International Conference Indian Steel Industry: Challenges & Opportunities

1. TECHNOLOGY ROAD MAP FOR INDIAN STEEL INDUSTRY 23rd March 20123 A C R Das Industrial Adviser Ministry of Steel International ConferenceIndian Steel Industry: Challenges & Opportunities

2. World Steel Production : 1527 MT • Indian Steel Production : 72 MT • World Ranking in Production : 4th • World Ranking in Consumption : 3rd • Projected Capacity by 2016-17 : 150 MT • Projected Capacity by 2019-20 : 200 MT • Projected Capacity by 2030 : 500 MT Indian Steel Production is bound to grow manifold in years to come to sustain Growth in infrastructure /Construction, Automotive , Capital Goods and Consumer Durable Sector i.e economic growth . Present Status and Future Projections

5. World: 2 main process routes • Basic Oxygen Furnace (BOF): ~ 70% • Electric Arc Furnace (EAF): ~ 29% • Others: ~ 1% India: 3 main process routes • Oxygen Furnace (BOF/THF): ~ 45% • Electric Arc Furnace (EAF): ~ 23% • Electric Induction Furnace (EIF): ~ 32% • Induction Furnace Play dominant role in steel production in India-a unique feature. Quality issue remain unresolved • BF-BOF route is likely to gain momentum. Share of Process Routes in Steel Production

6. Iron & Steel Making is resource intensive and Energy Intensive and have environmental Ramifications. • Globally 18 Tonnes of CO2 /tcs is emitted. India 2.5-3 T/tcs • Global CO2 emission is around 30 billion tonnes /year. • India’s contribution is around 1.15 billion tonnes/ year (4%), of which • Steel sector contributes 117 million tonnes/ year (10%). • Integrated steel plants largest point sources of CO2 emission and 85% of CO2 is from iron making. • With the increase in production, energy consumption and GHG emissions will also increase correspondingly adding to Global Warming: an issue of international criticism. • Therefore, it is necessary that along with capacity build-up, suitable mitigation strategies are inbuilt into the strategy. Steel Making and Climate Change

7. Advanced steel plants in the world already operate close to theoretical limits. • There is ambitious target to cut CO2 emission by 50% by 2050 which is not possible adopting conventional technologies and would require Breakthrough Technologies. • Steel Making countries/ regions have embarked on programmes to achieve targeted CO2 emission: • ULCOS (EU) • COURSE 50 (Japan) • CO2 Breakthrough Programme (USA) • POSCO Breakthrough Technology Programme (Korea) • Breakthrough Technologies being explored are: innovations in BF (Oxygen Operation), Hydrogen Reduction, Electron Reduction, Use of Biomass, Carbon Capture & Storage (CCS) etc. Energy Efficiency & GHG Emission:Global Scenario

8. The Specific Energy Consumption (SEC) in Indian Steel Plants have declined substantially from 10 Gcal/MT in 1990 to 6-6.5 Gcal/MT in 2009 and are still declining. • Best available technologies indicate SEC of around 4.5-5 Gcal/MT for BF-BOF route and 4 Gcal/Tcs for gas based DRI-EAF unit. • Integrated steel plants in India are 50% more energy intensive than global average. • The same holds good for CO2 emission also. • There remains large scope for improvement of energy intensity & reduction of CO2 emission even without pursuing breakthrough technologies. Energy Efficiency & GHG Emission: Indian Scenario

9. India is committed to reduce GHG Emission Intensity of its GDP by 20-25% by 2020 over 2005 level, through pursuits of proactive policies. • Voluntary Initiatives by Steel Plants under Corporate Responsibility for Environment Protection (CREP) for energy efficiency improvement and reduction of GHG emission. • National Mission for Enhanced Energy Efficiency (NMEEE) under National Action Plan for Climate Change for energy efficiency improvement. • Perform Achieve and Trade (PAT), a flagship market based mechanism to enhance cost effectiveness in improvements in energy efficiency in energy intensive large industries. • PAT is legally binding and there are penalties for non fulfillment of earmarked targets. • GOI Sustainability Development Guidelines: 5% of total MOU score for large PSUs to cover sustainability projects with expenditure of 0.1 % of profit (after tax). Voluntary Initiatives & Regulatory Framework

