PROCESS INTEGRATION ATTRACTS GROWING INTEREST

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1 YEARS MAY 2014 PROCESS INTEGRATION ATTRACTS GROWING INTEREST NEW OPERATING MODE SAVED SEK 6.5 MILLION NEW NETWORK OF INDEPENDENT PILOT PLANTS Photo: Maria Åsén

2 Understanding the costs of deploying CO 2 capture in an integrated steel plant CONTACT: Lawrence Hooey, lawrence.hooey@swerea.se The steel industry is looking for ways to substantially reduce CO 2 emissions. CO 2 capture and storage is one alternative. The IEAGHG approached Swerea MEFOS to understand the costs and issues related to CCS applied to integrated steelmaking. The IEA Greenhouse Gas R&D Programme (IEAGHG) is an international collaborative research programme established in 1991 as an Implementing Agreement under the International Energy Agency (IEA). The role of the Programme is to evaluate technologies that can reduce greenhouse gas emissions derived from the use of fossil fuels, and provide independent peer-reviewed technical assessments to its members. Swerea MEFOS helped develop the project scope and assisted the IEAGHG in bringing in additional funding partners The Swedish Energy Agency, SSAB, LKAB and Swerea MEFOS member companies. Swerea MEFOS led the project and carried out detailed technical modelling and pre-engineering of an integrated steelplant. In collaboration with Tata Steel Consulting UK and SINTEF Chemistry and Materials in Norway, the full plant costs and CO 2 capture systems were modelled and integrated into the technical models to achieve independent cost estimations for three different scenarios; and these include post combustion capture options, as well as capture from an oxygen blown blast furnace with top gas recycle. The IEAGHG has published the report as part of a series of studies evaluating CO 2 capture costs in different industries. The assessments are used as references by IEA, UK Berr & Decc, Eurofer and ZEP. Stanley Santos, Project manager of Capture & Integrated Systems, IEAGHG: Reporting CO 2 avoidance cost alone in assessing the greenhouse gas mitigation cost of a complex industrial site such as an integrated steel mill is not enough and could be misleading. This report has demonstrated the Stanley Santos. different factors that could affect this value This report has more than achieved its objective by providing a transparent methodology for understanding the cost of incorporating CO 2 capture in an integrated steel mill. 2 News May 2014

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4 Process integ attracts growing There is a growing awareness of the need for process integration, with many methods and approaches having been developed and adopted. Swerea MEFOS has had a leading role in coordinating the IETS Annex Process Integration in the Iron and Steel Industry. The International Energy Agency (IEA) has a broad role in promoting alternative energy sources (including renewable energy), rational energy policies, and multinational energy technology co-operation. IETS (Industrial Energy Related Technologies and Systems) is an Implementing Agreement within IEA, and the only one dealing exclusively with the industrial sector. This agreement covers basically all industrial energy areas regarding industry types as well as cross-cutting and The European Commission has identified pilot plant facilities as a strategically important factor for making European industry more competitive. Coordinated by Swerea MEFOS, Metnet is a newly established network of independent pilot plant facilities for mineral technology and metallurgy in Europe. Within the framework for EIP Raw Materials, the European Commission has requested that interested parties in industry-specific technologies/systems. The cooperation work is carried out in different annexes. One success story in IETS is Annex XIV, Process Integration in the Iron and Steel Industry. It was initiated by Sweden with five other countries to promote the concept of Process Integration in the steel industry and is the first steel-related Annex. Swerea MEFOS in Sweden has had a leading role in coordinating the establishment and operation of the Annex. The aims are to develop a network of experts, share experiences and results, and produce a set of guidelines for the industry. The Annex includes participants from Sweden, Finland, France, Italy, Japan and Australia, and other countries have recently expressed interest in joining. There is a growing awareness of the need for Process Integration, with many methods and approaches having been developed and adopted. In other cases, tools and methods developed in other industries must first be adapted to the steel industry. The Annex operates primarily via workshops. In this first Annex period, three workshops have been held in Germany, Sweden and Japan. The number of participants grew steadily from about 20 in 2011 to over 50 in 2013 when the Annex joined with the IEA GHG R&D Programme to hold an open workshop on GHG reduction, CO 2 capture, energy saving and process integration. Hosted at the Tokyo Institute of Technology in Japan, this intensive three-day workshop attracted avid interest from all participants. There was clear collective interest in having another open workshop in Europe in Thore Berntsson, Professor at Chalmers University, Chair of IETS Network of independent pilot plant fac Pilot plant facilities are the key to making Euro pean industry even more competitive, says Anna Utsi. Photo: Maria Åsén Thore Berntsson. the minerals and metals industry agree on a Raw Materials Commitment (RMC) to meet the challenges implicit in the Strategic Implementation Plan. MetNet has been acknowledged by the Commission as a Raw Materials Commitment and, together with several other pilot plant facilities in Europe, Swerea MEFOS has agreed on collaboration to achieve an assured raw materials supply and to strengthen European industry. Pilot plant facilities are decisive for translating research findings into benefit for industry. Via pilot trials, processes can be effectively developed with minimal risk. Collaboration in Metnet makes us more competitive and, via Metnet, we can reach 4 News May 2014

