Intelligent recycling of stainless steel scrap to reduce CO2 A study by the Fraunhofer-Institute UMSICHT

Transcription

1 Intelligent recycling of stainless steel scrap to reduce CO2 A study by the Fraunhofer-Institute UMSICHT on behalf of the Oryx Stainless Group Mülheim an der Ruhr/Dordrecht Media Presentation Düsseldorf, 3rd May 2010

2 Study, methodology and findings Market development und scenarios Conclusions Oryx Stainless Group Fraunhofer-Institute UMSICHT

3 Study carried out by Fraunhofer-Institute UMSICHT Scientific study showing how much CO 2 can be reduced during the production of stainless steel through more intensive usage of high-quality secondary raw material blends instead of primary raw materials Recycling process Smelting a blend of high-grade stainless steel scrap Comparing emission volumes Extraction of primary raw materials Smelting primary raw materials 3

4 Methodology Fraunhofer-Institute UMSICHT Step-by-step description of process involved in manufacturing a product from primary raw materials compared to recycled material Steel manufacture electric arc furnace Process chains ferrochromium, ferronickel, ferromolybdenum Process chains Oryx Stainless (Collection Processing Blend) Calculating CO 2 data for Oryx Stainless Group as a reference value Data calculation for process chains in Oryx Stainless locations Data calculation GaBi Database, ecoinvent Database, Best Reference Documents, other sources Expert opinion for validation purposes Calculating all results per ton of stainless steel scrap and per ton of produced high-grade steel Comparing CO 2 balances and calculating total savings Calculating potential for CO 2 savings through usage of secondary raw material blends Calculating CO 2 emissions 4

5 Positive CO 2 balance through usage of stainless steel scrap blends Every ton of stainless steel scrap used is equivalent to CO 2 saving of t* of environmentally harmful CO 2 Main CO 2 saving through Nickel Price advantage of secondary raw materials: approx.10% compared to primary raw materials Recycling of expensive primary raw materials e.g. Nickel** Source: Fraunhofer UMSICHT * Weighted average **Source: Thomson Reuters 5

6 Study, methodology and findings Market development and scenarios Conclusions Oryx Stainless Group Fraunhofer-Institute UMSICHT

7 Low CO 2 emissions through greater usage of blends of stainless steel scrap Scenarios Average use of blends in electric arc furnace (%) Savings per ton of stainless steel from electric arc furnace (t CO 2 /t) Evaluation Status quo 50% 2.32 Conservative assumption Target 75% 3.47 Viable in medium term Maximum technical level 95% 4.40 Reserves of scrap insufficient 75% target technically achievable and realistic in medium term Prerequisite: Access to worldwide reserves of stainless steel scrap Smart usage of reserves through blending 7

8 Global stainless steel production: +50% to ,000 in 000 t 30,000 25,000 24,132 25,918 27,922 29,677 31,006 32,265 20,000 21,557 15,000 10,000 5,000 0, Source: SMR 8

9 Usage of high-grade blends as key to CO 2 savings CO 2 price development Consensus: rising prices Bloomberg price prognosis in Euro/t CO 2 (EAU Futures)* Environmental factor CO Median Target: higher energy efficiency, higher raw material productivity Average Bloomberg Wgt Avg High Low Current forward Primary raw materials: Rising prices through shortages and growing demand Development ** Ni + 203% Cr + 278% Mo + 580% Fe + 230% 9 * Source: Commerzbank ** Source: Thomson Reuters/WV Stahl

10 CO 2 reductions comparable with those of a mega-city are possible 160,000 in 000 t 160, , , ,000 95% 120, ,000 75% 100,000 80,000 80,000 60,000 50% 60,000 40,000 40,000 20,000 20,000 0, Source: SMR/Fraunhofer UMSICHT By 2015, reaching a target level of 75% would lead to an annual CO 2 reduction comparable with the emissions of more than 10 million people* a mega-city. *10,6 t CO 2 per resident in Germany p. a.; Fraunhofer UMSICHT 10

