INTERNATIONAL CONFERENCE
INDIAN STEEL INDUSTRY: CHALLENGES &
OPPORTUNITIES
TECHNOLOGY ROAD MAP
FOR INDIAN STEEL INDUSTRY
23rd March 20123
A C R Das
Industrial Adviser
Ministry of Steel
PRESENT STATUS AND FUTURE PROJECTIONS
World Steel Production
 Indian Steel Production
 World Ranking in Production
 World Ranking in Consumption
 Projected Capacity by 2016-17
 Projected Capacity by 2019-20
 Projected Capacity by 2030

: 1527 MT
: 72 MT
: 4th
: 3rd
: 150 MT
: 200 MT
: 500 MT
Indian Steel Production is bound to grow manifold in years
to come to sustain Growth in infrastructure /Construction,
Automotive , Capital Goods and Consumer Durable Sector
i.e economic growth .
Structure of Iron & Steel Industry in India
Type of Plant
Number of Units
Total Capacity
(million tonnes per year)
BF-BOF based Integrated Steel Plant
8
29.997
EAF Based Integrated Steel Plant
3
10.600
EIF based plant
1170
28.833
EAF/ EOF based mini steel plant
37+2
9.500
Gas Based DRI plant
3
8.000
Coal Based DRI plant
418
26.600
Mini BF based Pig Iron plant
42
Ferro Alloy Units
173
4.045
Hot Re-Rolling Mills
1794
40.844
Cold Re-Rolling Mills
65
10.200
Galvanising Units
20
5.593
Colour Coating Units
6
0.515
Tin Plate Units
2
0.250
Wire Drawing Units
69
1.222
Indian Steel Industry is highly fragmented with a variety of process routes and thousands of
small & medium units for iron & steel making and also downstream processing
Process Routes in Integrated Steel Plants in India
Plant
SAIL, BSP, Bhilai
SAIL, DSP, Durgapur
SAIL, RSP, Rourkela
SAIL, BSL, Bokaro
SAIL, ISP, Burnpur
RINL, VSP, Vishkapatnam
Tata Steel, Jamshedpur
JSW Steel, Bellary
JSW Ispat Steel, Dolvi
JSPL, Raigarh
Essar, Hazira
Process Route
BF-BOF/THF
BF-BOF
BF-BOF
BF-BOF
BF-BOF
BF-BOF
BF-BOF
BF/Corex-BOF
DRI/BF-Con Arc
Capacity
(million tonnes per year)
3.925
1.802
1.900
4.360
0.500
2.910
6.800
7.800
3.600
DRI/BF- AC EAF
DRI/HBI/BF/Corex- DC EAF
2.400
4.600
Even in Integrated Steel Plants, diverse process routes for iron making are
adopted, not visible elsewher.
SHARE OF PROCESS ROUTES IN STEEL
PRODUCTION
World: 2 main process routes
• Basic Oxygen Furnace (BOF):
• Electric Arc Furnace (EAF):
• Others:
~ 70%
~ 29%
~ 1%
India: 3 main process routes
• Oxygen Furnace (BOF/THF):
• Electric Arc Furnace (EAF):
• Electric Induction Furnace (EIF):
~ 45%
~ 23%
~ 32%
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Induction Furnace Play dominant role in steel production in
India-a unique feature. Quality issue remain unresolved
BF-BOF route is likely to gain momentum.
STEEL MAKING AND CLIMATE CHANGE
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Iron & Steel Making is resource intensive and Energy
Intensive and have environmental Ramifications.
Globally 18 Tonnes of CO2 /tcs is emitted. India 2.5-3 T/tcs
Global CO2 emission is around 30 billion tonnes /year.
India’s contribution is around 1.15 billion tonnes/ year (4%), of
which
Steel sector contributes 117 million tonnes/ year (10%).
Integrated steel plants largest point sources of CO2 emission
and 85% of CO2 is from iron making.
With the increase in production, energy consumption and
GHG emissions will also increase correspondingly adding to
Global Warming: an issue of international criticism.
Therefore, it is necessary that along with capacity build-up,
suitable mitigation strategies are inbuilt into the strategy.
ENERGY EFFICIENCY & GHG EMISSION:
GLOBAL SCENARIO
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Advanced steel plants in the world already operate close to
theoretical limits.
There is ambitious target to cut CO2 emission by 50% by
2050 which is not possible adopting conventional
technologies and would require Breakthrough Technologies.
