amit chatterjee_sponge iron industry in india – scope for clean technology, durgapur, march 26,...

8/10/2019 Amit Chatterjee_Sponge Iron Industry in India Scope for Clean Technology, Durgapur, March 26, 2009

1/38


2/38

Amit ChatterjeeAdviser to the MD

Tata Steel

THE ENVIRONMENTAL COMPLIANCE ASSISTANCE CENTREWEST BENGAL, DURGAPUR, 26TH MARCH 2009

SPONGE IRON INDUSTRY IN INDIA SCOPE FORCLEAN TECHNOLOGY


3/38

WORLD STEEL: PRODUCTION AND DEVELOPMEN

20

180

340

500

660

820

980

1140

M i l l i o n

T o n n e s

1 9 0 0

1 9 2 0

1 9 4 0

1 9 6 0

1 9 7 5

1 9 8 5

1 9 9 5

1 9 9 7

1 9 9 9

2 0 0 1

2 0 0 3

2 0 0 5

EAF

Hot Strip Mill

CCBillets

BOF

CC slabsCC thinslabs

Quality

Mass Production

SecondaryMetallurgy

CustomerEngineering

Cost Management

Year

EcoEfficiency

EconomicDevelopments

BusinessDevelopments

Eco Efficiency is the primary focus since 1995. Steel industrys future would critically depend on this factor.


4/38

GLOBAL TREND IN DRI PRODUCTION

0.79

38.643.2

40.27

67.2

59.8

54.6

56.1

19.32

17.6820.51

23.65

27.37

30.67

33.25

36.18

37.09

45.1

49.45

0

20

40

60

80

1970 1992 1995 1998 2001 2004 2007

Year

P r o

d u c t

i o n

( m t

Growth of direct reduction technologies all round the world hasbeen extremely significant.

World DR production has jumped from 0.8 Mt in 1970 to around67.2 Mt in 2007. The steel industry has not always done well inthis period, but DR has progressed DRI is a vital material now


5/38

0.2 1.3

2.3 4.2 5.4

5.3 6.5 7.1 8.1

10.0611.82

16.27

20.1

0

5

10

15

20

25

P r o

d u c t

i o n

( m t )

89-90

91-92

93-94

95-96

97-98

99-00

01-02

02-03

03-04

04-05

05-06

06-07

07-08

Year

DRI PRODUCTION IN INDIA

Growth of DR industry till mid 1980 s was slow because of restrictivelicencing.

After 1985, this industry has exploded from 0.2 Mt in 89-90 to20.1 Mt in 07-08.India is now the largest producer of DRI in the world.


6/38

GLOBAL DRI PRODUCING COUNTRIES (2005-0Country

Production, Mtpa2005 2006 2007

India 11.1 14.7 19.06Venezuela 8.95 8.6 7.7

Mexico 5.98 6.2 6.3Iran 6.85 6.9 7.4

Trinidad & Tobago 2.25 2.1 3.5South Africa 1.78 1.8 1.7

Canada 0.59 0.5 0.9Saudi Arabia 3.63 3.6 4.3

Russia 3.34 3.3 3.4

Indias position as the largest producer of DRI in theworld has been consolidated over the last 3 years.


7/38


8/38

GROWTH OF COAL-BASED VIS--VISGAS-BASED DRI PRODUCTION (INDIA / ROW


9/38

1.9

2.9

1.95

3.3

1.55

3.6

1.75

3.4

1.93

3.4

2.03

3.45

3.24

3.26

3.28

3.62

3.9

4.19

5.6

4.5

7.5

4.3

11

5.3

14.2

.

1

3

5

7

9

11

13

15

17

P r o

d u c

t i o n ,

M t

95-96 97-98 99-00 01-02 03-04 05-06 07-08

Coal Gas

BREAK-UP OF INDIAS DRI PRODUCTION

Year

Today, DR production through Coal-based processes isalmost 70% reverse of rest of the world.