11 Cost factor CO 2 4,500 in 000 4,500 4,000 95% 4,000 3,500 3,500 3,000 75% 3,000 2,500 2,500 2,000 50% 2,000 1,500 1,500 1,000 1,000 0, , Source: SMR/Fraunhofer UMSICHT By 2015, reaching a target level of 75% would lead to an annual cost saving through lower CO 2 emissions amounting to EUR 3.4 billion 11

12 Limiting factor for secondary raw material stainless steel scrap Global reserves of stainless steel scrap China s significance for stainless steel scrap is increasing China s reserves of stainless steel scrap not yet exploited to optimal extent China s significance as reservoir for stainless steel scrap will steadily increase By far the largest reserves of stainless steel scrap are currently in Europe followed by Russia, USA, Japan, China and Asia Even given the most favourable projections, worldwide reserves will not completely satisfy future demand Source: Heinz H. Pariser Market Research 12

13 Study, methodology and findings Market development and scenarios Conclusions Oryx Stainless Group Fraunhofer-Institute UMSICHT

14 Using secondary raw materials more intelligently increased usage of blending Using available resources more efficiently through blending Volume of suitable secondary raw material for the production of high-quality stainless steels can be increased two- to threefold through blending Status quo: Sub-optimal usage of low grade scrap through simple processing by many market participants Encourage worldwide dissemination of blending expertise High potential for better worldwide utilisation, also in Germany 14

15 The right blend at the right time, at the right place Maintain efficient, transparent overview of availability of secondary raw material stainless steel scrap in developed economies and expand it in other regions Collect locally and manage globally in order to encourage intelligent usage Open world markets for trading in secondary raw material stainless steel scrap for environmentallyfriendly blending Intelligent recycling through blending instead of national protectionism Creating optimal legislative frameworks for efficient usage of resources (REACH versus EU legislation on waste) More efficient management of market transparency Open world markets for trading in secondary raw material stainless steel scrap Global electronic marketplace for high-grade stainless steel scrap 15

16 Study, methodology and findings Market development und scenarios Conclusions Oryx Stainless Group Fraunhofer-Institute UMSICHT

17 Oryx Stainless Group Oryx Stainless, the leading international raw materials company Oryx Stainless is one of the world s leading trading organisations for raw materials for usage in the stainless steel industry Its business focus is in the handling and processing handling of stainless steel scrap Facts and figures Founded: 1990 Locations: Mülheim an der Ruhr, Germany and Dordrecht, Netherlands Oryx Stainless, a brand of the KMR Group, has a stable shareholder base that fully supports the long-term, sustainable growth strategy of the company. All owners have assumed entrepreneurial responsibility either for the running of the Group or in its individual business units. Tonnage (2009): approximately 300,000 t World market share approximately 5% Employees (2009): 85 Mülheim an der Ruhr, Germany Dordrecht, Netherlands Source: Oryx Stainless 17

18 Oryx Stainless Group: Blending pioneers Blending = Processing of secondary raw materials through blending different types of steel and stainless steel scrap for usage in in electric arc furnace. Oryx blends replace primary raw materials such as ferronickel, ferrochromium and ferromolybdenum. From scrap to raw material blend step-by-step 18

19 Fraunhofer-Institute UMSICHT The institute is part of the Fraunhofer-Gesellschaft and thus comes from a long tradition of applied market research and development. Since its foundation in 1990, Fraunhofer UMSICHT has been driving forward sustainable, environmentally friendly technology and innovative approaches through technical innovations in environmental, materials, process and energy technology. Internationally, the Institut is mainly active in Europe 19

20 Contacts Oryx Stainless Group Rheinstraße 97 D Mülheim an der Ruhr Germany Tel.: Fax: s-gravendeelsedijk 175 NL-3316 AS Dordrecht Netherlands Tel.: Fax: Fraunhofer UMSICHT Fraunhofer-Institute for Environmental, Safety and Energy Technology UMSICHT Osterfelder Straße 3 D Oberhausen Germany Tel.: Fax: info@umsicht.fraunhofer.de info@oryxstainless.com 20