Energiron Dr Technology-july 2007

55
© 2006 Danieli & C.; HYL Technologies - This document contains proprietary information of DANIELI & C. S.p.A., and HYL Technologies, S.A. de C.V.; not disclosable, not reproducible. All Rights Reserved. from from Tenova Tenova HYL HYL and Danieli & C. and Danieli & C.

Transcript of Energiron Dr Technology-july 2007

Page 1: Energiron Dr Technology-july 2007

© 2006 Danieli & C.; HYL Technologies - This document contains proprietary information of DANIELI & C. S.p.A., and HYL Technologies, S.A. de C.V.; not disclosable, not reproducible. All Rights Reserved.

from from TenovaTenova HYL HYL and Danieli & C.and Danieli & C.

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© 2006 Danieli & C.; HYL Technologies - This document contains proprietary information of DANIELI & C. S.p.A., and HYL Technologies, S.A. de C.V.; not disclosable, not reproducible. All Rights Reserved.

Danieli Danieli andand TenovaTenova HYL HYL AllianceAlliance

The New Strength in DirectReduction

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© 2006 Danieli & C.; HYL Technologies - This document contains proprietary information of DANIELI & C.S.p.A., and HYL Technologies, S.A. de C.V.; not disclosable, not reproducible. All Rights Reserved.

TenovaTenova HYL HYL -- Danieli AllianceDanieli Alliance

• HYL Technologies, the pioneer of DRI Technology now known as Tenova HYL, has joined with Danieli to create the new Key Player in the direct reduction plant market.

• ENERGIRON is the innovative HYL direct reduction technology, jointly developed by Techint/Tenova and Danieli.

• This strategic alliance allows the companies to join their own know-how and technology for the design and construction of Gas Based Direct Reduction Plants, offered worldwide, under the new ENERGIRONtrademark.

• With this collaboration, HYL and Danieli will have the strong and flexible position for offering any project approach; from any size DR plant to a complete integrated minimill facility; from technology packages to EPC turn-key projects.

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TenovaTenova HYL HYL -- Danieli AllianceDanieli Alliance

• The combined resources and potentials of these partners in the field of DRI include:

A heritage of over 40 direct reduction modules including the first commercial plant worldwide, built in 1957.A major steel maker, the Techint Group, with a production of over 7.5 MtpyDRI and HBI, and over 15 Mtpy of steel production.Patented DR technologies of HYL and Danieli as well as future developments.Impressive plant making capabilities and powerful international networks of Danieli and Tenova.

• The new ENERGIRON trademark highlights the high energy content of the final product from the offered technologies, which are also able to process multiple typologies of iron ore, including high sulfur ores and employ reducing gases as different as natural gas, syngas and coke oven gas.

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TenovaTenova HYL HYL -- Danieli AllianceDanieli Alliance

• The first achievement of this new alliance is a turn key contract for the supply of a steel complex for the production of 1,4 Mtpy of Long rolled products recently signed by Danieli with General Holding Corporation, in Abu Dhabi, with the cooperation of HYL and Techint.

• One of the key plants of this steel complex is the new HYL module for the production of 1,6 mtpy of DRI. This plant will also be equipped with the HYTEMP® technology, the state of the art pneumatic system for the continuous transportation and charge of hot DRI into the EAF; this same system has been successfully in operation for more than 6 years at Ternium-Hylsa in Monterrey, Mexico.

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© 2006 Danieli & C.; HYL Technologies - This document contains proprietary information of DANIELI & C.S.p.A., and HYL Technologies, S.A. de C.V.; not disclosable, not reproducible. All Rights Reserved.

GHC Abu Dhabi Project: GHC Abu Dhabi Project: DR Plant of 1.6 M DR Plant of 1.6 M t/yt/y Hot DRI with HYTEMPHot DRI with HYTEMP®® System System for long steel products Minimillfor long steel products Minimill

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© 2006 Danieli & C.; HYL Technologies - This document contains proprietary information of DANIELI & C. S.p.A., and HYL Technologies, S.A. de C.V.; not disclosable, not reproducible. All Rights Reserved.

TechnicalTechnical OverviewOverview

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© 2006 Danieli & C.; HYL Technologies - This document contains proprietary information of DANIELI & C.S.p.A., and HYL Technologies, S.A. de C.V.; not disclosable, not reproducible. All Rights Reserved.

Process OverviewProcess Overview

• The process converts lump ore, iron oxide pellets or pellet / lump ore mixtures into highly metallised, stable iron product.

• The most common types of iron ores have the composition of hematite (Fe2O3) and contain about 30% of oxygen. In the ENERGIRON process this chemically bonded oxygen is removed by means of a reducing gas mix at high temperature.

• The reducing gas is a mix of carbon monoxide (CO), hydrogen (H2) and methane (CH4). These gases react with the oxygen contained in iron ore giving carbon dioxide (CO2) and steam (H2O(g)) as products.

• In an ENERGIRON plant the reducing gas is produced in two ways:in an external steam reformer and/ordirectly in the shaft reactor by means of “in situ reforming” reactions.

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© 2006 Danieli & C.; HYL Technologies - This document contains proprietary information of DANIELI & C.S.p.A., and HYL Technologies, S.A. de C.V.; not disclosable, not reproducible. All Rights Reserved.

