TOWARDS A CLEANER, GREENER TOWARDS A CLEANER, GREENER &&

SMARTER INDIAN STEEL SMARTER INDIAN STEEL INDUSTRYINDUSTRY

S. Das GuptaS. Das Gupta٭٭& Bhaskar Roy& Bhaskar Roy٭٭

The authors are with M. N. Dastur & Company (P) Ltd, The authors are with M. N. Dastur & Company (P) Ltd, Consulting Consulting ٭٭EngineersEngineers,, KolkataKolkataPresentation made at 4Presentation made at 4thth India Steel Summit organised by ASSOCHAM in India Steel Summit organised by ASSOCHAM in

New Delhi on 11New Delhi on 11thth August 2010. August 2010.

2

Indian Steel Industry –Indian Steel Industry –Future ProspectsFuture Prospects

3

0

10

20

30

40

50

60Q

uan

tity

, mill

. to

ns

Apparent Steel Consumption TrendApparent Steel Consumption Trend

Steady growth Accelerated growth

Take-off point !

4

0100200300400500600700800900

1,0001,1001,2001,300

Qua

ntity

, mill

ion

tons

1981 1985 1990 1995 2000 2005 2009

World

India

Apparent Steel Consumption – India vs World

China542

5

Likely Future Steel Demand Scenario in India

2009-10 55 mill. tons Actual consumption2011-12 65 mill. tons Considering 7.5% CAGR between

2009-10 & 2011-122019-20 120 mill. tons Considering 8% CAGR between

2011-12 & 2019-20140 mill. tons Considering 10% CAGR between

2011-12 & 2019-20

40

60

80

100

120

140

2009-10

2011-12

2019-20

Qu

antit

y, m

ill. t

on

s

2015-16

Indian Steel Industry on a Strong Growth Path

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YearPopulation, mill Per capita steel, kg Total steel, mill. tons

Urban Rural Urban Rural Urban Rural National

2009-10 345 810 153 3 53 2 55

2011-12 370 825 166 4 61.5 3.5 65

2015-16 430 835 210 6 90 5 95

0

20

40

60

80

100

2009-10 2011-12 2015-16

Total

stee

l, mill.

tons

Urb

an

Rural

The Rural-Urban SteelThe Rural-Urban Steel Divide in IndiaDivide in India

0

40

80

120

160

200

2009-10 2011-12 2015-16

Per

cap

ita

stee

l, kg

Urb

an

Ru

ral

22

44

66

88

Scope for Increasing Rural Steel Consumption !

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Environmental Aspects Environmental Aspects of Indian Steel Industryof Indian Steel Industry

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Major Factors in Ensuring Steel Industry Major Factors in Ensuring Steel Industry Sustainability Sustainability ٭٭ ::

• Energy intensity.Energy intensity.

• Greenhouse gas emissions.Greenhouse gas emissions.

• Material efficiency, i.e. % of by-products re-used.Material efficiency, i.e. % of by-products re-used.

.As defined by World Steel Association member companies ٭٭

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SPECIFIC ENERGY CONSUMPTIONS ININDIAN INTEGRATED STEEL PLANTS

4

5

6

7

8

9

En

erg

y c

on

su

mp

n, G

ca

l / t

cs

BSP

BSL

DSP

RSP

TATA

VSP

JSW

ESSAR

2008-092007-082006-072005-062004-05

Average of Integrated Plants 6.5 Gcal/tcs

10

Wo

rld

-avg Ind

ia

S. K

ore

a

Jap

an

0

1

2

3

4

5

6

7

En

erg

y,

Gc

al/

tcs

SA

IL

TA

TA

ST

EE

L

VS

P

Arc

elo

rMit

tal

JFE

Th

ys

se

n-

Kru

pp

0

1

2

3

4

5

6

7

En

erg

y,

Gc

al/

tcs

SPECIFIC ENERGY CONSUMPTION –INDIA VS OTHER COUNTRIES

(2008/2009 figures)

Considerable potential to reduce energy intensity in India.

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Source: Meeting the Challenge of Climate Change by Ian Christmas, Secretary General, World Steel Association, 5th China International Steel Congress, Shanghai, 2nd June 2008.

