NEW FEATURES OF DRI TECHNOLOGY ENERGIRON FACILITIES AND HIGH-C DRI IN MINIMILLS. DARIO PAULUZZI Sales Manager, DANIELI CENTRO METALLICS

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NEW FEATURES OF DRI TECHNOLOGY ENERGIRON FACILITIES AND HIGH-C DRI IN MINIMILLS DARIO PAULUZZI Sales Manager, DANIELI CENTRO METALLICS 11-12 November 2015, Chicago, USA

Traditional ironmaking routes BF-BOF ROUTE High single module productivity 2.5-5 MTPY High quality steel High environmental impact No flexibility in productivity IO PIG IRON LIQUID STEEL BF BOF SCRAP-EAF ROUTE Poor quality steel (due to metallic residuals in the scrap) Low environmental impact High flexibility in productivity SCRAP LIQUID STEEL EAF DRP-EAF ROUTE Low single module capacity Any quality steel (also high) Reduced environmental impact High flexibility in productivity IO DRI/HBI LIQUID STEEL Superior steel grades demanded by such users as automotive can be produced. DRP EAF

The innovative choice: Energiron Direct Reduction 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.

The technology: Energiron basic process scheme 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 PG COMPRESSOR H 2 O HEAT RECUPERATOR IRON ORE (3.2 18 mm) High Temp: > 1050 C Operating pressure: 6-8 bar PG HEATER CO 2 ABSORBER REACTOR MAKE-UP: NATURAL GAS REFORMED GAS SYNGAS COG HUMIDIFIER TAIL GAS FUEL O 2 DRI

The technology: Energiron basic process scheme 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 STEAM PG COMPRESSOR H 2 O HEAT RECUPERATOR IRON ORE (3.2 18 mm) High Temp: > 1050 C Operating pressure: 6-8 bar PG HEATER NG CO 2 ABSORBER REACTOR FUEL MAKE-UP: NATURAL GAS REFORMED GAS SYNGAS COG HUMIDIFIER TAIL GAS FUEL O 2 No concern for having heavy hydrocarbons in the NG Minimized electrical energy consumption DRI

The technology: Energiron basic process scheme IRON ORE (3.2-18 mm) Energiron iron ore overall yield REACTOR High Temp: > 1050 ºC High operating pressure 6-8 bar: LOW gas velocities and LOW fluidization SMALL DR shaft for high production rate Less fines carry-over by top gas Overall yield BENCHMARK + 6 MUSD/Y + 14 MUSD/Y Guaranteed Iron Oxide Yield of 1.4 tio/t with screening at 3.2 mm and not remet Screening IO LOSSES SCREENING DRI IO LOSSES PROCESS STOICHIOMETRIC the additional cost (compared to Energiron) is given by higher pellet consumption and the waste material. Cost analysis based on 2,5 Mtpy DRI production.

Reactor sizing: from 0.2 up to 2.5 Mtpy For small, specialized need, Micro-Module and Mini-modules have already been realized For the large, BF-replacing iron production need, 2,5 Mtpy Module has already been realized 0.2 0.5 0.8 1.2 1.6 2.0 2.5 + PRODUCTIVITY + FLEXIBILITY from 50 to 100% without losses on product quality

Energiron products 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 Under commissioning UNMATCHED EXPERIENCE IN HIGH CAPACITY MODULES

Packing chemical energy: carbon in the DRI 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 40% Particles blowoff Ash/impurities ENERGIRON DRI C 1.5 4% C mostly in CEMENTITE form HIGH-C DRI OXYGEN E.E. YIELD carbon bond to DRI 100% ~ 33 kwh / t LS saved ~ 10 Nm 3 O 2 / 1% C CARBURIZATION IN ENERGIRON PROCESS CEMENTITE IS SOURCE OF ENERGY IN EAF 3FFFF 0 + CCCC 4 FFFF 3 CC + 2HH 2 T > 1050 C P 6 8 barg CH 4 > 20% H 2 / CO 5 Fe Fe C Fe FFFF 3 CC 2CC + OO 2 3FFFF + CC + HHHHHHHH CCCC + HHHHHHHH

Packing chemical energy: carbon in the DRI Theoretical data for reduction, reforming and carburization reactions have been confirmed by operational data. Here below models for ESI (Energiron III) and SSC (Energiron ZR). CH 4 DISTRIBUTION C DEPOSITION Emirates Steel Suez Steel - HOT Emirates Steel Suez Steel - HOT 5% 10% 8% 20% CH 4 CRACKING >90% >90% CH4 % in the inlet gas 2.7% C CONTENT IN DRI 3.7%