10. Gradually transform the technological face of the Indian steel industry to achieve international benchmarks in long term perspective through: • Modernisation & Technological upgradation of the existing plants to phase out old/ obsolete/ energy inefficient/ polluting production facilities. • Adoption of State-of-the-art technologies in Green Field Plants. • Harnessing of Waste Heat at every step of the production process. • Guidelines of modern/ state of art technologies are available in several reference documents: SOACT Handbook of APP, BAT Handbook of EU. • Numerous commercially established energy conservation technologies: Sinter Cooler Waste Heat Recovery, Coke Dry Quenching (CDQ), Coal Moisture Control (CMC) in Coke Ovens, BF Top Pressure Recovery Turbine (TRT), waste heat recovery from BF stove waste gases, OG boiler in BOF, Regenerative Burners, Near Net Shape casting etc.: agenda for immediate adoption. • Strategies to ensure Raw material security- utilisation of low grade ore through beneficiation & agglomeration or through Direct Smelting, beneficiation of high ash coal and other inputs. • Pursuing Research & Development Programmes for Low Carbon Footprints and production of value added/ high performance steel. • Securing talent and skilled manpower to support the above strategies. Road Ahead and Strategies

11. BF is the most energy intensive units and call for specially directed initiatives to improve the productivity and energy efficiency: • Process improvements viz. revamping/conveyorization of stock house and increasing screening efficiency of ore, sinter and coke, strengthening stoves capacity, increasing blast volume and flow rate, increasing oxygen enrichment of blast, higher hot blast temperatures of at-least 11000 C etc. • High level of alternate fuels injection to drastically reduce coke rate: incorporation of technologies for injecting pulverized/ granulated coal (+ 200 kg/thm), oil (100 kg/thm), Natural gas (100 kg/thm) and waste plastics granules. • Adoption of energy efficiency measures in existing and new blast furnaces e.g. Top pressure Recovery Turbine, use of waste heat stove gas for preheating of gas, high efficiency stoves etc. • Increase in campaign life by introduction of various measures like copper staves, Silicon carbide and monolithic linings in stack and bosh, closed circuit demineralized water and provisions for regular monitoring of heat flux all along the furnace height and cross-section, use of titanium bearing material as a regular hearth protection measure etc. • Application of sophisticated probes (under and overburden probes, vertical probes etc), models and computerized expert system for process analysis, control and optimization are very important tools for bringing about quantum jump in productivity levels of Indian blast furnaces. • Efficient casting practice through up-gradation of cast house equipment, clay mass and liquid disposal system, incorporation of powerful mud gun and drilling machines etc. Strategies for BF Iron making

12. Direct Reduced Iron (DRI) • Accounts for 45% of iron production in India– 25% gas based & 75% coal based • Technology of Natural Gas based plants world class and energy consumption in Gas DRI-EAF is the lowest, but no growth because of non availability of natural gas. • Technology of Coal based plant is mixed and energy consumption in Coal DRI-EAF units highest. Technological obsolescence, Poor quality of inputs/products and higher environmental emissions are issues of concern. • Solutions: • Syn-gas based DRI plant ( Economic Viability?) • Improving energy efficiency and reduction of environmental emission in coal based DRI plants failing which gradual shut down of inefficient& polluting plants • Jumbo Rotary Kiln of Outotech: a ray of hope. • FASTMET: Reduction of ore-coal composite pellets in RHF using coal, coke breeze and carbon bearing waste as a reductant. DRI with high degree of metallization can be charged in EAF in SME sector. • ITmk3: Flexible and environment friendly technology for smelting iron ore fines using non-coking coal to produce iron nuggets with 96-97% iron in a RHF. Ideal material for EAF /SME sector. Alternative Iron making Technologies

13. Smelting Reduction Processes • Primary objective is to produce liquid iron directly from iron ore (fines & concentrates) and non coking coal, by-passing agglomeration and coke making requirements (reduced investment cost : 10-15%). • Plant emissions contain only insignificant amounts of NOx, SO2, dust, phenols, sulfides and, ammonium besides far lower waste-water emissions. • The promising alternative technologies which have been commercialized/ are in the process of commercialization and appear to be relevant are COREX, FINEX, HISMELT, HISARNA, TECHNORED etc. Alternative Iron Making Technologies Contd..

14. COREX Process

15. FINEX Process

16. HISMELT Process

17. HISARNA Process

18. TECHNORED Process

19. Steel has a future in India & and there are strong fundamentals to support the growth. • Indian steel production is growing and is expected to grow at 8-10% decadal growth rate. • Helping hand required from Government to resolve contentious issues like land acquisition, amicable policies for environment & forest clearance and creating an investment friendly atmosphere. • Technological Upgradation to adopt commercially available energy efficient clean and green technologies in all production units to maximise productivity with minimum damage to the environment and minimise energy consumption an CO2 emission . • New Plants must adopt stat-of-the-art technologies. • BF most established route of iron production and likely to grow, followed by DRI & SR routes. • Raw material upgradation and new Product development have to be given due importance. • Increased R&D investment development of design & engineering capabilities necessary to support long term growth in the steel sector. CONCLUSIONS

20. THANK YOU