5 ration interest FACTS The International Energy Agency (IEA) is the OECD organization for cooperation in the energy area. To qualify for IEA membership, a country must be a member of the OECD. IEA GHG R&D Programme The aims of the IEA Greenhouse Gas R&D Programme are to evaluate technologies for reducing emissions of greenhouse gases from fossil fuel use, to disseminate information, to prepare research, development and demonstration proposals and, where appropriate, to conduct R&D projects. Minimized and maximized, optimized and integrated We invite representatives from the steel and metal industry and their suppliers, as well as from other industry sectors and academia, with an interest in process integration in industrial applications. The conference will be an ideal opportunity to exchange information on innovation, research, development and demonstration in areas including energy conservation, optimal use of resources, analysis and optimization of energy and material systems, and mitigation of environmental pollutants. Conference topics Process integration for sustainable development Energy saving and CO 2 emission reduction Waste minimization, processing and management 1st International Process Integration Forum for the Steel Industry 9-10 JUNE 2014, LULEÅ, SWEDEN INFORMATION AND REGISTRATION PROGRAMME CONTACT Mikael Larsson mikael.larsson@swerea.se, ilities will ensure raw-materials supply more customers, since we have a broader offering, says Anna Utsi, who is responsible for strategic business development at Swerea MEFOS. The network will also help us to secure expertise, develop new technologies and drive joint development projects. In addition to Swerea MEFOS, Metnet members include GTK (Finland), BRGM (France), IMN (Poland), Elkem (Norway) and Eramet Research (France). CONTACT: Anna Utsi, anna.utsi@swerea.se FACTS European Innovation Partnership (EIP) The European Innovation Partnerships (EIPs) are a new approach to EU research and innovation. They focus on the societal benefits of research and innovation. The ultimate aim of the EIP on Raw Materials is to help raise industry s contribution to the EU GDP to around 20% by This will be done by ensuring the sustainable supply of raw materials to the European economy whilst increasing benefits for society as a whole. The EIP High Level Group has agreed on a Strategic Implementation Plan to meet the challenges related to raw materials supply. Raw Materials Commitment A commitment is a joint undertaking by several partners, who commit to activities aimed at achieving the EIP s objectives between 2014 and Commitments must aim to deliver innovative products, processes, services, technologies, business models or ideas that can be brought to the market or that would bring wider societal benefits. News May

6 New member company world s cleanest Swerea MEFOS broadens its membership and steelindustry network with the addition of Tangshan Steel as a new member. Chinese Tangshan Steel has been accepted as a new Support Member in Swerea MEFOS. Tangshan is renowned as the world s cleanest steel producer. The company has successfully developed collaboration between traditional steel companies and society with an aim to creating a green manufacturing system. Many of China s large steelmills are situated close to big cities. This, in combination with traffic and other industrial activity, contributes to problematic air pollution. Tangshan Steel has been foremost Visit to Tangshan Steel. From the left Chuan Wang, dr Jin Yonglong, Jan- Olov Wikström and Tangshan s interpretor. among steel companies when it comes to improving both internal and external environment. During our visit we toured an ultra-modern water treatment plant and a clinically clean blast furnace facility, says Jan-Olov Wikström, business developer, Swerea MEFOS. Tangshan s membership will bring Dr. Jin Yonglong, chief expert from Tangshan Steel, to Swerea MEFOS as visiting researcher for six months starting in mid-april. Tangshan Steel plans a successive transition from sinter to pellets as the ore component, so as to further reduce atmospheric emissions, something which Dr. Jin will study during his stay at Swerea MEFOS. Now, both Baosteel and Tangshan Steel are members, which we believe will give our researchers good insight into the priority issues these steel companies are facing. This knowledge will augment our collective expertise, concludes Jan-Olov Wikström. CONTACT: Jan-Olov Wikström, jan-olov.wikstrom@swerea.se 6 News May 2014

