CO2 Capture in an Integrated Steel Mill

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1 Techno-Economic Evaluation of Deploying CO2 Capture in an Integrated Steel Mill Stanley Santos 1*, Lawrence Hooey 2, Jeremy Johns 3, Andrew Tobiesens 4 Clean Coal Technology Conference Thessaloniki, Greece May IEA Greenhouse Gas R&D Programme 2 Swerea MEFOS 3 Tata Steel Consulting 4 Sintef Chemistry and Materials

2 Members of Steering Committee Nils Edberg, SSAB Chairperson Camilla Axelsson, Swedish Energy Agency Helen Axelsson, Jernkontoret Kim Kaersrud, SSAB Anita Larsson, Swedish Energy Agency Stanley Santos, IEAGHG Peter Sikstrom, LKAB Jan Olov Wikstrom, Swerea MEFOS Guang Qing Zuo, LKAB Total value of the Project: IEA GHG Contribution: 4.44 million SKr 1.2 million SKr

3 Co-Authors of this Study Swerea MEFOS Team Lawrence Hooey (Project Manager) Mikael Larsson Axel Boden Tata Steel Consulting Jeremy Johns Vic Abraham Mike Knight SINTEF Chemistry and Materials Andrew Tobiesen Karl Anders Hoff Geir Haugen IEA Greenhouse Gas R&D Programme Stanley Santos Steve Goldthorpe

4 Objectives of the Study To specify a REFERENCE steel mill typical to Western European configuration and evaluate the techno-economic performance of the integrated steel mill with and without CO2 capture. To determine the techno-economic performance, CO2 emissions and avoidance cost of the following cases: An integrated steel mill typical to Western Europe as the base case. An end of pipe CO2 capture using conventional MEA at two different levels of CO2 capture rate An Oxygen Blast Furnace (OBF) and using MDEA for CO2 capture.

5 Terminologies / Abbreviations OBF OBF-PG OBF-TG TGR BFG BOFG COG SGP Oxy-Blast Furnace Oxy-Blast Furnace Process Gas Oxy-Blast Furnace Top Gas Top Gas Recycle Blast Furnace Gas Basic Oxygen Furnace Gas Coke Oven Gas Steam Generation Plant

6 Integrated Steelmaking Process Raw Materials Preparation Plants Coke Production Ore Agglomerating Plant (Sinter Production) Lime Production Ironmaking Blast Furnace Hot Metal Desulphurisation Steelmaking Basic Oxygen Steelmaking (Primary) Secondary Steelmaking (Ladle Metallurgy) Casting Continuous Casting Finishing Mills Hot Rolling Mills (Reheating & Rolling)

7 Extra-Ordinary Assumptions (For European Scenarios) Only one type of steel product (standard grade HRC) produced and sold. Plant Ownership Structure not typical to European Steel Mill Scenario Captive Ownership: Power Plant, ASU and Lime Plant Captive Power Plant with Balanced Electricity Supply to the Steel Mill. Captive Coke Plant with Balanced Supply of Coke to the Steel Mill. Direct emissions related to the Pellets and Merchant Scrap not included in overall CO2 emission accounting.

8 Direct CO2 Emissions from the REFERENCE Steel Mill Nearly 95% of the total CO2 Emissions from the Integrated Mill that produces 4 million tonnes of Hot Rolled Coil: Power Plant (47.0%) Ironmaking (21.2%) Sinter Production (14.0%) Coke Production (9.3%) Lime Production (3.4%) Lime Plant 3.43% Power Plant 46.99% Reheating & HRM 2.76% Slab Casting 0.04% Steelmaking 2.44% Iron Making 21.18% Coke Plant 9.31% REFERENCE Integrated Steel Mill (2090 kg per tonne of Hot Rolled Coil) Sinter Plant 13.85%

Key Messages from this Study An Integrated Steel Mill is a complex industrial process which consists of Multiple Point Sources of CO2 Emissions UNIT Source of CO 2 Em is s ions Emissions (kg/t HRC)

19 1,660,769 400/1300 PCI Coal drying, torpedo car and ladle heating (HM Desulphurisation) diffue emissions 776 7.76 31,042 300 Blast Furnace Gas flare 19.

9 Key Messages from this Study An Integrated Steel Mill is a complex industrial process which consists of Multiple Point Sources of CO2 Emissions UNIT Source of CO 2 Em is s ions Emissions (kg/t HRC) Annual Emission (t/y) 100 Coke oven flue gas , Coke oven gas flare , Sinter plant flue gas (CO2 + CO) ,157, Hot Stove flue gas ,660, /1300 PCI Coal drying, torpedo car and ladle heating (HM Desulphurisation) diffue emissions , Blast Furnace Gas flare , /600 Basic Oxygen Furnace gas flared and system losses, SM diffuse Emissions , Continuous Casting - diffuse emissions (from slab cutting) ,188 Power Plant 46.99% Coke Plant 9.31% Sinter Plant 13.85% 800 Reheating Furnace flue gas , Hot Rolling Mills - diffuse emissions (from cutting and scarfing) Lime Plant flue gas , Pow er Plant flue gas ,928, Ancillaries transport fuel emissions (trucks and rails) ,000 Total Emissions ,376,554 Lime Plant 3.43% Reheating & HRM 2.76% Slab Casting 0.04% Steelmaking 2.44% Iron Making 21.18%

10 Key Messages from this Study An Integrated Steel Mill is a complex industrial process which consists of Multiple Point Sources of CO2 Emissions Ironmaking Process is responsible for nearly 80% of the Carbon Input that causes the majority of the Direct CO2 Emissions i (i.e out of 2090 kg CO2 / t HRC) of the Integrated Steel Mill