Initially, gas based processes were adopted. Coal based DRI then became gradually become more popular.


10/38

Year Installed capacity, (Mt) Production, (Mt)Gas

basedCoal

basedTotal Gas based Coal

basedTotal

2004-05 6.1 6.0 12.1 4.6 5.5 10.12005-06 6.1 8.5 14.6 5.7 6.5 12.22006-07 7.1 11.0 18.1 7.0 8.5 15.52007-08 7.1 13.0 20.1 7.0 10.0 17.02008-09 7.1 15.0 22.1 7.0 11.0 18.02009-10 7.1 18.0 25.1 7.0 14.0 21.0

DETAILS OF DRI PRODUCTION IN INDIA

Three large gas-based units (Essar Steel, Ispat Industries and VikramIspat) have capacities of 3.60, 1.60, and 0.9 Mtpa.

Over 700 coal-based plants with capacities ranging from 30-400 ktpaare in operation in Orissa, Chattisgarh, Jharkhand and West Bengal.

As India consolidates its position as the worldleader in DRI, coal-based plants will predominate. EAFs

and even ISPs will use DRI.


11/38

Route 2003-04 2004-05 2005-06 2006-07

BF-BOF 19.8 19.8 21.7 22.2EAFs 8.2 10.2 11.3 13.3IFs 6.0 8.2 13.5 15.4

Total crude steel 34.3 38.5 46.5 50.9Share ofEAF/IF,% 41.6 48.0 53.3 56.4

HOW STEEL IS MADE IN INDIA (Mt)

Despite problems with quantity/quality of electricity,contribution of EAFs/IFs in total production hasincreased over the years and reached almost 50% inrecent times. DRI usage will certainly keep increasing.


12/38

In India, unlike in many other countries, both coal and naturalgas have been used.

First coal and then natural gas had been predominant -- todaycoals share is 70%, while in ROW gas is 75-80%.

Installation of a large number of small coal-based rotary kilnsplants uneconomical in ROW is another distinctive feature .

These units often have induction furnaces capable of directly

using DRI fines below 3mm. India is the only country in the world using IFs on such a largescale to produce steel in the secondary sector. Reason?

Many mini-mills have shutdown their EAFs and installed IFs of 1to 20 t capacity.

Melting has been optimised to even produce low phosphorusand low sulphur steel of high quality. Upto 30% DRI has been continuously charged in IFs without

changing the normal operating procedure; in some furnaces,upto 85% DRI has been used. Kudos to an Indian innovation.

UNIQUE FEATURE OF INDIAN DR INDUSTRY

ESTIMATE OF FUEL RESERVES IN INDIA AN


13/38

TypeCalorific

value,kcal/Nm3

Years oflife

Unit price,$/thousand

kcalPetroleum 11,500 40 6.25

Natural gas 8500 65-70 3.88Coal 1400 165-170 1.75

ESTIMATE OF FUEL RESERVES IN INDIA ANFORESEEN LIFE

Both from longevity as well as price viewpoints,coal has advantages. Availability of coal remainsa question mark.


14/38

PRESENT AND FUTURE INDIAN COAL SITUAT

Import of coal in large tonnages is necessary in long run.

RECENT TREND IN IMPORT OF NON COKING


15/38

RECENT TREND IN IMPORT OF NON COKINGCOAL INTO INDIA

CHINA, 1%

INDONESIA,34%

SOUTH AFRICA, 65%

FUTURE OF DR INDUSTRY IN INDIA


16/38

Gas price and gas availability would be critical for gas-basedplants. Gas price very likely to increase. Economics ??

Availability of appropriate coal would decide the future of coal-based plants. Washing of non-coking coal will be necessary tocater to total DRI demand.

Import of non-coking coal from Australia, SA, etc will

supplement demand. Ecology in Indias coal-based plants has NOT always received

attention. Requires nation-wide focus to ensure sustainability. Rotary kilns using coal and shaft furnaces using natural gas will

be supplemented by fluidised bed, multi-hearth and rotaryhearth furnaces to treat fine materials even in integrated plants. Gas generated from coal and gas from other sources (CBM, etc.)

likely to play important role.