7 A change in preheater operating mode has resulted in a reduction in coke consumption in the blast furnace at SSAB. Costs have been reduced by 6.5 million kronor per year. New operating mode saved 6.5 million kronor Photo: SSAB/Bo Björkdahl Together with researchers from SSAB Oxelösund and AGA Linde, Swerea MEFOS has developed a new operating mode for the preheaters at Blast Furnace No.4 in Oxelösund. A shift from parallel to serial operation has resulted in lower coke consumption in BF4 and, consequently, cost reductions amounting to 6.5 million kronor per year. The work has been conducted within the framework for the PRISMA research programme. Modelling and simulation showed that the change in operating mode would result in a higher hot-air temperature and, thereby, energy and cost savings. This was confirmed by data from production trials. The preheater operating mode was changed in May Erik Olsson, who is in charge of research at BF4, explains why the project has been successful. This has given us the necessary theoretical background for changing the preheater operating mode. This may seem like an obvious choice but, since the impact on the process is so significant, it is good to have an external evaluation, says Erik Olsson, continuing, Work within the PRISMA programme helps us to demonstrate the overall effects for the whole plant, and not just our own department, something which is difficult for us engineers who mainly work with the blast furnace. This means we can avoid suboptimization, which is a common pitfall in a steelworks. Preheating equipment provides very important support for blast furnace iron production. Preheaters produce hot air, which provides thermal energy and gases for smelting reduction in the blast furnace process. CONTACT: Chuan Wang, chuan.wang@swerea.se This means we can avoid suboptimization, which is a common pitfall in a steelworks. The right coal reduces costs A study done by Swerea MEFOS demonstrates the importance of choosing the right coal in each situation to reduce costs and environmental impact. Considerable gains in terms of both cost and environment can be made by using and adapting the most suitable coal, depending on the situation. For example, theoretically, charcoal is a good injection coal that is carbon-dioxide-neutral, which makes it a good alternative for reducing carbon dioxide emissions. On the other hand, it is considerably more expensive than other fuel sources. Swerea MEFOS has conducted a systems study for SSAB in Oxelösund to analyse how costs, energy requirements and carbon dioxide emissions influence the choice of injection coal for the blast furnace. The study shows that there is great potential for realizing both cost and environmental savings by adapting the coal according to the desired production rate. Johannes Larsson, who manages BF4 at Oxelösund, sees the benefits of the study. The result provides a basis for future testing with alternative injection fuels. We have gained an understanding of value in use for the various types of coal, he says. Coal injection accounts for one-fifth of the reducing agent requirement, or tonnes of coal per day in the blast furnaces studied at SSAB in Oxelö sund. Owing to the great amount of coal that is used, from both an economic and environmental point of view, there are good reasons for using the most suitable coal, depending on the situation. CONTACT: Joel Orre, joel.orre@swerea.se Photo: SSAB/Bo Björkdahl News May

8 The establishment of a test and certification station for wind power in cold climates is now one step closer, when the projecting of the site has started and a consortium of companies, academia and authorities has joined the project. Wind power by the Arctic Circle The Arctic region is a very large area that is suitable for wind power. There are many places with advantageous winds, transmission systems are robust and the balance power is provided by the many hydro power plants. To be able to develop effective energy production using wind power in coldclimate regions, knowledge has to be built up for operation; i.e., issues like ice accretion, wind conditions, cold strength of materials, lubrication, safety, foundations, measurements, noise, vibrations and de-icing technology must be studied. Swerea MEFOS is an independent research institute situated in the north of Sweden. Our business concept is to conduct applied research and technical development projects in, e.g. process metallurgy, environmental engineering and energy efficiency. We are well-known for our unique largescale pilot-plant equipment, and our ability to conduct very large demonstration projects. Through many years of international research projects, we have created an extensive network of collaboration partners all over Europe. Swerea MEFOS s acknowledged reputation as an expert on demonstration projects was a deciding factor when we were granted the project Test Centre for Wind Power in Cold Climates, with funding from Vinnova (the Swedish Governmental Agency for Innovation Systems). The project s goal is to realize the planning of an area to establish a test and certification station for wind power in cold climates, including concrete planning documents with timelines, authorizations, calculations and procurement documents, etc. This is an important part of the financing that now makes it possible for us to begin planning the establishment of a test centre, says Ralph Nyström, project leader. Swerea MEFOS has international, cutting-edge competence in managing large pilot and demonstration projects, and the business model of the planned test centre is similar to our existing one. The purpose of the venture is to create Europe s first test centre for wind power in cold climates. The need is apparent because extensive expansion of wind power is being planned in the Arctic region. We see this as a strategically important project of national interest and are eager to get started, continues Ralph Nyström. Six wind turbines are planned for the site, of which four will be available for leasing. The permit application for the centre will aim for wind turbines with a height of up to 250 metres. Three smaller wind turbines for academic research are also planned. A consortium of companies, academia and authorities has joined the project. CONTACT: Ralph Nyström, ralph.nystrom@swerea.se Mats Sundgren, mats.sundgren@swerea.se Distributed by Swerea MEFOS AB Publisher: Mats Sundgren. mats.sundgren@swerea.se. Editor: Karin Edfast. karin.edfast@swerea.se Design: Plan Sju kommunikation AB TELEPHONE FAX mefos@swerea.se INTERNET ADDRESS Swerea MEFOS, Box 812, SE Luleå, Sweden