Using technology to reduce carbon intensity in production/manufacturing

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Information about Using technology to reduce carbon intensity in production/manufacturing
Business & Mgmt

Published on December 8, 2008

Author: thecbi



Dr Paul Brooks, director environment and climate change, Corus - at the CBI Climate Change Summit, Tuesday 2 December 2008

Presentation to CBI Climate Change Summit Using Technology to Reduce Carbon Intensity in Production/Manufacturing Dr Paul Brooks, Director Environment & Climate Change, Corus December 2008 1

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) 2

Corus Overview • 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. 3

Tata Steel Group Global reach Western Europe Teesside 3mt Steel making operations Rotherham 1mt Sales offices Scunthorpe 4.5mt Mining assets & projects Port Talbot 5mt Scandinavia CIS IJmuiden Western Europe 7mt North America CEE China Turkey India Japan Western Orissa Africa SE Asia Oman (limestone) South East Asia Ivory Coast Latin America (iron ore) Mozambique South Africa (coal) New Zealand Jamshedpur 5mt Tata Steel Thailand 1mt Orissa Natsteel 1mt 4

Fit for the Future New products Rails for record-breaking Polymer coated steel for new Ultra high performance high speed TGV trains can concepts steels for Airbus Steel plate for the pioneering MagiZinc – award-winning Ympress S700 – strongest in Talisman Beatrice wind farm coating with 4 times corrosion the Ympress range of high off east coast of Scotland protection strength, low-alloy steels 5

Our Vision The Tata Steel Group vision is to be the world steel industry benchmark for value creation and corporate citizenship. Value Creation + Corporate Citizenship Our People • The vision translates into a number of ambitious five year goals which are measurable and tangible • A performance culture supports the vision and goals. 6

Our Vision Goals 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. 7

Steel Industry & Climate Change Sectoral (worldsteel) action plan 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 8

TSG Climate Change Strategy Vision 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 9

Tata Steel Group Vision 2012 Specific CO2 emissions Tata Steel Group (consolidated, weighted average, integrated sites only) Gap 0.17 Gap 0.37 10

Climate Change Strategy Corus emission reduction action plan - 2012 Latest Key initiatives / examples view  BOS gas recovery @ Port Talbot  Ladle furnace @ IJmuiden Large capex 800  Back pressure valves @ Port Talbot  Possible partial switch to pellet feed  Increased scrap ratio Burden optimisation 800  Reduced slag volume  Increased coal injection  Yield improvements Small capex, house keeping 400  Lighting efficiency  Variable speed drives 2012 target Total 0 500 1000 1500 2000 2500 Kt CO2 11

Investment in Energy Efficiency & CO2 Emission Reductions Transmissi on & Distribution System MARGM MARGAM C ABoiler 3 MARAM B Power Boiler 6 Mitchell Boiler Boiler 5 Plants 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. 12

Support Provided Energy 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. 13

Support Provided Energy/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. 14

Support Provided Monitoring & 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. 15

Support Provided Energy workshops 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’) Scope • Best Practise Energy Efficiency Technology. Scunthorpe Site -Coke-making -Sinter COAL -Blast Furnaces COAL 12.785 OIL + BREEZE -Steelmaking 0.022 COKE 1.723 -Hot Mills 1.361 COKE OVENS 0.252 COAL 3.750 BENZOLE 0.136 COKE 9.750 TAR 0.406 2.085 0.034 MISC LOSSES 0.031 0.083 1.573 BLAST FURNACES 1.827 1.868 5.024 0.036 SALES 0.142 SINTER PLANT COAL NATURAL PLANT PROPANE 0.024 0.396 0.320 GAS 0.079 MISC 0.151 LOSSES 0.176 OIL 0.147 BOS/ CONCAST 0.925 0.607 MISC 0.019 0.748 PROPANE 0.005 LOSSES POWER PLANT SALES 0.001 Deliverables BF GAS BREEZE / NUTS ROLLING 1.974 CONSUMERS 0.321 Target Audience STEAM MILLS -Detailed action plans CO GAS SALES 0.021 -Manufacturing Managers BOS GAS ELECTRICITY 0.802 CONSUMERS -Energy Specialists Timetable - December 08 16

Climate Change Strategy Breakthrough technology development Ultra Low CO2 Steelmaking A 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) CO2 •Top gas recycle •Operation of CO2 capture (VPSA) •8 M€ •Successful 1st campaign in 2007 CO 17

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. 18

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) 19

Climate Change Sustainable 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. 20

Life Cycle CO2 Emissions Use phase dominates CO2 vehicles/buildings/food packaging/motors/turbines Material Assembly Use Phase End of Life Manufacture Construction 21

Steel Solutions New steel products AHSS in automotive Electrical steels in transformers Electrical steels in motors Shipping Rail Fracture split con-rods Composite floors Cladding panels Light steel framing Colorcoat Solar roofs Parapets Food cans Pipelines Displacing New & growing Wind turbine Bridges Slag for alternatives markets towers cement 22

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 23

Thank you for your attention. 24

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