High-Carbon DRI: the feeding material to improve performances and decrease

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Alessandro Martinis- EVP Danieli Centro Metallics 12-14 Sept, Linz, Austria High-Carbon DRI: the feeding material to improve performances and decrease CO2 emissions in both BF and EAF

THE STATE OF ART DR TECHNOLOGY > Is the innovative HYL Direct Reduction Technology developed jointly by Tenova and Danieli > The most competitive and environmentally clean solution for lowering the liquid steel production cost

TECHNOLOGY: ENERGIRON ZR PG COMPRESSOR H 2 O HEAT RECUPERATOR PG HEATER IRON ORE (3.2 18 mm) > HIGH TEMP 1050 o C CO 2 ABSORBER REACTOR > OPERATING PRESSURE 6-8 BAR MAKE-UP: NATURAL GAS REFORMED GAS SYNGAS COG HYDROGEN HUMIDIFIER TAIL GAS FUEL O 2 DRI FLEXIBILITY > Same scheme for ANY energy source ENVIRONMENTAL: > lowest NOx emissions: 0.030 kg NOX / t DRI > Selective removal of iron ore reduction s by-products: H 2 O & CO 2

ENVIRONMENTAL ASPECTS ENERGIRON PLANT EMISSIONS ARE IN ACCORDANCE WITH THE MOST STRINGENT ENVIRONMENTAL REGULATIONS WORLDWIDE > No need to preheat the combustion air to high temperature, due to the high energy efficiency of the process itself results in eliminating high NOx generation; > NOx emissions additionally reduced with ultra-low NOx burners and/or SCR; > Low dust emission from heater thanks to low tail gas purged from reducing circuit to burners NOx with Ultra Low NOx burners 30-80 [mg/nm 3 ] NOx with Selective Catalytic Removal 10-50 [mg/nm 3 ] SO 2 (w/o and with sulphur removal) 250- negligible [mg/nm 3 ] CO 20-100 [mg/nm 3 ] Dust from heater stack 1-5 [mg/nm 3 ] Dust from material handling dedusting 5-20 [mg/nm 3 ]

HIGH CARBON DRI: USE IN EAF DRI IS USED IN EAFS TO COMPLETELY OR PARTIALLY REPLACE SCRAP: 1. Higher Volumetric Weight 2. Uniformity of Chemical Analysis 3. Freedom from Undesirable Elements 4. Continuous Charging 5. Less Flicker 6. Less noise level 7. Better Bath Steering 8. Lower Nitrogen Content 9. Foamy Slag Practice DRI WITH HIGH CONTENT OF IRON CARBIDE PROVIDES FURTHER ADVANTAGES

HIGH CARBON DRI: USE IN EAF CARBON IN EAF IS REQUIRED TO REDUCE RESIDUAL FEO IN THE DRI TRADITIONAL DRI C 1.5 2% 30 40% C in GRAPHITE form LOW-C DRI GRAPHITE/COAL OXYGEN E.E. YIELD Injected carbon < < 100% >Particles blowoff >Ash/impurities ENERGIRON DRI C 1.5 4.5% C mostly in CEMENTITE form HIGH-C DRI OXYGEN E.E. YIELD carbon bond to DRI 100% >~ 33 kwh / tls saved >~ 10 Nm3 O2 / 1% C CARBURIZATION IN ENERGIRON PROCESS CEMENTITE IS SOURCE OF ENERGY IN EAF 3Fe 0 + CH 4 Fe 3 C + 2H 2 T > 1050 C P 6 8 barg CH 4 > 20% H 2 / CO 5 Fe C Fe 3 C 2C + O 2 3Fe + C + Heat CO + Heat ~ 8 kwh / t LS saved depending on post-combustion factor Fe Fe

HIGH CARBON DRI: USE IN EAF OPTIMUM CARBON CONTENT IN DRI DEPENDS ON EACH SPECIFIC APPLICATION AND STEEL GRADE: > ENERGIRON plants are not designed to produce DRI with a specific C content, it can be easily adjusted by setting few operating parameters > Feeding DRI with correct C content allows to reduce the residual FeO without graphite injection into EAF, that has lower efficiency > Feeding to EAF C in cementite form, provides thermal energy (from Fe 3 C dissociation) to the EAF > C in DRI reacts with O 2 injected into EAF, providing thermal energy, better stirring, foamy slag > Higher C content in DRI provides longer electrode s life > Higher C content in DRI provides longer EAF refractory s life > Feeding DRI with correct C content allows to reduce the tap-to-tap time, anyhow excessive C content in DRI can cause longer tap-to-tap time (refining time to get rid of C) + 4.5% DRI used as P.I. Replacement DRI CARBON CONTENT 3.0 4.5 % DRI used in combination with scrap 2.0 3.0 % EAF fed by DRI only - 2.0% Special applications

HIGH CARBON DRI: USE in BF/BOF HIGH-C DRI CAN BE FED TO BF: 1. TO KEEP SAME LIQUID STEEL PRODUCTION RATE. In this case the main target is reduction of environmental impact due to a decrease of specific coal consumption and CO 2 emissions by lowering PCI consumption 2. TO INCREASE HM PRODUCTIVITY IN THE BF, decreasing not only specific consumption figures and CO 2 emissions but also achieving savings in production costs.