Reformer size & C content vs. "In-situ" reforming

0

100

200

300

400

500

600

0 10 20 30 40 50 60Oxygen Injection (Nm3/t)

Ref

orm

er (N

m3/

t)

Car

bon:

0.8

–2.

2%

Car

bon:

1.5

–3%

Car

bon:

2.0

–4%

waterN.G. H2O

CO2

N.G.H2O

CO2

O2

H2O

Oxygen

CO2

O2

NG

Process OverviewProcess Overview

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Process OverviewProcess Overview

• The ratio between reforming and “in situ reforming” can be varied to balance production and investment costs exigencies.

• The reducing gas mix extracts from iron oxide the chemically bonded oxygen. The overall reduction reactions are:

(1) Fe2O3 + 3 H2 ⇒ 2 Fe + 3 H2O(2) Fe2O3 + 3 CO ⇒ 2 Fe + 3 CO2

moreover there is an additional reduction given by the followingreaction:

(3) FeO + CH4 ⇒ Fe + CO + 2H23Fe° + CH4 ⇒ Fe3C + 2H2

• Reaction (3) is part of the “in situ reforming” reactions. The high carbon DRI produced with the ENERGIRON plant has a very high metallization and a controlled carbon content (between 1 – 4%), according to EAF requirements, in the form of Fe3C.

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Process OverviewProcess Overview

• This reaction is important because it is the basis for the production increase given by the coupled reactions of reforming and reduction which shift the chemical equilibrium towards a better gas exploitation.

• Reaction (3) is highly endothermic and is catalyzed by Fe (met) in the reduction zone where also the other intermediate reaction occurs.

• Reaction (3) generates high carbon DRI (mostly in the form of the stable Fe3C-cementite) with a high degree of metallization, and also the reducing gas that will be used by the system in the pre-reduction reactions taking place in the upper zone of the shaft.

• To provide the necessary energy, the temperature of the Reducing Gas entering into the furnace is increased by means of O2 injection.

• Additionally, the implementation of the HYTEMP® pneumatic transport system allows the exploitation of the hot DRI directly charged in the EAF for a final energy optimization.

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Process OverviewProcess OverviewOxygen injection for Oxygen injection for ““inin--situsitu”” ReformingReforming

2H2 + O2 2 H2O

CH4 + H2O CO + 3H2

2CH4 + O2 2 CO + 4H2

CO2 + H2 CO + H2O

Partial Combustion/Partial Combustion/ReformingReforming

Oxygen

Reducing gasfrom heater

Temperature: 930°C

Pressure: 6 barA

–– This partial combustion, This partial combustion, besides adding thermal besides adding thermal energy to the reducing gas, energy to the reducing gas, promotes to some degree promotes to some degree the reforming reactions. the reforming reactions.

•• Partial Combustion/Partial Combustion/Reforming:Reforming:

–– Oxygen is injected in the Oxygen is injected in the transfer line to the DR transfer line to the DR reactor.reactor.T: 1085°C

DRI

Iron OreIron Ore

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© 2006 Danieli & C.; HYL Technologies - This document contains proprietary information of DANIELI & C.S.p.A., and HYL Technologies, S.A. de C.V.; not disclosable, not reproducible. All Rights Reserved.

Process OverviewProcess Overview““InIn--situsitu”” ReformingReforming

Reforming Reduction

CH4 + H2O CO + 3H2

InIn--situ Reformingsitu Reforming

CH4 + CO2 2CO + 2H2

Fe2O3 +3H2 2FeFe°° + 3H2O

Fe2O3 +3CO 2FeFe°° + 3CO2

ReductionReduction

3Fe° + CH4 FeFe33CC + 2H2

CarburizationCarburization

Oxygen

Reducing gasto reactor

CO2

H2O•• InIn--situ Reforming:situ Reforming:

–– Conditions for natural Conditions for natural gas reforming: gas reforming: Oxidants (HOxidants (H22O + COO + CO22), ), high temperature and high temperature and presence of catalyst.presence of catalyst.

–– In the lower part of In the lower part of the reactorthe reactor’’s s reduction zone, these reduction zone, these conditions are conditions are present, making present, making possible possible ““inin--situsitu””reforming.reforming.

DRI

Iron OreIron Ore

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ProcessProcess OverviewOverviewFlexibility for: Energy sources and Product typeFlexibility for: Energy sources and Product type

HBIHBI

DRIDRI

EAF

HYTEMPHYTEMP®® IronIron

H2O

fuel

CO2

O2

Iron Ore

Reducing gas sourcesNatural GasNatural GasReformed GasReformed GasCoal GasificationCoal GasificationCOGCOGothersothers

Optional DR products:Optional DR products:

Only for cold DRI

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Technical OverviewTechnical OverviewMain Features of Main Features of ENERGENERGIRONIRON TechnologyTechnology

Scheme• The ENERGIRON scheme permits the direct

utilization of any source of reducing gas, such as:Reformed gasNatural gasCoke Oven GasSyn-gas from coal gasificationExhaust gases from smeltersetc.