11 Nitrogen 2 Nm3 Raw Mt Materials il Coke 355 kg Sinter 1120 kg (70%) Pellets 352 kg (22%) Lump 125 kg (8%) Limestone 13 kg Quartzite 11 kg BF Screen Undersize Top Gas Cleaning BF Dust 15 kg BF Sludge BFG to Flare/Lost 23 Nm3 BFG Gas Holder COG BFG to Power Plant 935 Nm3 BFG to Coke Plant 185 Nm3 BFG to Hot Stoves 479 Nm3 Flue Gas 23 kg 4 kg 7 Nm3 780 Nm3 Air 358 Nm3 DRR: 31% FT: 2056oC TGT: 140oC HM Si: 0.5% HM C:4.7% Recuperator Hot Blast Cold Blast Nitrogen 3 Nm3 PCI Coal 152 kg BF Slag 280 kg Hot Metal 1000 kg Hot Stoves Oxygen 48 Nm3 Stea 1470 o C Steam 8 kg Main Air Compressor Air 995 Nm3 All Values are reported as kg or Nm 3 per tonne of hot metal (thm)

Carbon Balance of Ironmaking Process Direct CO2 Emissions of an Integrated Steel Mill (REFERENCE) Producing 4 MTPY Hot Rolled Coil 2090 kg CO2/t HRC (2107 kg CO2/thm ) Carbon Balance of Ironmaking

4 Hot Stove s Flue 114.1 Gas Total 447.5 Total 447.2 For this case study, it was demonstrated that the ironmaking process is responsible for 78% of the total carbon input of the steel mill.

12 Carbon Balance of Ironmaking Process Direct CO2 Emissions of an Integrated Steel Mill (REFERENCE) Producing 4 MTPY Hot Rolled Coil 2090 kg CO2/t HRC (2107 kg CO2/thm ) Carbon Balance of Ironmaking Process Carbon Input Carbon Output (kg C/thm) (kg C/thm) Coke Hot Metal 47.0 Limestone 1.5 BF Screen Undersize 6.3 PCI Coal Dust & Sludge 8.0 COG 1.3 BFG Export BFG Flared 5.4 Hot Stove s Flue Gas Total Total For this case study, it was demonstrated that the ironmaking process is responsible for 78% of the total carbon input of the steel mill. BUT only 21% of the carbon emitted as CO2 emissions is attributed to this process. The rest of the carbon emitted as CO2 are accounted to other processes (mostly end users of the by-product fuel gases) within the steel mill.

13 Carbon Balance of Ironmaking Process Direct CO2 Emissions of an Integrated Steel Mill (REFERENCE) Producing 4 MTPY Hot Rolled Coil 2090 kg CO2/t HRC (2107 kg CO2/thm ) Carbon from Coke & Limestone 314 kg C Carbon from screen reject to Sinter Plant (Mostly as Reclaimed Coke) 6 kg C Carbon Balance of Ironmaking Process Carbon Input (kg C/thm) Carbon Output (kg C/thm) Coke Hot Metal 47.0 Limestone 1.5 BF Screen Undersize 6.3 PCI Coal Dust & Sludge 8.0 COG 1.3 BFG Export BFG Flared 5.4 Hot Stove s Flue Gas Total Total Carbon from PCI Coal 132 kg C Carbon in Hot Metal to BOS Plant 47 kg C For this case study, it was demonstrated that atthe ironmaking process pocessis responsible s e for 78% of the etotal carbon input of the steel mill. BUT only 21% of the carbon emitted as CO2 emissionsisattributedtothis process. The rest of the carbon emitted as CO2 are accounted to other processes (mostly end users of theby product fuel gases) within the steel mill.

14 STEEL MILL Battery Limit (REFERENCE Integrated Steel Mill) UNIT 100: UNIT 200: UNIT 300: COKE PRODUCTION SINTER PRODUCTION HOT METAL PRODUCTION UNIT 400: UNIT 500: UNIT 600: HOT METAL DESULPHURISATION BASIC OXYGEN STEELMAKING SECONDARY STEELMAKING UNIT 700: UNIT 800: UNIT 900: CONTINUOUS SLAB CASTING SLAB REHEATING HOT ROLLING MILL UNIT 1000: UNIT 1100: UNIT 1200: LIME PRODUCTION AIR SEPARATION UNIT (OXYGEN PRODUCTION) POWER PLANT UNIT 1300: ANCILLARY UNITS

15 STEEL MILL Battery Limit (Steel Mill with OBF & MDEA CO2 Capture) UNIT 100: UNIT 200: UNIT 300: COKE PRODUCTION SINTER PRODUCTION HOT METAL PRODUCTION UNIT 400: UNIT 500: UNIT 600: HOT METAL DESULPHURISATION BASIC OXYGEN STEELMAKING SECONDARY STEELMAKING UNIT 700: UNIT 800: UNIT 900: CONTINUOUS SLAB CASTING SLAB REHEATING HOT ROLLING MILL UNIT 1000: UNIT 1100: UNIT 1200: LIME PRODUCTION AIR SEPARATION UNIT (HIGH PURITY O2 PROD.) POWER PLANT UNIT 2000: STEAM GENERATION PLANT UNIT 3000: UNIT 4000: AIR SEPARATION UNIT (LOW PURITY O2 PROD.) CO2 CAPTURE & COMPRESSION PLANT UNIT 1300: ANCILLARY UNITS

16 Integrated Steel Mill with OBF and MDEA CO2 Capture Technology Changes to the Steel Mill as compared to the Changes to the Steel Mill as compared to the REFERENCE Steel Mill (Base Case)

