DRI TECHNOLOGY: HIGH PRODUCTIVITY IRONMAKING FOR MODERN STEEL MILLS

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2ND WORLD DRI AND PELLET CONGRESS ABU DHABI (UAE) 28-30 APRIL 2014 DRI TECHNOLOGY: HIGH PRODUCTIVITY IRONMAKING FOR MODERN STEEL MILLS FABIO MUSCOLINO PROPOSAL ENGINEER DANIELI&C SPA

HIGH PRODUCTIVITY IRONMAKING FOR MODERN STEEL MILLS OUTLINE > IRONMAKING BRIEF MARKET OUTLOOK > HIGH PRODUCTIVITY AND EFFICIENT REDUCTION > ENERGIRON TECHNOLOGY AND PROCESS BENEFITS > CONCLUSIONS > PROVEN FACTS

IRONMAKING BRIEF MARKET OUTLOOK

CRUDE STEEL PRODUCTION Millions tons IRONMAKING BRIEF MARKET OUTLOOK > the average lifetime for steel products is around 40 years > 40 years ago steel production was about 30% of what is today and it is still increasing A LOT OF SCRAP WILL NOT BE AVAILABLE UNTIL 2050 * Worldsteel association 2013

CRUDE STEEL PRODUCTION Millions tons IRONMAKING BRIEF MARKET OUTLOOK > the average lifetime for steel products is around 40 years > 40 years ago steel production was about 30% of what is today and it is still increasing A LOT OF SCRAP WILL NOT BE AVAILABLE UNTIL 2050 The problem related to purchased scrap can be solved by using: > BF-BOF ROUTE > DRP-EAF ROUTE * Worldsteel association 2013

HIGH PRODUCTIVITY AND EFFICIENT REDUCTION BF-BOF ROUTE Traditionally, large size integrated steelplants using iron ore were an exclusive of the Blast Furnace / Basic Oxygen Furnace route IRON ORE PIG IRON LIQUID STEEL SINGLE MODULE productivity 2,5/5 MTPY SHARE OF PRODUCTION* Gas DRI/EAF 4% Scrap/EA F 24% Coal DRI/EAF 1% BF/BOF 71% 120% 100% 80% 60% 40% ENERGY CONS. RATE* 1 ton LIQUID STEEL BF/BOF Gas DRI/EAF BF 120% 100% 80% 60% 40% BO F CO 2 EMISSION RATE* 1 ton LIQUID STEEL BF/BOF Gas DRI/EAF *2013.07 Laplace - Impact of energy market developments on the steel industry

HIGH PRODUCTIVITY AND EFFICIENT REDUCTION BF-BOF ROUTE Traditionally, large size integrated steelplants using iron ore were an exclusive of the Blast Furnace / Basic Oxygen Furnace route IRON ORE PIG IRON LIQUID STEEL SINGLE MODULE productivity 2,5/5 MTPY DRP-EAF ROUTE Up to date, the ENERGIRON Direct Reduction Technology only allows to reach SINGLE MODULE productivity up to 2,5 MTPY IRON ORE BF DRI/HBI BO F LIQUID STEEL DRP EAF COMPANIES WITH A WINNING APPROACH TO THIS INDUSTRY TAKE ADVANTAGE OF THE NEW DRP LARGE SIZE POSSIBILITIES TO STRENGTHEN THEIR POSITION

HIGH PRODUCTIVITY AND EFFICIENT REDUCTION THE SMART CHOICE 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

ENERGIRON TECHNOLOGY AND PROCESS BENEFITS

ENERGIRON TECHNOLOGY AND PROCESS BENEFITS ENERGIRON PROCESS PG COMPRESSOR CO2 ABSORBER NATURAL GAS REFORMED GAS SYNGAS COKE OVEN GAS H2O HEAT RECUPERATOR FUEL O2 COLD DRI REACTOR IRON ORE (5-18 mm) HBI HYTEMP SYSTEM HOT DRI TO EAF > Reactor working pressure: 6 8 barg Lower process gas volumes trough reactor = > high product quality Less iron ore fines transported by top gas = > high metallic yield Uniform gas distribution in reactor (no channeling) = > uniform product quality More uniform DRI metallization Higher production volumes

ENERGIRON TECHNOLOGY AND PROCESS BENEFITS IN SITU REFORMING AND REDUCTION PROCESS TOP GAS OUTLET reduced material losses REDUCTION AREA IN SITU REFORMING AREA methane cracking

ENERGIRON TECHNOLOGY AND PROCESS BENEFITS REACTOR SIZING Energiron have the widest range of capacities, from 0.2 up to 2.5 Mtpy 0.2 0.5 0.8 1.2 1.6 2.0 2.5 3.0 > 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 been realized, with possibility to go up to 3 Mtpy

ENERGIRON TECHNOLOGY AND PROCESS BENEFITS WE DID IT! Since the start of ENERGIRON collaboration in 2006 we are providing a continuous improvement through the years, made of: > Plant design > Process > Technological Packages > Process Automation PLANT DESIGN PRODUCTIVITY (t DRI /year)* NUCOR ES1&2 CAPACITY ENHANCEMENT OTHER TECHNOLOGIES UPPER LIMIT SUEZ ~ 1.800.000 ES1 ES2 HADEED * Plants currently in operation