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Technical OverviewTechnical OverviewMain Features of Main Features of ENERGENERGIRONIRON TechnologyTechnology

The basic process configuration is unchanged for any energy source application

Scheme flexibility to process different gas analysis

NGNGCOGCOGSyngasSyngas

OxygenOxygenRef. Gas Ref. Gas NG NG COGCOGSyngasSyngas

Fuel

CO2

H2O

Humidifier

Iron Ore

DRIDRI

H2O

Scheme

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© 2006 Danieli & C.; HYL Technologies - This document contains proprietary information of DANIELI & C.S.p.A., and HYL Technologies, S.A. de C.V.; not disclosable, not reproducible. All Rights Reserved.

ProcessAlways the same basic configuration of the reduction loop.

Flexibility to produce high quality DRI from any source of gas such as Natural gas, Reformed gas, Coke Oven Gas, Syn-gas, etc., while maintaining the same proven process configuration.

Selective elimination of H2O and CO2

Optimization of reducing gas requirements and complete control of the gas chemistry entering the DR Reactor.

Gas Temperature: 950°C. The use of Oxygen allows high temperature operation and higher process efficiency.

Gas Pressure from 2.5 to 6 bars. Smaller equipment, high process efficiency, low power consumption.

Technical OverviewTechnical OverviewMain Features of Main Features of ENERGENERGIRONIRON TechnologyTechnology

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Technical OverviewTechnical OverviewMain Features of Main Features of ENERGENERGIRONIRON TechnologyTechnology

Product

• Product flexibility: Cold DRI, HBI and Hot DRI (HYTEMP®) in every modality. The product quality can be adjusted to best fit the client needs.

• Product quality: High metallization, high-carbon DRI. It is the only DR technology currently capable of producing High Carbon DRI with more than 90% of the Carbon as Iron Carbide.

Page 19: Energiron Dr Technology-july 2007

© 2006 Danieli & C.; HYL Technologies - This document contains proprietary information of DANIELI & C.S.p.A., and HYL Technologies, S.A. de C.V.; not disclosable, not reproducible. All Rights Reserved.

Technical OverviewTechnical OverviewMain Features of Main Features of ENERGENERGIRONIRON TechnologyTechnology

• The physical and chemical characteristics of high carbon DRI especially its chemical energy contribution given by the high percentage of Fe3C, make it a high-performance metallic source for electric steel-making allowing the production of even the most demanding steel grade thanks to its high purity and to the total absence of tramp elements.

• A very important feature to be stressed is the stability of the product.

This product is safe to store and transport without any inert atmosphere or briquetting, with relevant savings in production and transport costs. The same product can therefore be directly used in an adjacent EAF or transported and sold elsewhere.

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Technical OverviewTechnical OverviewPlant configuration: Scheme with ReformerPlant configuration: Scheme with Reformer

• Electricity optimization• Hot and/or Cold DRI production• Carbon content: 0.8% – 3.5%, depending on the extent of “in-situ reforming”

with NG

Fe2O3 + 3H2 2Fe + 3H2OFe2O3 + 3CO 2Fe + 3CO2

Reduction

CO + H2O CO2 + H2

CH4 + H2O CO + 3H2

Steam Reforming

water

fuelNatural

gas

Fuel

CO2

H2OPG Compressor

PG Heater

H2O

~~Steam

Turbines

Oxygen

Iron Ore

Reactor

DRI

Page 21: Energiron Dr Technology-july 2007

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Technical OverviewTechnical OverviewPlant configuration: Scheme w/o ReformerPlant configuration: Scheme w/o Reformer

•• The Scheme w/o Reformer is The Scheme w/o Reformer is characterized by the following characterized by the following features:features:

Partial combustion of the reducing gas.“In-situ” reforming of CH4 in the lower part of the reactor’s reduction zone.Adjustable composition of the reducing gas to control DRI metallization and carbon.Natural gas optimizationHot and/or Cold DRI productionCarbon content: 2.0% – 4.0%

OxygenOxygenNGNG

Fuel

CO2

H2O

Humidifier

Iron Ore

DRI

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Technical OverviewTechnical Overview

Item Unit Remark

Plant capacity t/a 200,000 - 2,000,000

Metallization ≥ 93%Carbon (controlled) 0.8% - 5%

depending on extent of "in-situ" reforming

Inputs Specific Consumption

Iron ore t/t 1.38 - 1.40 depending on DRI Carbon

Natural gas Gcal/t 2.3 - 2.6

depending on: DRI Carbon & Temperature, extent of "in-situ" reforming and power co-generation

Electricity kWh/t 0 - 85 depending on power co-generation

Oxygen Nm3/t 0 - 50depending on extent of "in-situ" reforming

Water m3 0 - 1.3 depending on the water recovery system

Labor m-h/t 0.11 - 0.17 depending on plant size

Maintenance US$ 3 - 3.3 for cold DRI - hot DRI

Consumption Figures

Page 23: Energiron Dr Technology-july 2007

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Technical OverviewTechnical Overview

• The ENERGIRON process is the most competitive way to produce the best virgin iron source for the Electric Arc Furnace in order to optimise the liquid steel production cost.

• The exploitation of the “in-situ reforming” principle allows to optimise the investment and production cost while maximising the hourly production without affecting the quality.

