Steel s competitiveness from the environmental perspective
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1 1 Steel s competitiveness from the environmental perspective 2018 SEAISI Conference & Exhibition The Ritz-Carlton Jakarta, Indonesia 27 June, 2018 Kenichiro Fujimoto, Ph.D. The Chair for International Environmental Strategic Committee The Japan Iron and Steel Federation General Manager, Head of Department Global Environmental Affairs Department Environment Division Nippon Steel & Sumitomo Metal Corporation
2 2 Contents 1. Introduction 2. Impact in manufacturing 3. Impact in being disposed 4. Impact in use 5. The world in Development of lowering carbon emissions in the steel manufacturing stage 7. Summary
3 Introduction The Sustainable Development Goals (SDGs) adopted at the United Nations summit in September 2015 include 13 CLIMATE ACTION as one of their 17 goals The Paris Agreement entered into force in November 2016 aiming to keep the global temperature rise this century well below 2 degrees Celsius above preindustrial levels and to pursue efforts to limit the temperature increase even further to 1.5 degrees Celsius 3 Momentum and interest on the climate change are apparently growing worldwide Environmental impact of materials is attracting more interest
4 Introduction However, the materials environmental impact assessment tends to focus only on a certain aspect (specifically impact in use), and in some cases overlooks total environmental impact In terms of the Life Cycle Assessment (LCA) on environmental burden, steel is regarded as a very superior material 4
5 Impact in manufacturing 5
6 Impact in manufacturing 6 Development of energy saving and CO2 reduction technologies in the Japanese steel industry Japanese steel industry reduced gross consumption per ton of steel by process improvements Energy recovery is contributing to reduce net consumption in recent years Source: The Japan Iron and Steel Federation
7 Reference Major energy-saving technology in Japanese steel industry Coke Dry Quenching (CDQ) Instead of water used conventionally, this equipment uses inert gas to quench the hot coke and, at the same time, recovers the sensible heat in the shape of steam. In addition to the waste heat recovery, the equipment contributes to the improvement of coke quality and the reduction of environmental コークスの持つ熱を大気に放散 pollution This equipment has been installed at all the working coke 粉塵も発生 ovens of steel manufacturers in Japan 7 Coke bucket Dust catcher 消火塔 Turbine generator Coke oven Cooling chamber Circulation fan Waste heat boiler 湿式消火 Generator Coke-conveying truck Conveyor Cooled coke
8 Impact in manufacturing 8 International Comparison of Energy Efficiency in the Steel Industry The International Energy Agency (IEA) estimates that if most of energy saving technologies available as of 2011 are applied world widely, the total energy saving potential would reach 6.6 EJ Virtually all steel mills in Japan use existing technologies and there is very little potential for further energy-conservation measures Therefore, it is crucially important to disseminate these technologies worldwide to achieve further CO2 reduction and energy saving Energy Saving Potential from Transferring and Promoting Energy Conservation Technologies (2011) Japan s energy conservation potential per ton of crude steel is the smallest in the world. Source: IEA Energy Technology Perspective 2014
9 Impact in being disposed 9
10 Impact in being disposed Material life cycle and recycling After final products such as automobiles come to the end of their use in society, most of their materials are recycled and some are ultimately disposed of [*1] Steel is a material that can be recycled infinitely by closed-loop recycling once natural resources are used Closed-loop recycling reduces consumption of natural resources of the material, accompanying environmental impacts, and generation of wastes [*1] There are the two routes of open-loop recycling and closed-loop recycling for recycling (1) Open-loop recycling : Method where materials are ultimately disposed of (2) Closed-loop recycling : The material is recycled to the original material without losing its quality so that the material can be recycled infinitely 10 Steel s recyclability has a positive impact on the environment
11 Impact in being disposed 11 Conditions for Autonomous/Sustainable Material Recycling a) Easy sorting b) Lower burden for recycling compared to virgin material production c) Economic rationality under a well-established recycling system Additional conditions for Closed-loop Recycling d) Recyclability for diverse e) Less quality deterioration by recycling
12 Impact in being disposed d) Recyclability for diverse Materials recyclable only into the same single product can lead to inefficient recycling Steel scrap presents new microstructures formed after being melted in converters or electric furnaces, and can be transformed into various products 12 Recycling
13 Impact in being disposed 13 e) Less quality deterioration by recycling In the material recycling process, contamination is not avoidable However, since steel owns superior properties that prevent deterioration by impurities, many of the impure elements can be removed by gasification or oxidation in the regular recycling process Element Radar Chart Sources: Tohoku University ( Dr. Hiraki )
14 Impact in use 14
