HIsarna, a Revolution in Steelmaking June 21, 2013 CEPS Meeting, Brussels Tim Peeters
Paper & Steel : Common Ground? CO 2 intensive (1.1% vs 4% of man made CO 2 ) Energy intensive High recycling rate (70% vs 95%) Capital intensive Major facilities > 20 years life span Large sites, large installations Threshold for implementation of breakthrough technologies Trend of past 20 years Process efficiency, labour productivity increase From Fragmented to Consolidated industry Changing competitive landscape in major markets Sustainability and Climate Change challenge 2
The Challenge in Steelmaking Growth Sustainability World steel consumption Ambition to cut CO 2 emissions will double in 2050 by 50 % in 2050 3
The International Approach Climate Change is Global Climate Change is Long Term Support at board level, governmental level, EU level Build industrial partnerships, bring people together Use a broad range of expertise Build a common language The Brand: Ultra Low CO 2 Steelmaking 4
The ULCOS project Objective: 50% reduction in CO 2 emissions per ton of steel from iron ore based steel production by 2050 Globally the largest steel industry project on Climate Change mitigation Core partners: ArcelorMittal, Tata Steel, ThyssenKrupp, Ilva, Voestalpine, LKAB, DillingerHütte/Saarstahl, SSAB, Rautaruukki Co-partners: 48 Institutes, Universities, Engineering companies, etc Budget: 75 M Duration ULCOS I: 2004 2010 ULCOS II: 2011 201 5
ULCOS Consortium: 48 partners 6
Idea Experiment Pilot Demo Industry 2004 ULCOS - I Project 2010 ULCOS - II Project 201.. CO 2 and sustainability modelling Inventory of 200 process options Selection Selection Criteria CO 2 Economical progress Pilot plant Technical maturity Social acceptance Industrial Demo Other environmental aspects Fit with existing configurations 7
Common approach, definitions, boundaries Gate to Gate approach for the Classical Integrated Steel Mill Everything is assessed for one ton of Hot Rolled Coiled (HRC) Focus area: Ironmaking is responsible for 85-90% of CO 2 per HRC 8
Selection Process: Funnelling the Options 2004 ULCOS - I Project 2010 ULCOS - II Project 201.. CO 2 and sustainability modelling Inventory of 200 process options Selection 4 processes selected Top Gas Recycling Blast Furnace HIsarna Gas based reduction Better use of Carbon in retro-fitted plants Better use of Carbon in a new process Replacing Carbon with Natural Gas or Hydrogen Electrolysis of iron ore Green power, mimic Aluminium production 9
Top Three Hurdles to Manage Technical High intensity, high efficiency process development Focus on generic long-term solutions Financial High risk, high reward Partnering: sharing benefit + cost + effort + risk Industry contribution + local / national / European funding Organisational Consortium People: availability, expertise, critical mass Communication Public relations Intellectual property 10
Steel Production Process Route Where does HIsarna fit? Iron ore coal Ironmaking Steelmaking Steel products Rolling & Coating Casting 11
HIsarna technology Comparison with the Blast Furnace route Blast furnace sinter Iron ore coke Liquid iron coal 12
HIsarna technology Comparison with the Blast Furnace route Blast furnace sinter Iron ore coke coal Direct use of coal and ore No coking and agglomeration Liquid iron 13
HIsarna pilot plant Campaign A Preparations Industrial Demo Negotiations with ULCOS Concept development Engineering 2007 2009 Construction 2010 2011 Campaign B 2012 2013 Campaign C in progress 2015 2004 7 Years of preparation before the first hot metal was produced 14
Key Success Factors Commitment from all levels Financial support Construction September 2010 Logistical, Engineering and R&D know-how on site Cooperation Perseverance Fast cycle of learning and improving 15
Cold Commissioning, January 2011 16
First Start-up, April 2011 17
First HIsarna Hot Metal, May 2011 Production runner HIsarna pilot plant 18
Campaigns A, B, C Campaign A (April June 2011) The first metal was tapped on May 20, 2011 Process works as expected but the number of operating hours was below expectation Many points for plant improvements were identified Improvements were implemented before the start of Campaign B Campaign B (Oct Dec 2012) Confirmed process efficiency and product quality Name plate capacity of 8 t/h achieved Promising results with respect to energy efficiency Campaign C (May June 2013) In progress 19
HIsarna Summary With the ULCOS and HIsarna project the European steel industry is proactively approaching the Climate Change issue In the HIsarna project knowledge and experience of steelmakers and equipment suppliers from all over Europe is brought together HIsarna is a high risk/high reward innovation with the potential to have a strong environmental and economical impact on the steel industry Environmental impact: Without capture and storage: 20% CO 2 reduction With capture and storage: 80% CO 2 reduction Strong reduction of other emissions Economical impact: Wider range of raw materials Lower CapEx, OpEx 20
Challenges for HIsarna Future Demonstrate robustness of technology Further pilot plant campaigns: people, time, funding Up-scaling to industrial size Valley of Death Transition from generic to specific (location, size, configuration) Investment 250 M (± 50 M ) Demonstration scale should have a competitive business case Governments can support this; mitigating the business risk Many potential innovations in ironmaking have not survived this step Sustainable industry future, supported by National and European policies Review the 2050 Roadmap (environmental, economical, social landscape) Develop business case for pushing out Blast Furnace technology 21
What have we learned along the way? Think big: Focus on breakthrough, not incremental Partnerships, collaboration, trust Set scope, targets, common definitions Clear funnelling & selection process (ULCOS): Generic, Long Term solutions Handle good ideas outside the scope Don t bet on one horse When stakes get higher, stay connected with the business strategy Innovation comes from people with expertise 22