• The carbon content is optimised to fit the requirements of the EAF melting process

• The product is stable and safe to store and transport.

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Technical OverviewTechnical Overview

• Low Environmental ImpactThe low dust carry-over determined by the low gas velocity into the shaft furnace,

The high efficiency of the selected dedusting system,

The low suspended solid content of water,

The re-utilisation of the exhaust gas as burner gas (no gas is burned in flare system) greatly reduce the environmental impact of the ENERGIRON plant site,

Selective removal and potential use of CO2, as by-product, to decrease emissions of gases related to greenhouse effect,

Low NOx emission.

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Technical OverviewTechnical Overview

• Low maintenance and high availabilityThe elimination of the reformer (for 100% “in-situ”reforming) or small reformer size (less than 500 Nm3/t of reformed gas), and the absence of the briquetting machine drastically reduce the maintenance of the plant.

• Highly automated processThe plant is controlled by a highly automated system that provides a level 2 automation.

The modern control system allows driving the process with minimal human interventions.

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Technical OverviewTechnical OverviewPlant AvailabilityPlant Availability

The ENERGENERGIRON IRON PPlant:

• 7,800 – 8,000 hr/yr net working time

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Standard Modules

Capacity (Mt/year) Reactor size (approx. nominal ID- m)

200,000 (Micro-Module) 2.5

500,000 4.0

800,000 5.0

1,200,000 5.5

1,600,000 5.7

2,000,000 6.0

Technical OverviewTechnical OverviewPlantPlant sizessizes

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Technical OverviewTechnical OverviewTrainingTraining

• Danieli, Techint and HYL Technologies possess a great experience in turn-key plant realization, thanks to their worldwide leadership in mini-mills construction.

• An important part for the successful implementation of a mini-mill is the presence of fully-qualified personnel. The three companies hence developed a consistent training programme for operation and maintenance personnel.

• The programme foresees:Training in Danieli headquarters in Buttrio, Italy and/or in Techint facilities worldwide and/or HYL Technologies in Monterrey, Mexico;On site training;Training in similar plants, i.e. Ternium-Hylsa.

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The usual crew policy is to have 4 complete crews working 6 days in 8-hour shifts and resting 2 days. In this manner, it is possible to run the plant in a 24 hours/day basis without resorting to overtime.

Dimensioning of personnel:

Per day Per shift TotalAdministration 2 0 2Plant Operation 3 8 35Process Unit 4 2 12Plant maintenance 21 3 33Total 30 13 82

DR Plantpersonnel requirements

Technical OverviewTechnical OverviewManning and crew policyManning and crew policy

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Required characteristics for Lump ore and Pellets for Direct reduction are as follows:

Metallurgical characteristics

Chemical characteristicsChemical properties Lump ore % Pellet % w Fe total As high as

possible As high as possible

Fe++ 1.00 max Na2O + K2O 0.10 max 0.10 max TiO2 0.20 max 0.20 max LOI 1.50 max -

Metallurgical PropertiesHYL standards

Lump ore

Pellet

a) Swelling index (% weight) At 800 °C - 15 max

b) Reducibility index (k x 10-2 min-1)** At 800 °C 3.0 min 3.0 min At 950 °C 4.0 min 4.0 min

c) Low temperature disintegration (% wt.) 500 °C, +6.3 mm 70 min 80 min 500 °C, -3.2 mm 20 max 10 max

Technical OverviewTechnical OverviewRaw MaterialsRaw Materials

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Physical characteristics

(kg/pellet, +10 mm –16 mm)

200 min-Compression strength

93 min90 minTumbler index (% w, +6.3 mm)

a)Mechanical Strength

20.0 min-a)Porosity (%)

02.0 max- 3.2 mm

1.0 max8.0 max- 6.3 mm

15.0 max-- 9.5 mm

5.0 max-+ 15.9 mm

0+31.8 mm

05.0 max- 42.0 + 31.8 mm

% weight% weighta)Size distribution after screening

PelletLump ore

Physical and Mechanical Properties

(kg/pellet, +10 mm –16 mm)

200 min-Compression strength

93 min90 minTumbler index (% w, +6.3 mm)

a)Mechanical Strength

20.0 min-a)Porosity (%)

02.0 max- 3.2 mm

1.0 max8.0 max- 6.3 mm

15.0 max-- 9.5 mm

5.0 max-+ 15.9 mm

0+31.8 mm

05.0 max- 42.0 + 31.8 mm

% weight% weighta)Size distribution after screening

PelletLump ore

Physical and Mechanical Properties

Technical OverviewTechnical OverviewRaw MaterialsRaw Materials

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HighHigh CarbonCarbon DRI DRI BenefitsBenefits

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Effect of HighEffect of High--CarbonCarbon

Combined Carbon (cementite or iron carbide - Fe3C) in DRI from HYL Self-Reforming Process

70

75

80

85

90

95

100

2 3 4 5 6 7% Total Carbon in DRI10

0*C

ombi

ned

Car

bon/

Tota

l Car

bon

A DRI with 4% Carbon contains more than 50% of Fe3C.

The high percentage of Fe3C in the DRI of the 4M plant makes the product very stable.