17 Materials Input & Output Major Raw Materials Input: Products and By-Products: Iron Burden (Fines, Lumps, Pellets) Hot Rolled Coil (Standard Grade) Energy and Reductant Coking Plant By-Products o o o Coking Coal PCI Coal Natural Gas Fluxes (Limestone, Quartzite, Olivine, CaC2, Burnt Dolomite) Merchant Scrap (External) Ferroalloys (FeMnC, FeSi-75, De-Ox Aluminium) Major Intermediate Products Coke (Lump & Breeze) Sinter Hot Metal Liquid Steel Slab Lime HP & LP Oxygen Electricity Steam o Crude Tar, BTX and Sulphur Steel Mill Slag o o o o Granulated BF Slag (Sale) De-S Slag (Landfill) BOF Slag (Sale & Landfill) SM Slag (Landfill) BF Sludge and Dust (Landfill) MDEA Sludge (Landfill) Liquid Argon Gas Network within Site Industrial Gases o Off-Gases o o o o HP & LP Oxygen, Nitrogen and Argon OBF Top Gas OBF Process Gas (PG) Coke Oven Gas (COG) Basic Oxygen Furnace Gas (BOFG) Steam (9 Bar, saturated) Carbon Dioxide

18 Sinter Fines (Brazil) [ ] [ 15.2 ] BF Screen Undersize (excl. coke) [ 15.2 ] Sinter Fines (Australia) [ 88.0 ] [ 5.1 ] Reclaimed Coke [ 5.1 ] (ex BF Screen) Quartzite Olivine Limestone [ 22.6 ] [ 97.6 ] [ 8.7 ] Sinter Fines (Sweden) [ 61.6 ] [ 47.3 ] [ 7.8 ] [ 34.1 ] [ 24.0 ] BF/BOS Dust & Sludge HM Spillage / De-S Slag BOS Slag Mill Scales [ 32.4 ] [ 34.1 ] [ 14.9 ] [ 7.8 ] [ ] [ ] Hard Coking Coal Soft Coking Coal Flow Diagra am e) O2 Capture ocess F/MDEA CO rial Pro ll with OBF Mater (Steel Mil Crude Tar Lime Coke Breeze [ 12.8 ] Benzole (BTX) UNIT 1000 UNIT 200 UNIT 100 [ 3.8 ] [ ] LimePlant [ 10.9 ] Sinter Plant [ 54.4 ] Coke Plant Lime Iron Ore Lumps Iron Ore Pellets [ ] Sinter (58% Fe) Lump Coke [ 0.9 ] [ 1,087.3 ] [ ] [ ] [ 5.8 ] Iron Making BF Sludge PCI Coal Sulphur BF Granulated Slag [ 3.3 ] [ ]. [ ] UNIT 300 & 400 [4.0] [ 3.2 ] de-s Slag [ ] Hot M etal (95% Fe) [ 13.3 ] Calcium Carbide Purchased Scrap [ ] Burnt Dolomite [ 11.8 ] FerroAlloy & Al [ 16.8 ] [ 75.5 ] Steel Making [ 5.2 ] UNIT 500 & 600 Liquid Steel (99% Fe) [ 1,086.3 ] Slab [ 1,052.6 ] [ 9.2 ] Slab Caster UNIT 700 [ 27.2 ] Legend Reheating & HRM [ 42.1 ] Scrap [xxx.x] - kg/t HRC (Dry Basis) UNIT 800 & 900 [ 14.8 ] M ill Scales CO2 Capture Plant UNIT 4000 M DEA Sludge [ 0.2 ] BOS Slag (Sale) [ 56.0 ] BOS Slag [ 31.7 ] SM Slag [ 8.6 ] Hot Rolled Coil [ 1,000.0 ]

19 Material Process Flow Diagram (Steel Mill with OBF/MDEA CO2 Capture) Installation of Oxy-Blast Furnace Reduced coke consumption Reduced d flux consumption Reduced GBF slag production Reduce Coke Plant Capacity Reduced coking coal consumption Reduced by-products production to sale Changes in Sinter Plant Reduced sinter s CaO/SiO2 ratio from 1.80 to 1.65 Reduced flux consumption Reduced in Flux Consumption Limestone, Quartzite (OBF / Sinter) Lime, Olivine (Sinter) Addition of CO2 capture plant handling of Make Up MDEA/Pz solvent and disposal of MDEA sludge Quartzite Olivine Limestone Calcium Carbide Burnt Dolomite [ 22.6 ] [ 97.6 ] Lime [ 8.7 ] Sinter Fines (Brazil) [ 88.0 ] [ 5.1 ] Reclaimed Coke [ 5.1 ] Sinter Fines (Australia) (ex BF Screen) Sinter Fines (Sweden) Iron Ore Lumps [ ] [ 15.2 ] BF Screen Undersize (excl. coke) [ 61.6 ] [ 47.3 ] [ 7.8 ] [ 34.1 ] [ 24.0 ] [ ] [ ] BF/BOS Dust & Sludge HM Spillage / De-S Slag BOS Slag M ill Scales [ 32.4 ] [ 34.1 ] [ 15.2 ] [ 14.9 ] [ 7.8 ] [ ] [ ] Hard Coking Coal Soft Coking Coal Crude Tar Lime Coke Breeze [ 12.8 ] Benzole (BTX) UNIT 1000 UNIT 200 UNIT 100 [ 3.8 ] [ ] LimePlant [ 10.9 ] Sinter Plant [ 54.4 ] Coke Plant Iron Ore Pellets [ 5.8 ] Iron Making Purchased Scrap [ ] Sinter (58% Fe) Lump Coke [ 0.9 ] [ 1,087.3 ] BF Sludge UNIT 300 & 400 [ 4.0 ] [ 3.2 ] de-s Slag [ 11.8 ] [ ] Hot M etal (95% Fe) [168].8 [ ] PCI Coal CO2 Capture Plant Sulphur BF Granulated Slag [ 3.3 ] [ ]. [ ] FerroAlloy & Al [ 75.5 ] Steel Making [ 5.2 ] UNIT 500 & 600 Liquid Steel (99% Fe) [ 1,086.3 ] Slab [ 1,052.6 ] [ 9.2 ] Slab Caster UNIT 700 [ 27.2 ] UNIT 4000 [ 13.3 ] MDEA Sludge [ 0.2 ] BOS Slag (Sale) [ 56.0 ] BOS Slag [ 31.7 ] SM Slag [ 8.6 ] Legend Reheating & HRM [ 42.1 ] Scrap [xxx.x] - kg/t HRC (Dry Basis) UNIT 800 & 900 [ 14.8 ] M ill Scales Hot Rolled Coil [ 1,000.0 ]

(YEAR 06) 859.8 kg/t HRC CO2 to Pipeline 0.0000 Flare/Lost 0.0897 0.3022 0.0794 0.2280 0.8289 0.