STEEL INDUSTRY & GHG EMISSIONS

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CO2 EMISSION BY STEEL INDUSTRY–INDIA VS OTHER COUNTRIES

(2008/2009 figures)

Wo

rld

-av

era

ge

Ind

ia

PO

SC

O

Th

ys

se

n-

Kru

pp

NS

C

JF

E

Arc

elo

rMit

tal

0

0.5

1

1.5

2

2.5

3

t C

O2 /

tc

s

Ind

iaIn

dia

13

Wo

rld

-ave

rag

e

PO

SC

O

JF

E

0

10

20

30

40

50

60

70

80

90

100

% R

e-u

sed

India<80%

EXTENT OF BY-PRODUCTS REUSE–INDIA VS OTHER COUNTRIES

(2008/2009 figures)

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Making Indian Steel Industry More EnvironmentMaking Indian Steel Industry More EnvironmentFriendly :Friendly :

• Domestic steel production bound to grow substantially in future.

• Inevitable impact on the environment.

• Indian steel producers seized of the situation - concerted efforts to mitigate harmful effects.

• However, need for more R&D efforts to develop ‘break-through’ technologies.

• Explore possibility of collaborating with agencies involved in R&D activities.

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International Efforts at Developing International Efforts at Developing New Technologies/Processes:New Technologies/Processes:

• POSCO: substantially reduce CO2 emissions in 10-12 years through hydrogen-based steelmaking.

• ULCOS (Ultra Low CO2 Steelmaking) program in EU since 2004 to develop ‘breakthrough’ technologies.

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CONCEPTUAL SCHEME OF HYDROGEN-BASEDSTEEL MAKING OF POSCO

Iron Ore

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Salient Features of ULCOS Program:Salient Features of ULCOS Program:

• Objective - R&D initiative to reduce CO2

emissions by developing new breakthrough technologies

• Consortium of major European steelmakers & Rio Tinto.

• Involves Carbon Capture & Sequestration (CCS).

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Salient Features of ULCOS Program Salient Features of ULCOS Program cont’dcont’d::

• Some of the process routes identified:

• Smelting reduction process – HIsarna; incorporating some features of HIsmelt process.

•Top Gas Recycling Blast Furnace (TGR-BF).

• Others:• Shaft furnace DR process – ULCORED.• Electrolysis variants – ULCOWIN & ULCOLYSIS.

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Smarter SteelsSmarter Steels

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• Need to develop/produce ‘smart’ steels with Need to develop/produce ‘smart’ steels with desired properties to support sectoral growth.desired properties to support sectoral growth.

• Construction, Automotive & Infrastructure sectors Construction, Automotive & Infrastructure sectors

– – major drivers of steel demand in India.major drivers of steel demand in India.

• Automobiles - Second fastest growing market Automobiles - Second fastest growing market after China.after China.

• Typical requirements:Typical requirements:

• For automotive steels - superior formability, For automotive steels - superior formability, without compromising on weldability.without compromising on weldability.

• FFor structural applications - hor structural applications - high strength, high igh strength, high corrosion resistance, better weldability. corrosion resistance, better weldability.

Major Demand Drivers for Indian Steel Industry:

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High-Strength Steels for Automotive Applications:High-Strength Steels for Automotive Applications:

• High-strength steels provides better mechanical properties High-strength steels provides better mechanical properties

or greater resistance to corrosion than carbon steel. or greater resistance to corrosion than carbon steel.

• Few grades developed:Few grades developed:

• Dual phase steelDual phase steel

• TRIP steelTRIP steel

• TWIP steelTWIP steel

• Evolving AHSS grades:Evolving AHSS grades:

• Nano steelsNano steels

• Ultra-fine grain steelsUltra-fine grain steels

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0

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0 200 400 600 800 1000 1200 1400 1600 1800

Tensile Strength, MPa

Elo

ng

atio

n,

%

DP

TRIP

IF

Mild

Austenitic-BasedAustenitic-BasedSteels, e.g. TWIPSteels, e.g. TWIP

MECHANICAL PROPERTIES OF SOME HIGH STRENGTH AUTO-GRADE STEELS

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Development of steel foam:Development of steel foam:

• Metal foams with controlled porosity - emerging class of Metal foams with controlled porosity - emerging class of ultra-lightweight materials receiving increased attention.ultra-lightweight materials receiving increased attention.