FUTURE OF DR INDUSTRY IN INDIA

COAL VS GAS BASED DR TECHNOLOGIES


17/38

COAL VS GAS-BASED DR TECHNOLOGIES Gas-based DR involves gas-solid reactions faster at lower temp.Cracking of natural gas produces both CO and hydrogen hydrogen,is a better reductant, DRI then has higher metallisation.

The nascent carbon available from the cracking combines with iron toform Fe3C and carbon contents between 1.0-2.5% can be obtained.Coal-based DRI irrespective of the operating conditions has carboncontent between 0.10 to 0.12%.Higher carbon in DRI gives advantages in steelmaking lower meltingpoint, higher opening carbon in the bath, etc.Gas-based DRI is produced at 950-980 oC -- porosity is greater,tendency towards re-oxidation and even self-ignition in extreme cases.Coal-based DRI is produced at 1050-1080 oC -- an outer slaggy layerprotects the DRI from re-oxidation.Coal-based DR plants are smaller in size (maximum 500 tpd) -- lowertotal capital investment but specific investment/tpa is higher.

Gas-based technology is intrinsically cleaner; coal-based DR plants have to contend with fine coal as dust

as well as extensive waste generation.

POLLUTION HAZARDS IN DRI PRODUCTION


18/38

Sponge Iron plants release hazardous pollutants like

cadmium, nickel, hexavalent chromium (mostdangerous through air and water), arsenic,manganese, and copper. The heavy metals in theseparticulate matters are most dangerous and causequick damage to fruit bearing trees, agriculturalharvest and the human body, especially the lungs.

POLLUTION HAZARDS IN DRI PRODUCTION

To control pollution in sponge iron industries, CentralPollution Control Board has put down the norms to be

followed.Unfortunately these norms exist only on paper.

Very little actual pollution control is visible.

KYOTO PROTOCOL: GLOBAL STEEL INDUSTR


19/38

Kyoto Protocol will soon become effective. Global climate policy will further constrain and complicatedecision-making in steel business.

The world average of 1.7 tonnes of CO 2 per tonne of crudesteel reflects a mix of integrated and electric arc furnaceproduction.

EAF not much superior when electricity generation isincluded, but pollution abatement will cost more in ISPs.

CO2 abatement = reduction in energy consumption. Average19 GJ energy required per tcs. India higher by 25-35%.Only major evolution in technology can lower energy.

Room for energy reduction in developed countries EU, USA,Japan, etc. minimal. Must be done in emerging regions.

KYOTO PROTOCOL: GLOBAL STEEL INDUSTR

IMPORTANT INSIGHTS TO CONSIDER


20/38

Industry accounts for 36% of global CO 2 emissions. CO 2 emission mainly from primary materials production.

Energy intensive industries have made strides to improveefficiency, but overall industrial energy usage continuesto grow strongly, particularly in the emerging economies.

Large energy efficiency potential remains and moving tobest practice would save 1.9 to 3.2 Gt CO 2 each year (7-12% of total global emissions).

IMPORTANT INSIGHTS TO CONSIDER

Key areas for efficiency gains include chemicals,iron and steel, cement, motor systems, combinedheat and power.

TEEL IS A CRITICAL INDUSTRY FOR IMPROVEM

LEGISLATIVE ACT ON MINIMUM COREDUCTION


21/38

Contain CO2 emissions in 2050 to same level as

2005. Provide incentive of USD 50/t CO 2 worldwide.

This would be consistent with +3 degrees C. This implies a significantly adjusted energy

system.

Not the best solution; but tolerable.

LEGISLATIVE ACT ON MINIMUM CO2 REDUCTION

Conformation to this ACT NOT a matter of choice.IT IS THE ONLY MEANS OF SURVIVAL.