20 (YEAR 06) kg/t HRC CO2 to Pipeline Flare/Lost Ancilliary Units Lime Plant Sinter Plant Coke Plant UNIT 1300 UNIT 1000 UNIT 200 UNIT x PFR Kiln 1 x 410m 2 st rand area m/ c 3 Batteries / 120 Ovens COG pture) FD A CO2 Cap rk PF BF/MDEA Networ ill with O Gas N (Steel M 3.84 kg/t HRC kg/t HRC kg/t HRC ASU - LP O2 Prod. Blast Furnace UNIT 3000 UNIT x 8.5m diamet er heart h 2 1 x 4200 TPD O Nm /t HRC* 1580m 3 working volume 3 ` CO2 Capture Plant Desulphurisation UNIT Plant Vent/Lost Waste Nitrogen 6.28 * UNIT 400 2x Absorbers & 1x St ripper N 2 O 2 Ar * BOS Plant kg/t HRC OBF PG Steam BOFG UNIT x 220t Vessels 0.78 Ladle Metallurgy UNIT x Laddle St at ions 0.11 Continuous Caster UNIT x 2-St rands Reheating UNIT x Walking Beam Furnace Hot Rolling Mill 2.63 UNIT x Reversing Mills 6 x Finishing Mills & 3 x Coilers ASU - HP O2 Prod. Power Plant Steam Generation UNIT 1100 UNIT 1200 UNIT x 1250 TPDO 2 1x 215 MWe 8 x Steam Boilers(@50 tph each) Liquid Argon to Sale kg/t HRC kg/t HRC kg/t HRC Natural Gas

21 Gas Network - Process Flow Diagram (Steel Mill with OBF/MDEA CO2 Capture) kg/t HRC (YEAR 06) Installation of Oxy-Blast Furnace Added the Recycling of Top Gas with CO2 removal. Delivery of Top Gas to the CO2 Capture and Compression Plant Introduction of OBF Process Gas (OBF PG - Recycled Top Gas after CO2 removal) to shaft and tuyeres. Reduced Off-Gas from BF as fuel for Plant Use. Five folds increase to the consumption of Oxygen for the blast furnace Only requires 95% purity O2 Oxygen is introduced to the OBF at the tuyeres level without pre-heating (cold). Replacement e of Hot Stoves with Fired Heaters e Purpose: to heat up the OBF-PG delivered to the shaft level up to 900 o C Reduced COG consumption NG is used as fuel for the Fired Heaters. Increased COG consumption by the PCI Coal Drying Units. No BFG Flaring (significantly minimise to nearly zero) CO2 to Pipeline Ancilliary Units Lime Plant Sinter Plant Coke Plant COG UNIT 1300 UNIT 1000 UNIT 200 UNIT x PFR Kiln 1 x 410m 2 st rand area m/c 3 Bat t eries / 120 Ovens kg/t HRC OBF PG kg/t HRC ASU - LP O2 Prod. Blast Furnace UNIT 3000 UNIT x 8.5m diamet er heart h x 4200 TPD O2 * 1580m 3 working volume ` kg/t HRC CO2 Capture Plant Desulphurisation UNIT Plant * UNIT 400 2x Absorbers & 1x St ripper Steam * BOS Plant kg/t HRC UNIT 500 BOFG x 220t Vessels 0.78 Ladle Metallurgy UNIT x Laddle St at ions 0.11 Continuous Caster UNIT Vent/Lost x 2-St rands Waste Reheating Nitrogen UNIT x Walking Beam Furnace Hot Rolling Mill 2.63 UNIT x Reversing Mills 6 x Finishing Mills & 3 x Coilers N 2 ASU - HP O2 Prod. Power Plant Steam Generation 6.28 UNIT 1100 UNIT 1200 UNIT 2000 O x 1250 TPD O2 1 x 215 MWe 8 x St eam Boilers (@ 50 t ph each) Ar Flare/Lost Liquid Argon to Sale kg/t HRC kg/t HRC kg/t HRC Natural Gas

22 Gas Network - Process Flow Diagram (Steel Mill with OBF/MDEA CO2 Capture) Installation of ASU with Low Purity O2 production to meet OBF demand. Reduced the capacity of ASU High Purity O2 Production by ~43%. Reduced Liquid Argon to Sale Reduce Coke Plant Capacity Reduced COG supply to the steel mill Modification to coke oven s underfire heating fuel demand & composition. Reduced Fuel demand Reduced COG consumption Replacement of BFG by OBF-PG Flaring should be nearly zero to meet COG demand Addition of CO2 capture plant Requires processing of OBF Top Gas prior to CO2 capture. Delivery of the OBF Process Gas to OBF and other Plant Users Requires low pressure steam for solvent regeneration 3.84 kg/t HRC kg/t HRC kg/t HRC CO2 to Pipeline Vent/Lost (YEAR 06) Delivery of CO2 to Pipeline Ancilliary Units Lime Plant Sinter Plant Coke Plant UNIT UNIT UNIT UNIT ASU - LP O2 Prod. Blast Furnace UNIT 300 UNIT x 4200 TPD O2 CO2 Capture Plant UNIT 4000 Waste Nitrogen 6.28 kg/t HRC 2x Absorbers & 1x Stripper O 2 Ar N x PFR Kiln 1 x 410m 2 st rand area m/ c 3 Bat t eries / 120 Ovens 2 x 8.5m diamet er hearth ` Desulphurisation 0.14 Plant * UNIT * 1580m 3 working volume kg/t HRC COG OBF PG * BOS Plant kg/ t HRC BOFG UNIT Liquid Argon to Sale kg/t HRC 2 x Laddle St at ions Steam 2 x 220t Vessels Ladle Metallurgy UNIT 600 Continuous Caster UNIT x 2-St rands Reheating UNIT x Walking Beam Furnace Hot Rolling Mill UNIT x Reversing Mills 6 x Finishing Mills & 3 x Coilers ASU - HP O2 Prod. UNIT 1100 Power Plant UNIT 1200 Steam Generation UNIT kg/t HRC x 1250 TPD O2 1 x 215 MWe 8 x St eam Boilers (@ 50 t ph each) Flare/Lost Natural Gas