Steel Making countries/ regions have embarked on
programmes to achieve targeted CO2 emission:
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ULCOS (EU)
COURSE 50 (Japan)
CO2 Breakthrough Programme (USA)
POSCO Breakthrough Technology Programme (Korea)
Breakthrough Technologies being explored are: innovations
in BF (Oxygen Operation), Hydrogen Reduction, Electron
Reduction, Use of Biomass, Carbon Capture & Storage (CCS)
etc.
ENERGY EFFICIENCY & GHG EMISSION: INDIAN
SCENARIO
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The Specific Energy Consumption (SEC) in Indian
Steel Plants have declined substantially from 10
Gcal/MT in 1990 to 6-6.5 Gcal/MT in 2009 and are
still declining.
Best available technologies indicate SEC of around
4.5-5 Gcal/MT for BF-BOF route and 4 Gcal/Tcs for
gas based DRI-EAF unit.
Integrated steel plants in India are 50% more energy
intensive than global average.
The same holds good for CO2 emission also.
There remains large scope for improvement of energy
intensity & reduction of CO2 emission even without
pursuing breakthrough technologies.
VOLUNTARY INITIATIVES & REGULATORY
FRAMEWORK
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India is committed to reduce GHG Emission Intensity of its GDP by
20-25% by 2020 over 2005 level, through pursuits of proactive
policies.
Voluntary Initiatives by Steel Plants under Corporate Responsibility
for Environment Protection (CREP) for energy efficiency
improvement and reduction of GHG emission.
National Mission for Enhanced Energy Efficiency (NMEEE) under
National Action Plan for Climate Change for energy efficiency
improvement.
Perform Achieve and Trade (PAT), a flagship market based
mechanism to enhance cost effectiveness in improvements in
energy efficiency in energy intensive large industries.
PAT is legally binding and there are penalties for non fulfillment of
earmarked targets.
GOI Sustainability Development Guidelines: 5% of total MOU score
for large PSUs to cover sustainability projects with expenditure of
0.1 % of profit (after tax).
ROAD AHEAD AND STRATEGIES
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Gradually transform the technological face of the Indian steel industry to
achieve international benchmarks in long term perspective through:
Modernisation & Technological upgradation of the existing plants to phase
out old/ obsolete/ energy inefficient/ polluting production facilities.
Adoption of State-of-the-art technologies in Green Field Plants.
Harnessing of Waste Heat at every step of the production process.
Guidelines of modern/ state of art technologies are available in several
reference documents: SOACT Handbook of APP, BAT Handbook of EU.
Numerous commercially established energy conservation technologies:
Sinter Cooler Waste Heat Recovery, Coke Dry Quenching (CDQ), Coal
Moisture Control (CMC) in Coke Ovens, BF Top Pressure Recovery Turbine
(TRT), waste heat recovery from BF stove waste gases, OG boiler in BOF,
Regenerative Burners, Near Net Shape casting etc.: agenda for immediate
adoption.
Strategies to ensure Raw material security- utilisation of low grade ore
through beneficiation & agglomeration or through Direct Smelting,
beneficiation of high ash coal and other inputs.
Pursuing Research & Development Programmes for Low Carbon Footprints
and production of value added/ high performance steel.
Securing talent and skilled manpower to support the above strategies.
STRATEGIES FOR BF IRON MAKING
BF is the most energy intensive units and call for specially directed initiatives to
improve the productivity and energy efficiency:
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Process improvements viz. revamping/conveyorization of stock house and increasing
screening efficiency of ore, sinter and coke, strengthening stoves capacity, increasing
blast volume and flow rate, increasing oxygen enrichment of blast, higher hot blast
temperatures of at-least 11000 C etc.
High level of alternate fuels injection to drastically reduce coke rate: incorporation of
technologies for injecting pulverized/ granulated coal (+ 200 kg/thm), oil (100 kg/thm),
Natural gas (100 kg/thm) and waste plastics granules.
Adoption of energy efficiency measures in existing and new blast furnaces e.g. Top
pressure Recovery Turbine, use of waste heat stove gas for preheating of gas, high
efficiency stoves etc.
Increase in campaign life by introduction of various measures like copper staves, Silicon
carbide and monolithic linings in stack and bosh, closed circuit demineralized water and
provisions for regular monitoring of heat flux all along the furnace height and crosssection, use of titanium bearing material as a regular hearth protection measure etc.
Application of sophisticated probes (under and overburden probes, vertical probes etc),
models and computerized expert system for process analysis, control and optimization
are very important tools for bringing about quantum jump in productivity levels of Indian
blast furnaces.
