1 GREEN H 2 OPPORTUNITIES IN STEELMAKING ECCM Conference The Hague, 06/29/2018 Thomas Buergler
2 CO 2 CONCENTRATION IN THE ATMOSPHERE On May 9 th 2013, the concentration of CO 2 surpassed 400 ppm. Before the industrial revolution global average CO 2 was about 280 ppm. 2 06/29/2018 Green H2 Opportunities in Steelmaking During the last years, CO 2 fluctuated between about 180 ppm during ice ages and 280 ppm during interglacial warm periods.
3 CO 2 EMISSION SCENARIOS UNTIL 2100 The EU Commissions Low Carbon Roadmap (and the world climate contract) suggest a reduction of CO 2 emissions of 80 % (and lower) by 2050 compared to levels at the beginning of the 21 st century. nclimate/journal/v6/n1/fig_tab/nclimate2870_f2.html -carbon -report -emissions-will-hit-new-heights-in /29/2018 Green H2 Opportunities in Steelmaking Transition process requires a new energy system without C at the end. Demand for radical technical solutions and x-large infrastructure investments.
4 WORLD TOTAL PRIMARY ENERGY SUPPLY -world-energy-statistics.html 4 06/29/2018 Green H2 Opportunities in Steelmaking More than 85 % of the world total primary energy supply is not based on renewable resources. 1 Mtoe = 11,63 TWh
5 GLOBAL CHANGE IN STEEL PRODCTION Megatrends have changed the world completely within 15 years. Steel production as example for all other sectors shows the global trend. The main driver in the competition is now technology development. 5 06/29/2018 Green H2 Opportunities in Steelmaking
6 H 2 IN IRON AND STEELMAKING PROCESSES Removal of oxygen from the iron oxide is the most energy intensive step in iron/steelmaking : Fe 2 O 3 + 6CO = 2Fe + 3CO 2 + 3CO Fe 2 O 3 + 6H 2 = 2Fe + 3H 2 O + 3H 2 Replacement of carbon by hydrogen is depending on specific process conditions. H 2 10 % 30 % % 6 06/29/2018 Green H2 Opportunities in Steelmaking
7 GLOBAL STEEL PRODUCTION 33 % 67 % 67 % 33 % 60 % 40 % 93 % 7 % 7 % 93 % Production share 2017: 73 % BF/BOF route 27 % EAF route (5 % DRI) 79 % 21 % 59 % 41 % 77 % 23 % Global steel production : 1.7 billion tons in 2017 (EU168 million tons) Two production routes: Primary steelmaking from iron oxides (BF/BOF route) Secondary steelmaking from scrap (EAFroute) 7 06/29/2018 Green H2 Opportunities in Steelmaking
8 CARBON, NG AND H 2 IN STEEL PRODUCTION Iron and steel industry accounts for approx. 6,7 % of global anthropogenic and 31 % of industrial CO 2 emissions. DR process with NG is the first step for primary steel production to reduce CO 2 emissions. The origin and availability of electric energy is essential for renewable H 2 production and use in the DRI/EAF route. 8 06/29/2018 Green H2 Opportunities in Steelmaking
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10 FROM PELLETS TO HBI Iron ore pellets 3 million metric tons/a 67 % Fe 2,0 million tons MIDREX DR/HBI plant HBI Hot Briquetted Iron 91% Fe, 86 % Fe met Natural gas 23 million MMBTU/a 10 06/29/2018 DRI/HBI can substitute hot metal and high quality scrap in EAFsteelmaking and is a precondition for the transfer from BF/BOF to DR/EAF route for high quality carbon steel grades. Green H2 Opportunities in Steelmaking
11 HBI IN THE BF PROCESS 11 06/29/2018 Green H2 Opportunities in Steelmaking voestalpine HBI plant CC, TX HBI in the BF process is under specific conditions (e.g. high demand for hot metal in the steel plant, reduced availability of internal coke) a tool for optimizing the BF operation (e.g. AK Steel).
