Steel Times International October 2021

IRONMAKING

INNOVATIONS

DECARBONIZATION

PERSPECTIVES Q&A

Joe Poveromo discusses how to reduce BF/BOF emissions.

The latest global contracts and new products news for the steel industry.

NEL on how the steel industry is on track for green steelmaking.

Jason Sutton, CEO of CPL Industries answers our questions.

Since 1866

www.steeltimesint.com October 2021 - Vol.45 No7

STEEL TIMES INTERNATIONAL – October 2021 – Vol.45 No7

HYDROGEN STEELMAKING – CHALLENGES LIE AHEAD STI Cover.indd 1

20/10/2021 06:20:15

Ad_Digitalization_PaH_210x297-vek.indd 1

01.09.2020 07:27:52

CONTENTS – OCTOBER 2021

IRONMAKING

INNOVATIONS

DECARBONIZATION

PERSPECTIVES Q&A

Joe Poveromo discusses how to reduce BF/BOF emissions.

The latest global contracts and new products news for the steel industry.

NEL on how the steel industry is on track for green steelmaking.

Jason Sutton, CEO of CPL Industries answers our questions.

Since 1866

www.steeltimesint.com October 2021 - Vol.45 No7

STEEL TIMES INTERNATIONAL – October 2021 – Vol.45 No7

HYDROGEN STEELMAKING – CHALLENGES LIE AHEAD

Front cover: Digi&Met Danieli Automation “Overview of the single control pulpit of ABS QWR 4.0 controlling of the most innovative quality wire rod mill in the world, a new mindset for continuous evolution and increased company knowledge”

EDITORIAL Editor Matthew Moggridge Tel: +44 (0) 1737 855151 matthewmoggridge@quartzltd.com Consultant Editor Dr. Tim Smith PhD, CEng, MIM Production Editor Annie Baker Advertisement Production Martin Lawrence SALES International Sales Manager Paul Rossage paulrossage@quartzltd.com Tel: +44 (0) 1737 855116 Sales Director Ken Clark kenclark@quartzltd.com Tel: +44 (0) 1737 855117 Managing Director Tony Crinion tonycrinion@quartzltd.com Tel: +44 (0) 1737 855164

2 Leader

By Matthew Moggridge.

27 Ironmaking Between a pony and a pink unicorn?

4 News round-up The latest global steel news.

38 Ironmaking Opportunities in ferrous slag markets.

10 Innovations New products and contracts.

41 Digitalization The steel melt shop is getting smarter.

16 USA update Steel users urge Biden to drop tariffs.

45 Ironmaking Reducing CO2 BF/BOF emissions

18 Latin America update Not an absolute beginner.

51 Artificial intelligence How AI can reduce losses.

20 India update Self-sufficient in specialty steel.

54 Perspectives Q&A: CPL Industries CEO Jason Sutton answers our questions

22 China update A commodities super cycle is coming.

Chief Executive Officer Steve Diprose SUBSCRIPTION Elizabeth Barford Tel +44 (0) 1737 855028 Fax +44 (0) 1737 855034 Email subscriptions@quartzltd.com

1

56 History The blast furnaces of William Blake – A new interpretation of his well-known poem, The Tyger.

Steel Times International is published eight times a year and is available on subscription. Annual subscription: UK £215.00 Other countries: £284.00 2 years subscription: UK £387.00 Other countries: £510.00 3 years subscription: UK £431.00 Other countries: £595.00 Single copy (inc postage): £47.00 Email: steel@quartzltd.com

27

Published by: Quartz Business Media Ltd, Quartz House, 20 Clarendon Road, Redhill, Surrey, RH1 1QX, England.

Tel: +44 (0)1737 855000 Fax: +44 (0)1737 855034 www.steeltimesint.com Steel Times International (USPS No: 020-958) is published monthly except Feb, May, July, Dec by Quartz Business Media Ltd and distributed in the US by DSW, 75 Aberdeen Road, Emigsville, PA 17318-0437. Periodicals postage paid at Emigsville, PA. POSTMASTER send address changes to Steel Times International c/o PO Box 437, Emigsville, PA 17318-0437.

Printed in England by: Pensord, Tram Road, Pontlanfraith, Blackwood, Gwent NP12 2YA, UK ©Quartz Business Media Ltd 2021

ISSN0143-7798

www.steeltimesint.com

Contents.indd 1

October 2021

20/10/2021 06:23:13

2

LEADER

AI and the Factory of the Future? Yes, both!

Matthew Moggridge Editor matthewmoggridge@quartzltd.com

STI Half Page Horizontal Ad - Water Footprint.indd October 2021

Oct Leader 2021.indd 1

1

There are two big events coming up that all readers need to be aware of. The first one, on 16 November 2021, is the AI & Steelmaking Summit, a one-day, online conference dealing with the important subject of artificial intelligence – or AI – and its role in the steel manufacturing process.

The second big event is the Future Steel Forum 2022, a live conference. Yes, a live event! Time to reacclimatise yourself with departures lounges and airline food.

The Forum will be held at the Grandior Hotel, 8-9 June, in Prague where we were originally hoping to stage the 2020 event.

Unfortunately, COVID-19 had other plans and we found ourselves sitting at home staring at a computer screen instead.

However, there’s nothing wrong with an online event, especially if the programme is top notch and, in the case of the AI & Steelmaking conference, jampacked with representatives from leading steelmakers presenting interesting papers on their experiences with AI. It would be remiss of me not to name names: Carlos Russell, business conduct, compliance & cybersecurity director at Latin American steelmaker, Ternium; Dr. Asier Vicente,

head of primary process (EAF & Scrap) department, ArcelorMittal Basque Country Research Centre; Boris Voskresenskii, CDO and head of Severstal Digital, a division of a leading Russian steel manufacturer; Dr. Kisoo Kim, head of the process & engineering research lab at South Korean steelmaker POSCO; and Omer Miranda and Keivaly Pujara from JSW Steel in India.

The event – sponsored by SMS group, Danieli Automation, FeroLabs, Smart Steel Technologies, PSI Metals, iba and Falkonry – is a one-day summit and it is well worth setting aside some time to attend. In fact, go to page 24 of this issue right now for more details on how to register.

Last, but certainly not least, is the fifth instalment of our live Future Steel Forum conference, which was forced online last year, but returns in all its glory for a live show at the Grandior Hotel, Prague, 8-9 June 2022. I am currently looking for presentations, so if you have something to say about digital manufacturing and the steel mill of the future, then please send me an email (see address on the left of this leader) and hopefully you will find yourself speaking at Steel Times International’s first live event since the start of the pandemic.

2/9/21 2:16 PM www.steeltimesint.com

21/10/2021 10:03:50

4 NEWS ROUND-UP

• The chemical division of South Korean steelmaker POSCO (POSCO Chemical Company) has announced the acquisition of a 13% stake in Qingdao Zhongshuo New Energy Technology for 4.9 billion won (US$4.2 million). The move represents another step towards securing the supply of a crucial material for anode production. Anodes are used to make batteries for electric vehicles.

Source: koreabizwire.com, 9 September 2021 • US Steel is now legally required to clean up its act.

The American steel giant must address violations of the Clean Water Act and go all out to improve wastewater treatment and monitoring at its Midwest Plant in Portage.

The company must strengthen its public and stakeholder notification procedures in the event of further spills or releases to ground, soil or water, and must pay a civil penalty of £601,242 split evenly between the USA and the State of Indiana, plus a further £12,564 to the National Park Service.

Source: watertechonline.com, 7 September 2021

• China’s biggest steelmaker, Baoshan Iron & Steel Company, has signed a nonbinding memorandum of understanding with Saudi oil company Aramco. The plan is to look into the feasibility of building a steel plate factory in Saudi Arabia. Steel plate is used extensively in the construction industry.

Source: Reuters, 8 September 2021 October 2021

Industry news.indd 1

• Indian steelmaker JSW is reporting crude steel output growth of 5% in August with a figure of 1.377Mt. Rolled products for the month totalled 899kt, down 8% when compared with the previous year. A planned shutdown of one converter at the company’s Vijaynagar facility is being blamed for the reduced figure. Output of long products was up 30% over the same month last year.

Source: Steel Orbis, 8 September 2021

• ArcelorMittal Nippon Steel has commenced operations at the GhoraburhaniSagasahi iron ore mine in the Sundargarh district of Odisha, India. In this calendar year the mine will produce around 2Mt of iron ore, gradually rising to 71.6Mt/yr. The mine will employ 600 people directly and a further 2,500 indirectly.

A second 6Mt pellet plant opened in Odisha last month, doubling capacity to 12Mt/yr.

Source: Business Standard, 9 September 2021

• Electric vehicles are now in use at Tata Steel’s Jamshedpur facility following successful trials at the company’s Sahibabad plant in Uttar Pradesh. The EVs will be used to transport finished steel and are part of the Indian steelmaker’s commitment to sustainability. The plan is to deploy 27 EVs with a minimum carrying capacity of

35 tonnes.

Source: thehindubusinessline. com, 9 September 2021

• Two rebar production lines owned by Shagang Group – China’s largest private steelmaker – were closed down for maintenance last month, reducing output by 36.4kt between 16 and 30 September. The Chinese government requested that steelmakers cut emissions and energy use during September.

Steelmakers in Jiangsu province have been told not

• Pollution problems at Tata Steel’s IJmuiden facility in the Netherlands are now so serious that some groups think the Dutch government should invest in the facility.

Research has shown that residents living close to the plant are exposed to high concentrations of toxic substances from the country’s largest emitter of CO2. It is argued that green steelmaking technology should be a top priority and that perhaps the government should pay for it.

According to parliamentarian Silvio Erkens, Tata Steel in India is not going to invest further in the plant.

Source: nltimes.nl, 9 September 2021

to operate at utilization rates above 50%.

Source: Steel Orbis, 10 September 2021 www.steeltimesint.com

18/10/2021 07:58:46

NEWS ROUND-UP

5

• Reports from Iran’s MEHR news agency claim that Iran exported 3.07Mt of various types of steel ingot including slab, bloom and billet during the first five months of the current Iranian calendar year (21 March to 21 August). According to the Iranian Steel Producers Association (ISPA), Iran produced 2.21Mt of steel ingot during the first five months of the previous calendar year (2020).

Source: Mehr News Agency, 13 September 2021 • Russian steelmaker Severstal is making further investments in the renewable energy sector, according to an online media report. The company has bought an additional 24.5% stake in WRS Towers, a joint venture between Severstal, Windar Renovables SL and RUSNANO. The JV was established to support the growth of Russia’s renewable energy sector and has produced over 340 steel towers for wind turbines since it was founded in 2018.

Source: Marketscreener.com, 13 September 2021

• An amendment to a Mineral Development Agreement between ArcelorMittal Liberia and the Liberian Government means that ArcelorMittal Liberia will ramp up premium iron ore production and, therefore, generate jobs and other economic benefits for the country. The steelmaker’s mining activities in Liberia are believed to be among the largest in West Africa.

Source: thenewdawnliberia. com, 10 September 2021

• Hans van den Berg, CEO of Tata Steel Netherlands, took an advertisement in the Telegraaf newspaper responding to a critical report about pollution emitted from Tata’s IJmuiden facility. He said that sweeping changes would be made to address the problems highlighted by a RIVN report, which led to politicians wading into the row and some suggesting Government intervention.

RIVN is the Netherlands’ National Institute for Public Health and the Environment.

Source: nltimes.nl, 12 September 2021

• Brazilian steelmaker Gerdau has signed a natural gas supply contract with Petrobras, the state-owned oil and energy producer. The steelmaker’s Ouro Branco mill will receive the gas early in 2022 via a local distributor.

The mill is located in Ouro Branco in Minas Gerais state.

Source: Steel Orbis, 14 September 2021

• Tata Steel’s 10Mt/yr Jamshedpur plant in India has commissioned a 5 tonne/day carbon capture system using technology from London-based Carbon Clean.

Tata’s two-pronged approach to decarbonisation involves carbon direct avoidance and CO2 capture and use.

Source: Argus Media.com, 14 September 2021

• Tata Steel BSL in India has been awarded the Energy and Environment Foundation Global Sustainability Award 2021 in the Gold category for logistics and supply chain.

Source: OMMCOM News, 13 September 2021

• South Korean steelmakers POSCO and Hyundai have teamed up to recycle seashells. It’s all about going green faster, enhancing environmentally friendly steel manufacturing processes and addressing criticism over mass pollution. The two companies have developed a technology that extracts a substance from the shells of oysters, clams and other shellfish and uses it as a limestone substitute in the steelmaking process.

• Indian steelmaker JSW Steel is working on connecting its Karnataka, Maharashtra and Tamil Nadu factories using Industry 4.0-based digital technologies. The ultimate aim is to have three ‘smart factories’ within the next three years. According to one online report, the plan is to execute 100 digital projects at the Vijayanagar plant, 90 at Dolvi and 10 at Salem. JSW’s digital journey started in 2017.

