Presentation on steel

Our Challenge for Clean Development and ClimateSteel Industry’s Global Sector-based &Technology-based Approach/Challenge

APP Steel Task Force Asia-Pacific Partnership on Clean Development and Climate

1. Overview of Global Steel Sectoral Approach (GSSA)

2. Corporative(cooperative) industrial Action

GSSA : NC(nippon-chugoku), APP and worldsteel

3. Summary

Hisatsugu KitaguchiSenior Manager

Environmental Affairs DivisionNippon Steel Corporation

NEW EARTH 2008 ,Osaka,27th Nov. 2008

Blast Furnace

Coke ovenSintering

Basic Oxygen Furnace

Continuous Casting

0. Introduction

2

FeOFe2O3 Fe3O4

+ C →Fe +CO2

World-wide crude steel production 1. Overview

●Rapid growth in China, last decade almost five times.

3

13221250

970904

850848789777799750752725728719734769

11411069

0

200

400

600

800

1,000

1,200

1990

年

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

(百万ｔ）＜世界計＞

0

100

200

300

400

500

600

1990年1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 出所：ＩＩＳＩ

＜各国の粗鋼生産＞(百万ｔ）

中国

120(日本)

176(EU15)

423

124(CIS)

356

280

222

489

京都議定書採択

日本 1億t中国 1億t

Million -t/year World-wide crude steel production

Kyoto Protocol adoption

China=Japan=100million-t/y

China

EU15

Japan CIS

1323

2050

Comparison of Energy Efficiency

4

1. Overview

Source: Estimates by RITE from IEA (2006), IISI (2005) etc.

100

117120 122

125 127 129132 134 136

107

80

100

120

140

日韓独仏英米加中印豪露

Japa

n

Kor

ea

Ger

man

y

Fran

ce

UK

USA

Can

ada

Chi

na

Indi

a

Aus

tralia

Rus

sia

5

1. OverviewCO2 Reduction Potentials in Iron and Steel in 2005,Based on Best Available Technology

4.7

Kyoto 40%

Uni-

lateral:

“pleadge and

review” action

World-wide100%

13.2

1.8

Coverage

EU15

0.3 Other EU 1.2 CIS

0.2Canada

Japan

1.5Others

1.0 USA

0.1Australia0.5 India0.5 Korea

China 4.9

1.2

Multi-lateral:

worldsteel GSSA

8.4

APP 60%

Seven-lateral:

APP

6.16.1

China-Japan 50%

Bi-lateral:

nippon-chugoku

Overview of Steel’s Sector-based ApproachesWorld-wide crude steel production (2007)

6

1. Overview

108ton/year, 2007Cy crude steel production

●Sectoral approaches with various levels.

Overview of APPAPP:Asia-Pacific Partnership on Clean Development and Climate

・Established at 2005・Australia, Canada, China, India, Japan, Korea, USA

【Focusing on Energy and SOx/NOx issues】【Government-Private Partnership with small number of nations】

Characteristics of APP

• Huge potential for CO2 emissions reduction– APP seven nations CO2 emissions are approx. 60% oｆ a whole world.

• Technology oriented, sector-based and bottom-up approach

• Government-Private collaborations– Non-legally binding– Dynamism of private sector and potential for R&D activated

7

2. GSSA-APP

●Sectoral approach is ongoing with achieving milestones.

APP structure

＜Benefit of sector-based approach＞

• Based on the actual technical situations of each sector, it is possible to evaluate accurate and practical potential of CO2 emissions reduction.

• Energy efficiency of developed and developing countries can be evaluated. • Best practices can be shared in the easier way. • Practical projects can be Implemented.

8

PIC (USA)

CFE(Australia)

REDG(Korea)

PTG(USA)

Steel(Japan)

Aluminium

(Australia)Cement

(Japan)Coal (USA)

BA (Korea)

( ) : Chair

PIC: Policy and implementation Committee

CFE: Cleaner Fossil Energy, REDG: Renewable Energy and Distributed Generation, PGT: Power Generation and Transmission, Coal: Coal Mining, BA: Buildings and Appliances

2. GSSA-APP

APP Steel TFSteel TF / Sectoral Approach

:High coverage / Over 60% of crude steel production:Technology oriented / Experts of steel industry participates:Government – Private collaboration

APP

Possible milestoneSet ambitious and realistic milestone

Set milestone

Energy efficiency surveyPotential surveyProposal for improvementFlagship project selection

Diagnosis on selected site

Implement flagship project

Model project approach

Diffusion Survey of SOACTEnergy intensity Survey by common boundaryBarrier Survey

Review current status

SOACT handbookWorkshop

Share state of the art save energy technology

General approach

ActionPurposeStep

Application of SOACTEnergy intensityOthers

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3- 1) APP-data&target

SOACT Handbook is under compiling to be shared state-of-the-art clean technologiesrelating environmental protection and energy saving by the member countries.

22 of environmental protection technologies and 42 of energy saving technologies are compiled.

