ENERGIRON Direct Reduction - The Forefront Technology

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Annamaria Volpatti Danieli ENERGIRON Direct Reduction - The Forefront Technology 1. THE BASICS DRI TECHNOLOGIES - OPTIMIZATION AND EVOLUTION Where is DRI technology heading to?

About us Is the innovative HYL Direct Reduction Technology developed jointly by The most competitive and environmentally clean solution for lowering the liquid steel production cost

About us ENERGIRON - Pioneering in direct reduction since the 1950s with the WORLD S FIRST INDUSTRIAL PLANT in 1957; ENERGIRON is the unique direct reduction technology that, with the same process scheme configuration, lets you choose the best energy source - natural gas, reformed gas, Syngas from a coal gasifier or even Coke Oven Gas without any modification; ENERGIRON Direct Reduction plant can be integrated with the meltshop via HYTEMP, the hot DRI transport system, providing additional benefits in terms of energy savings, metallic yield and environmental impact; ENERGIRON Direct Reduction is the most effective technology in terms of environmental impact, with extremely low pollution, NO x and CO 2 emissions; ENERGIRON Direct Reduction allow for the capture and sale of CO 2 to gas companies, drilling companies and bottling companies.

The Smart Choice For the DRI market, our technology advances have made us the perfect choice for the new market conditions in terms of virgin iron supply: PROCESS: Simpler, same scheme for all energy sources available, smaller in size yet larger in capacity than any competing technology. PRODUCT QUALITY: Unique DRI quality, hot or cold discharge with 94-96% Met and Carbon up to 4%. ENVIRONMENTAL IMPACT: Lowest NO x, and selective elimination of CO 2 as integral system to our technology, with lucrative by-product options (currently commercialized in various DRP s), makes ENERGIRON the greenest option.

Process scheme The basic process configuration is unchanged for any energy source application CO 2 and Sulphur removal CO 2 sold as by-product RG Compressor Reducing gas sources Natural Gas Reformed Gas Coal Gasification COG others Energy recovery as steam, used for CO 2 removal CO 2 (+H 2 S) Humidifier TG Heat Recuperator H 2 O Gas Heater Fuel PG Heater Oxygen Iron Ore (3.2 18 mm) DR Reactor H 2 O High Temp: >1050 C In Pressure: 6-8 bar Simultaneous: - in-situ CH 4 reforming - Reduction of iron ore - Carburisation CG Compressor Cooling Circuit DRI

IN-SITU Reforming: Conditions for natural gas reforming: presence of Oxidants and hydrocarbons (H 2 O+CO 2 +C n H 2n+2 ) high temperature presence of catalyst (DRI) Iron Oxides Reduction: The conditions for the reduction of iron oxides are: presence of reductants (H 2 +CO)/(H 2 O+CO 2 )>>1 high temperature presence of iron oxides In the reactor reduction zone above conditions are present, making possible the in-situ reforming and reduction simultaneously. In situ Reforming and Reduction Iron Ore DRI Reforming Process scheme Reduction In-situ Reforming CH 4 + H 2 O CO + 3H 2 CH 4 + CO 2 2CO + 2H 2 Reduction Fe 2 O 3 +3CO 2Fe + 3CO 2 Fe 2 O 3 +3H 2 2Fe + 3H 2 O Carburization 3Fe + CH 4 Fe 3 C + 2H 2

Iron ore flexibility Iron ore pellet Lump ore BF pellet Mix DRI High degree of metallization (it can be regulated according to the final use of DRI) High control of carbon content

Iron ore flexibility no practical limitations regarding the chemical composition of the iron ores; No concerns about having high sulphur iron ores for which case, the sulphur is eliminated along with the CO2 in the CO2 absorption system, which is part of the reduction circuit. the low gas velocity inside the shaft, due to the high operation pressure, diminishes fines carry over reducing ore losses from the plant.