Source: thehindubusinessline. com, 15 September 2021

Source: Korea Times, 16 September 2021

www.steeltimesint.com

Industry news.indd 2

18/10/2021 07:59:25

6

NEWS ROUND-UP

• Tata Steel’s IJmuiden steel plant in the Netherlands intends to ‘go green’ and replace traditional coal-fired blast furnace processes with green hydrogen by 2030. The thing is, it wants the Dutch government to help pay for it. Economy minister Stef Blok said he will investigate how far support can go without breaking state aid rules.

Source: Reuters, 14 September 2021

• Acciai Speciali Terni (AST) is to be sold to Italian steelmaker Arvedi. AST, which is owned by Thyssenkrupp, is Italy’s only integrated stainless steel mill and has a 1.3Mt/yr crude steel capacity, 70% of which is turned into stainless steel. Arvedi, it is claimed, is planning major investment in the facility.

Source: SPGlobal.com, 16 September 2021

• As part of its Best for All strategy, US Steel is in the process of site selection for a new US$3 billion state-ofthe-art minimill. The plan is to build a new 3Mt/yr flat-rolled facility with two cutting edge electric arc furnaces. US Steel has a 2030 goal of reducing its emissions intensity by 20% ‘compared to a 2018 baseline’.

Sites in Arkansas and Alabama are under scrutiny.

Source: Business Wire.com, 16 September 2021

• Russian steelmaker MMK and German plant builder SMS group are working together on evaluating decarbonisation technologies, specifically DRI and hydrogen production based on the electrolytic process. The two companies have signed a memorandum of understanding and the overall aim of the collaboration is to improve the environmental situation of MMK. Source: Steel Orbis, 16 September 2021

• US steel giant Nucor Corporation is to build a new state-ofthe-art 3Mt/yr sheet mill and is currently evaluating locations in Ohio, Pennsylvania and West Virginia. The mill will be ‘geographically situated’ to serve customers in the Midwest and Northeast markets and, it is claimed, will have ‘a significantly lower carbon footprint than nearby competitors’, claims the company. Source: Nucor Corporation, 20 September 2021.

October 2021

Industry news.indd 3

• Following on from serious concerns over pollution at Tata Steel IJmuiden in the Netherlands, the company has announced it will be opting for hydrogen-fed DRI production as opposed to carbon capture and storage.

Tata is currently undertaking a feasibility study, but the ultimate aim is to make steel production more sustainable.

Source: Argus Media, 16 September 2021 • Thyssenkrupp Materials UK has introduced a new metal additive manufacturing product and service led by Nigel Evans as business development director. The new venture, which will supply metal powders and provide post-build services, is in response to the fast growth of metal additive manufacturing.

The company claims that its high quality metal powders cover a wide range of applications.

Source: Metal-am.com, 16 September 2021

• South Korean steelmaker POSCO has invested 500 billion won ($425 million) on the development of a 1Mt giga steel production facility inside its existing Gwangyang steel mill. Giga steel is an ultra-high-strength product used in automotive production. The new facility will be located inside the company’s Gwangyang mill in South Jeolla Province.

Source: Korea Herald, 17 September 2021

• “Only companies permanently conducting research and development in order to stay ahead will succeed in the face of global competition over the long term,” said Herbert Eibensteiner, chairman of the management board of voestalpine AG. The Austrian steelmaker has maintained a high level of research spending throughout the 2020/21 financial year, according to an online media report.

Source: MarketScreener.com, 20 September 2021 www.steeltimesint.com

18/10/2021 08:00:10

7

NEWS ROUND-UP

• Nucor Corporation intends to build a new $100 million, 600kt/yr melt shop. The new facility will be constructed at one of the steel giant’s existing bar mills in the USA and will create around 140 full-time jobs. Start-up will be in 2024.

Source: benzinga.com, 21 September 2021

• In the Midwest of North America, idled blast furnaces have taken an estimated 8Mt (short tons) of hot metal capacity offline, according to a report by Argus Media, leaving electric arc furnace steelmakers – the predominant form of steelmaking in the country – to pick up the pieces and reduce the shortfall. Nucor Corporation, among other operators, is in the process of expanding its Gallatin facility in Kentucky and is looking at building a new minimill either in Ohio, Pennsylvania or West Virginia.

Source: Argus Media, 22 September 2021

• Severstal CEO Alexey Mordashov is not short of a few bob. According to Forbes magazine, he and his family are worth a cool $1.7 billion.

Vladimir Lisin, chairman of the board of directors at another Russian steelmaker, NLMK, is worth $1.48 billion. Figures based on 2020 income.

Source: tass.com, 22 September 2021

• A new 80 million Euro forging plant at Thyssenkrupp’s Homberg facility in Germany’s Saarland region has started producing sample parts for truck chassis components.

Energy consumption per ton of produced products at the plant has been reduced 40% over the last decade, according to an online report

by SteelOrbis.

Source: Steel Orbis, 24 September 2021

• The USA imported a total of 2.7Mt (net tons) of steel in August 2021, including 2.1Mt (net tons) of finished steel (down 10.1% and up 1.0%, respectively when compared with July final data). Through the first eight months of 2021, total and finished steel imports totalled 20.5Mt (net tons) and 14.2Mt (net tons), up 25.5% and 26.9%, respectively, versus the same period in 2020.

Annualized total and finished steel imports in 2021 would be 30.8Mt and 21.3Mt (net tons) up 40.1% and 32.1%, respectively, when compared to 2020 figures. Finished steel import market share was an estimated 21% in August and is estimated at 20% over the first eight months of 2021.

Source: AISI, 24 September 2021 • The European Investment Bank has agreed to provide ArcelorMittal with a loan for 280 million Euros. The money will be used by the global steelmaker to engage in research and development activity surrounding the company’s decarbonisation plans.

• An 80MW solar project developed by 174 Power Global, Gerdau Long Steel North America and TotalEnergies will be in commercial operation by the summer of 2023 and will supply energy directly to Gerdau's mill. The installation is located close to the steelmaker’s Midlothian steel facility in Texas.

Source: Pv-magazine,com, 27 September 2021

• An orange substance leaking into the sea close to an outfall of US Steel’s Midwest Plant in Portage, Indiana, is causing concern.

Mayor Sue Lynch has been inundated with calls from worried residents as the mystery liquid headed towards Lake Michigan along the Burns Waterway. Indiana’s Department of Environmental Management was alerted and US Steel was forced to shut down a finishing plant in the state.

Source: Fort Wayne NSBC. com, 27 September 2021 Source: en.econostrum.info, 27 September 2021

• Stephen Biegun, a former US envoy, has been appointed by POSCO America as an advisor for a contracted period of one year. The company wants to expand its presence in the global market, including the USA, with its secondary battery materials business.

Source: Yonhap News Agency, 28 September 2021

www.steeltimesint.com

Industry news.indd 4

18/10/2021 08:00:58

8

INDUSTRY NEWS

• A wastewater recycling system developed by Samsung Electronics and South Korean steelmaker Hyundai Steel will reuse sludge from the manufacture of semiconductors in the steelmaking process. The wastewater accounts for more than half of total generated waste from the semiconductor manufacturing process. As the sludge from Samsung’s operations contains calcium fluoride, it can remove the impurities from melted iron and slag by lowering the melting point when added.

Source: Business Korea, 28 September 2021

• Scandinavian steelmaker Ovako says it will be carbon neutral from 1 January 2022.

The company claims to lead the way in sustainable steel production, including an innovative approach to heating steel with fossilfree hydrogen, and plans to accelerate its environmental work.

Source: Ovako, 28 September 2021

• Russian steelmaker Severstal has acquired patents and patent applications for a technology that develops a special alloy on a rolled surface. Severstal was a lead investor in US company Arcanum Alloys, the force behind the new technology which, it is claimed, will enable the manufacturing of a range of products with improved characteristics such as corrosion properties similar to stainless steel.

Source: MarketScreener, 29 September 2021

• Nippon Steel Corporation (NSC) of Japan has agreed to construct a hybrid seagoing vessel with a hybrid propulsion system that combines a gas-only engine and a battery. The vessel will replace the Shimokita Maru, a limestone carrier owned by NSU Naiko.

Source: Nippon Steel Corporation, 30 September 2021

• South Korean steelmaker POSCO has broken ground on the development of a 120 billion won ($101 million) plant that will extract lithium and nickel, two key materials for EV batteries. According to an online media report, the plant can extract nickel, lithium and cobalt from 12kt of 'black mass' annually. The plant will be operated by POSCO HY Clean Metal, a joint venture between POSCO and Chinese Huayou Cobalt.

Source: The Korea Herald, 30 September 2021

• Brazilian steelmaker Gerdau’s crude steel output grew 17% as the company shipped 25% more steel during H1 2021 compared with the same period of the previous year. Its capacity utilization rate across operations in Latin America, North America and Mexico hovered around 80%.

Source: Recycling Today, 30 September 2021

• American steel giant Nucor Corporation has announced the launch of Econiq™, a line of net-zero carbon steel products. According to Nucor, building the green economy and the necessary infrastructure requires clean, advanced steel products.

By introducing Econiq, the steelmaker claims it is providing confidence for steel consumers to know they are purchasing the lowest greenhouse gas (GHG) emissions steel product available.

Source: Nucor Corporation, 5 October 2021 • Tata Steel in India has sold NatSteel Singapore after having owned the business for 17 years. The company was sold for Rs1,275 crore ($172 million) to TopTip Holding, which has bought the company’s two facilities in Singapore and one in Malaysia.

Tata has kept NatSteel’s Thailand-based wires unit.

Source: Times of India, 1 October 2021

• The mysterious orange substance that leaked from US Steel’s Midwest Plant in Portage, Indiana, did not present a public health risk, according to the US Environmental Protection Agency. Source: Chesterton Tribune Online, 5 October 2021 October 2021

Industry news.indd 5

www.steeltimesint.com

18/10/2021 08:02:01

NOT ALL MAINTENANCE MACHINES ARE CREATED EQUAL Gradall delivers rugged machines with the world-famous tilting, telescoping boom designed for metal mill maintenance. Both crawler and rubber tire undercarriages are tough enough to handle the vigorous pounding and heat typically experienced in mills.

ONLY GRADALL: Maintain Torpedo Cars and Ladles and Clean Tap Holes, BOF, Electric and Blast Furnaces Creates Stable Working Platform with Axle Oscillation Assembly Handles the Rigors of Metal Mill Maintenance Without Outriggers

www.gradallmetalmill.com | 800-445-4752 See the models

10

INNOVATIONS

Cortec’s oil-based rust preventative Cortec’s VpCI-369 is a rust preventative designed for short- and long-term rust prevention. The company claims that its product has ‘widespread popularity’ and is a ‘must-have’ in the world of automotive and heavy-equipment parts suppliers.

In fact, Cortec claims that the product is a ‘convenient, superior alternative to many common long-term rust preventatives on the market’.

VpCI-369 is an oil-based temporary coating that is claimed to provide extreme corrosion protection in aggressive environments and is one of Cortec’s most popular wet film corrosion inhibitors. The product is ‘thixotropic’, meaning it can be mixed in order to change consistency and,

October 2021

innovations.indd 1

therefore, enhance ‘sprayability’ for application with an airless sprayer. Once applied, it thickens so that it doesn’t run off the metal. Blue, green or other custom tints are possible to help workers detect sufficient product coverage; and for those in the military, it can be used as a MIL-spec version conforming to MIL-PRF-16173E (Grade 2).

Cortec believes that VpCI-369 is ideal for protecting bare, unpainted metal equipment parts that need to be shipped for assembly. It is also claimed to be excellent for service parts or spares that will be laid aside for between five and 10 years before being needed. Because it doesn’t dry, it can be used as a dual lubricant and rust

preventative for moving parts. Furthermore, it is easier to remove than other coatings that dry to a wax-like texture.

Cortec also supplies a bio-based version of VpCI-369 known as EcoLine 3690, which has been approved for 10-year long-term storage protection of service parts for a leading automaker. The product is based on canola oil and contains 72% USDA-certified bio-based content.

Like VpCI-369, the EcoLine product leaves behind an oily protective film that does not dry.

For further information, log on to www.cortecvci.com

www.steeltimesint.com

18/10/2021 08:15:20

INNOVATIONS

11

Electromagnetic brake systems for Tata Steel Global technology company ABB will provide electromagnetic brake systems (EMBR) for two compact strip production (CSP) casters at Tata Steel’s flagship plant in Jamshedpur, India, working under contract from engineering and construction organization SMS group of Germany.

Jamshedpur, located in the eastern state of Jharkhand, is India’s first planned industrial city and was established following the founding of Tata Iron and Steel Company by Jamsetji Tata and his son Dorabji Tata in the 1900s.

ABB’s scope of supply also includes DCS800 DC drives, dry type transformers, water cooling systems, commissioning services and metallurgical performance evaluation. ABB is contracted through SMS which specializes in plant construction and mechanical engineering for the steel and non-ferrous metals industry.