By the end of 2007,

<Steel T/F Action-1> SOACT handbook (project-5)

SOACT is posted on the APP Website in Jan. 2008http://asiapacificpartnership.org/

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<Steel T/F Action-2>Establish of Common Methodology to Identity Reduction Potential and Performance Benchmarking

Step-1: Status Review

Diffusion rate of technologies

Intensity benchmarking

Step-2: Reduction potential

Step-3: Target setting

A common Methodology setting for benchmarking

Formula

Boundary

Conversion Factors

Selection of technologies for surveyfrom a common data base, SOACT handbook

Diffusion Survey

Barriers Survey

Intensity Survey

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●Step-by-step approach for target setting.

Major technology for energy saving and environment protection

Utilization of slag, sludge and dustRecycling

Flue Gas and Water TreatmentEvacuation

Basic Oxygen Furnace

Direct Reduced Iron

Regenerative Burner

ＰＣＩ : Pulverized Coal Injection

Hot Stove heat recovery

ＴＲＴ

Flue Gas Treatment

Blast Furnace

ＳＣＯＰＥ21

ＣＭＣ : Coal Moisture Control

ＣＤＱ : Coke Dry Quenching

Cokes

Waste heat recovery

Flue Gas TreatmentSinter

Technology for Steel IndustryProcess

Power generation by Waste Heat Recovery Technology（CDQ）

12


CO2 Mitigation Potential by technology diffusion (APP)

13


20.24

5.27

5.14

5.30

3.65

0.86

9.57

4.98

36.09

36.10

0 10 20 30 40

CDQ

Coal moisture control

COG Recovery

Sinter Waste Heat Recovery

BFG Recovery

TRT

PCI

Hot Stove Waste Heat Recovery

BOF Gas Recovery

BOF Gas Sensible Heat Recovery

million t / year

CO2 emissions reduction Potential

127 million t-CO2/year

A common methodology for target setting , discussion has just started, to be a main agenda in the 6th Steel Task Force in Beijing.

14

Identifying Huge potential ?

Best Performer Group

Challenging Target setting? Or grouping?

Worst Performer

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

CO

2 排

出量

Baseline-1: “グローバル・トップランナー方式“

Bseline-2: “Cap and Trade”

Ene

rgy

Inte

nsity


●Using collected data, target setting will be issue. A common methodology for target setting should be discussed & shared.

◆Short / Medium-term target-Deploy existing technology-Focused to the theoretical limit at the year of xx.-Different milestone for each producer

◆Long term target-CO2 Break through program

2005

Ene

rgy

Eff

icie

ncy

Timeframe

20

2020 xx

30

CO2 Break through technology

TheoreticalLimit ofBF/BOFSteel MakingProcess

CO2 BT develop

BAT transfer[ Gj/t ]

Time-scope for APP

Mid-term Target Setting Conceptual Image for Integrated Steel Plants (under preliminary discussion by the Expert Group)


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●A common? for longer-term and differentiated for mid-term?

<Steel T/F Action-3>Technology deployment based on performance diagnosis

Step-1: Site visit (Project-4)

Fact findings

Recommendations

Step-2: Prioritization and selection of actual flagship projects using results of site visits

Step-3: Proposal to the Steel Task Force as actual model projects.

Appropriate and suitable implementations from SOACT for each steelworks

Energy saving

SOx, NOx etc.

On-site evaluations, candidate technologies for improvement of a particular steelworks

Compilation of all sites data and list-up the candidate projects

-Barriers for realization (financial, technological etc.)

-Cost-effectiveness etc.

Evaluation and prioritizationof all candidate projects

16

3- 2) APP-cooperation

●Another step-by-step approach for acceleration/promotion of technology transfer/diffusion among APP seven nations.

Beijing〇

●China

Mongolia

①①TaiyuanTaiyuan((太原太原))：：JFEJFE

②②JinanJinan((済南済南)) ：：Nippon SteelNippon Steel、、KobeKobe

③③JiangyinJiangyin((江陰江陰))：：SumitomoSumitomo

ScheduleSchedule：： Dec. 2007Dec. 2007

33～～44 Specialists/Experts (from Japan)Specialists/Experts (from Japan)at each site at each site

China (3plants)Taiyuan

(太原)

●

●

Jinan(済南)

Jiangyin(江陰)

Technology Transfer China Sites

17


Information of China Sites

18


Steel bar(Special steel)

2.3Jiangyin

Hot rolled steelHeavy plateSteel bar

11.2Jinan

Stainless steel6.4Taiyuan

Main productSteel production (million ton 2006)

Site

China Steel Statistics

China Sites – Jinan Steel

19


Technology Transfer India Site

スライド 1

Steel Plants to be surveyedSteel Plants to be surveyed

SAIL（Rourkela）: Conducted in January 2008Another 5 Works: Will be conducted one after the other after April 2008

Essar Steel Ltd. (Hazira)

Ispat Industries Ltd. (Dolvi)

JSW Steel (Vijayanagar)

Tata Steel Ltd. (Jamshedpur)

SAIL (Rourkela)

Rashtriya Ispat Nigam Ltd.(Visakhapatnam)

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India Site-SAIL(Rourkela) Overview of the steel plant

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・ The Rourkela Steel Plant of SAIL is an integrated steel plant of an annual crude steel production of two million tons, mainly producing steel sheets and pipes.