ENERGIRON Products Iron Ore H 2 O Reducing gases: Natural Gas Reformed Gas Coal Gasification COG others CO 2 fuel O 2 Cooling Circuit Only for cold DRI NG High-Carbon DRI Hot/Cold DRI HBI Cold DRI HBI Hot DRI via HYTEMP Iron EAF

HYTEMP System World s Most Proven and Reliable Hot DRI Transport System Surge Bin DRI Cooler DR Reactor Surge Bin Interface Bin Buffer Bins Discharge Bins COLD DRI PG heater Carrier gas make up P T Compressor EAF

Based on the concept of the bulk material pneumatic transport; Completely enclosed system: no dust losses; Flexible for feeding more than one EAF; no layout restrictions; Long distances possible No effect on DRI quality; carrier inert gas; Minimum heat losses (~50 C); No wearing parts and almost maintenancefree; N 2 make-up: 2-3 Nm3/t; Power consumption: 3-6 kwh/t; Compliance with all safety regulations. HYTEMP System

HYTEMP System Reactor Tower Hytemp Tower External Cooler EAF Ternium Monterrey is currently feeding two EAFs with Hot DRI. The Danieli EAF is fed with up to 100% High-Carbon, Hot DRI To External Cooler > pipe length: 72m > elbows: 3 To EAF > pipe length: 127m > elbows: 3 ES 1&2 both use this arrangement

DRP integrated with EAF Between 22 to 25 kwh/tls El. Energy saved every 100 C of DRI temperature increase Up to 30% more productivity

Power [kwh/tls] Oxygen [Nm3/tLS] High Carbon DRI An exclusive benefit of the ENERGIRON ZR technology DRI Carbon levels can be selected in the range of 0.8 4.0%, most of which is in the form of iron carbide Fe 3 C; The high percentage of Fe 3 C in the DRI makes the product very stable: DRI is safe to transport and store; The Carbon in DRI is source of energy in the EAF by the following main reactions: 2C + O 2 CO + Heat Fe 3 C 3Fe + C + Heat This reaction provides additional ~ 33 kwh/tls per mole Fe 3 C 650 630 610 590 570 550 530 510 490 470 450 0 1 2 3 4 5 C% 60 50 40 30 20 10 0 The benefits of high-carbon hot DRI have been demonstrated while feeding up to 100% of hot DRI with about 94% metallization and close to 4% Carbon.

Environmental Impact For a DR plant, main emissions are related to: Iron ore particulates from material handling. Iron ore and DRI particulates as sludge from process water system. Gaseous effluents (from thermal equipment, degassing stacks of water systems and CO2 removal system) Emissions from gaseous and aqueous effluents from a DR plant can be categorized in two main groups: Pollutants, such as: NOx, SOx, particulates, etc., whose limits are defined by the environmental regulations of local Governments. Global Warming-Greenhouse emissions (GHG), which comprises: CO 2, CH 4, NO 2 Compliance with the environmental regulations is mandatory to obtain governmental permits for the installation of a DRP facility.

Environmental Impact: GHG 1. In a DRP, CO 2 emissions are related to the carbon content of the fuel used (Coal, NG, etc); 2. ENERGIRON DR process intrinsically includes a CO 2 absorption system for selective elimination of CO 2. H 2 O Iron Ore CO 2 (+H 2 S) Reducing Gas fuel Gas Heater O 2 DRI For Mass Conservation Principle, total Carbon feeding the ENERGIRON DRP is ultimately found as CO 2 at the battery limit as: Sequestrated Emissions Free Emission to Atmosphere (mainly from PG Heater) Carbon in Product (DRI/HBI)