23 Gas Network - Process Flow Diagram (Steel Mill with OBF/MDEA CO2 Capture) kg/t HRC (YEAR 06) Steam supplied by the Waste Heat Boilers of the Basic Oxygen Furnace Supply steam to meet demand of: Coke Plant ASU HP O2 Production ASU LP O2 Production No steam demand by the OBF Maximise the steam production from the Waste Heat Boilers installed at the Basic Oxygen Furnace and deliver excess steam to CO2 capture plant. CO2 to Pipeline 3.84 kg/t HRC kg/t HRC Ancilliary Units Lime Plant Sinter Plant Coke Plant UNIT 1300 UNIT 1000 UNIT 200 UNIT x PFR Kiln 1 x 410m 2 st rand area m/c 3 Bat t eries / 120 Ovens OBF PG kg/t HRC ASU - LP O2 Prod. Blast Furnace UNIT 300 UNIT x 8.5m diamet er hearth x 4200 TPD O2 * 1580m 3 working volume ` CO2 Capture Plant UNIT Desulphurisation Plant * UNIT 400 2x Absorbers & 1x St ripper COG Steam * BOS Plant kg/ t HRC BOFG UNIT x 220t Vessels 0.78 Ladle Metallurgy UNIT x Laddle St at ions Flare/Lost Installation of Low Pressure Steam Generation Plant to meet CO2 Capture Plant demand. d Used OBF-PG and BOFG as the main fuel and with NG as supplementary fuel to meet demand of the boilers. Vent/Lost Waste Nitrogen 6.28 O 2 Ar N Continuous Caster UNIT x 2-St rands Reheating UNIT x Walking Beam Furnace Hot Rolling Mill 2.63 UNIT x Reversing Mills 6 x Finishing Mills & 3 x Coilers ASU - HP O2 Prod. Power Plant Steam Generation UNIT UNIT 1200 UNIT x 1250 TPD O2 1 x 215 MWe 8 x St eam Boilers (@ 50 t ph each) Liquid Argon to Sale kg/t HRC kg/t HRC kg/t HRC Natural Gas

24 Electricity Network of the Integrated Steel Mill (Steel Mill with OBF/MDEA CO2 Capture) Captive Power Plant kwh/t HRC kwh/t HRC kwh/t HRC REF. Steel Mill OBF Steel Mill w/ CO2 Capture Lime Plant Sinter Plant Coke Plant UNIT 1000 UNIT 200 UNIT MWe (Net) 292 MWe (Net) 2 x PFR Kiln 1 x 410m 2 st rand area m/ c 3 Batteries / 120 Ovens 32.1% 56.9% BFG, BOFG, NG NG 38.0 kwh/t HRC ASU - HP O2 Prod. UNIT x 1200 TPD O 2 Blast Furnace UNIT x 8.5m diamet er heart h 1580m 3 working volume 29.8 kwh/t HRC 400 kwh/t HRC 573 kwh/t HRC kwh/t HRC ASU - LP O2 Prod. UNIT 3000 Desulphurisation Plant UNIT % Load Factor 89% Load Factor 1 x 4100 TPD O 2 Gas Fired Boiler NGCC Single Shaft kwh/t HRC CO2 Capture Plant UNIT x Absorbers & 1x St ripper BOS Plant UNIT x 220t Vessels 48.8 kwh/t HRC Scope for Improvements: Deployment of CHP or COGEN Plant instead of Steam Boilers to generate steam for CO2 capture plant To evaluate other possible waste heat recovery within the steel mill for steam generation. BUT this may not be possible for several European Steel Mills as they provide district heating kwh/t HRC 4.8 kwh/t HRC Steam Generation UNIT x St eam Boilers (@ 50 t ph each) Ancilliary Units UNIT 1300 Power Plant UNIT 1200 kwh/t HRC 1 x GT- HRSG- ST (Single Shaf t ) Ladle Metallurgy UNIT x Laddle St at ions Continuous Caster UNIT x 2-St rands Reheating UNIT x Walking Beam Furnace Hot Rolling Mill UNIT x Reversing Mills 6 x Finishing Mills & 3 x Coilers 10.9 kwh/t HRC kwh/t HRC

25 Nitrogen 2 Nm3 Raw Materials Coke 355 kg Sinter 1120 kg (70%) Pellets 352 kg (22%) Lump 125 kg (8%) Limestone 13 kg Quartzite 11 kg Top Gas Cleaning BF Dust BF Screen 15 kg Undersize BF Sludge 23 kg DRR: 31% FT: 2056oC TGT: 140oC HM Si: 0.5% HM C:4.7% 4 kg BFG to Flare/Lost 23 Nm3 BFG Gas Holder BFG to Hot Stoves 479 Nm3 COG 7 Nm3 Air 358 Nm3 Recuperator BFG to Power Plant 935 Nm3 BFG to Coke Plant 185 Nm3 Flue Gas 780 Nm3 Hot Blast Cold Blast Nitrogen 3 Nm3 PCI Coal 152 kg BF Slag 280 kg Hot Metal 1000 kg 1470 o C Hot Stoves Oxygen 48 Nm3 Steam 8 kg Main Air Compressor Air 995 Nm3