15 Impact in use The possibility of Strength on the steel products Currently, the strength of commercialized steel products is approximately 1,000 MPa in steel plates and sheets, and approximately 4,000 MPa in steel wires On the other hand, steel has a theoretical strength of 12,000 MPa, suggesting that even in the use stage, steel has the potential to demonstrate more superior functions with a smaller amount by further enhancing its strength 15
16 Brief summary: Importance of Life Cycle Assessment When focusing on vehicle fuel efficiency on automobiles, the use of lightweight materials, such as aluminum and CFRP, helps lessen the environmental impact more effectively than steel However, in terms of steel s total life cycle; Steel exerts considerably less impact [*1] on the environment than aluminum and CFRP etc. in production stage Steel can be recycled infinitely by closed-loop recycling once natural resources are used Steel has the potential to demonstrate more superior functions with a smaller amount by further enhancing its strength 16 To correctly evaluate an environmental burden of product, it is important to consider over the life cycle CO 2 emissions from material production stage [*1] High-tensile steel (HSS) CO2 emission intensity is a littlie bit high (left blue bar) compared with Normal steel per weight. However, considering the functional aspects, HSS CO2 emission intensity is lower (right yellow bar) than that of Normal steel because HSS can achieve same performance with lightweight
17 The world in 2050 According to the UN World Population Prospects, the world population is expected to reach 9.8 billion in 2050 As steel is the key material to achieve SDGs such as No1, 7, 8, 9 and 11, the demand for steel is likely to expand in the future 17 Steel Demand Drivers
18 Steel material flow in the world(2015) There is an indicator as social steel stock among the indicators of wealth Steel is circulated around the world, and the steel accumulated as products and social capital is referred to as social steel stock In the beginning of 2015, the world s social steel stock was 29.4Bt, or equivalent to 4t/capita Since scrap alone will be insufficient to meet steel demand for the foreseeable future, natural resources including iron ore is used as the raw material for steel products 18
19 Transition of steel stock in Japan With its rapid social and economic development after World War II, Japanese steel stock surged to 4.0 tons per capita that is the current global average by the early 1970s In spite of experiencing an economic bubble and its collapse in the 1990s, Japanese steel stock has currently grown to 10.7 tons per capita 19
20 The world in 2050 University of Cambridge indicates that current U.S. and European steel stocks are roughly 10 tons per capita, and that China and India are expected to reach these levels in the future If world s steel stock rises from 4 tons per capita in 2015 to 7 tons per capita in 2050, the total amount of steel stocks, combined with population increases, will expand from 29.4Bt in 2015 to 68.2Bt in 2050 Considering the generation rates of scrap, only the scrap cannot meet the shortfall of steel sources. Therefore, the usage of primary resources are inevitable in the long term, that is, iron ore reduction will be inevitable in the world of Global Steel Stock Global population 7.38 billion 9.77 billion Steel stock per capita 4.0 t 7.0 t Steel stock 29.4 Bt 68.2 Bt Steel Production Steel demand (Final products) 1.27Bt 2.6Bt Crude steel production 1.62Bt 3.3Bt Scrap 0.56Bt 2.1Bt of which post consumer scrap 0.23Bt 1.4Bt primary iron 1.2Bt 1.6Bt Source: University of Cambridge CO 2 emissions 3.0Bt 4.6Bt
21 The world in 2050 How to tackle the CO2 emission increase? Based on existing technologies, CO2 emissions will increase from 3.0Bt- CO2/year to 4.6Bt-CO2/year in 2050 At present, there are no alternatives without carbon to process natural resources in an economically rational way, that is to say, the use of fossil fuels is currently essential in the reduction of iron ore Since there are limits to what existing technologies can achieve, process innovation is required to pursue further CO2 reduction beyond these limits There are two solutions suggested to deal with this challenge, which are (1) Realizing carbon reduction by CO2 Capture and Storage (CCS) and (2) Shifting from carbon reduction to hydrogen reduction 21
22 22 Development of lowering carbon emissions in the steel manufacturing stage COURSE50 is an innovative technology aiming to cut CO2 emission by 30% by minimizing CO2 emission itself and capture & storage. Work is under way to establish the technology by ca and to industrialize and transfer the developed technologies by 2050 Source: The Japan Iron and Steel Federation
23 Summary (Key points) 23 The steel industry has been making efforts to substantially reduce CO2 emissions by developing innovative technologies in the manufacturing stage Steel s recyclability has a positive impact on the environment Evaluating the overall life cycle is invaluable in assessing the environmental performance of materials In 2050, steel will remain as a competitive material, with further potential of a material itself Towards 2050, in pursuit of this potential, steel is likely to maintain its superiority over other materials in its total life cycle in the manufacturing stage, use stage, and recycling and disposal stage Steel is a promising material
24 Thank you 24
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