The contract builds on ABB’s large installed base with premier steel producers globally. ABB EMBR is installed on 40% of thin slab casting strands worldwide and allows for higher quality and faster throughput. This well-established

www.steeltimesint.com

innovations.indd 2

technology was invented by ABB in 1985 and is claimed to enable steelmakers to achieve steel cleanliness similar to conventional vertical bending casters. It improves casting speed and extends mold copper plate lifetime. By generating a static magnetic field, which decreases the meniscus metal flow speed and turbulence, the ABB EMBR provides a whole range of metallurgical improvements including elimination of mold powder entrapments, a more even molten mold powder layer and a meniscus which is flatter, hotter and less turbulent, it is claimed.

“The project at Tata Steel in Jamshedpur is a key order for ABB,” said Raghu Badrinathan, area sales manager – ABB Metallurgy. “It builds on our large installed base with premier steel producers around the world.”

“Tata Steel is a highly-valued customer for ABB and it is our continuous endeavor to provide the best-in-class technology and solutions to them,” said Vipul Gautam, group vice president, global account executive for Tata Group, ABB. “We believe that our metallurgy solutions and par-

ticularly the ABB EMBR solution will help them to achieve superior performance of their casters in minimum time, lowering their cost of production while improving quality.”

ABB’s claims that its process automation business leads the way in terms of automation, electrification and digitalization for the process and hybrid industries. “We serve our customers with a broad portfolio of products, systems, and end-to-end solutions, including our distributed control system, software, and lifecycle services, industry-specific products as well as measurement and analytics, marine and turbocharging offerings,” claims ABB. “As the global number two in the market, we build on our deep domain expertise, diverse team and global footprint, and are dedicated to helping our customers increase competitiveness, improve their return on investment and run safe, smart, and sustainable operations.”

For further information, log on to www.abb.com

October 2021

18/10/2021 08:15:35

12

INNOVATIONS

NSK bearing units save steel plant €292,136

The steel plant was struggling with up to three bearing failures a year on a rotary coal valve used in its ore preparation process.

Steelmaking is a process that places particularly challenging demands on bearings. An aggressive operating environment means potential bearing failures, which are a genuine threat to production.

Extreme temperatures, particle contamination, shock/heavy loads, water, vibration, high speeds and rapid acceleration/deceleration are examples of some of the hazards that steel plant bearings have to endure… but not NSK’s RHP Self-Lube range of bearing housings and inserts, which can, it is claimed, overcome such stresses and strains.

The company cites the experiences of an unnamed international steel plant that was struggling with up to three bearings failures per year

on a rotary coal valve used in its ore preparation process. In addition to the cost of replacement bearings, the failures had knock-on effects in terms of lost production, downtime and damage to associated components. The plant needed a solution to this expensive problem.

NSK conducted a full application review, which included a temperature survey and a bearing condition report. The review revealed that the current bearing was inadequate for the high process temperatures, while the lubrication quantities and frequencies were incorrect. As a result, NSK recommended a customised RHP Self-Lube® HLT bearing insert within an RHP Self-Lube® cast iron FC housing, plus a bespoke adaptor plate and a special heat-isolating spacer.

IMS bags Turkish rolling mill contract IMS Messsysteme GmbH, based in Heiligenhaus in North Rhine-Westphalia, has been awarded a major order for the complete outfitting of the Tosyali Sariseki rolling mill in Iskenderun, southern Turkey. The contract encompasses measurement and control technology.

The new mill, owned by the Turkish Tosyali Group, will be commissioned in Q4 2022 and will occupy a total area of 450,000 square metres, with 218,000 square metres of indoor space.

Currently, the mill is in an advanced stage of construction.

Following the start-up phase, an annual production capacity of 4Mt/yr is expected and corresponds to an increase in total hot rolled flat production within the Group of 300%, further expanding and consolidating the Tosyali Group's October 2021

innovations.indd 3

position in the market.

The plant will roll flat products such as unalloyed carbon steel for construction, steel for cold and hot rolling, pipe steel, structural steel, boiler steel, low alloy steel and HSLA steel for construction and pipe application.

An XR three-head thickness profile measuring system with integrated width and crop length measurement, a radar width measuring system, a TopPlan flatness measuring system, a Lascon multi-channel measuring system, including temperature and speed measurement, and a Surcon 2D surface inspection system will be installed at strategic points in the production process to ensure minimum wastage with the highest output and quality of products.

Tosyali is Turkey’s leading producer of steel

pipes and profiles and a country leader in the Turkish steel pipe market. There are more than 25 facilities within the group producing hot and cold rolled coil, rebar, spiral pipe and natural gas pipe with sites in Iskenderun, Osmaniye and Istanbul in Turkey as well as overseas in Algeria and Montenegro. The new hot rolling mill in Iskenderun is the group’s second hot rolling mill and its primary target market will be to produce raw materials (hot rolled coils) for other facilities of the same group. Currently, it sells some of its production to the domestic market and exports it to many countries.

For further information, log on to www.ims-gmbh.de www.steeltimesint.com

18/10/2021 08:15:50

INNOVATIONS

RHP Self-Lube units include two basic components: the insert and the housing. Each unit consists of a sealed single-row ball bearing with spherical outside diameter and extended inner ring mounted in a high-quality flanged housing made from a rigid one-piece design. Importantly, spherical seating accommodates any initial misalignment when mounting.

According to NSK, Self-Lube inserts, which feature hardened, high-quality steel for inner and outer rings, also offer optimised internal geometry, a two-piece riveted high-strength steel cage, high-performance grease and durable silicone seals. Notably, the Self-Lube® HLT inserts implemented at the steel plant provide opportunities to reduce maintenance, downtime and replacement costs when operating at temperatures up to 180°C, NSK claims.

The units are available with various locking methods for close-fit shaft mounting. This feature, combined with a complete range of sealing solutions for all environments, make NSK RHP Self-Lube a very versatile product, claims NSK. As the name suggests, re-lubrication capability is standard.

For the rotary valve bearings at the steel plant, NSK’s team of engineers recommended changes to the lubrication quantities and frequencies.

To ensure correct application, NSK oversaw the fitting of the new bearings as part of a trial.

After more than 12 months the bearings had still not failed, delivering a total annual cost saving for the customer of €292,136. This calcu-

13

NSK RHP Self-Lube HLT inserts help to reduce maintenance, downtime and replacement costs when operating at temperatures up to 180°C.

lation includes cost savings associated with the elimination of downtime due to bearing failures; fewer bearing purchase orders; reduced bearing replacement time; and the removal of compressed air cooling to help control the overheating of previous bearings.

For further information, log on to www.nskeurope.com

Savage A40 Air helmet for heavy-duty protection ESAB’s new Savage A40 Air helmet is designed to partner with the company’s existing Powered Air Purifying Respirator (PAPR). The company claims that helmets such as the Savage A40 Air are essential for workers in situations where welding fumes and particulates are a concern, such as for some cored wires, working in confined or poorly ventilated spaces and for protecting operators from hexavalent chromium fumes, which are generated from stainless steel, chrome alloys and chrome-coated metals.

When combined with ESAB’s PAPR, the Savage A40 Air is claimed to offer exceptional performance and value. The PAPR unit has three settings that adjust airflow between 170 and 220 l/minute to suit the environment and application. It operates at a quiet 70 dB and features a high-capacity, lithium-ion rechargeable battery that offers up to eight hours of performance between charges.

Kevin Beckerdite, global product manager

for PPE at ESAB, claims that the Savage A40 Air and ESAB PAPR blower unit combination has a replaceable two-stage filtration cartridge that meets European standards and removes airborne particles to a TH2-level filtration performance for fine particulates. “The proven ESAB PAPR includes visual and audible alarms to signal low airflow, as an added safety measure,” he said.

ESAB claims that its new helmet provides extreme comfort and protection in all processes.

Its design was inspired by the Sentinel™ A50 helmet and offers a 50 x 100mm viewing area for a wider field of vision. The helmet weighs 700g and its 1/1/1/2 optical-class lens features ESAB’s ultra-clear true-colour technology for increased weld pool clarity and enhanced definition.

According to Beckerdite, ESAB’s true-colour lens technology gives operators a better view of the weld puddle and surrounding area. “When precise bead placement counts, welders can rely on a brighter view with enhanced colour defini-

tion with the Savage A40 Air,” he said.

ESAB believes that welders can stay more productive with Savage’s externally activated ‘Grind Button’. Even while wearing a heavy glove, claims the company, welders can activate a shade 4 Grind Mode on the left side of the helmet, which may be suitable for cutting processes too.

Sensitivity and delay controls inside the helmet allow users to adjust the response to various welding conditions. Sensitivity control is an adaptable feature, says ESAB, and useful when TIG welding at low amperage. Delay control enables the welder to set how long the lens stays dark after the welding arc stops. Short delay helps to get the job done faster during tack welding, while a longer delay is useful for high amperage welding.

For further information, log on to www.esab.com The new Savage A40 Air combines safety, performance and style, says ESAB. Its powered air purifying respirator technology cartridge delivers TH2-level filtration performance for fine particulates.

October 2021

innovations.indd 4

18/10/2021 08:15:51

14

INNOVATIONS

Leybold sponsors Dutch Solar Team Twente

After the Australian Bridgestone World Solar Challenge was cancelled, an adequate alternative route to the flat outback was quickly found with the Solar Challenge Morocco. Despite the changed route through the desert and along the Atlas Mountains, the Dutch racing team of Solar Team Twente is still optimistic that it will be able to win the World Championship for Solar Cars – also thanks to the sponsorship from Leybold.

On 23 October, the starting signal for the international student teams will be given in the port city of Agadir. The 2,500-km route will be ridden in five daily stages.

In addition to the sporting competition, the event serves the worldwide networking of young scientists and the sustainable promotion of innovation and research. "In times of climate change, we see a responsibility in concretely promoting the efficient use of renewable energy potentials and thus contributing to the reduction of air pollution," said Ian Dorman, general manager of Leybold EMEA North East, explaining the company’s sponsorship of the Dutch team.

The commitment of the Dutch team is worthy of sponsorship for other reasons: the 19 students of Solar Team Twente had interrupted their studies for 18 months to develop and build a competitive solar car.

Leybold’s sponsorship with the SOGEVAC 16 D vacuum pump allows the team to continue processing carbon and epoxy by means of vacuum infusion and lamination either in-house, or when required locally at the race site, due to the pump’s compact and portable design. "This has

also been achieved with the help of the support of our sponsors, so we feel well equipped and motivated to compete for the title in Morocco," says structural designer, Stijn Louws. The Dutch have already been successful in past solar car world championships.

The commitment is an important concern for Leybold: ”It is my pleasure to support Solar Team Twente, we see the enormous potential of electro-mobility and are also convinced that we can push the success of the team with our contribution,” emphasises Andries Verstraeten, sales engineer of Leybold Netherlands.

With their wealth of experience, companies like Leybold can also significantly promote electromobility and thus contribute to the success of the energy transition, especially since vacuum systems are used, for example, in the coating of solar modules or in the production of lithium-ion batteries. This is another reason why those responsible for Solar Team Twente choose partners like Leybold to lead such challenges to success.

For further information, log on to www.leybold.com

All round maintenance support from AUMUND AUMUND Group, a company that specializes in the design and supply of conveying and storage systems globally, has launched its PREMAS® 360° packages which, it is claimed, combine quality AUMUND services into unique packages at one price, the company claims.

AUMUND provides all-around maintenance support, wherever and whenever needed. These packages bundle extended warranties, offer

October 2021

innovations.indd 5

physical inspections, cutting-edge Industry 4.0 (IoT) constant monitoring of AUMUND and non-AUMUND conveying equipment, technical training, as well as inventory, warehouse facilities, emergency remote support and full maintenance consulting programmes. Achieving high production while maintaining high machine reliability is challenging.

Dr. Pietro de Michieli, managing director at AUMUND Fördertechnik GmbH, emphasizes: “With PREMAS® 360° AUMUND puts customer service to the forefront. Our goal is to reassure machine availability and reliability through the simplicity and flexibility of a fully

bundled maintenance solution, to be a partner to our customers assisting them to reach operation excellence”.

The expectations put on maintenance managers are high, claims AUMUND. Production managers expect high machine reliability, short downtime, maximum capacity, and all at the lowest possible cost. AUMUND has a deep understanding of these challenges and is committed to working side-by-side with customers to realize these targets.

There are three core maintenance packages available: Basic, Advanced, and Premium. All packages can be adjusted as needed.

For further information, log on to www.aumund.com www.steeltimesint.com

18/10/2021 08:16:00

World leaders in the provision of high-technology products for:

Roll surface texturing World leading technology for applying texture to rolling mill rolls using state of the art Electro Discharge Texturing techniques.

Roll inspection The latest technology in non-contact surface & sub-surface inspection of hot and cold rolling mill rolls with Eddy Current, Compression Wave and Creep Wave capabilities.

