Energy and environment

Tenova latest technologies

G. Nova – Tenova CEO

Düsseldorf, June 28th, 2011

2

Index

CO2 emissions trend

Iron & Steel: Impact on the

environment

Tenova latest technologies for the

environment

Conclusions

3

CO2 emissions trend

• Kyoto Protocol (1997) established reductions of global CO2 emissions which are not

prescriptive;

• Certain Countries have issued non biding policies, aiming at reducing CO2

emissions/GDP;

• In 2009, total global CO2 emissions increased to 31.3bnt, (+40% since 1990).

Source: Olivier and Peters, 2010 – www.pbl.nl

Global CO2 emissions per region

Industrialised countries

China

Developing countries

International Transport

0

10

20

30

40

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

bnt CO2

4

• Even if all countries will meet their own committed reduction targets, an

increase up to 35bnt is expected within 2020;

• The worldwide economy will have to make a major effort to be able to limit this

further increase;

• The Iron & Steel industry will have to contribute.

CO2 emissions trend

Global CO2 emissions per region

Industrialised countries

China

Developing countries

International Transport

35bnt

0

10

20

30

40

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2020

bnt CO2

5

Index

CO2 emissions trend

Iron & Steel: Impact on the

environment

Tenova latest technologies for the

environment

Conclusions

6

Iron & Steel: Impact on the environment

Source: IEA data services, WorldSteel Association

0 5 10 15 20 25

Chemicals

Iron and steel

Nonmetallic

minerals

(Cement Included)

Pulp and paper

Nonferrous metals

(percent of total)

CHEMICALS

IRON & STEEL

Non Metallic Minerals

(Cement included)

PULP AND

PAPER

Non Ferrous Metals

Major energy-intensive industry

• 2nd Industry for Energy Consumption after

Chemicals;

• Responsible for about 7% of World CO2

emissions;

• CO2 emissions reduced from 2.2t CO2/t of

crude steel (1990) to 1.9t CO2/t of crude steel

today (-14%);

• Historical energy consumption/t of crude steel

reduced by 50% in the last 35 years

Indexed energy consumption/t of crude steel produced in North America, Japan and Europe (1975 = 100%)

7

• The most critical areas are:

Blast Furnace/Basic Oxygen Furnace

Coke making/Sinter

DRI Module

EAF

Reheating Furnace

Hot Strip Mill

• Tenova is very active in three of them

Iron & Steel: Impact on the environment

8

Index

CO2 emissions trend

Iron & Steel: Impact on the

environment

Tenova latest technologies for the

environment

Conclusions

9

Tenova for the environment – HYL DRI: CO2 abatement

• DRI-EAF route emits much less CO2

than BF-BOF

• Tenova HYL ZR DR technology: further

significant contribution to limit CO2: 50%

CO2 reduction vs. BF-BOF

• CO2 reduction → real GHG abatement if

the removed CO2 is commercialized;

• Plants in Mexico, Indonesia, Malaysia

and Abu Dhabi sell captured CO2 for

different industrial uses.

CO2 Emissions: BF-BOF vs DRI-EAF

(0.74 kg CO2/kWh)

-300

0

300

600

900

1.200

1.500

1.800

BF-

BO

F

Oth

er

DR

I-EA

F

tech

no

logi

es

kg CO2/t

Power & O2CO2 in flue gasesOther

Ten

ova

DR

I-EA

F

-300

0

300

600

900

1.200

1.500

1.800

Ten

ova

DR

I-EA

F

kg CO2/t

10

Tenova for the environment – HYL DRI: CO2 abatement

• The patented HYL “Minimal CO2

Emission Scheme” captures up to 80%

of total carbon input;

• Combined with Tenova EAF technology

emissions are almost 1/3 of BF-BOF

route

CO2 Emissions: BF-BOF vs DRI-EAF

(0.74 kg CO2/kWh)