Most of the Carbon in the DRI is present as Fe3C, for a Carbon content of 4% approx. 95% of it is present as Fe3C.

Every 1% of combined Carbon corresponds to 13.5% of Fe3C.

DRI Analysis – 4M Plant:Metallisation 94%Carbon 4%Fe° 83.0%Fe Total 88.3%Fe3C 55.1%Gangue 6.2%

Page 34: Energiron Dr Technology-july 2007

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Effect of HighEffect of High--CarbonCarbonDRI StabilityDRI Stability

In general, High-Carbide DRI is more stable than conventional DRI. This has been proven in specific tests that were performed for DRI being produced at the 3M5 plant, before and after its conversion to the ZR scheme, for two levels of Carbon.

REACTIVITY OF DRI IN CONTACT WITH AIR

0

1

2

3

4

5

6

0 0.5 1 1.5 2

TIME (DAYS)

LTS

O2/

TON

HR

HYL ZR HYL III

HYL DRI Characteristics:DRI -ZR Mtz. = 94%, C = 4% (> 90% as Fe3C)DRI -w/Reformer Mtz. = 94%, C = 2%

REACTIVITY OF DRI IN CONTACT WITH AIR+WATER

0

10

20

30

40

50

60

0 0.5 1 1.5 2

TIME (DAYS)

LTS

O2/

TON

HR

HYL ZR HYL III

HYL DRI Characteristics:DRI -ZR Mtz. = 94%, C = 4% (> 90% as Fe3C)DRI -w/Reformer Mtz. = 94%, C = 2%

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These test results, specifically with salty water, are of relevant importance due to the low risks for High-Carbon DRIoverseas transportation.

REACTIVITY OF DRI IN CONTACT WITH SALTY WATER + AIR

0

10

20

30

40

50

60

70

0 2 4 6 8 10 12Time (Hrs)

Lts

O2/

Ton-

Hr

HYL ZR SaltyWater+Air

HYL IIIw/ReformerSaltyWater+Air

Effect of HighEffect of High--CarbonCarbonDRI StabilityDRI Stability

Page 36: Energiron Dr Technology-july 2007

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Chemical Energy ContributionChemical Energy Contribution

TThe conversion of Fehe conversion of Fe33C into iron and carbon C into iron and carbon is an exothermic reaction which improves the is an exothermic reaction which improves the thermal efficiency thermal efficiency in the EAF.in the EAF.

Efficient use of carbon in EAFEfficient use of carbon in EAF

The combined carbon is totally used, The combined carbon is totally used, minimizing external carbon (graphite) minimizing external carbon (graphite) additionsadditions..

Higher stability during handlingHigher stability during handling

Iron carbide is more stable and is safer to be Iron carbide is more stable and is safer to be stored and transported.stored and transported.

Carbon in FeCarbon in Fe33C formC form

Effect of HighEffect of High--CarbonCarbonIn the EAFIn the EAF

Page 37: Energiron Dr Technology-july 2007

© 2006 Danieli & C.; HYL Technologies - This document contains proprietary information of DANIELI & C.S.p.A., and HYL Technologies, S.A. de C.V.; not disclosable, not reproducible. All Rights Reserved.

Easy foamy slag generation:Easy foamy slag generation:As high carbon DRI enters in contact with free or As high carbon DRI enters in contact with free or combined oxygen.combined oxygen.

Carbon and DRI are fed at the same time:Carbon and DRI are fed at the same time:The same system controls the feeding rate of metallic The same system controls the feeding rate of metallic charge and carbon additionscharge and carbon additions..

Easier operation with intensive oxygen use:Easier operation with intensive oxygen use:As DRI feeding rate is varied, carbon is varied as well As DRI feeding rate is varied, carbon is varied as well and, as a consequence, oxygen use is varied.and, as a consequence, oxygen use is varied.

Effect of HighEffect of High--CarbonCarbonIn the EAFIn the EAF

Page 38: Energiron Dr Technology-july 2007

© 2006 Danieli & C.; HYL Technologies - This document contains proprietary information of DANIELI & C.S.p.A., and HYL Technologies, S.A. de C.V.; not disclosable, not reproducible. All Rights Reserved.

Specific SavingsSpecific Savings““High temperature and High High temperature and High ““CC”” in DRIin DRI””

12

30

27

2.5

2.1

0.9

0

5

10

15

20

25

30

35

100°C 1% C 1% Met

Elec

tric

pow

er s

avin

gs (k

Wh/

TLS)

0

0.5

1

1.5

2

2.5

3

3.5

4

Pow

er o

n tim

e sa

ving

s (m

in/h

eat)

Page 39: Energiron Dr Technology-july 2007

© 2006 Danieli & C.; HYL Technologies - This document contains proprietary information of DANIELI & C. S.p.A., and HYL Technologies, S.A. de C.V.; not disclosable, not reproducible. All Rights Reserved.

HYTEMPHYTEMP®® SystemSystemForFor Hot DRIHot DRI

Page 40: Energiron Dr Technology-july 2007

© 2006 Danieli & C.; HYL Technologies - This document contains proprietary information of DANIELI & C.S.p.A., and HYL Technologies, S.A. de C.V.; not disclosable, not reproducible. All Rights Reserved.