• Weight reduction, improved fuel efficiency & increasedWeight reduction, improved fuel efficiency & increased passenger safety in transportation systems.passenger safety in transportation systems.

• SSafer vehicles due to crash energy absorption capabilities.afer vehicles due to crash energy absorption capabilities.

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Status of Developmental Work in India:Status of Developmental Work in India:

• Work on TRIP / TWIP & other high strength steels in Work on TRIP / TWIP & other high strength steels in progress.progress.

• R&D activity on development of steel foam.R&D activity on development of steel foam.

• Bulk production of high strength steels for automotive Bulk production of high strength steels for automotive

application still to take off.application still to take off.

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Few Action Points forFew Action Points forIndian Steel IndustryIndian Steel Industry

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Better Utilisation of Iron Ore Resource:Better Utilisation of Iron Ore Resource:

• India endowed with large reserves of iron ore – need for a policy for better resource utilisation.

• Lowering cut-off grade from 55-58% to ~45% & exploration

to greater depths for resource estimation.

• With advances in beneficiation techniques, lower grade in-situ material, reject dumps & slimes can be economically upgraded & gainfully utilised.

• Lowering environmental degradation – 2.5 mtpy washing plant impacts 5 acres of forest land & about 12,500 trees annually.

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Better Operating PracticesBetter Operating Practices forfor Reducing Reducing Energy Intensity: Energy Intensity:

• Higher agglomerates in BF burden lower Si in hot metal• for 1 mt hot metal – 7,000 Gcal less energy required for every 0.1% lowering in Si content.

• Greater application of heat recovery systems – • introduction of modern, energy efficient technologies.

• maximising waste energy recycling, e.g. CDQ, TRT, sinter waste heat recovery, BF stoves waste heat recovery.

• Wider utilisation of NNS casting• beam blank• strip casting

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Utilisation of Iron & Steel Making Slags:Utilisation of Iron & Steel Making Slags:

• At ThyssenKrupp Stahl, BF & SMS slags processed into valuable materials for use in cement making, road construction, or as soil conditioner.

• ArcelorMittal in Brazil has developed a new way of producing construction bricks from steel mill slag.

• What Nippon Steel is doing:

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Green Buildings & Energy Optimisation:Green Buildings & Energy Optimisation:

• Potential for energy savings 40 – 50% in new buildings; for existing buildings, the potential can be 20-25%.

• Design should ensure building gets maximum day lighting.

• Use of energy saving materials & equipment like heat resistive paints, fly ash blocks, insulation materials, lighting controls, BIPV (Building Integrated Photo Voltaics), etc.

• Maximise use of solar power; explore wind energy possibility.

Typical Energy Consumption Pattern in Buildings:Source: CII-Sohrabji Godrej Green Business Centre

Misc. Equipment

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Stricter Monitoring of Air & Water Pollution:Stricter Monitoring of Air & Water Pollution:

• Mandatory environmental audit to identify & prioritize areas for short, medium & long term addressal through appropriate mitigation measures.

• Formation of dedicated & specialised Environment Management Divisions at corporate & plant levels.

• Stricter enforcement of relevant provisions of Environment (Protection) Acts & Rules, with severe penalties for deliberate non-compliance.

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Concluding RemarksConcluding Remarks

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• Enhanced domestic steel production will call for higher demands on various inputs & also entail greater emissions.

• Indian steel industry required to adhere to commitments made at Kyoto & Copenhagen.

• Indian steel industry already on high growth path.

• Industry competitiveness to be ensured by balancing economic & environmental aspects.

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• Indian steel industry seized of the matter & various steps already initiated.

• However, considerable potential exists to improve sustainability of Indian steel industry.

• Significant reduction of CO2 emissions possible by developing ‘breakthrough’ technologies.

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Thank you for your kind attention!Thank you for your kind attention!