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Using Technology to Reduce Carbon Intensity in Production/Manufacturing

Dr Paul Brooks, Director Environment & Climate Change, Corus

December 2008

Presentation to CBI Climate Change Summit

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Presentation

(1) Corus/Tata Steel Group overview

(2) Climate change & the steel industry

(3) Tata Steel Group climate change strategy

–Vision

–Short to medium term energy efficiency

improvements & CO2 emission reductions

–Longer term breakthough technology developments

–Sustainable solutions (product & market

development)

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CorusOverview

• 2nd largest European steel producer

• Annual turnover c £12bn

• Approximately 42,000 employees worldwide

• Major manufacturing sites in UK, Netherlands, Germany,

France and Belgium

• Sales offices and service centres in over 40 countries

• Supplier to many of the most demanding markets worldwide

including construction, automotive, packaging, mechanical

engineering and other markets worldwide

• Corus was acquired by Tata Steel in 2007 and is now part of

Tata Steel Group, which is the 6th largest global steel producer.

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Western Europe

Western

Europe

India

SE Asia

South Africa

CIS

Turkey

Scandinavia

Japan

China

CEE

Western

Africa

Ivory Coast

(iron ore)

Mozambique

(coal)

Oman

(limestone)

Orissa

Steel making operations

Sales offices

Mining assets & projects

Tata Steel GroupGlobal reach

South East Asia

Jamshedpur5mt

Tata Steel Thailand1mt

Natsteel1mt

Orissa

North America

Latin America

IJmuiden

7mt

Teesside 3mt

Rotherham 1mt

Scunthorpe 4.5mt

Port Talbot 5mt

New Zealand

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Polymer coated steel for new

can concepts

Rails for record-breaking

high speed TGV trains

Ultra high performance

steels for Airbus

Ympress S700 – strongest in

the Ympress range of high

strength, low-alloy steels

MagiZinc – award-winning

coating with 4 times corrosion

protection

Steel plate for the pioneering

Talisman Beatrice wind farm

off east coast of Scotland

Fit for the FutureNew products

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The Tata Steel Group vision is to be the world steel industry

benchmark for value creation and corporate citizenship.

• The vision translates into a number of ambitious five year goals

which are measurable and tangible

• A performance culture supports the vision and goals.

Our Vision

Corporate Citizenship

Our People

Value Creation +

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Our VisionGoals for 2012

Value Creation:- Increase our return on invested

capital (ROIC) to 30%

Safety:- Reduce our lost time injury frequency

(LTIF) to 0.4

Environment:- Reduce CO² emissions to <1.7 tonnes

per tonne of liquid steel

Employer of choice:- Rank top quartile across all industries.

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Reporting and targeting

Common reporting methodology

Third party endorsement

Regional emission reduction targets

Technology

Technology transfer / Asia-Pacific Partnership

Breakthrough programme / ULCOS project

Off-setting with steel solutions

Automotive

Construction

Energy

Steel Industry & Climate ChangeSectoral (worldsteel) action plan

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TSG Climate Change StrategyVision

Climate change is one of the most pressing issues the world faces today.

In response to this challenge, Tata Steel Group will be part of the solution

and will achieve a leading position within the steel industry* whilst creating

value through:

• continuing to improve its current processes, reducing emissions to

<1.7 t CO2/t steel by 2012 and to <1.5 t CO2/t steel by 2020**

• investing in breakthrough technologies

• developing new products and services to reduce environmental impact over

the product lifecycle, offsetting emissions in manufacture

• actively engaging its workforce

• further developing its pro-active role in global steel sector initiatives.

* Target percentile for 2020 to be determined following publication of IISI global benchmarking data

** Equivalent to a reduction of at least 20% compared to 1990

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Tata Steel Group Vision 2012 Specific CO2 emissions

Tata Steel Group (consolidated, weighted average, integrated sites only)

Gap 0.17

Gap 0.37

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Climate Change StrategyCorus emission reduction action plan - 2012

400

800

800

0 500 1000 1500 2000 2500

Total

Small capex,

house keeping

Burden

optimisation

Large capex

Key initiatives / examples

BOS gas recovery @ Port Talbot

Ladle furnace @ IJmuiden

Back pressure valves @ Port Talbot

Possible partial switch to pellet feed

Increased scrap ratio

Reduced slag volume

Increased coal injection

Yield improvements

Lighting efficiency

Variable speed drives

2012 target

Kt CO2

Latest

view

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Investment in Energy Efficiency & CO2 Emission Reductions

Transmission &

Distribution System

Power Plants

MARGM ABoiler 3

Boiler 5

MARAM B

Mitchell Boiler

MARGAM C

Boiler 6

Boiler 7

BOS Plant Gas Recovery at Port Talbot (an investment of ~£60m)

• Increases on-site generation from 61MW to 76MW; reduces electricity & natural gas imports

• Reduces CO2 emissions by 290,000 t/year; reduces particulate emissions by ~40 t/year.

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Support ProvidedEnergy optimisation platform

Objective

To provide a platform for energy managers & experts to

share & learn from each other in order to help to deliver energy

efficiency improvements/emission reductions at site level.

Working Model

- Initially focussing on steelmaking sites, including Jamshedpur,

expanding later to include others

- Rotating venues, including site visits, meeting 6 times each year

- Process specific energy/emissions issues to be picked up by relevant

PITs, horizontal/common issues to be addressed by EOP

- Practical focus, covering large capital schemes plus smaller

initiatives.

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Support ProvidedEnergy/CO2 task team

Overall Objective - To provide expertise & resource, where necessary, to

help business units/sites contribute to the TSG climate change strategy

targets of <1.7 tonnes CO2 per tonne of steel by 2012 and <1.5 tonnes CO2

per tonne of steel by 2020.