HYL ProcessHYL ProcessHYTEMPHYTEMP®® System for hot DRI Charging to EAFSystem for hot DRI Charging to EAF

Cold Cold DRIDRI

Hot Hot DRIDRI

HYTEMPHYTEMP®® SystemSystem

Transport Gas Make

up

H2O

fuel

CO2

O2

Reducing gases -Possible sources

Natural GasNatural GasReformed GasReformed GasSyngas (coal)Syngas (coal)COGCOGothersothers

ExternalCooler

Reactor

EAF

Iron OreIron Ore

Page 41: Energiron Dr Technology-july 2007

© 2006 Danieli & C.; HYL Technologies - This document contains proprietary information of DANIELI & C.S.p.A., and HYL Technologies, S.A. de C.V.; not disclosable, not reproducible. All Rights Reserved.

•• Pneumatic transport of hot Pneumatic transport of hot DRI to EAFDRI to EAF

•• Flexible configuration and Flexible configuration and layoutlayout

•• Simple operationSimple operation

•• Totally enclosed Totally enclosed –– from ore to liquid steelfrom ore to liquid steel•• Savings of power related costs in EAFSavings of power related costs in EAF•• EAF productivity increaseEAF productivity increase

HYTEMPHYTEMP®® SystemSystemOnly proven technology for continuous transport/feeding Only proven technology for continuous transport/feeding of hot DRI to EAFof hot DRI to EAF

Page 42: Energiron Dr Technology-july 2007

© 2006 Danieli & C.; HYL Technologies - This document contains proprietary information of DANIELI & C.S.p.A., and HYL Technologies, S.A. de C.V.; not disclosable, not reproducible. All Rights Reserved.

350

400

450

500

550

50 100 150 200 250 300 350 400 450 500 550 600

DRI Temperature (°C)

Ener

gy (k

Wh/

t LS)

150

170

190

210

230

250

270

kWh/t LS tonnes/hr

Mel

ting

rate

(t L

S/hr

)

DRI: 94% DRI: 94% MetzMetz. . andand 3.7% C.3.7% C.

HYTEMPHYTEMP®® SystemSystemHot DRIHot DRI--EAF PerformanceEAF Performance

Page 43: Energiron Dr Technology-july 2007

© 2006 Danieli & C.; HYL Technologies - This document contains proprietary information of DANIELI & C.S.p.A., and HYL Technologies, S.A. de C.V.; not disclosable, not reproducible. All Rights Reserved.

Ternium Hylsa is currently feeding two EAF’s with Hot DRI.

The Danieli EAFis fed with up to 100% High-Carbon, Hot DRI

More than 6 million tons of Hot-High Carbon DRI already transported

4M DR Plant

EAF No.1

EAFNo. 2

53 m

72 m

83 m

22 m

10 m

HYTEMPHYTEMP®® SystemSystemIndustrial InstallationIndustrial Installation

Page 44: Energiron Dr Technology-july 2007

© 2006 Danieli & C.; HYL Technologies - This document contains proprietary information of DANIELI & C.S.p.A., and HYL Technologies, S.A. de C.V.; not disclosable, not reproducible. All Rights Reserved.

HYTEMPHYTEMP®® SystemSystemReactor TowerReactor Tower

Page 45: Energiron Dr Technology-july 2007

© 2006 Danieli & C.; HYL Technologies - This document contains proprietary information of DANIELI & C.S.p.A., and HYL Technologies, S.A. de C.V.; not disclosable, not reproducible. All Rights Reserved.

HYTEMPHYTEMP®® SystemSystem

For a new project, the proposed general scheme is same as that of Ternium-Hylsa’s 4M DR Plant, with the following main characteristics:

Reactor for hot DRI discharge, same as 4M, but incorporating flow feeders in case of larger dimension reactor.

External cooler for production of cold DRI – preferably by pneumatically fed or alternatively by gravity fed, depending on capex and/or height limitations.

Capacity for 100% cold DRI or 100% hot DRI production or any combination.

HYTEMP System to transport hot DRI to EAF charging system.

Page 46: Energiron Dr Technology-july 2007

© 2006 Danieli & C.; HYL Technologies - This document contains proprietary information of DANIELI & C.S.p.A., and HYL Technologies, S.A. de C.V.; not disclosable, not reproducible. All Rights Reserved.

1 23

10

FLOOR LEVELEL. 0.000

CD

RI

CO

OL

ER

CG

12

1-D

CR

EA

CT

OR

7000 (REF.) 7000 (REF.)

M .R .

EL. 82.500

E L

E V

A T

O R

FL. 17.634

EL. 40.022

FL. EL. 20.212

F.L. 55.062

F.L. 74.415

TOP OF BIN

TRANSFERLINE

C

7000 (REF.)7000 (REF.)

RE

AC

TO

R

4500(REF.)

4500(REF.)

C

B C A BCA

C

CG

15

5-F

11

CG

15

5-F

12

EL. 70.765

4500(REF.)

4500(REF.)