26 Oxy-Blast Furnace Operation (Picture of OBF courtesy of Tata Steel) Nitrogen 5 Nm3 Raw Materials Coke 253 kg Sinter 1096 kg (70%) Pellets 353 kg (22%) Lump 125 kg (8%) Limestone 6 kg Quartzite 3 kg OBF Screen Undersize 21 kg DRR: 11% FT: 2140oC TGT: 170oC HM Si: 05% 0.5% HM C:4.7% Air Top Gas Cleaning 332 Nm3 18 Nm3 Natural Gas 563 Nm3 900oC BF Dust BF Sludge OBF Top Gas 1385 Nm3 CO2 Capture & Compression Plant 15 kg Steam 938 Nm3 2.0 GJ 4 kg OBF Process Gas Fired Heaters Flue Gas 352 Nm3 Carbon Dioxide 867 kg OBF Process Gas Oxygen 253 Nm3 Nitrogen 5 Nm3 PCI Coal 152 kg 205 Nm3 41oC BF Slag 235 kg Hot Metal 1000 kg 1470oC OBF PG to Steel Works 171 Nm3

Carbon Balance of Ironmaking Process (Equipped with OBF and MDEA/Pz CO2 Capture) Direct CO2 Emissions of an Integrated Steel Mill (with OBF & MDEA CO2 Capture) Producing 4 MTPY Hot Rolled Coil 1115

83% Coke Plant 11.22% Carbon Balance of Ironmaking Process Carbon Input Carbon Output t (kg C/thm) (kg C/thm) Coke 227.7 Hot Metal 47.0 Limestone 0.7 BF Screen Undersize PCI Coal 132.

6 5 Nm3 Raw Materials Coke 253 kg Sinter 1096 kg (70%) Pellets 353 kg (22%) Lump 125 kg (8%) Limestone 6 kg Quartzite 3 kg OBF Screen Undersize 21 kg Oxygen 253 Nm3 Nitrogen 5 Nm3 PCI Coal 152 kg

27 Carbon Balance of Ironmaking Process (Equipped with OBF and MDEA/Pz CO2 Capture) Direct CO2 Emissions of an Integrated Steel Mill (with OBF & MDEA CO2 Capture) Producing 4 MTPY Hot Rolled Coil 1115 kg CO2/t HRC (1124 kg CO2/thm ) Nitrogen Reheating & HRM 5.18% Slab Casting 0.07% Lime Plant 6.41% Power Plant 18.94% Steelmaking 4.58% Iron Making 4.65% Steam Generation Plant 25.13% Sinter Plant 23.83% Coke Plant 11.22% Carbon Balance of Ironmaking Process Carbon Input Carbon Output t (kg C/thm) (kg C/thm) Coke Hot Metal 47.0 Limestone 0.7 BF Screen Undersize PCI Coal Dust & Sludge 8.0 Natural Gas 12.0 OBF PG Export Nm3 Raw Materials Coke 253 kg Sinter 1096 kg (70%) Pellets 353 kg (22%) Lump 125 kg (8%) Limestone 6 kg Quartzite 3 kg OBF Screen Undersize 21 kg Oxygen 253 Nm3 Nitrogen 5 Nm3 PCI Coal 152 kg DRR: 11% FT: 2140oC TGT: 170oC HM Si: 0.5% HM C:4.7% Air Top Gas Cleaning 332 Nm3 18 Nm3 563 Nm3 900oC 205 Nm3 41oC BF Dust 15 kg BF Sludge 4 kg Natural Gas BF Slag 235 kg Hot Metal 1000 kg 1470oC OBF Top Gas 1385 Nm3 OBF Process Gas Fired Heaters Steam 2.0 GJ CO2 Capture & Compression Plant Flue Gas 352 Nm3 Carbon Dioxide 867 kg OBF Process Gas 938 Nm3 OBF PG to Steel Works 171 Nm3 Total Total PG Heater Flue Gas CO2 Captured For this case study, the Oxy-Blast Furnace has the potential to reduce carbon input to the iron making process by 17% as compared to the REFERENCE case (@447.5 kg C/thm). This is due to the reduced consumption of the coke. ULCOS has reported a higher carbon input reduction potential of up to ~28%. Further reduction of CO2 emissions could only be achieved by CCS.

28 Note: Current study only illustrates one of the many options available for oxy- blast furnaces This do not represents the choice made by the ULCOS Programme. Florange Project Eisenhüttenstadt t Project

/t CO, H2, N2 Gas heater V4 900 C V3 X V1 900 C Oxygen PCI

29 The Ulcos Blast Furnace Concepts Coke Top pg gas (CO, CO2, H2, N2) Gas cleaning Gas net (N2 purge) CO 2 scrubber CO Nm3 /t CO, H2, N2 Gas heater V4 900 C V3 X V1 900 C Oxygen PCI Re-injection 1250 C 1250 C 25 C Expected C-savings 25 % 24 % 21 % 29

30 CO2 Capture & Compression Plant PFD (Steel Mill OBF and MDEA CO2 Capture)

31 CO2 Capture & Compression Plant PFD (Steel Mill OBF and MDEA CO2 Capture) Equipment Configuration: 2x Process Gas Compressors (2 to 4 Bara) 2x Absorbers (1 per OBF) 1x Stripper Column 2x CO2 Compression Train with Glycol (TEG) Dehydration Unit Solvent MDEA 40% Piperazine 10% Energy Demand Steam 2.02 Electricity kwh/t HRC Capture Performance ~860 kg/t HRC (867 kg/thm) ~47% CO2 Avoided 94% capture rate