・They are highly conscious of energy conservation and environmental protection as they are conducting their own unique measures.

・Since blast furnace ignition in 1959, the existing facilities have been altered and renewed but enough energy conservation facilities have not been introducedpartly because many facilities have small capacities.

・ In addition, the regulations about atmospheric environmental conservation are still loose and environmental protection facilities have not been introduced enough.

India Site-SAIL(Rourkela)

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Results of Site visit by the experts.

Energy Conservation Measures

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Steel Plant B

No. Subject Energy

Reduction Potential (TJ/year)

CO2 Reduction Potential

(kt-CO2/year)

1 Improvement of LDG recovery rate 2,138 244

2 Improvement of sensible heat recovery recovered from steel converter

568 32

3 Blast furnace top equivalent pressure gas recovery (TGR)

105 12

4 Blast furnace hot stove waste heat hot air recovery etc.

3,500 400

5 Effective utilization of reheating furnace skid boiler fired heater skid steam

539 54

6 Improvement of unit specific fuel consumption of by sintering plant

480 55

7 Improvement of unit specific fuel consumption of cokes conversion

1,950 223

8 Improvement of unit specific fuel consumption of hot rolling mill reheating furnace

840 96

9 Reduction of Gby-product gas diffusion reduction (installation of new BTG)

8,424 963

Total 18,544 2,080

TJ : 1012J, kt : 103t


Environmental Protection Measures

24


Steel Plant B1 ・Reinforcement of SOx regulations and enforcement of

sinter exhaust gas desulphurization by 2010. ・Pilot tests on the original method are conducted at sinter plant. ・ Recommendation of another method, such as activated-coke-type, should be examined with consideration of future regulation trends (such as NOx and dioxin).

2 Recommendation of online monitoring to deal with the increase of NOx due to abnormal heating.


CO2 emissions reduction potential

25


●So far four site-visits, identifying a set of appropriate technologies for each site and also reduction potential.

Estimation of CO2 emissions reduction potential as results of sites visit

Energy saving CO2reduction（TJ/y）（kt-CO2/y）

China AA - -

BB 18,544 2,080

CC 2,308 279

China total 20,852 2,359

India D 9,209 1,019

Site

Recent Topics

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1.1. China Sites China Sites 2525thth Nov. at Beijing Nov. at Beijing Follow up meeting of 2007 sites survey. Follow up meeting of 2007 sites survey.

2.2. India Sites Sites survey India Sites Sites survey TATATATA（（12/312/3--5 NIPPON STEEL, KOBE STEEL)5 NIPPON STEEL, KOBE STEEL)RINL (12/8RINL (12/8--10 JFE, SUMITOMO METAL)10 JFE, SUMITOMO METAL)

World SteelWorld Steel’’s CO2 Breakthrough s CO2 Breakthrough Program Program October 2003~October 2003~

North American Program

South AmericanProgram

KoreaProgram

*Ultra Low CO2 Steelmaking

CO2 separation

Hydrogen production etc.

JapanProgram

JISF

Phase-1: Seeds R&D （until 2008）

Phase-2: Pilot project（2009～）

Phase-3: Demonstration Plant

EUULCOS

3-3). Long term R&D

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AustraliaProgram

Eletrolysis etc.

CCS, H2, BFG recycling with CO2 separation

（IISI Policy Statement with a shared vision)

③A common methodology CO2 intensity and energy intensity calculation

GSSA Guideline

⑤CO2 Breakthrough Program and acceleration of technology establishment

①A common technology handbook?②A common methodology for target- (CO2 intensity-) setting①SOACT handbook

⑥A common 2050 vision/scenarios

Emissions Trading

④ Technology diffusion/transfer and its acceleration mechanism

APP Flagships

②Target-setting

③Technology diffusion/transfer-Promoting SectoralApproach at all levels

● World-wide Comparable Effort s⇒ Establishing a global level playing field

Keidanren Pledge & Review (commitment and progress)

A Core of GSSA Global Steel Sectoral Approach

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4. Summary

●Four commons（①・②・③・⑥） and two categories of technology（④・⑤）.

Summary1) Participation of all major emitters (countries, sectors, entities ~)

2) Technology ~Solution- Diffusion of Best Efficient Technologies - CO2 Breakthrough Technologies

3) Sector-based and technology-based collaborations- “Sectoral Approach”

4) Taking action toward a challenging target- “Global top-runner (front-runner) - Challenging target with pledge and review

5) Mechanisms for promoting and accelerating technology transfer and R&D

4. Conclusion

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Are there limits to adaptation?

Dutch cow ready for sea level rise?

Dr. Ottmar Edenhofer / Kai Lessmann

Europe-Asia Dialogue on Climate Challenge of the 21st Century

The Finnish Parliament Group for Global Issues

Helsinki, 8th September 2006

Thank you for your kind attention!

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