Effective carbon savings, kg/mt HM HIGH CARBON DRI: USE in BF/BOF EFFECT OF DRI IN THE BF BURDEN ON CARBON SAVINGS Example: Standarized graph as per Flint operating factors Based on Fe /FeT ~ 32% metallised charge, the expected Carbon rate savings are expected to be 85 90 kg; 0 50 100 150 i.e. CARBON SAVINGS ~ 27-30 kg/10% Mtz Bureau of Mines U.S. Steel (scrap) U.S. Steel (HIB) Stelco (no nat. gas) Stelco (nat. gas) AHMSA 200 250 0 100 200 300 400 500 600 700 800 Metallized Iron, kg/mt HM

Production (MT/day) HIGH CARBON DRI: USE in BF/BOF EFFECT OF DRI IN THE BF BURDEN ON PRODUCTIVITY Hot Metal (HM) production increase; about 6-7% per each 10% of burden metallisation. Based on Fe / FeT ~ 32% metallised charge, the expected Productivity increase is expected to be 19-23%. However; the estimate of productivity increase depends on multiple factors; i.e. > Size and quality of raw materials > Operating practices > Oxygen injection, PCI > Permeability > Charge distribution Reference % Productivity increase 10% Mtz Comments IRSID 6,6 Theoretical calculation STELCO 6,5 5,15% NG injection AHMSA 7,9 BF operating at low productivity USIMINAS 7,9 Tests up to 15% Mtz AK Steel has achieved 19% increase for production ~5.500 ton/d with 181 kg HBI/t HM 6,500 6,000 5,500 5,000 Optimising operating practices related to oxygen, NG injection, etc y=0.928x + 4846.6 r2=0.617 9/91 11/93 4,500 4,000 0 200 400 600 800 1,000 HBI (MT/day)

HIGH CARBON DRI: USE in BF/BOF 80 Hot Metal (HM) production increase; about 7-8% per each 10% of burden metallisation. Lower coke rate; about 7% per each 10% of burden metallisation. US Bureau of mines (1965) US Steel (1966) Stelco (1964) Yawata Steel (1965) Kawasaki Steel (1966) x Ahmsa (1978) Coke rate decrease (%) Hot metal production increase (%) 70 60 50 40 30 20 10 0 10 20 30 40 50 x x x 10 20 30 40 50 60 70 80 90 x x x x 60 Burden metallisation (%)

ENERGIRON DRP INTEGRATED WITH BF

ENERGIRON DRP INTEGRATED WITH BF BASE CASE: TYPICAL INTEGRATED MILL BF-BOF Main energy lines distribution Coking Coal 455 kg/t LS Coke CO2 Emissions 1,80 t/tls PCI 161 kg/tls Burden 1520 kg/tls HM LS 0,94 t HM 0,17t scrap 1,00 t LS Export Power 324 kwh/tls Note: Power credit included in CO 2 Emissions Ref: 0.5kg CO 2 /kwh Net CO2 Emissions 1,60 t/tls

ENERGIRON DRP INTEGRATED WITH BF CASE 1: REPLACEMENT OF BF-BOF by DRP-EAF (a) w/o & (b) w CO2 off-taking Natural Gas 190 / 140 Nm 3 /t LS 0,66 / 0,49 t DRI 0,59 / 0,43 t LS CO 2 Emissions 1,20 / 1,08 t/t LS Non-selective DR IO pellets 930 / 690 kg/t LS Tar Main energy lines distribution CO 2 Emissions 0 / 0,12 t/t LS Coking Coal 190 / 260 kg/t LS Coke BFG COG Selective PCI 66 / 92 kg/t LS Burden 620 / 870 kg/t LS HM LS 0,39 / 0,54 t HM 0,07 / 0,10 t scrap 0,41 / 0,57 t LS BOFG Import Power 150 / 25 kwh/t LS Note: Power Consumption included in CO 2 Emissions Ref: 0.5kg CO 2 /kwh