Act is under formulation to include the following:

BLUE CASE STRICTER NORMS


22/38

CO2 emissions in 2050 to be half of the level of 2005. This could be consistent with 450 ppm (depending on

post-2050 emissions trends). Incentive of USD 200/t CO2 needed worldwide. Blue is only possible if the whole world participates

fully. This implies a completely different energy system.

BLUE CASE: STRICTER NORMS

This option is ideal, but extremely difficult. It has tobe followed worldwide without exception. Indian DR

(coal-based) industry will be scrutinised.

EMISSION REDUCTION REQUIRED IN DIFFEREN


23/38

EMISSION REDUCTION REQUIRED IN DIFFERENSECTORS IN 2050 COMPARED TO 2005

Power generation will require maximum attention;closely followed by fuel transformation.

ACT Map,%

BLUE Map,%

Power generation -60 -89Transport 63 -8

Industry 49 -26Other fuel transformation -38 -78Total 0 -50

CO IN WORLD STEEL INDUSTRY: PRESENT


24/38

CO2 IN WORLD STEEL INDUSTRY: PRESENTAND FUTURE

0

5000

10000

15000

20000

2005 2030 (if no

change ismade)

2050 (if no

change ismade)

2050 (if the Act

stipulations arefollowed)

2050 (if the

Blue Case isadopted)

M t C O

2

Industry - direct emission Coke ovens and blast furnacesProcess CO2 Indirect CO2 upstream emissionsIndirect CO2 upstream savings

ENERGY IN WORLD STEEL INDUSTRY


25/38

ENERGY IN WORLD STEEL INDUSTRY

Coal is and will be the major energy source

0

200

400

600

800

1000

1200

1400

2005 2030 (if nochange is made)

2050 (if nochange is made)

2050 (if the Actstipulations are

followed)

2050 (if the BlueCase is adopted)

M t / y e a r

Biomass and wasteHeatElectricityGas

OilCoal

CO EMISSIONS AS A FUNCTION OF SOURCE O


26/38

Energy source CO

2 Emissions

(t/TJ) (lbs / MM Btu)

Natural gas (CH 4) 49 115

Bituminousmetallurgical coal 90 212

Bituminous coal 94 220

CO2 EMISSIONS AS A FUNCTION OF SOURCE OENERGY

Natural gas is a much cleaner energy source than anytype of coal. However, both coal and NG used in DR.

MAIN DRIVERS WORLDWIDE


27/38

MAIN DRIVERS WORLDWIDE

Total CO2 , Energy Intensity and CO2 Intensity will bethe main factors requiring attention.

0

50

100

150

200

250

2030 (if nochange is

made)

2050 (if nochange is

made)

2030 (if theAct

stipulationsare

followed)

2050 (if theAct

stipulationsare

followed)

2030 (if theBlue Case is

adopted)

2050 (if theBlue Case is

adopted)

I n d e x

1 0 0 =

2 0 0 5

Production

Energy

CO2

EnergyIntensity

CO2Intensity


28/38

CO2 EMISSIONS (t/t product) FOR


29/38

CO2 EMISSIONS (t/t product) FORSTEEL, ALUMINIUM AND COPPER in 2007

Steel is the least CO 2 generating metal.

1.54

10.6

5.5

0.68 0.73

1.950.86

9.87

3.52

0

2

4

6

8

10

12

Steel Aluminium Copper

T o n n e s o

f C O 2 p e r

t o n n e o

f i n p u

tPrimary processRecycling processReduction

CO2 EMISSION IN SELECTED COUNTRIES


30/38

Rank Country Emissions(000 t/1000 people)

1 Qatar 42.962 United Arab Emirates 29.103 Kuwait 26.804 Bahrain 26.655 United States 19.849 Canada 16.1879 China 2.69116 India 0.96

In terms of CO 2 emission per inhabitant: China is 79, andIndia 116.

Only because of population.

