arcelormittal galati from energy intensive to energy ... energy efficiency... · arcelormittal in...
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ArcelorMittal in Romania
• 4 production units: Galati (flat products), Hunedoara (long products), Iasi, Roman and Galati (tubes and pipes) + functional services units;
– 15,000 employees, including contractors. Indirect related jobs – 60,000.
• ArcelorMittal Galati – the 10th Romanian exporter
• ArcelorMittal Roman - the 59th Romanian exporter
• ArcelorMittal is exporting more than 70% of its production made in Romania
• We are the Romanian 10th company (2012) by turn-over, an active member of COMPIROM and ABIEC associations.
• In Romania, intensive energy industries contribute 32.5% of the GDP
The steel made in Romania by ArcelorMittal
is exported for:
Our markets are very competitive and truly opened • Steel industry is an energy intensive industry. • Energy is 35% of our added value • We cannot pass on additional costs to it’s mainly global customers
Ship building Pressure vessels Constructions
Automotive industry Wind mills Bridges, infrastructure
Our strategy for survival in post-crisis world
• Adaptation to a post crisis world where demand for steel has reduced and competition has increased on truly open markets:
– Footprint exercise: from 4 Mt to 2 Mt
– Increase efficiency and productivity: through our transformation programs ARC2012 and 2015+, reorganization and investments on core processes 15% cost reduction 2013 vs. 2007.
– Energy efficiency is a key driver of our competitiveness ENERGIZE Project (2012 – 2015) 100 projects to improve our energy footprint and to save approximately 15% of our energy consumption
– More then 200 Million Euros invested in a context of losses since 2009
Energy efficiency: 1st axis: efficient usage of non
renewable resources • Steel production: 2 main processes
– Blast furnace process: iron ore + fuel (coke) hot metal
• Decrease fuel consumption improve CO2 balance
• Investment of more than 90 Million Euros, in last 4 years
– Steel shop process: hot metal + recycled scrap Liquid steel
• Increase scrap rate recycling improve also CO2 balance
• Results:
– Reduction of coke equivalent rate by nearly 20%; BF5 is now among best performers in Europe
– Consumption of more than 150 kg/ton of recycled scrap at steel shop
– Impact for community: reduction of CO2 emission by more than 20% in ton CO2/ ton LS and by 40 % in absolute terms
586
548
534 537
520
502
480474
485
470
2008 2009 2010 2011 2012 2013 2014 YTD Q3-2014 2015 2018
Galati BF5 - Eqv. Coke rate kg/t
Galati BF5 - Eqv. Coke rate kg/t
Energy efficiency: 2nd axis: reducing
consumption of electricity and natural gas
11,5
0,0
12,0
11,0
12,5 12,12
2015
10,67
-8,7%
11,67
11,42
2011 2014 Q3 2014 YTD
10,50
12,50
2013 2012
-16,0%
• Energize project is focused on efficient way of use for any type of energy: electricity, natural gas, steam, compressed air, oxygen, blast furnace gas (internal resource)
• Electricity and natural gas, cover 70% of total energy consumption
• Our target: -15% global energy efficiency indicator, GJ/t
• Methodological approach by benchmarking BAT
• 10% till the end 2014 with an investment cost of 17M€
-boiler nr.8, BF5 Turbo Blowers, VFD package, ...
• 5% will be delivered till the end of 2015, for which, another 15M€ will be invested
-boiler nr.10, HP2 Hot Leveller, Sinter M6
• Further 12% reduction, till 9,1GJ/t, could be achieved but with very high investment requests, over 100M€, needed to cover structural gap between Galati plant and a modern one, with projects like:
-BOF steam generation, TRT, BF5 HS Oxyfuel, HSM new WBF
AMG energy efficiency improvement
Energy efficiency: 3rd axis: reducing
our environmental footprint • Responsible usage of our resources:
– Water consumption reduced by more than 40% in m3/ton steel
produced.
• Significant reduction of our air emission footprint:
– Dust emission reduced overall more then 70% in tons of
dust/year.
• Result in better quality of life for community:
– Air quality in Galati:
very good (level 2,10-20ug/m3, as per EPA scale)
Better than other cities in Romania (WHO report)
54514948
29272622
18
0
20
40
60
Galati Buzau Botosani Bucharest Oradea Craiova Timisoara Bacau Iasi
ug/m3
Support needed to further decrease the energy
consumption and improve environmental footprint
• Most expensive investments required are not affordable in the
current steel market
• Several levers available for the support
– Access to European Funds should be allowed and supported for
energy efficiency projects and environmental projects
– Set up a scheme with Indirect CO2 compensation as allowed by the
European directive
– State aid
But our efforts will not be sufficient and activity
will be endangered if Romania does not establish
a stable frame for our activities
Electricity dossier
• GC exemption to be enforced as
soon as possible
• Contracting platform for big users
to be adapted to their needs and
aligned with best practices in other
European countries
Natural Gas dossier
• Still a major concern for us, a
danger for our future.
• Today: no market
• Stable frame needs to be ensure
for next 10 years to allow
investments to flow
Conclusion
• Through its transformation program ARC2012-ARC2015, our
plant –supported by ArcelorMittal in a very difficult period-
has invested more than 150 Million Euros to improve its
energy and environmental footprint.
• This approach brought spectacular improvement results
closing more than 80% of the gap with best in class plants in
Europe.
• But even with huge investments, this better energy efficiency
has not been able to off-set the exponential cost increase of
the energies in the past years.
• To avoid closure of big chunk of the energy intensive
industries in Romania and ensure their future, maintaining
global energy cost competitiveness remains a priority:
sustainable, predictable and affordable energy and natural
costs to compete fairly on international market.
• Solutions exist, are legally implemented in most European
countries and must address all energy cost components.