Continuous caster monitoring Bespoke In-Chain and off-line strand condition

monitoring

systems

for

continuous casting.

Information Request Sarclad UK

Sarclad North America

Sarclad China

Sarclad India

sales@sarclad.com

sales@sarcladna.com

sales.china@sarclad.com

sarclad.india@sarclad.com

sarclad.com

16

USA UPDATE

Steel users urge Biden to drop tariffs While President Donald Trump is but a distant memory, his legacy lives on in the shape of steel tariffs.

Biden intends to keep them, for now, but there’s pressure from end users of steel who want them scrapped. By Manik Mehta*

EVEN as the overall US trade deficit declined in July, the 25% steel tariffs continue to be applied on imports. The tariffs were imposed by former President Donald Trump, in March 2018, using national security justification under Section 232 of the Trade Expansion Act of 1962 to check the soaring steel imports and increase the share of US-manufactured steel in domestic consumption to at least 80%. Steel endusers, meanwhile, have urged President Joe Biden to discontinue the tariffs which have triggered a sharp increase in prices.

The question of ending the tariffs has been frequently raised, though the Biden administration has given no clear indication so far when the tariffs would end. Trump had, in fact, said that the tariffs would be imposed for an ‘indefinite period of time’.

Overall, the US trade deficit had fallen to $ 70.1 billion in July, the first time in three months, according to the Commerce Department. The trade deficit was 4.3% lower than the previous month’s figure, exceeding the drop forecast by analysts.

Imports fell slightly to $282.9 billion while exports rose 1.58% to $ 212.8 billion.

Compared to July 2020, when the pandemic raged and hit global commerce and American consumer demand, the deficit in July 2021 was 37.1%, or $131 billion, higher.

A group representing US metal manufacturers and users recently urged President Joe Biden to drop the US Section

232 tariffs on steel imports as domestic prices for hot-rolled coil have continued to reach historic highs.

Arguing that the crisis involving steel prices and supplies had worsened, the Coalition of American Metal Manufacturers and Users (CAMMU) cautioned that that the US had become ‘an island of high-steel prices’.

CAMMU, which represents more than 30,000 companies in the manufacturing sector and downstream supply chains, was set up in the wake of the Section 232 metals tariffs to oppose the trade measure.

CAMMU cautioned that with US Congress poised to move forward on a large infrastructure bill, the current shortages in the US steel market could only get worse if the tariffs remained, adding that US manufacturers desperately needed more steel, and that one way to increase supply is for the Biden administration to eliminate the Section 232 tariffs. With domestic steel producers posting record profits, the tariff protection is no longer needed, the group argued.

Groups representing US steel producers, however, counter that the tariffs cannot be removed without addressing the underlying issue of global overcapacity because dropping the tariffs without tackling the underlying problems would potentially expose the US to another import surge.

Lourenco Goncalves, the CEO of Cleveland Cliffs, an Ohio-based steel

producer which reported a big surge in sales in its latest quarter, recently said that ‘we are running 24/7 everywhere’, reflecting the positive mood in the steel industry. He said in media interviews that his company had resumed shifts and was hiring additional workers.

The Biden administration has, meanwhile, been holding talks with European Union trade representatives about global steel markets and the steel and aluminium tariffs which have been an irritant in transAtlantic trade relations, fueling speculation that this could be a prelude to eventually withdrawing the Trump-era tariffs which are being credited with reviving the US steel industry’s fortunes.

Nevertheless, pundits say that the Biden administration will have to carefully weigh up the pros and cons of withdrawing the tariffs, considering that the steel industry is based mainly in the crucial electorate states.

The Steelworkers’ Union, which supported Biden in the 2020 Presidential election, has also called on his administration to retain the tariffs.

The Biden administration, sensitive to job losses and equally conscious about not losing the growth momentum in the steel industry, is apparently keen to continue with the tariffs, but it also needs to support the steel-consuming industries, which are complaining about steel shortages and concurrently rising steel prices.

The passage of the bipartisan

* USA correspondent October 2021

USA.indd 1

www.steeltimesint.com

18/10/2021 08:17:29

s

USA UPDATE

infrastructure bill in the Senate – the total value of the entire infrastructure package is around $ 1 trillion – offers huge business opportunities for the steel industry.

Nucor CEO Leon Topalian noted in recent media interviews that his company was eager to help ‘rebuild the country’ after the bill’s passage. The old creaky infrastructure in the US badly needs modernization, raising hopes of steelmakers who are convinced that the implementation of major projects will require huge quantities of steel and steel-based by-products.

Topalian observed in one interview that this was the closest the US has been to having a “meaningful infrastructure bill” in his roughly 25 years in the steel industry.

The infrastructure package includes allocation of some $550 billion for upgrading roads, water systems, transit networks and power grids, as well as expanding broadband access.

The entire American steel industry is well-positioned to benefit from the infrastructure bill, should Biden ultimately sign it, Topalian said.

USA.indd 2

Steelmakers are applauding the Biden administration for retaining the tariffs, which have helped enhance profitability, increase production and prevent further job losses.

Indeed, the week ending 21 August reflects the industry’s upbeat mood, as raw steel production increased by 8,000 short tons (st) to 1.88 million st, according to data from the American Iron and Steel Institute (AISI).

This week’s production represented a 27% year-over-year increase from the 1.48 million st produced in the same week of 2020. In August of 2020, steel mills were still struggling to recover production that had sharply declined because of the Covid-19 pandemic. Year-to-date production stood at 60.1 million st, up 20% from the corresponding period of 2020.

Meanwhile, Majestic Steel USA, Inc., a family-owned distributor and processor of flat-rolled steel, headquartered in Cleveland, Ohio, recently announced that it was setting up a new state-of-the-art service centre and processing facility at the Nucor

17

Hickman site in Blytheville, Arkansas.

The 515,000 sq. ft. facility will feature next generation processing and warehousing. The Arkansas location will enable Majestic to better service customers in central and southern regions of the United States. The site will provide close proximity to production and Nucor’s new galvanized line currently under construction, creating greater supply chain optimization, operational efficiencies, and inevitably shorter lead times for customers in the area.

“Today’s announcement cements our commitment to provide the best supply chain solution and value add to our customers and further strengthens our relationship with Nucor,” said Todd Leebow, Majestic’s president and CEO. “Our intention with this investment is to offer our customers in the region the combined benefit of localized service and national resources.

The new facility is expected to be fully operational by the end of 2022, Majestic sources said. �

18/10/2021 08:17:29

18

LATIN AMERICA UPDATE

Not an absolute beginner Considering that decarbonisation is one of the most crucial issues for the global steel industry these days, it is very interesting to scrutinise Aço Verde Brasil (AVB)’s 600kt/yr long steel charcoal integrated mill, located in the city of Açailândia (Maranhão State). By Germano Mendes de Paula* AVB is a subsidiary of Ferroeste, one of the largest Brazilian independent pig iron producers (‘guseiros’, in Portuguese). It entered into the steel value chain in 1978 when the Nascimento family acquired Siderúrgica Ferroeste, a pig iron producer, located in the city of Divinópolis (Minas Gerais State). In 1986, FIESA, another pig iron producer, situated in the city of João Neiva (Espírito Santo State) started-up.

In 1993, FIESA purchased Companhia Brasileira de Ferro (CBF), installed in the city of Viana (Espírito Santo State) from Gerdau, consolidating its position as one of the largest guseiros.

A less well-known aspect of Ferroeste’s trajectory is that it had also acted as a long steel producer. In fact, in 1989, Laminação de Ferro S.A. (Lafersa), established in 1954 and located in Contagem (Minas Gerais State), was acquired by Ferroeste, having assumed the name of its new owner. However, this plant was gradually decommissioned, mainly because of environmental hurdles, as it was located within Belo Horizonte’s metropolitan area, the capital of Minas Gerais State. In 1992, the steel shop (130kt/yr) was closed. It shut down the blast furnace (90kt/yr) at the end of 1993 and the rolling mill (90kt/ yr) in 1996. AVB, therefore, corresponds to Ferroeste’s re-entry into the Brazilian long steel industry.

AVB’S project AVB is, thus, the second project that Ferroeste was involved in to rejoin the league of long steel producers. Ferroeste

Pig iron Crude steel

2015 2016 2017 2018 2019 2020 182 216 240 266 336 298 2

157

144

279

338

Billet for sale

157

143

217

97

29

62

236

274

Rolled steel

321

Drawn products 9

Table 1. AVB’s production, 2015-2020 (kt). Source AVB

Net sales ($M) Net profit to net sales (%)

2015 2016 2017 2018 2019 2020 66

73

93

162

175

173

-19,4

4,6

-11,2

10,0

8,9

11,1

Table 2. AVB’s final financial performance, 2015-2020 (kt). Source AVB

established Gusa Nordeste in Açailândia in 1989 and began its operations in 1993 with a 60kt/yr pig iron capacity. In 2005, the combined blast furnace installed capacity achieved 360kt/yr. In 2009, Ferroeste decided to verticalise, by building a steel shop and rolling mill in Açailândia.

AVB’s project originally consisted of two phases, the first of which was scheduled for completion in 2012. It included the addition of a 600kt/yr BOF in 2011, as well as a 220kt/yr increase of blast furnace capacity and a new 600kt/yr long steel rolling mill producing rebar and wire rod.

The second would comprise an additional 220kt/yr blast furnace capacity, and the duplication of steel shop and rolling mill, to be completed in 2014. Ultimately, AVB would reach 800kt/yr of pig iron and

1.2Mt/yr of crude steel and long steel capacity.

Due to unsatisfactory Brazilian macroeconomic and domestic steel market conditions, the AVB project experienced many delays. The steel shop was commissioned in December 2015.

The first blast furnace started-up in May 2018, the rolling mill in June 2018 and the second blast furnace in May 2021. Besides the equipment originally planned, AVB also acquired, for an undisclosed sum, a 120kt/ yr wire drawing mill from ArcelorMittal in 2018, as one of the conditions imposed by Brazil’s antitrust regulation agency CADE to approve the merger between the latter with Votorantim Siderurgia.

Table 1 shows AVB’s operational performance along the period 2015-2020.

2018 2019

2020

t CO2/t pig iron

-0,01

-0,01

-0,02

t CO2/t crude steel

0,10

0,06

-0,04

Table 3. AVB’s CO2 specific emissions, 2018-2020. Source AVB

* Professor in Economics, Federal University of Uberlândia, Brazil. E-mail: germano@ufu.br October 2021

LA Update.indd 1

www.steeltimesint.com

18/10/2021 08:22:23

LATIN AMERICA UPDATE

Last year, the company produced 298kt of pig iron, 321kt of crude steel, 29kt of billets for sale and 274kt of rolled long steel products, implying that it was operating at around half of its nominal capacity. It also fabricated 9kt of drawn products, remembering that this line began in 2019.

However, this year, due to the bullish domestic steel market in Brazil and the commissioning of a new blast furnace, it will improve its outputs by roughly 25%.

The company has not unveiled when it will engage in constructing Phase 2.

Table 2 pays attention to AVB’s financial performance. Net sales jumped from $66 million in 2015 to $173 million in 2020.

Meanwhile, the profitability changed from -19.4% in 2015 to 4.6% in 2016 and to -11.2% in 2017, but recovered to around a 10% plateau in the years 2018-2020.

Currently, AVB generates 2,300 direct jobs, which is having a substantial and positive social impact, in particular when it is taken into consideration that Maranhão State is among the poorest in the country.

Decarbonisation As mentioned previously, AVB is a charcoal integrated mill, which is a fairly peculiar steel technological route for the global steel industry. However, the fully and partially charcoal integrated mills are responsible for some 10% of Brazilian crude steel output.

Moreover, in 2020, 24.6% of the country’s pig iron production was based on charcoal.

In February 2021, AVB claimed to be the first carbon neutral steel producer in the world. As verified in Table 3, the company certified that its emissions were equivalent to -0.02t CO2/t of pig iron and -0.04t CO2/crude steel in 2020. This outcome was underpinned by the fact that AVB has 50k hectares of planted eucalyptus for sustainable charcoal and captive pig iron production. In addition, the company adopted a series of actions and implemented several technologies such as: a) purchase of 100% renewable electricity; b) reuse of process gases (blast furnace and BOF) to mitigate the use of fossil fuels; c) reuse/sale of 100% of blast furnace slag in

19

its own cement plant, that was started-up in 2011 in Açailândia too; d) reuse of 100% of the BOF slag as raw material for blast furnace (limestone) and BOF (lime); e) use of 100% blast furnace gas in the rolling mill’s reheat furnace.

It should be stressed that production of charcoal-based pig iron and, consequently, crude steel, has typically raised many doubts about the CO2eq emissions generated during the reforestation and wood carbonization process itself. The boundaries of CO2 emissions (involving scopes 1, 2 and 3) are subject to some controversies too. However, even though many studies indicate a possible carbon negative condition, AVB has followed worldsteel’s methodology that considers charcoal a net zero emission raw material.