kg CO2/t LS kg CO2/t LS Environmental Impact: GHG For ENERGIRON DRP ~ 60% of total Carbon-input is selectively removed as pure CO 2 For NG, 250 kg CO 2 /t DRI can be commercialized as by-product. DRP s currently selling (or will sell) CO 2 : Ternium Monterrey and Puebla, PSSB, Welspun, ES, Nucor Potential (@$25-30/t CO 2 ): up to $7.5 mio/y savings 1,200 1,100 1,000 900 800 700 600 500 400 300 200 100 If selective CO 2 is commercialized/sequestrated Total CO 2 Emissions DR-EAF ENERGIRON vs. Others (location: 0.52 kg CO2/kWh) Carbon addition to EAF Net Power & O2 requirements in EAF Electricity & O2 to DR plant Iron ore (production) + fluxes Non-selective CO2 in flue gases 1,200 1,100 1,000 900 800 700 600 500 400 300 200 100 Total CO 2 Emissions DR-EAF ENERGIRON vs. Others (location: 0.52 kg CO2/kWh) Carbon addition to EAF Net Power & O2 requirements in EAF Electricity & O2 to DR plant Iron ore (production) + fluxes Non-selective CO2 in flue gases 0 Others (94% Mtz;1.5% C) ENERGIRON (94% Mtz;3.6% C) CO 2 selectively removed 0 Others (94% Mtz;1.5% C) ENERGIRON (94% Mtz;3.6% C)

ENERGIRON plant emissions are in accordance with the most stringent environmental regulations Low NOx generation due to process high energy efficiency; NOx emissions additionally reduced with ultra-low NOx or SCR; Environmental Impact Low dust from heater/reformer due to low tail gas purged from reducing circuit to burners NOx with Ultra Low NOx burners NOx with Selective Catalytic Removal 50-80 [mg/nm 3 ] 10-50 [mg/nm 3 ] CO 20-100 [mg/nm 3 ] Dust from heater/reformer stack 1-5 [mg/nm 3 ]

Alessandro Martinis Danieli ENERGIRON Direct Reduction - The Forefront Technology 2. FEATURES and ACHIEVEMENTS DRI TECHNOLOGIES - OPTIMIZATION AND EVOLUTION Where is DRI technology heading to?

ENERGIRON EVIDENT BENEFITS : OPEX Less fines losses & less screening result in less ore consumption; Overall lower Energy consumption in terms of NG and power; Higher benefits in EAF due to High-Carbon DRI. BEST AVAILABLE TECHNOLOGY for ENVIRONMENTAL PROTETION CHALLENGING THE BF ROUTE Productivity Use of alternative energy sources ENERGIRON REALIZATIONS

Metallization % 94 ZR Consumption Figures Carbon % 3.0 Temperature ºC 600 (at EAF) Unit Consumption Unit/t DRI Iron ore pellets (screened, dry) t 1.38 Natural gas Gcal 2.38 Oxygen Nm 3 54 Nitrogen Nm 3 22 Electricity Core Area + Mat. Hand. kwh 77 Electricity Aux. Plants kwh 13 Water m 3 1.2 Labor m-h 0.15

Hot DRI charging: electric consumption decreased by about 20% tap-to-tap time decreased by 21%. DRP integrated with EAF COLD DRI (1) HOT DRI (2) Temperature [ C] 30 500 Production [t/h] 148 220 El. Energy Cons. [kwh/tls] 510 410-420 Oxygen Cons. [Nm3/t LS] 31-38 31-38 Electrode Cons. [kg/t LS] 1.6 1.4 Tap to Tap [min] 57 40-45 (1) 95% cold DRI + 5% scrap (2) 90% hot DRI + 10% cold DRI * Source Data Emirates Steel Company + 32% PRODUCTIVITY AT THE EAF WITH HOT DRI (as compared to cold DRI)

Environmental Impact: zero water consumption circuit water is a by-product of the reduction reaction, condensated and removed from the gas stream; as a consequence, adopting a closed-circuit water system, based on the use of sea/river water heat exchangers instead of conventional cooling towers, there is no need for fresh make-up water and actually a small stream of water is left available at battery limit.