CO2 EMISSION IN SELECTED COUNTRIES

Total CO2 Emission: India vs. Others


31/38

Rank Country Total Emission (000 t) 1 United States 5,762,054.0

2 China 3,473,597.33 Russia 1,540,365.04 Japan 1,224,737.4

5 India 1,007,978.96 Germany 837,424.87 United Kingdom 558,225.1

Total CO2 Emission: India vs. Others

Total CO2 emitted in India is very high. Future steelproduction could be limited by this factor CO2emission t / t of steel, 2.9-3.1 in India; 1.4-1.6 in World.EC considering CO 2 penalty for steel industry (150-200USD/t CO2 ).

GLOBAL CO2 EMISSIONS : THE CHALLENGE


32/38

FROM CHINA AND INDIA

CHINA

ENERGY REQUIREMENTS AND CO2 EMISSIONS


33/38

16.818.1

16.6

10.8 11.6

10.6

6.3

1959

11401033

713 784

1175

468

02

4

6

810

12

14

1618

20

BF-BOF 80%Cold DRI

80% HotDRI

30%Cold DRI

30% HBI30% pigiron

100%Scrap

G J / t l s ( T o t a

l e n e r g y

)

0

500

1000

1500

2000

2500

k g

C O 2 / t l s

Q 2FOR VARIOUS STEELMAKING ROUTES

EXTENT OF POLLUTION IN INDIAN DR INDUS


34/38

For every 100 tpd of sponge iron produced, the consumptions are:160-175 tonnes of iron ore,120-150 tonnes of coal,3.5-5 tonnes of dolomite and2.0-2.2 tonnes of water.

Generations from the kiln are:1.8-2.0 tonnes of carbon dioxide.

10-15 tonnes of dust from pollution control equipment2.5-3.5 tonnes of kiln accretion (expressed on per day basis)25-30 tonnes of char as solid wastes.

The total solid disposal load per 100 tpd DRI production can be ashigh as 40-50 tpd.

DR industry grew in haphazard manner. DR plants are relatively easy toset up. Liberalised financial support coupled with low-cost technologyencouraged many entrepreneurs not familiar with the iron and steelbusiness to enter this field. Initial investment of Rs 7-12 crores on a 100tpd sponge iron plant, can be recovered within just 12-18 months.

TOTAL POLLUTION IN INDIAN SECONDARY


35/38

Mini coal based sponge iron units (more than 700 kilns)

each producing less than 100 tpd, operating without much(sometimes any) pollution control equipment (proper GCP,effluent water treatment, etc).

940 Induction Furnaces with a total installed capacity of9.86 mtpa have very few pollution abatement measures.

1192 Re-Rolling units with a total installed capacity ofaround 24 Mtpa are not all environment conscious.

Future Indian steel expansion after Kyoto protocol (WTO)may be constrained unless it is GREEN. Pollution control

measures will add 20-30 % to Capex.

SECTOR

This is a major concern unless addressed vigorously.

GUIDELINES FOR CONTROLLING STACK


36/38

Adequately designed ESP (or any other adequate air pollution control

system) should be installed to achieve the prescribed standards.

EMISSIONS FROM ROTARY KILNS

Installation and operation of pollution control equipment for plantsless than 100 tpd may not be economic. Therefore, such plants shouldNOT be permitted in future. Phasing out old plants is a must must beworked out by the State Pollution Control Boards.

All pollution control equipment to be provided with separate electricitymeter and totalisers for continuous recording along with the amperageof the ID fan.

Timely collection/removal system of the flue dust generated in ESP.

Guidelines can be made. Whether they are religiouslyfollowed, depends on each plant. Spirit is important ifthis industry has to survive. Otherwise, .


37/38

TH NK YOU

SPONGE IRON INDUSTRYCLEAN TECHNOLOGY

DURGAPUR, WEST BENGAL26TH MARCH 2009


38/38

amit chatterjee_sponge iron industry in india – scope for clean technology, durgapur, march 26,...

Documents