Thus, AVB, a newcomer to the Brazilian long steel industry, has been involved in the steel value chain for many decades, it is definitely not a beginner. More importantly, it is in a good position to take advantage of the decarbonisation trend. �

Introducing

COMBi-XLE Enhance Safety, Storage and Efficiency with the new COMBi-XLE from Combilift

With a lifting capacity of 5,000kg the new COMBi-XLE electric multidirectional forklift combines powerful, emission-free performance for a wide range of applications that require an electric truck that can handle more demanding work conditions.

Designed with operator friendly features such as high ground clearance, large cushioned front & rear tyres and a spacious cab, allowing smooth operation on semi-rough terrain whilst offering higher levels of driver comfort than any other forklift.

Contact Us Today To find out how Combilift can help you unlock every inch of your storage space

combilift.com Combi-XLE Launch ad steel A5 rev1.1.indd 1

www.steeltimesint.com

LA Update.indd 2

23/09/2021 10:32:21

October 2021

18/10/2021 08:22:27

20

INDIA UPDATE

The Indian Government wants India to be self-sufficient in terms of specialty steel manufacturing and has introduced a production-linked incentive scheme that will bear fruit over the next five years.

By Dilip Kumar Jha*

THE government’s decision to introduce a production-linked incentive (PLI) scheme and encourage domestic producers to increase their installed capacity is set to make India self-sufficient in specialty steel production in the next five years. India, the world’s second largest producer of crude steel with around 142Mt of installed capacity, is a net importer of specialty steel due to insufficient domestic production.

Major steel producers like Tata Steel, Steel Authority of India Ltd (SAIL) and JSW Steel have continued their focus so far on crude steel production. Specialty steel is a value-added product wherein normal finished steel is worked upon by way of coating, plating, heat treatment and so forth to make it high value-added steel for applications in various strategic segments, such as defense, space, power, automotive sector and specialized capital goods.

A company registered in India and engaged in the manufacture of identified specialty steel grades, subject to the input material being melted and poured within the country using iron ore/scrap/sponge iron/ pellets etc, shall be eligible to apply for incentives under the scheme. End-to-end manufacturing will thus take place within the country under this scheme.

Specialty steel has been chosen as the target segment because, at present, high quantities are imported. Of the total production of 102Mt of steel in India in 2020-21, only 17.6Mt value added steel/ speciality steel was produced in the country.

Apart from this, out of 6.7Mt of overall steel imports in the financial year 2020-21, specialty steel contributed more than 50% at 3.7Mt resulting in foreign exchange outgoings of approximately INR 300 billion.

By becoming ‘Aatmanirbhar’ (self-reliant) in producing specialty steel, India will move up the steel value chain and will be at par

Self-sufficient in specialty steel with advanced steel making countries like Korea and Japan.

The PLI scheme – why?

Since the Narendra Modi-led Bharatiya Janata Party (BJP) government assumed

power at the centre, India went into ‘self-reliant’ mode. The government has identified all those sectors whose annual import bill crosses $100 million and assured industrialists that they will be supported in order to increase their domestic production.

AIMING HIGH Scheme beneficiaries Financial year (April - March)

PLI incentive slab (%) Type-A

Type-B

2022-23

4

8

Type-C 12

2023-24

5

9

15

2024-25

5

10

15

2025-26

4

9

13

2026-27

3

7

11

Source: Ministry of Steel

POSITIVE MOVE Progress of specialty steel under PLI scheme Particulars

Baseline (2019-20)

Projected (2026-27)

Variations (%)

Volume

Value

Volume

Value

(million tonnes)

(INR billion)

(million tonnes)

(INR billion)

Production

17.6

972.87

42.2

2428.38

140

Import

3.7

292.56

0.9

73.55

16

Export

1.6

94.74

5.5

330.24

244

Source: Ministry of Steel

* India correspondent October 2021

India.indd 1

www.steeltimesint.com

18/10/2021 08:25:34

INDIA UPDATE

In the most recent past, the government raised a slogan ‘Aatmanirbhar Bharat’ (Self-reliant India or Make in India) which aims to reduce the import bill by increasing local production. Stepping ahead in this direction, the government has introduced a production-linked incentive (PLI) scheme to increase domestic production and – eventually – reduce India’s import bill. PLI is a scheme under which the government provides incentives for domestic producers.

The incentives, however, differ depending upon volume of production, technological upgradation, employment generation and contribution towards the overall reduction of targeted products, specialty steel in this case. To make it effective from the financial year 2022-23 (April – March), the scheme will be valid for five years.

Under this scheme, the government offers incentives between 4% and 15% to Indian corporates for setting up either greenfield or brownfield specialty steel plants. The greatest incentive is reserved for electrical steel or cold rolled grain oriented (CRGO).

The five categories of specialty steel have been chosen for the PLI scheme and they

are: coated/plated steel products; high strength/wear-resistant steel; specialty rails; alloy steel products and steel wires; and electrical steel.

Meanwhile, keeping the ‘Make in India’ policy in mind to boost domestic production and cut down imports, the government has approved a scheme to increase local manufacturing of specialty steel with a budgetary outlay of INR 63.22 billion ($848.93 million). The scheme is

21

set to benefit both major (integrated) steel players and downstream producers including medium, small and medium enterprises (MSMEs). The PLI scheme is expected to draw an investment of approximately INR 400 billion ($5.37 billion) and expand capacity of specialty steel by 25Mt towards the end of the financial year 2026-27 from the existing 17.6Mt in 2019-20. If the scheme proves popular, India would have 42Mt million tonnes of specialty steel production capacity in the financial year 2026-27.

Conclusion The Indian government is doing all it can to ensure that basic steel is ‘melted and poured’ within the country, which means specialty steel consumed across India will be produced in India. By the end of the scheme period, approximately INR 2,500 billion worth of specialty steel will be produced and consumed in India which otherwise would have been imported.

Similarly, the export of specialty steel will jump more than three times to around 5.5Mt as against the current 1.7Mt. �

Measures Rebar like Never Before Even at highest rolling speeds High Tech light section measurement

Family owned since 1957, Zumbach is a global leader in the industry.

Driven by innovation and experience. We are here for you and ready to build the future together. www.zumbach.com • sales@zumbach.ch

India.indd 2

18/10/2021 08:25:39

22

CHINA UPDATE

60% of electric vehicles are made in China

Commodities super cycle is coming Another commodities super cycle is on the horizon, but it will be different from any that have come before. Fossil fuels won’t be in the vanguard and the winners will be the industrial metals needed to electrify society – cobalt, lithium, copper, nickel, and aluminium. A report by Wood Mackenzie* WHILE post-pandemic government stimulus packages have provided a sugar rush for commodities, and prices of base metals have surged, this in itself is not ‘super cycle’ material. But the markets have also sensed that the energy transition is now gathering serious momentum and is likely to fuel a sustained increase in demand over the next two decades, supporting a new super cycle narrative.

US$50 trillion of investment will be needed over the next three decades to achieve a 1.5˚C global warming trajectory.

This will electrify societies’ infrastructure and engineer out the aspects of economic activity that most significantly contribute to carbon emissions. Metals supply will play a vital role in achieving this.

As noted in a report from Wood Mackenzie entitled ‘Champagne supercycle: Taking the fizz out of the commodities price boom’, three potential developments could challenge how this commodities supercycle unfolds and who, ultimately, benefits from it: • The concentrating control of metals’ supply chains is likely to exclude many from the party.

• Systemic supply uncertainty and ensuing price volatility, encouraging disruptive new technologies such as next generation electrofuels, polymeric energy storage, and cobalt-free batteries – thereby forcing ‘traditional’ commodities into obsolescence.

• The rise of ‘consumption

consciousness’, undermining the long-term reliance on primary metal.

Simon Morris, Wood Mackenzie’s head of metals, commented: “While China’s move to secure battery raw materials is well documented, less well-known is its increasing self-sufficiency extending downstream. 75% of global lithium-ion batteries, 70% of all solar panels, and 60% of electric vehicles are made in China. But its aspirations have not yet been satisfied and we expect its control to continue to grow.

“With China dominant in its control of energy transition value chains, non-Chinese entities face an ever-diminishing share of any commodity windfall. With greater cash comes greater investment capability, enabling China to realise a strategy of supply security at any cost. Those who choose to participate too late in the cycle –

be they nations seeking to secure supply for themselves, customers wanting to protect their production lines, or investors wanting to cash in on supernormal profits – are likely to find that they either can’t afford to participate or are precluded altogether.

“Price fluctuations could also throw a spanner in the works. With electric vehicles (EVs) emerging as a critical source of demand, metals producers will have to consider how they supply a new type of consumer – one with an acute focus on price and supply predictability.

If EV manufacturers cannot guarantee access to critical metals at an affordable and predictable price, they will look to innovate or thrift them out to the greatest extent possible. As the supply challenge materialises, the inexorable rise in prices will surely incentivise alternatives.

“As we saw with the increasing rejection of plastic usage, a greater focus on

The additional metal supply needed by 2030 under Wood Mackenzie’s base-case and AET-2 scenarios. Source: Wood Mackenzie

* Wood Mackenzie, a Verisk Analytics business, is a trusted source of commercial intelligence for the world’s natural resources sector.

October 2021

China.indd 1

www.steeltimesint.com

18/10/2021 08:27:27

CHINA UPDATE

sustainability may see society react against the very considerable rise in the use of primary metals used in cars, mobile phones, telecoms, and infrastructure. Either buying less or demanding greater re-use presents a considerable downside risk for the producers of tomorrow.”

According to Wood Mackenzie, the forces that are shaping up to drive this boom are unique. But even for those commodities stepping into the limelight, decarbonisation creates as many risks as it does opportunities.

Under Wood Mackenzie’s proprietary Accelerated Energy Transition-2 (AET-2) scenario, which is consistent with limiting the rise in global temperatures since pre-industrial times to 2 °C, 360Mt of aluminium, 90Mt of copper, and 30Mt of nickel will feed the energy transition over the next 20 years. This level of additional metal presents obvious challenges for producers and consumers alike.

Morris added: “As with all commodities, the metals that are key to the transition

www.phoenixtm.com

Comprehensive • Passes through furnace with Slab • Get an accurate Slab temperature profile • Measurement at up to 20 points • Live 2 way radio communications

23

oil demand to collapse to 35 million b/d by mid-century – 70% below today’s levels – and sees the oil price slump to below US$20/bbl. Thermal coal demand will also enter a steep decline. Gas demand remains resilient due to the deployment of blue hydrogen and opportunities from the large-scale development of carbon capture and storage (CCS) and carbon capture, utilisation and storage (CCUS) in the industrial and power sectors.

Morris said: “For the first time in the mining industry’s history, a paradigm shift in demand has been clearly signposted before it materialises. With that comes the opportunity to act before supply chains are overwhelmed. While some will see no upside, if the boom is not carefully stewarded, even those that should benefit could face structural challenges to future demand. Although this might ultimately limit the highs, it will certainly reduce the lows and, ultimately, drive a more sustainable market dynamic in the long run.” �

will have to bring on replacement capacity to replace existing mines as they deplete and close. Under our base case, which is broadly consistent with a 2.8-3˚C global warming view, this requirement is manageable. However, under our AET-2 scenario, the new annual installed capacity required becomes eye-watering. By 2030, cobalt producers would need to have built 167% more supply than we currently have in our forecast, while copper would need to find 85% more mine supply than in our base-case forecasts. This will present a huge challenge for the sector.”

Other commodities waning While the world grapples with the magnitude of the transition and metal producers dream of what might be, other commodities are waning in prominence.

In Wood Mackenzie’s AET-2 scenario, fossil fuels’ share of energy demand falls to 50% by 2050 as low-carbon energy captures market share. Under this scenario, rapid and aggressive EV penetration leads

Temperature Profiling Solutions In the Steel Reheat Industry

Safe • Safe system installation without production delays

• Reliable protection of data logger up to

Easy • Optimise your process accurately • Validate your furnace mathematical model.

1300°C

Benefits • Optimise furnace programs • Save energy and increase production • Obtain optimal drop out temperatures • Minimise scale build up • Prevent hot roller wear & tear

nts !

e cou Where experienc www.steeltimesint.com

China.indd 2

PhoenixTM Ltd UK sales@phoenixtm.com

PhoenixTM GmbH Germany info@phoenixtm.de

PhoenixTM LLC USA info@phoenixtm.com

October 2021

18/10/2021 08:27:30

SPEAKERS INCLUDE:

HOW TO TAKE SMART MANUFACTURING TO THE NEXT LEVEL

Dr. Asier Vicente, Head of primary process (EAF & Scrap) department, ArcelorMittal Basque Country Research Centre

Omer Miranda Senior Manager, Technology Digital Centre of Excellence, JSW Steel.