Specific Objectives - To work with energy managers & engineers across

the company to:

(i) establish/confirm baseline energy use/CO2 footprints for

each manufacturing site;

(ii) identify energy efficiency and CO2 emission reduction

opportunities;

(iii) quantify the improvement potential for each site, leading to site specific

improvement targets;

(iv) develop proposals to the point where decisions on investments can be

taken by business unit management;

(v) help to deliver energy efficiency improvements/emission

reductions through site specific improvement plans.

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Support ProvidedMonitoring & benchmarking

RD&T, in close cooperation with each steelmaking site. are currently

developing a monitoring and benchmarking system (‘MoniCA’) for CO2

emissions

The objectives of this system are:

• to monitor CO2 emissions per site and facility with time

• to compare CO2 emissions of similar facilities

• to help to identify opportunities for CO2 emission reduction

• to improve awareness on CO2 emissions at various levels

• to benchmark the position of Corus sites in the world

First phase (2008-2009): Reporting for steelmaking sites

Second phase: Expansion to other sites

First phase plan:

• December 2008: Data collection and reporting systems tested, and

‘MoniCA’ ready for implementation

• March 2009: Monitoring and benchmarking system implemented.

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BLAST FURNACES

COALPLANT

ROLLINGMILLS

POWER PLANT

CONSUMERS

COAL

COAL

BREEZE

COAL+

OIL

BENZOLE

TAR

MISC LOSSES

COKE

NATURALGAS

MISCLOSSES

OIL

PROPANE

MISC PROPANE

SALES

SINTER PLANT

LOSSES

BF GAS

CO GAS

BOS GAS

BREEZE / NUTS

STEAM

ELECTRICITY

SALES

SALES

CONSUMERS

CONCASTBOS/

COKE OVENS

12.785

3.750

0.252

9.750

1.573

5.0241.868

0.022

0.036

0.136

0.406

0.396 0.320

2.085

0.034

0.083

0.142

0.031

0.607

0.1470.176

0.151

0.024

0.748

0.321

0.021

0.001

0.802

0.079

0.925

0.019 0.005

1.974

COKE 1.723

1.361

1.827

Objectives-Inform and educate key stakeholders in :-

• The energy & climate change challenge.

• Energy flows/balance for an integrated site & individual plants. (‘As Is – To Be’)

• Best Practise Energy Efficiency Technology.

ScopeScunthorpe Site

-Coke-making

-Sinter

-Blast Furnaces

-Steelmaking

-Hot Mills

Deliverables-Detailed action plans

Target Audience-Manufacturing Managers

-Energy Specialists

Timetable- December 08

Support ProvidedEnergy workshops

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Ultra Low CO2 SteelmakingA groundbreaking €59m part EU funded multi-phased R&D

project, advanced by 48 European companies and institutes,

to identify and develop breakthrough technologies that could

enable a significant (~50%) reduction in CO2 emissions from

ore-based steel production by 2050.

Example: Blast furnace gas

capture & recycling

•MEFOS / LKAB (Sweden)

•Pilot blast furnace (Ø 1.2m)

•Top gas recycle

•Operation of CO2 capture (VPSA)

•8 M€

•Successful 1st campaign in 2007

CO2

CO

Climate Change StrategyBreakthrough technology development

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ULCOS Other breakthrough technologies

ISARNA

• A combination of new ironmaking technologies

(joint work with HISMELT)

• Coal preheating and partial pyrolysis in a reactor

• Melting cyclone for ore melting

• Smelter vessel for final ore reduction and iron

production

Alkaline Electrolysis

• Process operates at only 110oC

• Negatively charged oxygen ions migrate to the

anode - the oxygen is then captured.

• Remaining particles migrate to the cathode

where they undergo reduction resulting in

deposition of iron metal.

Advanced Direct Reduction

• Natural gas is treated with reactor off gases to

produce reducing gases which are injected in the direct

reduction vessel.

• The temperature in the vessel is below that needed

to melt the iron but high enough to initiate the

reduction of the iron ore.

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ULCOS II

From R&D to demonstration

• Likely to focus on:

- Top gas recycling blast furnace (plus

carbon capture & storage, possibly at

Scunthorpe linked to depleted North Sea

gas fields via a pipeline network being

developed by a Yorkshire & Humberside

consortium, of which Corus is a member

- Smelting reduction (ISARNA)

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Climate ChangeSustainable solutions

Automotive

•High strength steels/advanced high strength steels

•Low friction engineering steels for gearboxes/

engines

Construction

•Light-framed steel housing

•Carbon neutral housing, sustainable construction,

flood defence

Power

•Offshore/onshore wind turbines

•Photovoltaic coatings, which have the potential,

based on the surface area of coated steel cladding

currently sold, of generating significant quantities of

electricity.

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Life Cycle CO2 Emissions

Material Manufacture

Use Phase

CO2

Assembly Construction

End of Life

Use phase dominates

vehicles/buildings/food packaging/motors/turbines

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New steel

products

Displacing

alternativesNew & growing

markets

AHSS in automotive

Light steel framing

Wind turbine

towers

Electrical steels in motorsElectrical steels in transformers

Shipping Rail

Food cans

Bridges

Colorcoat

Fracture split con-rods

Composite floors

Solar roofsParapets

Pipelines

Slag for

cement

Cladding panels

Steel Solutions

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Automotive

Advanced High Strength Steel

(New Steel Products)

• 25% weight savings vs mild steel

• 1kg AHSS saves 8kg CO2 over life cycle

• Potential saving for all cars

= 156 million tonnes of CO2

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Thank you for your attention.