-300

0

300

600

900

1.200

1.500

1.800

BF-

BO

F

Oth

erD

RI-

EAF

tech

no

logi

es

Ten

ova

DR

I-EA

F

Ten

ova

DR

I-EA

F:

Min

imal

CO

2

Emis

sio

nSc

hem

e

kg CO2/t

Power & O2CO2 in flue gasesOther

11

Tenova for the environment – HYL DRI: Energy Efficiency

• ZR DR energy efficiency around 87% vs. <75% for other DRI

technologies:

higher operating pressure (6-8 barA) to optimize the power consumption;

higher reduction temperature (above 1.050°C) to increase the reduction

process kinetics;

“in-situ” reforming inside the shaft furnace to avoid an external energy

consumer;

various energy recovery units in the plant.

• Further energy savings for EAF:

ZR DR inherent ability to produce highly metallised DRI well in excess of

94%

DRI can be continuously transported to the EAF with the reliable HYL HYTEMP®

System delivering the product already hot to the furnace (600°C)

12

• Large scale (>2.5 Mt/y) HYL module now in range suited for Integrated plants;

• HYL ZR technology can use Coke Oven Gas (COG) as reducing gas;

• By feeding 30% DRI into BF:

Higher BF productivity by 24%

Lower CO2 emissions by 23%

• Capex / Opex and environmental impact much better than adding new BF capacity.

Tenova for the environment – DRI for Integrated Plants

13

Tenova for the environment – HYL DRI: A Real Success

• ZR DR technology: 8 new plants (since 2005)

for a total new capacity of 12Mt/y

• Emirates Steel Industry (Abu Dhabi): one of

the world’s largest DRI facility with DRI

production >3.2Mt/y (2 units)

• The technology developed to build ZR DR

modules of 2.5Mt/y in a single unit as in

Nucor Corporation (US)

14

Tenova for the environment – EAF

• Tenova is working in many directions to develop a more environmental friendly

EAF with less energy consumption and less direct and indirect CO2 emissions:

Process optimization based on off-gas real time analysis: EFSOP®

Dynamic process control including novel sensors and process optimization

models: iEAF®

An efficient solution for off-gas heat recovery to produce steam/electrical

energy: iRECOVERY®

Continuous feeding and preheating system: Consteel®

• The synergic integration of our technologies in the EAF route is compound in the

new Consteel Evolution™ which is able to achieve overall CO2 reduction of

80.000t/y of CO2 (-15%)

15

• Drastic reduction of NOX emissions: <60 ppm @ 3% O2;

• Full Regenerative Flameless burners: 10%-20% of fuel reduction compared

with traditional furnace in the same operating conditions;

• Low calorific value fuels such as Blast Furnace Gas: -16% CO2 emissions.

Tenova for the environment – Reheating Furnaces

16

Index

CO2 emissions trend

Iron & Steel: Impact on the

environment

Tenova latest technologies for the

environment

Conclusions

17

Conclusions

• Steel Industry has reduced its energy consumption per tonne of steel

produced by 50% in 35 years;

• CO2 emissions intensity has diminished;

• but its global footprint has increased up to 2.700Mt/y CO2 (+60% in 20

years);

• Tenova is continuously improving its technologies for achieving the

best performances in terms of energy efficiency and environmental

sustainability.

18

• The extensive utilization of Tenova technologies could allow a saving of :

340 Mt/y CO2 by charging HYL DRI (COG based) into the BF

30 Mt/y CO2 in the EAF steel shop

25 Mt/y CO2 with the slab/bloom/billet reheating furnace

TOTAL CO2 SAVING WITH TENOVA TECHNOLOGIES:

about 400 Mt/y out of current 2.700 Mt/y(15% reduction)

Provocation

20

Tenova for the environment – RF: Real Success

Production increased from 180t/h to 215 t/h

Significant energy saving in fuel consumption, about 15%

NOX emissions far below the guaranteed limit

Tenaris Dalmine RHF revamping