Carlos Russell Business Conduct Compliance & Cybersecurity Director Ternium

Boris Voskresenskii CDO and Head Severstal Digital

Dr. Kisoo Kim Head of Process & Engineering Research Lab POSCO

Keivaly Pujara Data scientist Digital Centre of Excellence, JSW Steel.

Luc Van Nerom, Deputy Managing Director, PSI Metals Belgium

Sandeep Pandya Chief Executive Officer Everguard.ai

Tomas Lundberg Research Engineer Swerim AB

Arindam Sarkar Consulting Partner, Energy and Resources Business Unit Tata Consultancy Services

Berk Birand CEO Fero Labs

Luca Cestari Manager of Process Control Systems Danieli Automation and DIGI&MET

20% DISCOUNT FOR STEEL TIMES INTERNATIONAL READERS Access the digital event between 8am-8pm GMT

Process optimisation, streamlining, efficiency, sustainability and productivity are just a few of the benefits that Artificial Intelligence is bringing to steel manufacturers embracing machine learning technologies in the process of manufacturing steel.

8 hours of conference content

In association with Steel Times International, the AI and Steelmaking Summit is a one-day virtual conference on 16 November bringing together professionals at the forefront of Industry 4.0 to share their experiences of implementing AI into steel operations.

REGISTER ONLINE WITH DISCOUNT CODE STI20 FOR 20% OFF TICKETS

Highly rated networking and communication tools to meet and contact other delegates See exactly who is online when you are Access all content on-demand for 30 days post event

SCAN ME TO REGISTER

View the full programme at www.steeltimesint.com/AI

20%

DISCOUNT

FOR STEEL TIMES INTERNATIONAL READERS! DIAMOND SPONSOR

AI Steelmaking Summit DPS.indd All Pages

PLATINUM SPONSORS

GOLD SPONSOR

ORGANISED BY

19/10/2021 12:50

SPEAKERS INCLUDE:

HOW TO TAKE SMART MANUFACTURING TO THE NEXT LEVEL

Dr. Asier Vicente, Head of primary process (EAF & Scrap) department, ArcelorMittal Basque Country Research Centre

Omer Miranda Senior Manager, Technology Digital Centre of Excellence, JSW Steel.

Carlos Russell Business Conduct Compliance & Cybersecurity Director Ternium

Boris Voskresenskii CDO and Head Severstal Digital

Dr. Kisoo Kim Head of Process & Engineering Research Lab POSCO

Keivaly Pujara Data scientist Digital Centre of Excellence, JSW Steel.

Luc Van Nerom, Deputy Managing Director, PSI Metals Belgium

Sandeep Pandya Chief Executive Officer Everguard.ai

Tomas Lundberg Research Engineer Swerim AB

Arindam Sarkar Consulting Partner, Energy and Resources Business Unit Tata Consultancy Services

Berk Birand CEO Fero Labs

Luca Cestari Manager of Process Control Systems Danieli Automation and DIGI&MET

20% DISCOUNT FOR STEEL TIMES INTERNATIONAL READERS Access the digital event between 8am-8pm GMT

Process optimisation, streamlining, efficiency, sustainability and productivity are just a few of the benefits that Artificial Intelligence is bringing to steel manufacturers embracing machine learning technologies in the process of manufacturing steel.

8 hours of conference content

In association with Steel Times International, the AI and Steelmaking Summit is a one-day virtual conference on 16 November bringing together professionals at the forefront of Industry 4.0 to share their experiences of implementing AI into steel operations.

REGISTER ONLINE WITH DISCOUNT CODE STI20 FOR 20% OFF TICKETS

Highly rated networking and communication tools to meet and contact other delegates See exactly who is online when you are Access all content on-demand for 30 days post event

SCAN ME TO REGISTER

View the full programme at www.steeltimesint.com/AI

20%

DISCOUNT

FOR STEEL TIMES INTERNATIONAL READERS! DIAMOND SPONSOR

AI Steelmaking Summit DPS.indd All Pages

PLATINUM SPONSORS

GOLD SPONSOR

ORGANISED BY

19/10/2021 12:50

We can put an end to your coil joining problems.

The QMT Quicklap Seam WelderTM is ideally suited to join two coil ends together by welding two slightly overlapped strip ends.

NB Overlap Resistance WeldersTM produce fast, high strength welds.

Fully automatic RCM ZipwelderTM is engineered to be the most technically advanced shearwelder available while increasing mill uptime with less weld failure.

Guild International can design and build the welding machinery you need to keep your coil processing lines up and running smoothly and profitably. We are the world leader in supplying highly-engineered coil joining equipment known for reliability and performance. Contact us today to begin designing the perfect coil joining equipment for your processing lines.

World Leader in Coil Joining Equipment for the Steel Processing, Tube Producing and Stamping Industries Since 1958

www.guildint.com +1.440.232.5887 USA

IRONMAKING

27

Between a pony and a pink unicorn?

Direct Reduced Iron – or DRI – is viewed by many as a cast iron solution to the decarbonisation of the steel making process. Along with the use of hydrogen as a reductant, it’s as if the whole thing is sown up, especially now that the Hybrit initiative in Sweden has delivered a consignment of fossil-free steel to car maker Volvo. But nothing is that straightforward and plenty of challenges still lie ahead. By Rutger Gyllenram* “WHAT the industry is promising right now is something between a pink pony and a unicorn!” The statement belongs to a young but already senior consultant at one of the major consultancy firms designing the future Swedish power grid.

The discussion was about the sustainability and realism in large-scale production of DRI using hydrogen as a reductant; hydrogen produced from water by electrolysis demanding vast amounts of electric power, preferably ‘green’ electricity. The venue was Stockholm in April 2021.

Some years earlier, companies had started to promise fossil-free steelmaking by producing DRI with hydrogen as reductant and water as the off gas. The pressure on the steel industry to transform in order to make it possible to live up to the Paris agreement had been massive and since scrap resources are limited, a solution had to include iron ore reduction. Hence the idea was quite logical, the reduction of iron ore using hydrogen. While never

Rutger Gyllenram.

Photo by Pelle Berglund, Znapshot.

used successfully on an industrial scale, it has been known since the 19th century.

After the first steel company declared its ambitions, others followed and soon the technology suppliers also joined in. Today,

one auto manufacturer after another declare that they want to use what they call ‘green steel’. The ambition of all the actors to live up to the Paris agreement is commendable, but not without complications for them and their investors, quite often the taxpayers, as we will come back to.

Choice of reductant and assessing the technical risk Low fossil or fossil-free DRI can be produced with three alternative reduction gases which all have advantages and drawbacks: natural gas with subsequent Carbon Capture and Storage, CCS, hydrogen gas and finally syngas of biogenic origin. The principles are shown in Fig 1. If CCS follows the syngas alternative, this process can also be considered climate negative.

Reduction with reformed natural gas, MIDREX and Energiron, accounts for the majority of today’s gas-based DRI production and is by far the process type

* Rutger Gyllenram is a Swedish process metallurgist working on raw material assessment for the iron steel and metal industries and can be reached at rutger.gyllenram@kobolde.com. www.steeltimesint.com

kobolde.indd 1

October 2021

18/10/2021 08:30:49

28

IRONMAKING

Fig 1. Pissot S et al, Production of Negative-Emissions Steel Using a Reducing Gas Derived from DFB Gasification, Energies 2021, https://doi.org/10.3390/en14164835

Fig 2. Gyllenram R et al, Driving investments in ore beneficiation and scrap upgrading to meet an increased demand from the direct reduction-EAF route, Mineral Economics 2021, https://doi.org/10.1007/s13563-021-00267-2

“Natural gas based direct reduction with CCS as implemented by Emirates Steel is today the best example of low fossil iron production.” closest to becoming fossil free.

Since the reformed gas contains one third CO and two thirds H2, compared with the 100% CO from blast furnace coke, the existing process provides the lowest CO2 emissions of proven ironmaking technologies. Some of the natural gas is used for reduction and after separation of CO2 in the top gas, a fraction that is CCS-ready is obtained. Other natural gas is burned with air to supply the necessary heat for reforming. The resulting flue gas contains nitrogen and is, therefore, not suitable for CCS unless nitrogen purification takes place. A future solution may be to burn this natural gas with oxygen instead October 2021

kobolde.indd 2

and thus avoid mixing with nitrogen to make this CO2 CCS-ready. The challenge is apart from making all the CO2 CCS ready, to provide enough CCS capacity to handle the large volumes that may be produced in the future. The concept has been tried on a small scale by Emirates Steel and now a much larger implementation must be evaluated.

Reduction with hydrogen mainly entails challenges in three areas: electricity supply, heat balance and product properties.

Hydrogen production requires large amounts of fossil-free electricity at a level that may affect the entire electricity balance of a steel-producing country. Furthermore,

hydrogen reduction, unlike reduction with reformed natural gas or syngas, requires additional heat supply in order not to stop.

This makes the process more complex than the others, which can cause problems when scaling up. Finally, reduction with hydrogen gives a carbon-free product that must either be carburised in a separate step or melted together with large amounts of carbon in the arc furnace in order not to suffer large iron losses.

Reduction with syngas of biogenic origin can be a solution where there are large amounts of biomass available as by-products from industrial forestry.

Gasification is a known technology and www.steeltimesint.com

18/10/2021 08:30:57

W E

C O N V E Y

Q U A L I T Y

Efficient Conveying Technology

Value in Use considering Productivity, Environment and Resource Efficiency.

Raw material assessment for the DR-EAF route

Hot Charging of DRI, HCI • Enclosed nitrogen sealed and heat insulated conveying system • No metallisation losses • Significant energy savings

• Value in use considering productivity, environment and resource efficiency • Scrap chemical analysis and uncertainty • Benchmarking recipe cost against theoretical optimum

• Reduced tap to tap cycles • Reduced electrode consumption

Contact rutger.gyllenram@kobolde.com / www.kobolde.com

AUMUND Foerdertechnik GmbH metallurgy@aumund.de · www.aumund.com Kobolde annons.indd 1

2021-01-19 08:09

30

IRONMAKING

FACT BOX Four necessary investment areas in the DRI supply chain to make a change this decade 1.

Investments in ore beneficiation and pelletisation to replace sinter feed by pellets.

Pellets lower blast furnace coke consumption today and pave the way for a transition to low fossil DRI production.

2.

Investments in DRIproduction for the blast furnace route. DRI used in the blast furnace lowers coke consumption and paves the way for replacing blast furnaces with intermediate melting furnaces when that technology is ready.

3.

Investment in DRIproduction for the metallics market offers a solution to scrap shortage.

4.

Investment in development of DR-technology so all of the CO2 can be captured and sequestrated.

otherwise the process is similar to reduction with reformed natural gas. The challenge here, however, is to scale up the gasification process to the volumes required. Today, forest by-products have a relatively low value and some are left to decompose in the forest. A future challenge may be competition from the production of biofuels.

Coping with both DR-grade and BFgrade pellets A low amount of slag is absolutely crucial for the economy of steel production in an electric arc furnace. This can only be achieved with low levels of acid oxides in the iron raw material, primarily gangue in DRI and steriles in scrap. Fig 2 shows the slag volume for 100 tons of steel with 50 tons of scrap and the rest DRI for different gangue contents in DRI and a different level of silica from dirt in scrap. A reduction of silica in DRI of two percentage points may result in savings of 12 USD/ton steel. What drives the production cost is increased energy consumption, increased consumption of lime and dolomite, increased losses of iron to the slag and reduced productivity. Forecasted growth October 2021

kobolde.indd 3

“For the steel industry to turn from blast furnaces to DRI from hydrogen, about 100 new mega size nuclear plants need to be built.”

[The New Yorker magazine]. of DRI production has led the mining companies to review their ore resources and processes to meet a possible increase in demand for DR pellets.

It is, however, a known fact that not all ores can be beneficiated to DR-grade, and technology suppliers are now working on an intermediate stage where a submerged arc furnace or resistance furnace is used to melt DRI from BF pellets under blast furnace-like conditions. In this new process, a blast furnace type slag will be separated with low iron losses and low consumption of slag formers as a result and the melted iron can be further processed in an electric arc furnace or a basic oxygen converter. The challenge here is to avoid high temperatures that make silicon in the slag evaporate and dissolve in the iron. If that happens nothing is gained from this process route compared to the traditional melting of DRI in an electric arc furnace.

Investments at low risk – now!

The development of an electric smelting process for DRI with a high silicon content will probably take most of a decade to be considered proven technology. In the meantime, the focus must necessarily be on introducing improvements in the blast furnace process in order to reduce coke consumption. There are three important

areas where low risk investments are needed: further enrichment of ore to reduce the levels of gangue, expansion of pellet capacity to increase the pellet ratio and thereby reduce the amount of slag in the blast furnace, and finally production of DRI from BF-pellets to charge the blast furnace with material pre-reduced with natural gas. Although not solving the entire CO2 problem, these investments, while being profitable, prepare the raw material supply chain for new technology when it is ready.