32 Separation and Capture of CO2 from OBF also has several other options (Data from ULCOS Programme) PSA, VPSA VPSA + Cryogenics Separation of non-co2 components Chemical Absorption

33 Techno-Economic Model (REFRENCE Steel Mill) ENERGY BY-PRODUCTS & MAIN INTERMEDIATE RAW MATERIALS MAJOR PROCESSES PLANT BY-PRODUCTS EXPORTED PRODUCTS OTHER IND. GASES PRODUCTS WASTE PRODUCTS Natural Gas Power Plant UNIT 1200 Electricity Hard Coking Coal Semi-Soft Coking Coal Nitrogen Argon Air Separation Unit UNIT 1100 Oxygen Liquid A rgo n Waste Nitrogen PCI Coal Limestone Lime Plant UNIT 1000 Lime Olivine Quartzite Coke Oven Gas Coke Plant UNIT 100 Coke Breeze Lump Coke Crude Tar, Benzole, Sulphur Iron Ore - Fines Sinter Plant UNIT 200 Sinter Sinter Fines Returns Iro n Ore - Lumps Iron Ore - Pellets BF Returns & Reclaimed BF Gas Iron Making Hot M etal Coke, BF Dust, de-s Granulated BF Slag de-s Slag & BF Sludge UNIT 300 & 400 Slag/HM Spillage M erchant Scrap BOS Gas Steam Steel Making UNIT 500 & 600 Liquid Steel BOS Slag, Dust & Sludge Scrap BOS Slag BOS Slag & SM Slag Ferro Alloys / Deox Al Burnt Dolomite Continuous Caster UNIT 700 Slab M ill Scale Scrap CaC 2 Powder Consummables and Other Works & Operation Expenses Reheating & Rolling UNIT 800 & 900 M ill Scale Scrap Hot Rolled Coil Raw M aterials & Consummables Bought at Fixed Price and Sold Directly to the Users Energy & Fuel Gases Sold at Fixed Price to Users & Credit to Producers By-Product Gases Sold to Users at Zero Value INTERNAL CUSTOM ERS (USERS) Products Sold to Users at Producer's Direct Cost Plant By-Products Sold to Users at Fixed Price & Credit to Producers Exported By-Products Sold at Fixed Price Hot Rolled Coil Sold at Variable / M arket Price Waste Products Charged at Cost to Producers Waste Nitrogen Vented at Zero Value

34 Techno-Economic Model (Steel Mill with OBF & MDEA CO2 Capture) RAW MATERIALS ENERGY BY-PRODUCTS & OTHER IND. GASES MAJOR PROCESSES MAIN INTERMEDIATE PRODUCTS PLANT BY-PRODUCTS Captured CO2 Emission EXPORTED PRODUCTS WASTE PRODUCTS Natural Gas Power Plant Electricity UNIT 1200 Hard Coking Coal Semi-Soft Coking Coal Steam Boiler UNIT 2000 Steam PCI Coal Limestone Lime Plant UNIT 1000 Lime Olivine Quartzite Coke Oven Gas Coke Plant UNIT 100 Coke Breeze Lump Coke Crude Tar, Benzole, Sulphur Iron Ore - Fines Sinter Plant UNIT 200 Sinter Sinter Fines Returns Iron Ore - Lumps BF Returns & Reclaimed Iron Ore - Pellets BF Gas Iron Making Hot M etal Coke, BF Dust, de-s CO2 Captured from OBF Granulated BF Slag de-s Slag & BF Sludge UNIT 300 & 400 Slag/HM Spillage M erchant Scrap Ferro Alloys / Deox Al BOS Gas Steam BOS Slag, Dust & Sludge Steel Making Liquid Steel BOS Slag BOS Slag & SM Slag UNIT 500 & 600 Scrap Burnt Dolomite Continuous Caster UNIT 700 Slab M ill Scale Scrap Calcium Carbide Consummables and Other Works & Operation Expenses Reheating & Rolling UNIT 800 & 900 M ill Scale Scrap Hot Rolled Coil Nitrogen Argon Air Separation Unit H igh P urity Oxygen Liquid Argon Waste Nitrogen UNIT 1100 Air Separation Unit Lo w P urity Oxygen Waste Nitrogen/Argon UNIT 3000 MDEA/Pz CO 2 Capture Plant CO2 (110 bar & 99%) M DEA Sludge UNIT 4000 Raw M aterials & Consummables Bought at Fixed Price and Sold Directly to the Users Energy & Fuel Gases Sold at Fixed Price to Users & Credit to Producers By-Product Gases Sold to Users at Zero Value INTERNAL CUSTOMERS (USERS) Products Sold to Users at Producer's Direct Cost Plant By-Products Sold to Users at Fixed Price & Credit to Producers Sinter Fines Return Sold at Zero Value Exported By-Products Sold at Fixed Price Hot Rolled Coil Sold at Variable / M arket Price Waste Products Charged at Cost to Producers Waste Nitrogen Vented at Zero Value C t M d l A ti d B i f C l l ti

35 Total Investment Cost (REFERENCE vs. OBF/MDEA Case)

36 Total Investment Cost - Cont d (REFERENCE vs. OBF/MDEA Case)

37 Annual O&M Cost (REFERENCE vs. OBF/MDEA Case)

38 Revenues from By-Products (REFERENCE vs. OBF/MDEA Case)

39 Cost of Steel Production Breakdown Breakeven Price of $ Break Even Price $ Capital Cost Fuel & Reductant Iron Ore (Fines, Lumps & Pellets) $135 $118 $120 55% of the Cost is related to Raw Materials, Energy and Reductant Purchased Scrap & FerroAlloys $53 Fluxes $11 Other Raw Mat'l & Consummables $12 Labour $70 Mi Maintenance & Oh Other O&M $55 $0.0 $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 Breakeven Price Pi of HRC & Breakdown ($/t)

