX gas-based DR technologies is the process to produce iron
units which are advantageous in terms of the CO2 emissions. Because this process can use natural gas as a reductant and a fuel source.
2. Considering the increase of the scrap supply to the steel market, feed of the scrap in the EAF with the DRI/HBI is expected to be effective and practical solutions in terms of the CO2 emissions.
3. With the cheap shale gas, construction of the large-sized gas DR plant was started in the U.S. instead of construction of the BF
4. Future ironmakingh model will be to produce the direct reduced iron near the energy competitive sites and transfer these products as an energy container to consumer sites.
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Thank you for your kind attention!