The more you work with DRI as a means for decarbonisation, the more obvious it becomes that the supply chain will be divided into an ore stage, a reduction stage and a steelmaking stage that do not need to be co-located. This opens up for DRI producers who are not integrated with a steel plant. They may be owned by a steel company, a mining company or completely independent. The critical conditions that will determine the location of fossil-free DRI producers for the world market are, in addition to port capacity, probably the availability of natural gas, electricity and biomass, and finally if CO2 is produced, a geology suitable for storage through CCS. Political risk Unlike the terms ‘fossil-free’ and ‘fossilwww.steeltimesint.com

18/10/2021 08:31:02

32

IRONMAKING FACT BOX

negative’ which can be explained scientifically, the term ‘green steel’ is based entirely on values. It is impossible to predict how limited resources like scrap, electricity, biomass and geological formations for CCS will be viewed in the public eye 10 or 20 years from now. An assumed price premium based on ‘greenness’ introduces a significant risk in an investment calculus and in a longer perspective steel products will probably have to compete entirely on product quality and production cost, including those related to CO2 emissions.

A major question is whether an attributional or consequential perspective will be applied on DR production in the future. The concepts are fetched from life cycle assessment, LCA, methodology and means taking the actual emissions from producing DRI into account or selecting the emissions that are emitted as a consequence of the DRI production.

An example is whether a DR plant with an adjacent wind park can use wind-power emissions for the hydrogen production as is the case with an attributional perspective or if emissions from coal combustion should be used since the wind power produced could have replaced fossil energy.

The environmental product declarations, EPDs, developed for products today use attributional methodology and as a consequence are used by companies planning for fossil-free steel. Consequential analysis, on the other hand, is often used at the societal level and that may be a reason for meeting much more arguments with this perspective once an enlightened debate starts on how resources are used.

In late September two articles indicate that the discussion has started. An article in The New Yorker makes the comment that for the steel industry to turn from blast furnaces to DRI from hydrogen, about 100 new mega size nuclear plants need to be built. In the same week three economists claimed in the Swedish paper Ekonomisk Debatt (Economy Debate) that investing in hydrogen-based production in northern Sweden was ‘environmental nationalism’.

The researchers applied a consequential perspective and suggested that fossil-free electricity from Sweden could be exported to substitute electricity made from coal elsewhere in Europe. Regardless of the quality of facts and arguments in the two articles, they highlight the fact that what is ‘green’ is dependent on the perspective you apply. The problem is that perspective October 2021

kobolde.indd 4

Three necessary missions to promote investments 1.

Agreeing on a minimum price on CO2 emissions on major markets.

2.

Stabilising the demand and prices for pellets and DRI within the supply chain.

3.

Stabilising production, transport and trade conditions in regions with large resources of natural gas and geology suitable for CCS.

“Hydrogen production requires large amounts of fossilfree electricity at a level that may affect the entire electricity balance of a steel-producing country.

”

preferences may change over time. Investors should consider what a gradual transition from an attributional to a consequential perspective on green production over the next 10 years may do to the investments.

Meeting the Paris agreement There is no single solution that will turn global steel production fossil-free by 2050.

Natural gas-based direct reduction with CCS as implemented by Emirates Steel is today the best example of low fossil iron production. As mentioned earlier, in this kind of process about 50% of the CO2 in the off gas is CCS-ready which might, with some effort, increase to 100%, but again that is allowing for a speculation. Some of the research projects going on with hydrogen today are promising, but they are just that: research or pilot projects.

How they perform in competition with

DRI from natural gas and a hypothetical 100% CCS 30 years from now is yet to be seen. Reduction with syngas from biomass combined with CCS is finally a very attractive option since it may offer a carbon sink i.e. negative CO2 emissions.

The elephant in the room, the large installed base of fairly new blast furnace plants, must initially be handled with traditional efficiency improvements aiming at lowering the coke and coal consumption.

In this work a transition to pellets instead of sinter to lower the slag volume, which saves coke as a fuel for melting, and charging DRI to save using coke as a reductant, will have an immediate effect on global CO2 emissions. At the same time, building up this infrastructure paves the way for phasing out the blast furnaces when they have become obsolete and new technology is available.

What is needed is agreements within the supply chain to start this transition involving steel companies, DRI producers and ore product suppliers to create the necessary market stability to allow for the investments to take place. Furthermore, huge diplomatic efforts have to be made to stabilise the political situation in countries with vast amounts of natural gas. The MENA and other natural gas-rich regions may become hot spots for fossil-free DRI production, but that demands making the regions less of hot spots in other aspects. Countries like Iran and, to some extent, Venezuela may prove to be important factors in decarbonising the steel industry, but then mutual trust must be restored. Difficult, yes, but the incentives have never been higher.

To conclude: Yes, DRI is an important tool to decarbonise the steel industry, avoid pink unicorns in the shape of wishful thinking and the elephant in the room may lead the way forward, even if it is pink. � www.steeltimesint.com

18/10/2021 08:31:16

DECARBONISATION

33

On track for green steel making

Reducing CO2 emissions is the name of the game in steelmaking, and hydrogen has a key role to play, says Lynn Gorman* IT is widely acknowledged that mankind must limit atmospheric temperature rise.

Carbon dioxide (CO2) has been identified by environmental experts as an important contributing element in climate-change science, and that its emissions must be reduced dramatically. The steel industry is known to be a major CO2 emitter. This is not a news flash. The worldwide steel industry is among the largest contributors to atmospheric CO2, emitting nearly three billion tons of it at a level of about 7% to 8% of total CO2 emissions. Yet, positively, iron and steel production is also among the most promising opportunities for measured and impactful decarbonization, and steelmaking is a viable place to start. Why? Because the industry is of strategic national importance and awareness in all countries, there are identified and actionable solutions to reduce CO2 emissions, there are technologies identified to accomplish this, and the governments are major end users.

Governments can encourage CO2 reduction for iron and steel using the techniques of levying taxes, fees, subsidies, and laws.

Transitioning from legacy to modern steelmaking The steel industry has already made significant progress in this effort, which has

resulted in some degree of decarbonization.

As the industry has switched investment from the legacy steelmaking technologies of the blast furnace and the basic oxygen furnace (BOF) to the current preferred technology of the electric arc furnace (EAF), the steel industry has become significantly decarbonized and the plants have become smaller, cleaner, and are consuming less energy. While EAF facilities primarily use scrap steel to make new steel, they must add additional iron molecules to the process, such as DRI (direct reduced iron), sponge iron, or HBI (hot briquetted iron), various terms for a raw material to augment recycled steel in EAF production.

DRI materials are made by reducing iron ore using CO (carbon monoxide) or hydrogen or a mixture of the two. Traditionally, DRI has been produced using a synthesis gas, which is generated from natural gas and consists of a blend of CO and hydrogen.

DRI can also be made with pure hydrogen, and pure hydrogen is a more powerful reducing agent than CO and provides improved kinetics. It is believed that DRI production using pure hydrogen could result in production enhancements.

Encouragingly, the war for greener steelmaking in the 21st century is being won. According to David Wolff, territory

manager at Nel Hydrogen, EAF steelmaking sets the stage for the next steps in the CO2 reduction mission. “EAF-based plants are virtually all that’s currently being built for steelmaking,” said Wolff. “There are nearly zero new investments in blast furnace or BOF capacity and at best, these facilities are being maintained with some conversions underway to cleaner technologies. As the industry evolves from blast furnace and BOF to EAF, steelmaking emissions are being lowered from 2.25 tons of CO2 per ton of steel to less than 1.5 tons of CO2 per ton of steel, or 30%. So, carbon’s place in steelmaking is narrowing.”

Traditionally, the steel industry has used coal and coke for fuels for heat, to make CO as a reducing gas, and as a strengthening additive in steel production.

For every molecule of carbon consumed in steelmaking, a molecule of CO2 is produced, so one ton of coal or coke results in almost four tons of CO2 production. As a result of the evolution in production technologies, from blast furnace and BOF to EAF, for each ton of steel produced in the decade from 2011 to 2020, an average of about 1.85 tons of CO2 was emitted.

This decarbonization effort has been underway for some time. Coal as a fuel has been progressively replaced by natural gas

* Freelance journalist www.steeltimesint.com

NEL.indd 1

October 2021

18/10/2021 08:47:49

34

DECARBONISATION

This bar chart illustrates the levelized cost of wind and solar energy along with coal and nuclear today. Note the dramatic performance of the renewables against legacy

These graphs illustrate the lower CAPEX slope comparing alkaline electrolysers with

technologies. These low costs are making it possible for water electrolysis to yield

PEM electrolysers over time. Note that both technologies will result in $300 per kW

highly cost-effective hydrogen for the steel industry.

CAPEX for hydrogen generation by 2030.

This graph shows the expected decline in electrolysis CAPEX and how that compares to the similar CAPEX using steam methane reforming. Note that it becomes competitive

Alkaline electrolyser

at $500 per kW and better at $300 per kW, which is the expected goal.

and electricity in many applications.

“The next step in the mission for greener steelmaking is introducing zero carbon hydrogen to the mix,” said Wolff. “Soon, it’s predicted the industry will be using hydrogen-enhanced EAF steelmaking which will make it possible to continue the reduction in carbon emissions initiated by the conversion of blast furnace and BOF to EAF furnaces fueled with scrap and DRI. EAF steelmaking enhanced with hydrogen will use hydrogen-derived DRI and hydrogenenhanced electric arc furnaces with nearzero CO2 emissions per ton of steel.”

Hydrogen steelmaking will grow with supporting infrastructure Longer term, then, green steelmaking is likely to include hydrogen which can complement electricity and replace coke October 2021

NEL.indd 2

and coal as fuel. Hydrogen-enhanced steelmaking can drive down emissions significantly. While the conversion from blast furnace and BOF to EAF reduced carbon emissions by about 30%, hydrogen steelmaking can reduce CO2 emissions by a total of about 90% compared with traditional blast furnace and BOF steelmaking. However, to reach that level requires massive production of green hydrogen at a cost that’s acceptable to steelmakers. As such, there needs to be enough green electricity produced to make that hydrogen, the industry needs to use green hydrogen for direct reduction of iron ore to make DRI using hydrogen only, and there needs to be green hydrogen fuel to augment melting of carbon-free DRI and recycled steel in the EAF. “That supporting infrastructure isn’t quite

there yet – however, progress is underway,” said Wolff. “For example, Nel Hydrogen received a purchase order to participate in the first large scale plant to demonstrate these symbiotic technologies working in concert with each other to support this revolution in green hydrogen steelmaking.”

The project in which Nel is participating is one that many of us in the steel industry have read about – the HYBRIT project in Sweden. It’s a multi-stage initiative starting with a pilot plant for demonstrating green steel production. Nel is providing a 4.5 megaWatt energy input alkaline electrolyser for this pilot plant stage. It was announced in mid-August that HYBRIT had shipped its first commercial shipment of green steel to Volvo for auto manufacturing. Breaking news is that Mercedes is in discussion to be the second automaker client for HYBRIT. www.steeltimesint.com

18/10/2021 08:47:54

DANIELI INTELLIGENT PLANT A NEW CONCEPT FOR PLANT AND PROCESS SUPERVISION Data-driven approach, AI and machine learning for continuous improvement of plant performances, simplifying metals complexity Via Bonaldo Stringher, 4 33042 Buttrio (UD) Italy Phone +39 0432 518 111 www.digi-met.com www.dca.it

Follow us on Linkedin

36

Containerized PEM electrolyser

More news will be forthcoming as the project advances.

Making hydrogen available at a realistic price Hydrogen can provide both thermal energy and reducing reactant conditions in place of coal and natural gas while releasing only water vapour rather than climate-damaging CO2. The benefits and technology to use hydrogen in place of coke and coal for steelmaking are understood, but there are stumbling blocks for making hydrogen that can make a difference in steelmaking.

The major challenges that remain include making enough hydrogen, making it in a way that is environmentally superior, making it from renewables, making it at a price that produces steel that the market will buy, and creating the customer pull to invest in green hydrogen and green steel.

To that end, according to Wolff, Nel has launched a target to reach a $1.50 per kilogram of hydrogen by 2025. According to the company, that target will enable the industry to compete with fossilderived hydrogen and moves significantly towards cost parity with natural gas for DRI production. It is believed that DRI process customization for the use of hydrogen may bring the process the rest of the way to full parity with the natural gas approach.

Water electrolysis runs on electricity, and while electricity is by far the most

DECARBONISATION

important determinant of hydrogen cost using water electrolysis on a large scale, investments in reducing electrolyser CAPEX (capital expenditure) are also important especially considering intermittent renewable supplies.

Nel is investing to reduce CAPEX in both alkaline and PEM (proton exchange membrane) electrolysers. While some techniques are common for both, such as larger volume manufacturing and advancements in automation, PEM is earlier in its technology life cycle and has opportunities for technology innovation around optimized materials, more efficient use of precious platinum group metal catalysts, and advanced component design.