Efficient casting practice through up-gradation of cast house equipment, clay mass and
liquid disposal system, incorporation of powerful mud gun and drilling machines etc.
ALTERNATIVE IRON MAKING TECHNOLOGIES
Direct Reduced Iron (DRI)
•
Accounts for 45% of iron production in India– 25% gas based & 75% coal based
•
Technology of Natural Gas based plants world class and energy consumption in
Gas DRI-EAF is the lowest, but no growth because of non availability of natural
gas.
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Technology of Coal based plant is mixed and energy consumption in Coal DRIEAF units highest. Technological obsolescence, Poor quality of inputs/products
and higher environmental emissions are issues of concern.
•
Solutions:
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Syn-gas based DRI plant ( Economic Viability?)
Improving energy efficiency and reduction of environmental emission in coal based
DRI plants failing which gradual shut down of inefficient& polluting plants
Jumbo Rotary Kiln of Outotech: a ray of hope.
FASTMET: Reduction of ore-coal composite pellets in RHF using coal, coke breeze and
carbon bearing waste as a reductant. DRI with high degree of metallization can be
charged in EAF in SME sector.
ITmk3: Flexible and environment friendly technology for smelting iron ore fines using
non-coking coal to produce iron nuggets with 96-97% iron in a RHF. Ideal material for
EAF /SME sector.
ALTERNATIVE IRON MAKING TECHNOLOGIES
CONTD..
Smelting Reduction Processes
 Primary objective is to produce liquid iron directly from
iron ore (fines & concentrates) and non coking coal, bypassing agglomeration and coke making requirements
(reduced investment cost : 10-15%).
• Plant emissions contain only insignificant amounts of
NOx, SO2, dust, phenols, sulfides and, ammonium
besides far lower waste-water emissions.
• The promising alternative technologies which have
been commercialized/ are in the process of
commercialization and appear to be relevant are
COREX, FINEX, HISMELT, HISARNA, TECHNORED etc.
COREX PROCESS
Process
Characteristics
Corex is a two-stage
process: in the first
stage
(Reduction
Shaft), iron ore is
reduced to DRI using
the reduction gas (6570% CO + 20-25%
H2) from the Melter
Gasifier and in the
second stage (Melter
Gasifier),
DRI
produced in reduction
shaft is melted to
produce hot metal.
Merits/Demerits
Status
Merits: Cost saving (up to 15%)
and Environment friendly vis-àvis Coke oven-sinter plant.-BF
route
Demerits: Limited modular size
(largest corex plant is of 1.5
million
tonne
capacity),
Dependence on lumps/ pellets/
coke/ weak coking coal, high
consumption (cost) of oxygen,
necessity of gainful utilization of
Corex gas and generated coal
fines.
COREX is a proven
smelting-reduction (SR)
process developed by
Siemens VAI for the
cost-effective
and
environment
friendly
production of hot metal.
Well established in India
and abroad- JSW Steel
and
Essar
steel
successfully
adopted
the Corex process (C2000 Module) .
FINEX PROCESS
Process Characteristics
Merits/Demerits
Status
FINEX: an innovative iron
making technology developed
by Siemens VAI and POSCO.
Like Corex, Finex also involves
two reactors- Fluidised Bed
Reactors (FBR) and Melter
Gasifier (MG). In the FBR, iron
ore fines are reduced to
sponge iron fines which are
compacted to produce Hot
Compacted Iron (HCI). The HCI
is then charged in MG where
non coking coal briquettes
(65%) are also charged. The
balance (35%) coal is injected
in the MG as PCI. The top gas
from the FBRs is treated to
remove CO2 and part of gas
(30%) is re-cycled for use in
the FBRs.
Merits: Direct use of iron ore
fines, no need of lumps/pellets.
Significant reduction of SOx, NOx
and dust emissions.
Limitations:
i) Necessity of
inputs in melter gasifier largely in
lumpy form (lumps/ briquettes)
ii) Need of either lumpy coal or
coal briquettes.
iii) Like Corex gas, Finex gas is
also of high calorific value and
needs to be utilized gainfully to
make the process economically
viable.
iv) The claims on lower CO2
emission vis-à-vis Blast Furnace
route is yet to be established
and needs further investigation.
The FINEX process has
been
successfully
demonstrated
at
Pohang, POSCO in two
modules- at 0.75 MTPA
and 1.5 MTPA.
Adoption of this process
is also being considered
for POSCO’s venture in
Orissa.