12 DR PROCESS WITH INCREASED USE OF H NG m 3 /h m 3 /h Top gas m 3 /h m 3 /h Top gas scrubber H 2 0 m 3 /h m 3 /h Reformed gas m 3 /h m 3 /h Reduction shaft 2 The DR process already runs with > 60 % H 2 in reducing gas from the reforming process. Additional H 2 (if in the future economically available) can added to the process without major technical modifications. Top gas fuel m 3 /h m 3 /h Processgas compressor 12 06/29/2018 Green H2 Opportunities in Steelmaking Reformer HBI 256 t/h
13 STEEL INDUSTRY STATUS AND CHALLENGES 13 EU steel industry committed to substantial reduction of CO 2 emissions However: Potential of existing production routes (mainly BF/BOF) limited Development and implementation of new breakthrough technologies together with supportive energy infrastructure and services required 06/29/2018 Green H2 Opportunities in Steelmaking
14 STEEL INDUSTRY LOW-CARBON APPROACHES EUROPEAN LEVEL Pathways Carbon Direct Avoidance (CDA) Circular Economy Low-carbon smart technologies (+CCS) Process Integration with reduced use of carbon Carbon Capture and Usage (CCU) Description Renewable electricity in basic steelmaking, e.g. production of H 2, to replace carbon Process Integration with reduced use of carbon Using CO/CO 2 from steel mill as raw material (Chemical conversion to hydrocarbons) Projects/ intiatives HYBRIT, H2Future, SuSteel, GrInHy, SALCOS, Siderwin HISARNA, PEM, TGR-BF-Plasma Steelanol, Carbon4Pur Carbon2Chem, FReSMe Members SSAB, voestalpine, Salzgitter, ArcelorMittal Tata Steel, ArcelorMittal ArcelorMittal, TKSE 14 06/29/2018 Green H2 Opportunities in Steelmaking
15 CDA TECHNOLOGIES: H2Future and SuSteel PEM electrolyser unit with 6 MW power and m 3 /h H 2 production at voestalpine Linz site for full scale demonstration of H 2 production and demand -side-management balancing funded by FCH JU. Fundamental research project for plasma smelting reduction with H 2 at voestalpine Donawitz site. This project for the upscaling from lab scale (< 500 g) to batch operation with 20 kg is funded by FFG. 06/29/ Green H2 Opportunities in Steelmaking
16 PEM ELECTROLYSER TECHNOLOGY On of the world largest PEM Siemens AG PEM reactions Anode: H 2 O = 2H + + 0,5O 2 + 2e - electrolysis unit with Cathode : 2H + + 2e - = H 2 m 3 /h H 2 production at» Cells 50» Membrane 0,5 m²/cell voestalpine Linz for full scale» Current density 1 A/cm² demonstration of H 2» Voltage up to 2 V/cell production and grid balancing. Project Budget: 17,8 M FCH JU Funding: 12,0 M (70% funding) Project Duration: 4,5 years ( ) The Fuel Cells and Hydrogen Joint Undertaking is a unique public private partnership supporting RTD activities in fuel cell and hydrogen energy technologies in Europe 16 06/29/2018 Green H2 Opportunities in Steelmaking
17 LAYOUT OF PEM ELECTROLYSER SYSTEM» Rated power 6 MW» Hydrogen 1200 m³ (STP) /h» Oxygen 600 m³ (STP) /h» Cells 600 (12 x 50)» Pressure max. 150 mbar» Purity > 98 % H 2» Dew point < 10 C» At least 170 comparable units for supplying a DR -plant like Texas necessary 17 06/29/2018 Green H2 Opportunities in Steelmaking
18 DEMOPLANT AT voestalpine LINZ SITE» Approval by the authorities, start of construction: Beginning of 2018» Delivery of transformer and electrolysis modules: Summer 2018» Start of Commissioning: End of 2018» Opening and full operation: Spring 2019» 2 year trial program» End of H2Future: June /29/2018 Green H2 Opportunities in Steelmaking
19 TRANSFORMATION SCENARIOS ENERGY SYSTE Starting point for transformation in Austria Actual electric energy production : 68 TWhper year. voestalpine Linz and Donawitz almost self sufficient. Future scenario voestalpine H 2 based steelmaking Additional demand for electric energy from renewable sources: min. 33 TWhper year, 8760 h available Approx. 50 % of Austria s electric energy production fossil renewable Competition with other sectors e.g. traffic Transfer of the car fleet to e-mobility in Austria requires additional min. 13 TWhper year Electric energy [TWh/a] ] 19 06/29/2018 Green H2 Opportunities in Steelmaking
20 WIND TURBINES FOR STEEL SECTOR Low-carbon technologies and additional electricity demand from renewable sources are not only a challenge for the steel industry. Realistic expansion scenarios has to be developed for 2030 and = 1,000 wind turbines (à 4 MW capacity) 20 06/29/2018 Green H2 Opportunities in Steelmaking
21 OPEX FOR RENEWABLE H 2 IN STEELMAKING 180 % Iro n and steelmaking: H 2 is in d ire ct competition with C and NG as reducing agent. 100 % 130 % Ene rg y Raw materials Others H 2 gra de for iron and ste e lma king is not comparable with use in e.g. fuel cells. Complete replacement of ca rbon by re ne wa b le e ne rg y re sults in a sig nifica nt incre a se in production costs. But: Replacement of ca rbon by hydrogen as reducing agent is the only re a listic wa y to fulfill the CO 2 re d uction targets in Status BF/ BOF DRI/ EAF with NG PEM/ DRI/ EAF with H /29/2018 Gre e n H2 Op p ortunitie s in Stee lma king
22 voestalpine GROUP DECARBONISATION APPROACH voestalpine concept of gradually decarbonising steel production is focused on:» Bridge technology: Direct reduction plant in Texas, USA; Natural gas as reducing agent in direct reduction plants; followed by the gradual introduction of green hydrogen generated using renewables.» Renewable energy generation: H2Future project (Linz, Austria); Testing PEM (proton exchange membrane) electrolysis technology on an industrial scale (6 MW) and simulating rapid load changes in electricity generated from renewable energy sources (grid balancing).» Breakthrough technology: SuSteel( Sustainable Steelmaking ): Reduction of iron ore using hydrogen plasma, further research using pilot plant at the Donawitz site (Austria) /29/2018 Green H2 Opportunities in Steelmaking
23 FROM CARBON TO GREEN HYDROGEN C C CH 4 H 2 H 2 CO % % < 20 % 06/29/ Green H2 Opportunities in Steelmaking
24 Thank you! Questions? Thomas Buergler T. +43/664/