Environmental Impact Prepared for the future Further setup for selective CO 2 removal in DRP: CO2 Emission Free Process The only addition to the basic scheme is the incorporation of a Pressure Swing Adsorption system (PSA type), which is used to recover hydrogen from a portion of the gas stream (the tail gas), previously treated by the chemical CO 2 absorption plant. This approach provides the H 2 required as fuel from the reduction system itself. ~ 90% of Total C-input is selectively removed as CO 2, which can be commercialized/sequestrated CO 2 (+H 2 S) Reducing Gas PSA CO CH 4 H 2 O CO 2 -free flue gases H 2 as fuel Fuel (if required) O 2 Iron Ore DRI

Sinterplant Towards integration with BF Where By using coal COG is to the feed primary an ENERGIRON energy source, ZR DRP, the it blast is possible furnace to is improve still the most common H 2 O Iron ironmaking the overall performances technology with of integrated a significant steel impact plants on equipped the environment with in terms of greenhouse gas blast emissions. furnaces Ore Coke oven Plant Coal CO 2 Coke Lump/ Pellets Burden BFG COG fuel O 2 Blast furnace P C I DRI HM BOFG to in-plant users Power Plant imported scrap Coolant Scrap Hot metal desulphurization BOF Steel plant with treatment recycle scrap Slab-Caster-Plant

CASE STUDY: Efficiency of a BF-BOF route combined with ENERGIRON DRP or Power Plant Integrated Steel Plant located in India Coke Plant (2Mt/y) + BF + BOF 4.46 Mtls/y Power Electrical Energy 90,000 Nm 3 /h COG ENERGIRON DRP Production per year 1,487,500 MWh/y 1,339,713 tdri/y Production per t/ls from BOF 333.5 kwh/t ls from BOF 0.30 tdri/t ls from BOF Profit 0.04 US$/kWh 100 US$/t Benefits per year 59.5 M US$/y 114 M US$/y (Note 1) Benefits per t/ls from BOF 13.34 US$/tls 30 US $/tls Note1: depreciation of around 15$/t for 15 years for the DRP

CASE STUDY: Environmental impact of a BF route combined with ENERGIRON DRP or Power Plant The carbon feeding the BF/BOF route either with Power Plant or with a DRP is the same but the distribution is different ; With the Energiron technology, remarkable achievements can be reached even when only coal is available as a source of reducing agents: BF/BOF + Power Plant BF/BOF+DRP+EAF 4,460,000 tls/y from BOF 1,152,153 tls/y from DRI in EAF Production per year 4,460,000 tls/y 5,612,153 tls/y CO2 from coke 7,333,333 tco 2 /y 7,333,333 tco 2 /y CO2 from COG 526,609 tco2/y tco 2 /y 435,014 tco 2 /y A sum of tco 2 /y from fired heater tco 2 /y equiv. To El.En. In EAF tco 2 /y from DRI in EAF CO2 from El. Energy due to BFG and BOFG 624,400 tco 2 /y 624,400 tco 2 /y CO2 total in atm 8,438,342 tco 2 /y 8,392,747 tco 2 /y CO2 per tls 1.9 tco 2 /tls 1.5 tco 2 /tls The CO 2 emissions corresponding to the El. En. required in the EAF refer to a country where the CO 2 produced for power generation is almost 0.4kgCO 2 /kwh.

the CO2 emissions related to the total liquid steel for each route produce a significantly lower value when COG is used for DRI production; kgco 2 /tls CASE STUDY: Environmental impact of a BF route combined with ENERGIRON DRP or Power Plant The possibility to reduce by about 21% the total amount of CO2 emitted in the atmosphere per ton of liquid steel is an effective alternative even for markets where the BF is the common steelmaking route.