SAIL has signed an MOU
with
POSCO
to
incorporate
the
technology under JV for
creating a 2.5 – 3.0
MTPA
additional
capacity at Bokaro Steel
Plant.
HISMELT PROCESS
Process Characteristics
Direct use of iron ore and
coal fines in a single step
reactor.
Involves moderate to high
degree (70% and above) of
post combustion. The gas
generated
during
the
reactions
is
post
combusted to around 50%
just above the bath and
the heat energy of the post
combustion is transferred
back to the main process
through the liquid fountain
of molten iron bath,
instead of recovering it as
export gas.
This reduces the coal and
oxygen requirement of the
process.
Merits/Demerits
A distinguishing feature of
the process is oxidation
level of the slag bath (5%
FeO in slag), which helps
in partitioning of a large
portion of phosphorous to
slag.
Further,
silicon
is
practically absent, making
the hot metal an ideal feed
for BOF.
Being a bed less process,
problem faced in BF in
handling high alumina ore
is resolved to a large
extent.
The process seems to
have considerable promise
in Indian context.
However, Process is not
yet fully proven
Status
1st demonstration plant 0.8
MTPA commissioned in 2005 at
Kwinana, Western Australia.
Major shut down in February,
2006 for modification. Since its
restart in March, 2006, the Plant
achieved a capacity utilisation of
about 60%. Plans to scale up
the size (internal diameters) of
the SRV from 6m to 8m for
achieving a production of 2 MTPA
from
the
single
module.
However,
due
to
market
softening
in
2008,
the
demonstration unit was put
down without any definite plan
for restart. Remains closed .
JSPL signed an agreement with
RIO Tinto for the transfer of the
existing plant to JSPL site to take
the development forward.
HISARNA PROCESS
Process
Merits/Demerits
Status
Combines
coal
preheating and partial
pyrolysis in a reactor,
a Cyclone Furnace for
ore melting of partially
reduced ore and a
Smelter
Reduction
Vessel for final ore
reduction and iron
production.
Significantly
less
coal usage and
thus reduces the
amount of carbon
dioxide
(CO2)
emissions.
Developed as part of the EUULCOS programme, can
produce hot metal from iron
ore fines (incl. slime) using
non-coking or thermal coal or
charcoal. Rio Tinto and Tata
Steel have commissioned a
65,000 tpa pilot plant at the
IJmuiden Steel Works in
Netherlands.
The process is claimed to
most energy efficient with
least CO2 emission having a
20% reduction in CO2
emission and 50% when
combined with CCS.
A flexible process
that allows partial
substitution of coal
by biomass, natural
The three separate gas
or
even
technologies
hydrogen (H2).
associated
with
Hisarna have been
proven independently
at small scale.
TECHNORED PROCESS
Process Characteristics
Merits/Demerits
Present Status
A ne approach to iron making
using cold bonded self reducing
pellets /briquettes produced
from iron ore fines, low met DRI
or iron bearing residues plus low
cost solid fuels (green pet coke
fines, high ash coal/coke,
charcoal/ biomass or carbon
bearing residues.
Merits: Flexibility to
used different types of
raw
materials.
Eliminates need of Coke
oven, sinter plant and
tonnage oxygen plant
i.e lower investment
and opration cost (30%)
. Clean & Green
Technology.
Demerits:
Limited
module size but flexible
to be combined to add
up capacity.
A Demo plant of
75,000 tpa is under
operation
in
Sao
Paulo, Brazil.
Pellets/Briquettes smelted in a
high efficiency of unique Shaft
Furnace with very low stack
height using combination of hot
& cold blast requiring no
additional Oxygen.
Technology still at first
stage of maturity.
Proposal to set up a
300,000
tpa
industrial plant ( 4
modules of 75000
tpa) in next two years.
CONCLUSIONS
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Steel has a future in India & and there are strong fundamentals to
support the growth.
Indian steel production is growing and is expected to grow at 8-10%
decadal growth rate.
Helping hand required from Government to resolve contentious issues
like land acquisition, amicable policies for environment & forest
clearance and creating an investment friendly atmosphere.
Technological Upgradation to adopt commercially available energy
efficient clean and green technologies in all production units to
maximise productivity with minimum damage to the environment and
minimise energy consumption an CO2 emission .
New Plants must adopt stat-of-the-art technologies.
BF most established route of iron production and likely to grow,
followed by DRI & SR routes.
Raw material upgradation and new Product development have to be
given due importance.
Increased R&D investment development of design & engineering
capabilities necessary to support long term growth in the steel sector.
THANK YOU