GASIFICATION AND THEGASIFICATION AND THEMIDREX® DR PROCESSMIDREX® DR PROCESS

By: Rob By: Rob CheeleyCheeley

Midrex Direct Reduction CorporationMidrex Direct Reduction Corporation

Presented at the:Presented at the:

1999 1999 Gasification Gasification Technologies ConferenceTechnologies Conference

MIDREXMIDREX

•• Technology CompanyTechnology Company

•• 80 employees80 employees

•• Located in CharlotteLocated in Charlotte

DIRECT REDUCED IRONDIRECT REDUCED IRON

•• Known as DRIKnown as DRI

•• Elemental iron produced as solidElemental iron produced as solid

•• Feedstock for steel mini-millsFeedstock for steel mini-mills

THE MIDREX PROCESSTHE MIDREX PROCESS

•• Converts iron ore to direct reduced ironConverts iron ore to direct reduced iron( DRI )( DRI )

•• 67% of World DRI Production of 3767% of World DRI Production of 37million tonsmillion tons

•• 47 Plants in 16 countries47 Plants in 16 countries

IRON ORE REDUCTIONIRON ORE REDUCTION

3 CO + Fe3 CO + Fe22OO33 --> 2 Fe + 3 CO --> 2 Fe + 3 CO22

3 H3 H22 + Fe + Fe22OO33 --> 2 Fe + 3 H --> 2 Fe + 3 H22OO

IMEXSA MIDREX PLANTIMEXSA MIDREX PLANT

SYN GAS CHARACTERISTICSSYN GAS CHARACTERISTICS

Temperature Ambient - 2700 F

Pressure < 300 psig

H2/CO Ratio All are acceptable

Gas Quality > 2 ; > 10 preferred

Methane 0 - 5 %

Sulfur < 0.3 %

Quality = ( % H2 + % CO ) / ( % H2O + % CO2 )

SYN GAS FLOW RATESSYN GAS FLOW RATES

FlowrateFlowrate Per t of DRIPer t of DRI

NmNm33 650 - 750650 - 750

SCFSCF 24,000 - 28,00024,000 - 28,000

MMBtuMMBtu 7.5 - 8.77.5 - 8.7

Assumes: Quality > 10 & 310 Btu/ftAssumes: Quality > 10 & 310 Btu/ft33

ECONOMICS IN U.S.ECONOMICS IN U.S.

Direct CostsDirect Costs

Iron Ore Iron Ore $ 58 / t$ 58 / t

CoalCoal $ 17 / t$ 17 / t

OthersOthers $ 18 / t$ 18 / t

Indirect CostsIndirect Costs

Capital ChargeCapital Charge $ 32 / t$ 32 / t

OthersOthers $ 5 / t$ 5 / t

TotalTotal $ 130 / t$ 130 / t

BEST LOCATIONSBEST LOCATIONS

•• East Asia East Asia

•• West Europe West Europe

•• Australia Australia

•• Brazil Brazil

•• India India

•• South Africa South Africa

KEYS TO VIABILITYKEYS TO VIABILITY

•• Use Excess Synthesis GasUse Excess Synthesis Gas

•• Use Refinery By-ProductsUse Refinery By-Products

•• Minimize Capital CostsMinimize Capital Costs

•• Integrated Mini-Mill ComplexIntegrated Mini-Mill Complex

INTEGRATED MINI-MILLINTEGRATED MINI-MILL

•• Gasification Gasification PlantPlant

•• MIDREX PlantMIDREX Plant

•• Steel MillSteel Mill

•• Power PlantPower Plant

INTEGRATED MINI-MILL FLOWSHEETINTEGRATED MINI-MILL FLOWSHEET

INTEGRATEDINTEGRATED MINI-MILLMINI-MILL

•• 2,700,000 t/y MIDREX Plant2,700,000 t/y MIDREX Plant

•• 2,400,000 t/y Steel Mill2,400,000 t/y Steel Mill

•• 360 MW Power Plant360 MW Power Plant

•• 16,000,000 SCF/h Synthesis Gas16,000,000 SCF/h Synthesis Gas

SALDANHA STEELSALDANHA STEEL

•• Near Cape Town, South AfricaNear Cape Town, South Africa

•• First First Gasifier Gasifier / DRI Combination/ DRI Combination

•• Uses COREX® ProcessUses COREX® Process

•• Started-up in 1999Started-up in 1999

COREX® Export GasCOREX® Export Gas

ItemItem Typical DesignTypical Design

HH22/CO/CO 0.50.5

Gas CompositionGas Composition

COCO 35 - 45 %35 - 45 %

HH22 15 - 20 %15 - 20 %

COCO22 35 %35 %

NN22, H, H22OO 1 - 6 %1 - 6 %

CHCH44 1 %1 %

TemperatureTemperature 100 - 140 F100 - 140 F

PressurePressure 2 - 25 2 - 25 psigpsig

SALDANHA STEEL PLANTSALDANHA STEEL PLANT

CONCLUSIONSCONCLUSIONS

•• GasifierGasifier / MIDREX is a viable option / MIDREX is a viable option

•• Integrated Mini-Mill has best economicsIntegrated Mini-Mill has best economics

•• Asia has best potentialAsia has best potential