Towards uppermost productions Pressurized operation allows larger capacity modules with no scale-up problems EISC 0.2 Mtpy Far East 0.5 Mtpy 0.8 Mtpy 1.2 Mtpy ES1 & ES2 1.6 Mtpy Ezz 1.9 Mtpy Suez Steel 1.95 Mtpy Nucor 2.5 Mtpy Ø 3.1 m Ø 3.8 m Ø 4.5 m Ø 5.0 m Ø 5.7m Ø 6.0 m Ø 6.5m

Gulf Sponge Iron EISC (Gulf Sponge Iron) is located in Mussaffah industrial area, Abu Dhabi Design capacity: 0.2 Mtpy First ENERGIRON Micromodule ZR plant for high carbon DRI Started up in 2010 Ideal for small steel producers due to low cost natural gas supply

Emirates Steel 1&2

Emirates Steel 1&2 Emirates Steel is an Integrated Steel Complex locate in the Mussaffah Industrial Area (Abu Dhabi, UAE) Design capacity: 1.6 Mtpy each Project underway to increase capacity to 2.0 mtpa each, for 4 mtpa total capacity ENERGIRON III (with external reformer) Hot discharged DRI 93% Metallization & 2%C HYTEMP system for directly feeding hot DRI to the EAF

ES 1 Performance Test Target achieved in December 2009 TARGET ACHIEVED Production 12,960 t 12,996 t Averge Metallization 93% 94.77% Average Carbon Content 2.00% 2.36% Average NG Consumption 2.6 Net Gcal/t 2.51 Net Gcal/t Average Electricity Consumption 35 kwh/t max 21.7 kwh/t Average make-up water consumption 1.8 m 3 /t 1.49 m 3 /t PRODUCTION AVERAGED ON 8 HOURS: 211 t/h versus GUARANTEED VALUE OF 200 t/h

ES 2 Performance Test Target achieved in May 2011 TARGET ACHIEVED Production 30,240 t 36,340 t Averge Metallization 94% 96.14 % Average Carbon Content 2.00% 2.13% Average NG Consumption 2.6 Net Gcal/t 2.525 Net Gcal/t Average Electricity Consumption 35 kwh/t max 19.6 kwh/t Average make-up water 1.8 m 3 /t 0.88 m 3 /t consumption PRODUCTION AVERAGED ON 168 HOURS: 205.7t /h versus GUARANTEED VALUE OF 200 t/h

Steel Complex located in Ain Soukhna Industrial Area, in Egypt Ezz Rolling Mill Design capacity: 1.9 Mtpy ENERGIRON III (with external reformer) Cold discharged DRI - 93% Metallization & 3%C Project resuming soon

Suez Steel Company Integrated Steel Complex located in Suez Industrial Area, Egypt Design capacity: 1.95 Mtpy ENERGIRON ZR (without external reformer and fed with NG) Hot/Cold discharged DRI - 93% Metallization 3.0%C

Suez Steel Company HYTEMP system for directly feeding hot DRI to the EAF Start-up is on going

Nucor Design capacity: 2.5 Mtpy Cold DRI 94% Metallization - 3.5%C Standalone DRI Plant located in Convent, Louisiana, USA ENERGIRON ZR (without external reformer) Largest DR plant worldwide, Under construction Start up at the end of 2013

JSPL DR Project Danieli and Tenova HYL signed a contract for the first of four ENERGIRON DR plants for Jindal Steel & Power of India. Main characteristics: Gases from Coal Gasifier (Syngas) PG Compressor CO 2 Humidifier H 2 O COG Tail Gas PG Heater BOF Fuel TGH Recuperator Iron Ore Oxygen ENERGIRON Reactor Hot DRI DRP capacity: 2.5 million tpa of cold and hot DRI in any combination. Use of Syngas from coal gasification and COG as source of reducing gases in any proportion, with energy consumption in the range of 2.2 Gcal/t DRI. Tail Gas DRI Metallization of 94% and carbon of 2-2.5% External Cooler Use of BOF gas as fuel for the process gas heater and other users. Syngas Cold DRI EAF #1 EAF #2

The ENERGIRON is heading the DRI world towards: more efficient process in use of reducing agents (gas) and iron ore; more advantageous DRI product for steelmaking; more efficient integration with melthop, by means of the HYTEMP system; Higher productivity; Lower environmental impact; Efficient integration with BF. Conclusions