February 25, 2013 / Tim Peeters
HIsarna, a Revolution in Steelmaking
Paper & Steel : Common Ground?
• CO2 intensive (1.1% vs 4% of man made CO2)
• Energy intensive
• High recycling rate (70% vs 95%)
• Capital intensive
• Major facilities > 20 years life span
• Large sites, large installations
• Threshold for implementation of breakthrough technologies
• Trend of past 20 years
• Process efficiency, labour productivity increase
• From Fragmented to Consolidated industry
• Changing competitive landscape in major markets
• Sustainability and Climate Change challenge
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The Challenge in Steelmaking
Growth
World steel consumption
will double in 2050
Sustainability
Ambition to cut CO2 emissions
by 50 % in 2050
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The International Approach
• Climate Change is Global
• Climate Change is Long Term
• Support at board level,
governmental level, EU level
• Build industrial partnerships,
bring people together
• Use a broad range of expertise
• Build a common language
The
Brand:
Ultra Low CO2 Steelmaking
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The ULCOS project
Objective:
50% reduction in CO2 emissions per ton of steel
from iron ore based steel production by 2050
• Globally the largest steel industry project on Climate
Change mitigation
• Core partners: ArcelorMittal, Tata Steel,
ThyssenKrupp, Ilva, Voestalpine, LKAB,
DillingerHütte/Saarstahl, SSAB, Rautaruukki
• Co-partners: 48 Institutes, Universities,
Engineering companies, etc
• Budget:
75 M€
• Duration ULCOS I:
2004 – 2010
ULCOS II:
2011 – 201…
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ULCOS Consortium: 48 partners
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Idea  Experiment  Pilot  Demo  Industry
2004
ULCOS - I Project
CO2 and
sustainability
modelling
Inventory of
200 process
options
2010
ULCOS - II Project
201..
progress
Selection
Pilot plant
Industrial Demo
Selection Criteria
• CO2
• Economical
• Technical maturity
• Social acceptance
• Other environmental aspects
• Fit with existing configurations
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Common approach, definitions, boundaries
Sintering Plant
Coke Oven
Gate to Gate approach for the
Classical Integrated Steel Mill
Power Plant
Blast
Furnace
Basic Oxygen
Furnace
Everything is assessed for one
ton of Hot Rolled Coiled (HRC)
Focus area:
Ironmaking is responsible
for 85-90% of CO2 per HRC
Hot Rolling
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Selection Process: Funnelling the Options
2004
ULCOS - I Project
2010
ULCOS - II Project
201..
4 processes selected
CO2 and
sustainability
modelling
Inventory of
200 process
options
Selection
Top Gas Recycling
Blast Furnace
Better use of Carbon
in retro-fitted plants
HIsarna
Better use of Carbon
in a new process
Gas based reduction
Replacing Carbon with
Natural Gas or Hydrogen
Electrolysis of iron ore
Green power, mimic
Aluminium production
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Top Three Hurdles to Manage
• Technical
• High intensity, high efficiency process development
• Focus on generic long-term solutions
• Financial
• High risk, high reward
• Partnering: sharing benefit + cost + effort + risk
• Industry contribution
+ local / national / European funding
• Organisational
•
•
•
•
•
Consortium
People: availability, expertise, critical mass
Communication
Public relations
Intellectual property
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Steel Production Process Route
Where does HIsarna fit?
Iron ore
coal
Ironmaking
Steelmaking
Casting
Steel
products
Rolling &
Coating
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HIsarna technology
Comparison with the Blast Furnace route
Blast furnace
sinter
Iron ore
coke
Liquid iron
coal
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HIsarna technology
Comparison with the Blast Furnace route
Blast furnace
sinter
Iron ore
coke
coal
Direct use of coal and ore
No coking and agglomeration
Liquid iron
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HIsarna pilot plant
2012
2010
2011
2009
2007
7 years of preparation before the
first experiments
2004
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Key Success Factors
• Commitment from all levels
Construction
• Financial support
September 2010
• Logistical, Engineering and R&D
know-how on site
• Cooperation
• Perseverance
• Fast cycle of learning and
improving
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Cold Commissioning, January 2011
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First Start-up, April 2011
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First HIsarna Hot Metal, May 2011
Production runner
HIsarna pilot plant
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HIsarna Summary
• With the ULCOS and HIsarna project the European steel industry is proactively
approaching the Climate Change issue
• In the HIsarna project knowledge and experience of steelmakers and equipment
suppliers from all over Europe is brought together
• HIsarna is a high risk/high reward innovation with the potential to have a strong
environmental and economical impact on the steel industry
• Environmental impact:
• Without CO2 capture and storage 20% reduction
• With CO2 capture and storage 80% reduction
• Strong reduction of other emissions
• Economical impact:
• Wider range of raw materials
• Lower CapEx, OpEx
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Challenges for HIsarna Future
• Demonstrate robustness of technology
• Further pilot plant campaigns: people, time, funding
• Up-scaling to industrial size
• Transition from “generic” to “specific” (location, size, configuration)
• Investment 250 M€ (± 50 M€)
• Demonstration scale should have a competitive business case
• Governments can support this
• Many potential innovations in ironmaking have not survived this step
• Sustainable industry future, supported by National and European policies
• Review the 2050 Roadmap (environmental, economical, social landscape)
• Develop business case for pushing out Blast Furnace technology
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What have we learned along the way?
• Think big: Focus on breakthrough, not incremental
• Partnerships, collaboration, trust
• Set scope, targets, common definitions
• Clear funnelling & selection process:
• Generic, Long Term solutions
• Handle good ideas outside the scope
• Don’t bet on one horse
• When stakes get higher, stay connected with the business strategy
• Innovation comes from people with expertise
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