40 Cost of Steel Production Breakdown Breakeven Price of $ Increase in CAPEX and Fuel Cost due to the addition of the CO2 capture facilities represents a$47 increase in the breakeven price of HRC

41 Impact of the OBF/MDEA CO2 Capture Plant to the Breakeven Cost of HRC Production (Very Specific to this Study) Capital Cost increased by 18.8% Fuel and Reductant Cost increased by 17.3% Coking Coal Cost decreased by ~24% Natural Gas Cost increased by ~495% Iron Burden Cost increased by 1.0% Iron Ore (Fines, Lumps and Pellets), Purchased Scrap & Ferroalloys Fluxes Cost decreased by 9.4% Significant reduction of limestone and quartzite consumption Other Consumable Cost increased by 15.7% Increased in cost of raw water consumption Additional cost due to Chemicals & Consumables used by SGP. Additional cost due to MDEA/Pz Solvent Make Up Labour Cost increased by 1.4% Maintenance and Other OPEX increased by 10.4%

42 Key Messages from this Study To incorporate OBF and CO2 Capture in an Integrated Steel Mill prodcuing 4 million tonnes of HRC per year would require an additional $ 753 million in CAPEX based on New Build Steel Mill Analysis In terms of OPEX the steel mill with OBF and MDEA CO2 Capture would require an additional US$ 120 Million per year This estimates is based on pre-feasibility level having a defined +/-30% accuracy - and are based on conservative assumptions

43 Evolution of Coking Coal Price (Data provided by P. Baruya IEA CCC)

44 Summary of Results (Sensitivity to Coke Price) $80.00 CO2 Av voidance Co ost (US$/t) $70.00 )OBF/MDEA/ Case $ $50.00 $40.00 $30.00 $20.00 $10.00 OBF Base Case CO2 Avoidance Cost = ~$56.4/t + $92/t Coke EOP L1 Case It should be noted that Steel Mill used a significant variety of coking coal depending on market price (low to high quality coking coal) COKE is a tradable commodity $ 0.5P 1P 1.5P 2P 2.5P Price of Coking Coal

45 Important Note The OBF and MDEA CO2 Capture CAN NOT be classified as Post- or Oxy- or Pre- Combustion CO2 Capture Technologies. Blast furnace is a reduction process (not combustion!) Separation of the CO2 from the top gas is more analogous to the removal of CO2 during the processing of natural gas. Raw Top Gas from OBF is mainly CO (46%) and CO2 (34%)

46 Composition of OBF Top Gas, Process Gas, BOFG and COG. Wet Basis (%vol.) Basic Oxygen Furnace Gas (BOFG) OBF Top Gas (OBF TG) to CO2 Capture Plant OBF Process Gas (OBF PG) from CO2 Capture Plant Recycled to BF Wet Basis (%vol.) Coke Oven Gas COG CH H H CO CO 3.84 CO CO N N H2O O H 2 O 3.98 Other HC 2.69 LHV (MJ/Nm3) wet LHV (MJ/Nm 3 ) wet 17.33

47 Concluding Remarks Steel Mill with OBF/MDEA CO2 Capture producing 4 MTPY standard Hot Rolled Coil was defined in detail in the study. Mass Balance Gas Network Electricity Network CO2 emissions of each unit Study was able to established a baseline cost for an Integrated Steel Mill equipped with OBF, Top Gas Recycle and MDEA/Pz CO2 capture technology.

48 Concluding Remarks Techno-Economics of Iron and Steel Production is very site specific. Strategy for CCS Implementation to an integrated steel mill is also very site specific. IMPORTANT to have a like for like assessment between steel mills without and with CO2 capture. Re-emphasized that this study is not meant to develop and evaluate the best available technology for the steel mill and CO2 capture. One of the main objectives of this study is to establish a Techno- Economic Evaluation Methodology (Transparent) that t could be used to estimate cost of CO2 capture in an integrated steel mill on a like for like basis.

49 Concluding Remarks This study only touches the surface... REFERENCE Steel Mill is based on Typical Average European Configuration. It should be expected that there will be inefficiency in some aspects of the steel mill. To maintain a like for like analysis the CO2 capture configuration can t include all the Best Available Technology as expected for Greenfield Steel Works. (For Example Steam Generation Plant)

50 Key Message from this Study Key to the deployment of CO2 capture technologies using top gas recycle to a blast furnace should also maximise i the reduction in the coke consumption to make it cost competitive. Post-Combustion CO2 Capture i.e. capture of CO2 from the flue gas of different stacks within the integrated steel mill - is not a cost competitive option! This is not the options considered by the global steel community. REPORTING CO2 Avoidance Cost for a complex industrial processes is meaningless without establishing the assumptions used for the REFERENCE Plant without CO2 Capture. This is not a good indicator for these cases yet we are trapped in it...

51 Thank You Stanley Santos IEA Greenhouse Gas R&D Programme g g

52 Back Up Slide

53 Key Price Inputs Price inputs for externally and internally sourced raw materials are based on actual operating price data adjusted to long term trends. Major intermediate products are priced based on the gate of the specific operating unit ( Factory ) (Factory). Revenues from sale of by-products is credited to the source of this materials. Details of these inputs are presented in the excert of the Volume 1 Report

54 Notes on Investment Cost The integrated steel mill is assumed to have an economic life of 25 years as the basis for appraisal. The cost evaluation was developed in US$ (2010). Where necessary, the conversion was based on the following exchange rates: 1.00 = US$ =US$ The estimate accuracy is within the range +/- 30%.

Techno-economic study of an integrated steelworks equipped with oxygen blast furnace and CO 2 capture

Techno-economic study of an integrated steelworks equipped with oxygen blast furnace and CO 2 capture Presentation by Lawrence Hooey Co-authors: Andrew Tobiesen Jeremy Johns Stanley Santos 21/03/2013 Financial