EL. 57.750

EL. 6.520

HYTEMPHYTEMP®® SystemSystemCooler Feed by Pneumatic TransportCooler Feed by Pneumatic Transport

A

A

B B

1 2310

1 23

10

EMERGENCYDUMP

RE 251-F

CG 121-DDRI COOLER

PG 221-C

REA

CTO

RR

E 22

1-D

C

C

TO COLD DRI

RE 221-DST

AIR

S

PTS PELLETSTRAP PH 651-G

"A"

REDUCTION TOWER

2000

FLEXOWALL

0102030405060 cm

ELEVATOR

12000 MINIMUM

NOTE 3

CREACTOR

FROM PTS

7000

NO

TE 5

7000

NO

TE 5

HEATRECUPERATOR

GASHEATER

C

4500

4500

9000

4500 4500

9000

STORAGE YARD

B-BA-A

Page 47: Energiron Dr Technology-july 2007

© 2006 Danieli & C.; HYL Technologies - This document contains proprietary information of DANIELI & C.S.p.A., and HYL Technologies, S.A. de C.V.; not disclosable, not reproducible. All Rights Reserved.

HYTEMPHYTEMP®® SystemSystemSpecific AdvantagesSpecific Advantages

• Production of hot or cold DRI.

Flexibility for carbon control in DRI (2.5 – 4%)

• High C, hot DRI to EAF:Power savings of more than 130 kWh / t LS in EAF.

Potential EAF decrease on power on time of about 30%

Potential EAF net productivity increase of about 20%

Page 48: Energiron Dr Technology-july 2007

© 2006 Danieli & C.; HYL Technologies - This document contains proprietary information of DANIELI & C. S.p.A., and HYL Technologies, S.A. de C.V.; not disclosable, not reproducible. All Rights Reserved.

TechnologyTechnology AdvantagesAdvantages

Page 49: Energiron Dr Technology-july 2007

© 2006 Danieli & C.; HYL Technologies - This document contains proprietary information of DANIELI & C.S.p.A., and HYL Technologies, S.A. de C.V.; not disclosable, not reproducible. All Rights Reserved.

ENERGENERGIRON TechnologyIRON TechnologyAdvantagesAdvantages

• Most advanced current and proven technology available in the market:

In-situ reforming and HYTEMP® System since 1998 at industrial scale.

• High and flexible DRI quality:DRI is produced with high and uniform quality. Metallization andcarbon can be independently adjusted to meet any steel specification:

• Metallization: > 93%.

• Carbon: from 0.8 – 4%.

• Lower iron ore and energy consumption figures as compared to competing DR processes.

Page 50: Energiron Dr Technology-july 2007

© 2006 Danieli & C.; HYL Technologies - This document contains proprietary information of DANIELI & C.S.p.A., and HYL Technologies, S.A. de C.V.; not disclosable, not reproducible. All Rights Reserved.

ENERGENERGIRON TechnologyIRON TechnologyAdvantagesAdvantages

• Optimised DR plant design:High operating pressure (> 5 bars) which reduces equipment size and power consumption (Dp).Selective removal of oxidants from the reduction process: H2O and CO2: Optimization of Reducing gas make-up.

• Flexibility to fulfil customer requirements:Zero kWh scheme: Grasim (India), 2P5 (Mexico), partial-LebGOK(Russia) and PSSB (Malaysia).Zero Water consumption: Hadeed (Saudi Arabia).CO2 as by-product for sale: 3M5 & 4M (Mexico).Plants are designed to comply with the local environmental regulations.

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© 2006 Danieli & C.; HYL Technologies - This document contains proprietary information of DANIELI & C.S.p.A., and HYL Technologies, S.A. de C.V.; not disclosable, not reproducible. All Rights Reserved.

RussiaLebedinskyVenezuelaFerromineraVenezuelaSIDOR

South AfricaSishenMexicoSicartsaIndiaNMDCBrazilSamarcoBrazilMutucaMexicoPeña ColoradaIndiaMineral SalesIndiaMandoviIndiaG.G. BrothersSwedenLKABBrazilFertecoIndiaKudremukhBrazilFeijaoMexicoIMEXSABrazilEsperancaPeruHierro Peru

VenezuelaEl PaoBahrainGIICBrazilCorregoBrazilCVRDBrazilAlegríaChileCMPIndiaBailadhilaMexicoAlzada

CountrySourceCountrySource PelletsPellets Lump oresLump ores

up to 100% lump ore in Usiba and Vikram Ispat-Grasim

ENERGENERGIRON TechnologyIRON TechnologyRaw Materials Experience and FlexibilityRaw Materials Experience and Flexibility

Page 52: Energiron Dr Technology-july 2007

© 2006 Danieli & C.; HYL Technologies - This document contains proprietary information of DANIELI & C.S.p.A., and HYL Technologies, S.A. de C.V.; not disclosable, not reproducible. All Rights Reserved.

ENERGENERGIRON TechnologyIRON TechnologyPioneering Experience Since 1957Pioneering Experience Since 1957

• Not only technology supplier but overall experience as DR technology developer within a steel company.

• Committed to R&D. Laboratory and Pilot Plant facilities to perform iron ores test works.

• Proven and reliable DR Technology:Currently about 11 MM t of DRI/HBI are yearly produced in HYL plants worldwide for a total accumulated production of over 150 MM t.