ENERGIRON TECHNOLOGY AND PROCESS BENEFITS INPUT MATERIAL FLEXIBILITY > Iron ore pellet > Lump ore > BF pellet > Mix DRI/HBI > High degree of metallization (it can be regulated according to the final use of DRI/HBI) > High control of carbon content

HIGH PRODUCTIVITY AND EFFICIENT REDUCTION DIRECT REDUCTION PLANT INTEGRATION WITH EAF The HyTemp system is the industry most proven and reliable Hot DRI transportation technology available up to date. > 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 20 million tons of Hot DRI already transported > Reliability - Time availability record of 100% > 4 plants now under operation

HIGH PRODUCTIVITY AND EFFICIENT REDUCTION EAF FEEDING WITH HOT DRI Hot DRI charging in the EAF generates two main benefits: reduced electricity consumption and increased productivity EL. ENERGY CONSUMPTION WITH CDRI/HDRI BALANCE IN THE EAF CHARGE TAP-TO-TAP TIME WITH CDRI/HDRI BALANCE IN THE EAF CHARGE ELECTRIC ENERGY SAVED: 20 TO 30 kwh/t LS EVERY 20% OF HOT DRI IN THE EAF CHARGE PRODUCTIVITY INCREASE: UP TO 30% MORE PRODUCTIVITY By using Hot DRI, all downstream integrated plant output can increase productivity

HIGH PRODUCTIVITY AND EFFICIENT REDUCTION ENVIRONMENTAL IMPACT: CO2 REMOVAL SYSTEM Since the stream of CO2 is selectively removed from process gas, it can be recovered for further commercial application CARBON BALANCE kgc/t DRI CARBON BALANCE % CO2 Absorber CARBON IN NON SELECTIVE EMISSION CARBON IN SELECTIVE EMISSION CARBON IN PRODUCT (C=3.5%) 43 29% 70 47% 35 24%

HIGH PRODUCTIVITY AND EFFICIENT REDUCTION ENVIRONMENTAL IMPACT: CO2 REMOVAL SYSTEM Since the stream of CO2 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 CARBON BALANCE kgc/t DRI CARBON BALANCE % CARBON BALANCE kg CO2 /t DRI CO 2 Emissions % CARBON IN NON SELECTIVE EMISSION CARBON IN SELECTIVE EMISSION CARBON IN PRODUCT (C=3.5%) 43 29% 70 47% 35 24% 159 256 -

* Nucor plant condition ** Competitor publications HIGH PRODUCTIVITY AND EFFICIENT REDUCTION TYPICAL EMISSIONS LEVEL POLLUTANT - CO2 UNIT ENERGIRON TECHNOLOGY OTHER TECHNOLOGY EMISSION SAVING _ CO2 in total emissions kg/tdri 159* 500** 341 _ CO2 in captured emissions kg/tdri 256* 0 - POLLUTANT - NOx UNIT ENERGIRON OTHER EMISSION TECHNOLOGY TECHNOLOGY SAVING _ NOx with typical plant mg/tdri configuration (without SCR) 80 400** 320 ENERGIRON technology has the lowest level of pollutant emissions for CO2 and NOx among the direct reduced technologies now available on the market. CO2 ENERGIRON OTHER technology EMISSIONS 341 kg/t DRI -68% NOX ENER. OTHER technology 320 mg/t DRI -80%

HIGH PRODUCTIVITY AND EFFICIENT REDUCTION GENERAL CONSIDERATIONS Steel demand is expected to grow steadily. Because of expected scrap shortage, new ironmaking routes from BF and DRP should be installed. DRP are preferred, where possible, by economical and environmental point of view 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 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. ENERGIRON, from these stand points, is the state-of-the-art among DRP technologies ENERGIRON THE FIRST INDUSTRIAL GAS BASED REDUCTION TECHNOLOGY IN 1957 THE FIRST TO BE READY FOR THE IRONMAKING OF THE FUTURE

ENERGIRON PROVEN FACTS

PROVEN FACTS

DRI [tons]_ PROVEN FACTS EMIRATES STEEL - PRODUCTION DATA PHASE 2 1 year From September 2012 to August 2013 1,800,000 1,600,000 YEARLY NOMINAL PRODUCTIVITY 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 TIME [months] NOMINAL CAPACITY EXCEEDED AFTER 1 YEAR OF OPERATION SINCE THEN, MONTHLY PRODUCTIVITY IS CONSTANTLY STABLE ABOVE THE NOMINAL RATE

tdri/h PROVEN FACTS EMIRATES STEEL - CAPACITY ENHANCEMENT Capacity enhancement of the Integrated Steel Complex, both Phase 1 and Phase 2, up to 2.000.000 Mtpy, by second quarter 2014. EMIRATES STEEL - PHASE 2 PARAMETER UNIT INITIAL DESIGN ACHIEVED DRI PRODUCTION tons 200 262 METALLIZATION % 94% 95,3% CARBON CONTENT % 2,5 2,56 NATURAL GAS CONSUMPTION Gcal/tDRI 2,65 2,52 300 250 200 150 100 50 PRODUCTIVITY +30% ELECTRICITY CONSUMPTION kwh/tdri 35 24,14 MAKE UP WATER CONSUMPTION m 3 /tdri 1,8 1,05 IOP SPECIFIC CONSUMPTION tiop/tdri 1,44 1,41 0 Initial Design Achieved

PROVEN FACTS SUEZ STEEL COMPANY

PROVEN FACTS