Energy and environment Tenova latest technologies

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1 Energy and environment Tenova latest technologies G. Nova Tenova CEO Düsseldorf, June 28 th, 2011

2 Index CO 2 emissions trend Iron & Steel: Impact on the environment Tenova latest technologies for the environment Conclusions 2

3 CO 2 emissions trend Kyoto Protocol (1997) established reductions of global CO 2 emissions which are not prescriptive; Certain Countries have issued non biding policies, aiming at reducing CO 2 emissions/gdp; In 2009, total global CO 2 emissions increased to 31.3bnt, (+40% since 1990). 40 Global CO2 emissions per region bnt CO International Transport Developing countries China 10 Industrialised countries Source: Olivier and Peters,

4 CO 2 emissions trend Even if all countries will meet their own committed reduction targets, an increase up to 35bnt is expected within 2020; The worldwide economy will have to make a major effort to be able to limit this further increase; The Iron & Steel industry will have to contribute Global CO 2 emissions per region bnt CO2 35bnt International Transport Developing countries 20 China 10 Industrialised countries

5 Index CO 2 emissions trend Iron & Steel: Impact on the environment Tenova latest technologies for the environment Conclusions 5

6 Iron & Steel: Impact on the environment Major energy-intensive industry 2 nd Industry for Energy Consumption after Chemicals; (percent of total) CHEMICALS Chemicals IRON & Iron STEEL and steel Responsible for about 7% of World CO 2 emissions; Non Metallic Nonmetallic Minerals minerals (Cement (Cement included) Included) PULP Pulp and AND paper PAPER CO 2 emissions reduced from 2.2t CO 2 /t of crude steel (1990) to 1.9t CO 2 /t of crude steel today (-14%); Non Ferrous Nonferrous Metals metals Indexed energy consumption/t of crude steel produced in North America, Japan and Europe (1975 = 100%) Historical energy consumption/t of crude steel reduced by 50% in the last 35 years Source: IEA data services, WorldSteel Association 6

7 Iron & Steel: Impact on the environment The most critical areas are: Blast Furnace/Basic Oxygen Furnace Coke making/sinter DRI Module EAF Reheating Furnace Hot Strip Mill Tenova is very active in three of them 7

8 Index CO 2 emissions trend Iron & Steel: Impact on the environment Tenova latest technologies for the environment Conclusions 8

9 BF-BOF Other DRI-EAF technologies Tenova DRI-EAF Tenova for the environment HYL DRI: CO 2 abatement CO2 Emissions: BF-BOF vs DRI-EAF (0.74 kg CO2/kWh) kg CO2/t kg CO2/t Power & O2 CO2 in flue gases Other DRI-EAF route emits much less CO 2 than BF-BOF Tenova HYL ZR DR technology: further significant contribution to limit CO 2 : 50% CO 2 reduction vs. BF-BOF CO 2 reduction real GHG abatement if the removed CO 2 is commercialized; Plants in Mexico, Indonesia, Malaysia and Abu Dhabi sell captured CO 2 for different industrial uses. 9

10 BF-BOF Other DRI-EAF technologies Tenova DRI-EAF Tenova DRI-EAF: Minimal CO2 Emission Scheme Tenova for the environment HYL DRI: CO 2 abatement kg CO2/t CO2 Emissions: BF-BOF vs DRI-EAF (0.74 kg CO2/kWh) Power & O2 CO2 in flue gases Other The patented HYL Minimal CO 2 Emission Scheme captures up to 80% of total carbon input; Combined with Tenova EAF technology emissions are almost 1/3 of BF-BOF route

11 Tenova for the environment HYL DRI: Energy Efficiency ZR DR energy efficiency around 87% vs. <75% for other DRI technologies: higher operating pressure (6-8 bara) to optimize the power consumption; higher reduction temperature (above C) to increase the reduction process kinetics; in-situ reforming inside the shaft furnace to consumer; various energy recovery units in the plant. avoid an external energy Further energy savings for EAF: ZR DR 94% inherent ability to produce highly metallised DRI well in excess of DRI can be continuously transported to the EAF with the reliable HYL HYTEMP System delivering the product already hot to the furnace (600 C) 11

12 Tenova for the environment DRI for Integrated Plants Large scale (>2.5 Mt/y) HYL module now in range suited for Integrated plants; HYL ZR technology can use Coke Oven Gas (COG) as reducing gas; By feeding 30% DRI into BF: Higher BF productivity by 24% Lower CO 2 emissions by 23% Capex / Opex and environmental impact much better than adding new BF capacity. 12

13 Tenova for the environment HYL DRI: A Real Success ZR DR technology: 8 new plants (since 2005) for a total new capacity of 12Mt/y Emirates Steel Industry (Abu Dhabi): one of the world s largest DRI facility with DRI production >3.2Mt/y (2 units) The technology developed to build ZR DR modules of 2.5Mt/y in a single unit as in Nucor Corporation (US) 13

14 Tenova for the environment EAF Tenova is working in many directions to develop a more environmental friendly EAF with less energy consumption and less direct and indirect CO 2 emissions: Process optimization based on off-gas real time analysis: EFSOP Dynamic process control including novel sensors and process optimization models: ieaf An efficient solution for off-gas heat recovery to produce steam/electrical energy: irecovery Continuous feeding and preheating system: Consteel The synergic integration of our technologies in the EAF route is compound in the new Consteel Evolution which is able to achieve overall CO 2 reduction of t/y of CO 2 (-15%) 14

15 Tenova for the environment Reheating Furnaces Drastic reduction of NO X emissions: <60 3% O 2 ; Full Regenerative Flameless burners: 10%-20% of fuel reduction compared with traditional furnace in the same operating conditions; Low calorific value fuels such as Blast Furnace Gas: -16% CO 2 emissions. 15

16 Index CO 2 emissions trend Iron & Steel: Impact on the environment Tenova latest technologies for the environment Conclusions 16

17 Conclusions Steel Industry has reduced its energy consumption per tonne of steel produced by 50% in 35 years; CO 2 emissions intensity has diminished; but its global footprint has increased up to 2.700Mt/y CO 2 (+60% in 20 years); Tenova is continuously improving its technologies for achieving the best performances in terms of energy efficiency and environmental sustainability. 17

18 Provocation The extensive utilization of Tenova technologies could allow a saving of : 340 Mt/y CO 2 by charging HYL DRI (COG based) into the BF 30 Mt/y CO 2 in the EAF steel shop 25 Mt/y CO 2 with the slab/bloom/billet reheating furnace TOTAL CO 2 SAVING WITH TENOVA TECHNOLOGIES: about 400 Mt/y out of current Mt/y (15% reduction) 18

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20 Tenova for the environment RF: Real Success Tenaris Dalmine RHF revamping Production increased from 180t/h to 215 t/h Significant energy saving in fuel consumption, about 15% NO X emissions far below the guaranteed limit 20