Packing chemical energy: how to control carbon deposition Adjusting the concentration of CH 4 and the humidity level of the reducing gas entering the reactor Properly setting: NG TO REDUCTION NG TO CONE WATER CONTENT after humidifier PG COMPRESSOR H 2 O HEAT RECUPERATOR IRON ORE (3.2-18 mm) PG HEATER CO 2 ABSORBER REACTOR MAKE-UP GAS HUMIDIFIER O 2 TAIL GAS FUEL NG TO CONE Suez Steel s ENERGIRON DRP plant data C % in the DRI vs H2O% in the PG to reduction DRI

Packing thermal energy: HDRI at high temperature at EAF HOT DRI TO EAF FEEDING SYSTEM The HyTemp system is the industry most proven and reliable Hot DRI transportation technology available on the market. First industrial installation in 1998 Pneumatic transport of Hot DRI to EAF in a totally enclosed system - No gases or material losses Well suited for transport of large quantities of materials Performances - More than 23 million tons of Hot DRI already transported Reliability - Time availability record of 100% HDRI at EAF: T > 600 C 100% HOT DISCHARGED DRI without COLD DRI

Releasing iron and total energy: benefits at EAF Further improvement with the installation of the innovative lining of the reactor cone The heat losses, due to heat transfer through the water jackets, have been significantly reduced 617.6 ºC 609.6 ºC higher DRI temperature directly at the reactor discharge SUEZ STEEL REFERENCE ACTUAL TEMPERATURE AT EAF SURGE BINS

Releasing iron and total energy: benefits at EAF Further improvement with the installation of the innovative lining of the reactor cone The heat losses, due to heat transfer through the water jackets, have been significantly reduced 625 630 ºC higher DRI temperature directly at the reactor discharge SUEZ STEEL REFERENCE ACTUAL TEMPERATURE AT EAF SURGE BINS

Releasing iron and total energy: benefits at EAF Per every 100 C increase in the DRI temperature: With EAF feed mix (90% hot +10% cold DRI), saved about 26 kwh/tls The tap-to-tap time decreases about 5% and the productivity increases accordingly Effect of the DRI temperature (C% in the range 2.0-2.5) on the EAF: data from Emirates Steel phase 1 and 2 93% 94.5% 95% 95.50% 93% 94.50% 95% 96% Linear (93%) Linear (94.5%) Linear (95%) Linear (95.50%) Linear (93%) Linear (94.50%) Linear (95%) Linear (96%) 70 600 Tap to tap time [min] 65 60 55 50 45 40 35 EE [kwh/tls] 550 500 450 400 350 300 30 0 50 100 150 200 250 300 350 400 450 500 550 600 250 0 50 100 150 200 250 300 350 400 450 500 550 600 DRI Temperature [ C] DRI Temperature [ C]

Low environmental impact CO 2 REMOVAL SYSTEM: INTRINSICALLY INCLUDED IN THE BASIC REDUCTION CIRCUIT Since the stream of CO 2 is selectively removed from process gas, it can be recovered for further commercial application Reduced emissions Profits from CO 2 commercialization Carbon TAX saving Embedded in the process gas circuit: NO NEED FOR ADDITIONAL EQUIPMENT PG COMPRESSOR H 2 O HEAT RECUPERATOR IRON ORE (3.2-18 mm) PG HEATER CO 2 ABSORBER REACTOR MAKE-UP GAS HUMIDIFIER O 2 WATER TAIL GAS FUEL DRI CO2 ABSORBER

Low environmental impact CO 2 REMOVAL SYSTEM: INTRINSICALLY INCLUDED IN THE BASIC REDUCTION CIRCUIT Since the stream of CO 2 is selectively removed from process gas, it can be recovered for further commercial application Reduced emissions Profits from CO 2 commercialization Carbon TAX saving CO 2 EMISSIONS % CARBON BALANCE kgc/t DRI CARBON BALANCE % CARBON BALANCE kg CO2 /t DRI ENERGIRON TECHNOLOGY OTHER TECHNOLOGY CARBON IN NON SELECTIVE EMISSION 43 29% 159 NON SELECTIVE 38% NON SELECTIVE 100% CARBON IN SELECTIVE EMISSION 70 47% 256 SELECTIVE 62% CARBON IN PRODUCT (C=3.5%) 35 24% - Non selective: ~160 kg/t DRI Non selective: ~500 kg/t DRI

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