P2G TECHNOLOGIES IN IRON ORE PELLETIZING PROCESS Mariana Carvalho, LUT Esa Vakkilainen, LUT 5 th Researcher s Seminar 15.2.2016
Agenda Rationale Steel production Markets Technical implementation General assumptions Mass and energy balances Profitability Summary and conclusions Next steps
Iron and steel sector is the major industrial CO 2 source Rationale Uniform quality ores increase energy efficiency agglomeration processes Fines are a significant type of iron ore corresponding to ~70% of global demand 1 Source: IEA/OECD 2009. Energy Technology Transitions for Industry. Available at https://www.iea.org/publications/freepublicatio ns/publication/industry2009.pdf 1 CRU Group 2012. Available at: http://www.slideshare.net/informaoz/laura-brooks-25739095
Steel Production Source: World Steel Association. Fact Sheet Energy use in the steel industry. Available at https://www.worldsteel.org/publications/fact-sheets/content/02/text_files/file0/document/fact_energy_2014.pdf
Markets Global iron ore production: 3220 Mt in 2014 1 ~20% of the global market for pellets 2 Varies by country e.g. in Brazil ~90% of the production are ore fines 3 Who and where Top three countries: China, Australia and Brazil Top three companies: Vale, Rio Tinto and BHP Billiton Future outlook: growth follows steel production, expected to grow 1.5 times by 2050 4 1 USGS 2015. Iron ore statistics and information. Available at: http://minerals.usgs.gov/minerals/pubs/commodity/iron_ore/mcs-2015-feore.pdf 2 Poveromo, JJ 2013. Raw Materials & Ironmaking Global Consulting. Available at: http://www.steeltimesint.com/contentimages/features/iron_ore_joe_web_res.pdf 3 DNPM 2014. Sumário Mineral. Available at: http://www.dnpm.gov.br/dnpm/sumarios/ferro-sumariomineral-2014 4 World Steel Association 2015. World Steel in Figures. Available at https://www.worldsteel.org/dms/internetdocumentlist/bookshop/2015/world-steel-in-figures- 2015/document/World%20Steel%20in%20Figures%202015.pdf
Technical Implementation Traveling grate pelletizing process Flame temperature is the main parameter Estimated emissions ~55 Mt CO 2 /year globally Hydrogen from AEC to substitute NG
General Assumptions Break even electricity price was calculated as function of operating time for different scenarios FCR markets not considered Profit from heat not considered
General Assumptions Plant production 5 Mt/year, 8000 h/year Fixed specific energy consumption: Pelletizing: 1.12 GJ/t pellet, 42% NG and 58% solid (coal + coke breeze) Electrolyser efficiency (LHV) 65% at 70 ºC Required hydrogen was calculated in order to maintain flame temperature as for the original fuels
Material and Energy Balances: Pelletizing Travelling Grate NG AR 4,90 Mass Balance Temperature CO 2 Emissions Phase kg/s kmol/s Nm3/s Nm3/min [K] 78,08 kg/gj fuel Air 321,2 11,20 250,0 15 000 1 273 15,18 kg/s CH 4 1,693 0,094 2,094 126 298 87,45 kg/t Solid 3,851 0,443 - - - 437 234 t/year Flue gas 326,7 11,36 252,3 15 139 1 714 TOTAL IN - - 252,1 15 126 1441 oc 194,44 MW Hydrogen Phase Mass Balance AR 5,18 Temperature CO 2 Emissions kg/s kmol/s Nm3/s Nm3/min Vol. Diff. [%] [K] 54,65 kg/gj fuel Air 321,2 11,20 250,0 15 000 0,00 % 1 273 10,63 kg/s H 2 0,700 0,35 7,80 468 272 % 298 61,21 kg/t Solid 3,851 0,44 - - - - 306 049 t/year -30,0 % Flue gas 325,7 11,43 253,3 15 195 0,37 % 1 714 TOTAL IN - - 257,8 15 468 2,26 % 1441 oc Electricity demand 196,79 MW 1,2 % 129 MW Gas consumption 84,0 MW 2,8 % 1028 GWh/year
CAPEX, OPEX and Incomes 20 years lifetime Oxygen not utlized in process Total O&M 2.4%, water 0.4 /m 3 Different scenarios were considered varying: WACC: 8 12% Electrolyzer investment cost: 621 1165 /kwe Oxygen selling price: 0, 20 70 /t Natural gas purchase price: 35 50 /MWh CO 2 : 0 10 /t
Profitability 1/3 Investment Cost Oxygen Price 25.00 30.00 Electricity price /MWh 20.00 15.00 10.00 5.00 0.00 0 1 000 2 000 3 000 4 000 5 000 6 000 7 000 8 000 Electrolyser operating hours [h/year] Electricity price /MWh 25.00 20.00 15.00 10.00 5.00 0.00 0 2 000 4 000 6 000 8 000 Electrolyser operating hours [h/year] IC -20% Base IC +20% IC +50% O2 70 Base O2 20 O2 0 Natural Gas Electricity price /MWh 30.00 25.00 20.00 15.00 10.00 5.00 0.00 0 1 000 2 000 3 000 4 000 5 000 6 000 7 000 8 000 Base Case: IC = 717.12 /KWe O 2 = 50 /t NG = 40 /MWh WACC = 10% a CO 2 = 5 /t Electrolyser operating hours [h/year] NG 50 Base NG 35
Profitability 2/3 CO2 WACC 25.00 25.00 Electricity price /MWh 20.00 15.00 10.00 5.00 Electricity price /MWh 20.00 15.00 10.00 5.00 0.00 0 1 000 2 000 3 000 4 000 5 000 6 000 7 000 8 000 0.00 0 1 000 2 000 3 000 4 000 5 000 6 000 7 000 8 000 Electrolyser operating hours [h/year] Electrolyser operating hours [h/year] CO2 10 Base CO2 0 WACC 8% Base WACC 12% Base Case: IC = 717.12 /KWe O 2 = 50 /t NG = 40 /MWh WACC = 10% a CO 2 = 5 /t CO2 and WACC does not seem to have much impact
Profitability 3/3 Scenarios Electricity price /MWh 45.00 40.00 35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00 0 1 000 2 000 3 000 4 000 5 000 6 000 7 000 8 000 Electrolyser operating hours [h/year] Optimistic Base Pessimistic 2010 Prices Cumulative average price Optimistic: IC = 621.36 /KWe O 2 = 70 /t NG = 50 /MWh WACC = 8% a CO 2 = 10 /t Base Case: IC = 717.12 /KWe O 2 = 50 /t NG = 40 /MWh WACC = 10% a CO 2 = 5 /t Pessimistic: IC = 1165.05 /KWe O 2 = 0 /t NG = 35 /MWh WACC = 12% a CO 2 = 0 /t
Summary and Conclusions Agglomeration process are relevant for the Iron & Steel industry Use of hydrogen can be feasible: Investment costs is the main parameter Followed by electricity price NG price also play a important role Expected substantial CO 2 emission reduction 30% CO 2 emission reduction expected for pellet kilns But only 6% expected for sintering Evaluate possibility to increase gas share in sintering kilns
Next steps Hydrogen effects in the grate Use of oxygen to increase productivity Integration to steel mill
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