• Flexibility to offer any combination of proven Plant Configurations, depending on specific customer requirements:

Cold (Low or High-Carbon) DRIHot (Low or High-Carbon) DRIHBI

Page 53: Energiron Dr Technology-july 2007

© 2006 Danieli & C.; HYL Technologies - This document contains proprietary information of DANIELI & C.S.p.A., and HYL Technologies, S.A. de C.V.; not disclosable, not reproducible. All Rights Reserved.

Reference ListsReference ListsHYL I / HYL II PlantsHYL I / HYL II Plants

Design Capacitymillion tonne/y

Hylsa 1M Mexico 1 HYL-I DRI 0.10 dismantled 1957Hylsa 2M Mexico 1 HYL-I DRI 0.19 converted 1960Tamsa Mexico 1 HYL-I DRI 0.28 closed 1967Hylsa 1P Mexico 1 HYL-I DRI 0.25 dismantled 1969Usiba Brazil 1 HYL-I DRI 0.23 converted 1974Hylsa 3M Mexico 1 HYL-I DRI 0.42 converted 1974Sidor I Venezuela 1 HYL-I DRI 0.36 closed 1976Hylsa 2P Mexico 1 HYL-I DRI 0.63 converted 1977PTKS I Indonesia 1 HYL-I DRI 0.56 shutdown 1978PTKS II Indonesia 1 HYL-I DRI 0.56 shutdown 1978PTKS III Indonesia 1 HYL-I DRI 0.56 operating 1981PTKS IV Indonesia 1 HYL-I DRI 0.56 converted 1981

Sidor II Venezuela 3 HYL-II DRI 2.11 2-operating1-shutdown 1981

SEIS I Iraq 2 HYL-I DRI 0.54 closed 1988SEIS II Iraq 2 HYL-I DRI 0.93 closed 1989ASCO Iran 3 HYL-I DRI 1.03 operating 1993

Start UpHYLSchemePlant Country Units Product Status

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Design Achieved Metallization CarbonHylsa 2M5 Mexico 1 HYL III DRI 0.25 closed 94.0 2.7 1980Hylsa 3M5 Mexico 1 HYL-ZR DRI 0.50 0.63 94.0 3.9 1983Mittal Steel-1 Mexico 2 HYL III DRI 1.00 1.20 94.8 2.1 1988Mittal Steel-2 Mexico 2 HYL III DRI 1.00 1.20 94.8 2.1 1991Vikram Ispat India 1 HYL III HBI/DRI 0.75 0.90 93.6 1.1 1993PTKS Indonesia 2 HYL III DRI 1.35 1.35 93.3 2.3 1993PSSB Malaysia 2 HYL III DRI 1.20 1.20 95.0 2.0 1993Usiba Brasil 1 HYL III DRI 0.31 0.35 91.3 2.8 1994Hylsa 2P5 Mexico 1 HYL III DRI 0.61 0.65 93.3 3.4 1995Hylsa 4M Mexico 1 HYL-ZR HYTEMP®/DRI 0.68 0.93 94.4 3.6 1998Hadeed S. Arabia 1 HYL III DRI 1.10 1.10 94.4 2.4 1999Lebedinsky Russia 1 HYL III HBI 0.90 1.09 95.1 1.1 1999Matesi Venezuela 2 HYL III HBI 1.50 1.50 93.0 1.8 2004

Start UpHYLScheme

Capacity, million tonne/yPlant Country Units Product Product quality

Reference ListsReference ListsHYL III / ZR PlantsHYL III / ZR Plants

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© 2006 Danieli & C.; HYL Technologies - This document contains proprietary information of DANIELI & C.S.p.A., and HYL Technologies, S.A. de C.V.; not disclosable, not reproducible. All Rights Reserved.

Design Status Metallization Carbon

Al Nasser UAE 1 High-C DRI Micro-Module 0.20 Under construction

93.0 3.5 2007

Vikram Ispat India 1 High-C DRI Mini-Module 0.50 Under execution 94.0 3.0 2007

Mittal Steel Mexico 1 Expansion CO2 absorption + 20% Successful start-up

94.0 2.0 2007

Sidor Venezuela 1 Cold DRI Conversion 0.80 Under execution

94.0 2.0 2008

Start UpScheme Capacity, million tonne/yPlant Country Units System Product quality

Design Status Metallization Carbon

GHC Abu Dhabi UAE

1 Hot, High-C DRI

HYTEMP®/DRI 1.60 Under construction

94.0 3.0 2008

Start UpScheme Capacity, million tonne/yPlant Country Units System Product quality

By HYL/TechintBy HYL/Techint

By HYL By HYL -- DanieliDanieli

Design Status Metallization Carbon

Jindal India 1Coal

gasification Hot DRI

HYTEMP®/DRI 1.70 Under execution

94.0 2.0 2008

Ceara Brazil 1 High-C DRI - 1.70 Under execution 94.0 2.5 2008

Start UpScheme Capacity, million tonne/yPlant Country Units System Product qualityBy Danieli (support from HYL)By Danieli (support from HYL)

Reference ListsReference ListsNew ProjectsNew Projects