ENERGIRON DRP INTEGRATED WITH BF CASE 2: INTEGRATION OF DRP-EAF IN BF-BOF with CO 2 off-taking DR IO Pellets 480 kg/t LS DRI Tar Main energy lines distribution CO 2 Emissions 1,36 t/tls Non-selective Coking Coal 455 kg/t LS PCI 43 kg/t LS HM Coke BFG 0,94 t HM 0,17 t scrap COG f BOFG 0,34 t DRI CO 2 Emissions 0 / 0,5 t/t LS Selective Import Power 155 kwh/t LS Burden 1140 kg/t LS LS 1,00 t LS Limitations: > Total COG availability for DRP > max. % metallic burden (DRI) to BF Note: Power credit included in CO 2 Emissions Ref: 0.5kg CO 2 /kwh

ENERGIRON DRP INTEGRATED WITH BF CASE 3: EXTERNAL DRI TO BF (a) w / (b) w/o CO 2 off-taking Natural Gas 104 Nm 3 /t LS 0,37 t DRI CO 2 Emissions CO 2 Emissions 0,06 t/t LS 0,09 t/t LS Selective (+4%) Non-selective (+5%) Limitations: - max. % metallic burden (DRI) to BF DR IO pellets 520 kg/t LS DRI Tar Main energy lines distribution CO 2 Emissions 1,30 t/t LS Coking Coal 455 kg/t LS Coke BFG COG Non-selective (-19%) Exit Power 300 kwh/t LS PCI 43 kg/t LS Burden 1140 kg/t LS HM LS 0,94 t HM 0,17 t scrap 1,00 t LS BOFG Note: Power credit included in CO 2 Emissions Ref: 0.5kg CO 2 /kwh

ENERGIRON DRP INTEGRATED WITH BF CO 2 EMISSIONS STEELMAKING ROUTES BF-BOF 100% BF BOF DRP-EAF 50% DRP EAF + DRP EAF BF BOF + DRP BF BOF DRP-EAF + BF-BOF DRI (w/cog) to BF (*) DRI (w/cog) to BF (**) DRI (w/ng) to BF (*) DRI (w/ng) to BF (**) 75% 85% 88% 86% 90% Notes: (*) With CO 2 off-taking / commercialization (**) Without CO 2 off-taking / commercialization 0 400 800 1200 CO 2 Emissions (kg/ton Liquid Steel ) 1600

ENERGIRON DRP INTEGRATED WITH BF The ZR patented scheme for using COG has been tested under the following scenarios: > Pilot plant tests; 1978-1982, 1997 > Campaigns during 1997: With CO 2 absorption and oxygen injection (ZR) > Laboratory tests at AHMSA to prove destruction of BTX with hot DRI; 1980 s > 2008; Tests at Zdz, Poland in a joint effort between ArcelorMittal and Tenova HYL to confirm the above PP Test No. COG (Nm 3 /t DRI) OXYGEN (Nm 3 /t DRI) MTZ (%) CARBON (%) 1 557 15 93.1 3.2 2 555 20 94.2 2.8 3 570 15 93.8 3.8 4 590 20 94.1 4.1 EFFICIENCY - No need of external combustion chamber or additional reactor Now in analysis with JSW to implement this scheme in the existing HYL plant in India

REFERENCES

REFERENCES EMIRATES STEEL SUEZ STEEL NUCOR EZZ STEEL Two modules: One module: One module: One module: 2.0 MTPY each Carbon 1.5% - 2.5% Met 94% - 96% Hot DRI feed to EAF 2.0 MTPY Carbon 3.0% - 4.0% Met 94% - 96% Hot DRI feed to EAF 2.5 MTPY Carbon 3.0% - 4.5% Met 94% - 96.5% Cold DRI 1.95 MTPY Carbon 1.5% - 2.5% Met 94% - 96% Cold DRI Start-up 2009/2011 Start-up 2013 Start-up 2013 Start-up 2015 UNMATCHED EXPERIENCE IN HIGH CAPACITY MODULES

Energiron power > Energiron is the only proven Direct Reduction Technology available on the market with a productivity rate up to 2,5 Mtpy in a single module, able to compete with BF-BOF route > Controlled carbon content value in DRI affect positively EAF operation in terms of OPEX, and only Energiron can produce it > HyTemp system gives unmatched results in liquid steel productivity and efficiency > Energiron has designed and supplied facilities that are successfully operating under some of the strictest environmental standards in the world Packing Energy and Iron - Feeding power to EAF THE FIRST INDUSTRIAL GAS BASED REDUCTION TECHNOLOGY IN 1957 THE FIRST TO BE READY FOR THE IRONMAKING OF THE FUTURE