Nel builds alkaline electrolysers in Norway, and builds PEM electrolysers in the United States. In Norway, the company is dramatically increasing its production capacity. Currently, it’s at 40 megaWatts per year (input electrical power to electrolysis) and will increase shortly to 500 megaWatts per year with the completion of a new plant, and then to 2,000 megaWatts per year with subsequent expansions. In the US, the company is increasing its production for PEM systems to 50 megaWatts per year, with additional expansion planned as demand increases. Alkaline electrolysis is admittedly a more mature technology with most of the technological innovations already absorbed. Although some technological innovation may still contribute, the cost reductions available

for alkaline electrolysis are primarily around volume purchasing and equipment simplification. By comparison, PEM technology is newer with room for significant technological innovation.

Electrolyser manufacturers often compare their capital cost analyses with traditional steam methane reforming to assess their timelines for expanded implementation. The process becomes competitive at a capital cost of $500 per kW and better at $300 per kW, which is the expected goal. According to Nel, technological improvements in PEM electrolysers will drive down the CAPEX for PEM electrolysis.

“For example, we are vastly increasing the size and capacity of our electrolyser cell stacks by a factor of 20, boosting the energy capability of a single stack to generate hydrogen reliably and efficiently,” said Wolff. “The company is also reducing the CAPEX of its PEM electrolysis equipment by transitioning from largely handmade membrane electrode assemblies containing platinum group metals to volume production roll-to-roll manufacturing of membrane electrode assemblies.”

Operational considerations will drive costs and create opportunities. The industry is working towards a better understanding about plant CAPEX and OPEX (operational expense) when intermittent operation is considered – as renewables are intermittent. The lingering questions are: When will hydrogen storage become more cost effective? What role will be played by alternative hydrogen outlets such as vehicle fuel, chemical intermediates, natural gas pipeline injection, and more? One thing is certain, as the coming years unfold, these issues will be solved. When the steel industry is ready, hydrogen generation will be scaled for it, with CAPEX priced to compete, OPEX driven down to a minimum, and with tight integration with electrical supply systems for the lowest cost. �

Large scale PEM electrolyser plant

October 2021

NEL.indd 3

www.steeltimesint.com

18/10/2021 08:47:57

1,000,000 OPERATING HOURS ON HIGH HYDROGEN REACHED IN 2016

47 HIGH CO, HIGH

70% + HYDROGEN

H2 UNITS INSTALLED

CONTENT

%

HIGH EFFICIENCYWITH GAS TURBINE COMBINED CYCLE AND COGENERATION 2006 FIRST COG AND RFG INSTALLATIONS

CO

HIGH

HYDROGEN SYNGAS

MORE ENERGY CLEANER AIR Solar Turbines was an early pioneer in providing solutions for the flare gas challenge.

We now have more than 47 gas turbines running on high hydrogen gas.

Always with the availability and reliability that contribute to your success.

CONTACT US: www.solarturbines.com Phone: +41 91 851 1511 | +1 619 544 5352 infocorp@solarturbines.com

Ad More Energy Color Hydrogen A4 0221.indd 1

2/10/2021 11:34:18 AM

38

IRONMAKING

Opportunities in ferrous slag markets Ferrous slag is a monetisable commodity. While much of the produced slag remains within the state or country of production, a fairly robust import and export market for slag has emerged.

GLOBAL ferrous slag production will reach a projected 583.9Mt slag in 2021, with a market value of $25.31 billion, according to the latest research from Smithers. A degree of stability is now returning to metal production in China and across the world after the disruption of the Covid pandemic across 2020 and into 2021. Indeed the rapid recovery of the Chinese economy backed by government stimulus spending in H2 2020 meant its steel output actually increased relative to 2019.

Data forecasting in The Future of Ferrous Slag: Market Forecasts to 2031 [https:// www.smithers.com/en-gb/services/marketreports/materials/future-of-ferrous-slagmarket-forecasts-to-2031] shows that there will be further increases across the next decade, with output reaching 621.6Mt in 2026. Growth will then slow, but remain

positive, up to 635.4Mt in 2031.

Across the same period new furnace technologies and end-use applications will drive a faster expansion in market value.

World value will increase at a compound annual growth rate (CAGR) of 5.1% through to 2026. The global value in that year will be $32.50 billion; and further increases mean it is set to break the $40 billion mark by the end of the decade.

Fig 1.

Market structure By its nature as a by-product produced during iron and steel manufacturing, ferrous slag has historically been classed as a commodity material. Therefore, external stimuli influencing the iron and steel industry impacts the production and use of ferrous slag directly. When steel and iron

Fig 1. Treemap perspective of global ferrous slag production, 2019. Source: Smithers

production increases, the production of usable ferrous slag increases.

Virtually all global ferrous slag is produced by one of three methods: • A blast furnace (BF); • A basic oxygen furnace (BOF) • An electric arc furnace (EAF).

With the recognition of ferrous slag as a monetisable commodity rather than manufacturing waste, large, multinational entities that service many of the non-production aspects of iron and steel manufacturing have come into existence.

And while much of the produced slag remains within the state or country of production, a fairly robust import and export market for slag has emerged.

Fig 2. Total slag production, by type, volume, 2019 vs. 2031 projected (million tonnes).

Source: Smithers

October 2021

Eurocoke.indd 1

www.steeltimesint.com

18/10/2021 09:00:44

IRONMAKING

Slag sources BF slag is the largest sector of the market accounting for around two thirds of current world output. Smithers estimates that over the 2020s, the consistent expansion of EAF steel manufacturing will mean that growth rates for EAF slag should outpace those of BOF slag; however, BF slag (BFS) will continue to be the dominant slag in terms of total quantity used. Fig 2.

The overall value of global ferrous slag will increase at a faster pace than volume, driven by strong use of BFS as a substitute for traditional materials in cement and concrete, and use of steel slag (SMS) in road and civil engineering.

End-use segments From a demand perspective, increasing use of ferrous slag will be linked to the outlook of the civil engineering and construction markets. This is receiving fresh impetus as many countries’ post-Covid recovery programmes have looked to prioritise infrastructure spending to kick-start a return to growth after record falls in GDP from 2019-2020. On 10 August, for example, the US Congress approved a multi-year $1 trillion bipartisan infrastructure plan.

Concrete Slag use in concrete will continue to increase globally, fed primarily by the large expansion of the Chinese cement industry – the largest globally – and the country’s own infrastructure spending plans. Its resistance to seawater and corrosive soil elements means concrete with slag is especially prized for infrastructure elements such as piles, underground beams, foundations, and retaining walls; or in countries that have acidic soil, such as Japan. www.steeltimesint.com

Eurocoke.indd 2

39

A big advantage that GGBS has over Portland cement is environmental. The manufacture of Portland cement is very energy intense – cement clinker has to be heated to over 1,400°C (2,600°F) to break down the constituent elements in the clinker mix. Iron and steel manufacture requires energy and does emit CO2, but the energy required is less.

The largest use of ferrous slag for any single, specific purpose is ground granulated blast furnace slag (GGBS) which is used as a replacement for Portland cement in cement and concrete mixes.

When GGBS is used in concrete, mix ratios vary depending on climatic conditions, scheduling and, occasionally, regulatory limitations on use; but are typically a 50 to 50 blend between GGBS and Portland cement.

Typically, aggregate – sand, crushed stone, and gravel – accounts for about two-thirds of conventional concrete mixes.

Increasingly recycled concrete and ferrous slag – generally crushed air cooled blast furnace slag (ACBS) – are substituting for the crushed stone. Fine GGBS is also employed as an aggregate in some applications.

Cement GGBS can be used to replace up to threequarters of Portland cement, particularly in mortars and grouts and where Portland cement is used as a stand-alone product.

Slag cement is often used in ready-mix concrete – concrete that is batched at a plant and transported wet to a project – and the ready-mix market is growing globally.

Mineral wool Slag-based mineral wool insulation is manufactured by melting slag mixed with aggregate in a cupola furnace using a hightemperature coke-fired oven. Liquefied slag is then spun using spinning wheels into a cotton-candy-like fibre. A binder is added, and the fibres are air-cooled and arranged in layered mats for curing, cutting, and packaging.

Slag-based mineral wool insulation is very fire-resistant and has excellent thermal and sound attenuation properties. In total, an estimated 7.52 Mt of ferrous slag was used in mineral wools in 2020, worth $188 million worldwide.

Use will be supported by a new series of energy-efficient building renovations. An H1 2020 financial report from Saint-Gobain estimates that 72% of existing buildings in Europe will be renovated by 2050, worth €600 billion annually.

Civil engineering Crushed slag of all types can be used to create embankments and as road fill. All slag types drain well and are not susceptible to damage or distortion due to frost or freeze conditions. It is a common option in some countries – such as Canada, Australia, and Japan. Efforts to increase use, particularly the use of SMS as roadway fill, October 2021

18/10/2021 09:00:48

40

IRONMAKING

Fig 3. Use of SMS, Europe, percentage, 2018. Source: Smithers Data: Euroslag

are underway in several countries including India and Ukraine.

ACBS is well suited for use as road fill or base due to its low compacted density and overall strength, high particle stability and its ability to stabilize wet soil at early stages of construction.

Unlike natural aggregates, ACBS does not wear or become smooth with use and it retains its adhesiveness over time, an attribute that reduces particulate run-off.

Fig 3.

The characteristics of SMS means it is well-suited for the construction of unpaved or untopped roadways, where is resists degradation from road traffic because the slag compresses into firm soil without losing shape or strength. It is also resistant

October 2021

Eurocoke.indd 3

to shear and, due to its shape, has friction characteristics that make it well-suited for embankment construction uses.

EAF slag also has potential as ballast for railway tracks, where its density and weight provide high resistance to lateral movement on curves, and resistance to wash-out in heavy rains and floods. It displays angular surfaces, which, similar to the natural stone it replaces, gives it strong interlocking characteristics.

In some countries, such as the US, over 90% of all roads and highways are paved with sand, gravel or crushed rock aggregates. The strength, durability and shape of ferrous slag makes it suitable for use as a substitute aggregate in asphalt mixes.

Fertilizer and environmental uses Limestone and lime are used during the iron and steel making process. Once refined post-production, the lime is rich in phosphate, zinc, magnesium, and silicates and is well suited for use as a soil enhancer.

Lime-rich BFS has a long history of use as a fertilizer, particularly in Europe where its high phosphoric acid content is valued and most notably in Germany. BFS and SMS fertilizers are used in Japan and throughout Asia, particularly in rice farming where the calcium oxide content of the fertilizer is doubly useful as an alkaline material to neutralise acidic soil.

Global use of all types of fertilizers will increase at a modest, but steady, rate annually over the 2020s – from 3.60Mt in 2020 to 4.12Mt in 2031.

In the Middle East, SMS is used to prevent the desertification of usable land.

The slag is spread on a defined area and helps retain soil moisture. Slag also has potential to mitigate erosion of marine habitats via use as a bedding media to promote the regeneration of coral reefs.

Here the calcium and iron minerals in the slag can react with sea water and promote the growth of sea algae, which increases photosynthesis and restores marine ecosystems.

Full forecasting for global production and demand in each of these end uses is analysed critically in the Smithers report – The Future of Ferrous Slag: Market Forecasts to 2031 [https://www.smithers. com/en-gb/services/market-reports/ materials/future-of-ferrous-slag-marketforecasts-to-2031]. This is quantified in an exclusive data set presented in nearly 100 data table and figures. � www.steeltimesint.com

18/10/2021 09:01:14

DIGITALIZATION

41

The steel melt shop is getting smarter Steel melt shops can boost productivity, safety and energy efficiency using smart factory solutions powered by digital technologies, taking a step towards autonomous and safer operations, writes ABB’s Tarun Mathur* STEEL manufacturers face three key challenges. First, there is the need to improve productivity while also keeping workers safe in melt shops, where there is a lot of manual co-ordination of hot metal.

Second, melt shops are under pressure to produce the same tonnage of metal with fewer operating costs. An increasing number of technology projects in the steel industry now focus on optimising process efficiency through the application of digital and automation solutions.

Finally, sustainability is a major driver.

Along with the aluminium and cement, steelmaking produces the largest quantity of emissions of any industrial process worldwide, and the onus is on companies to reduce carbon emissions; this is especially true in Europe, which has strict environmental targets.

Steelmakers can take advantage of grants and subsidies available from governments to incentivise them to reduce their carbon footprint. Partnering with a trusted technology provider with a portfolio of digital and automation solutions and proven domain expertise is key in helping them to do so.

ABB Ability™ Smart Melt Shop By synchronizing the movement of ladles using digital and automation solutions, melt shops can detect and eliminate equipment or process bottlenecks to maximize throughput, while at the same time minimizing energy use per tonne of production.

Ladle movement in a melt shop, ABB Ability™ Smart Melt Shop

* Global product manager, metals digital at ABB www.steeltimesint.com

ABB.indd 1

October 2021

18/10/2021 09:04:32

®

With over 45 years in the Steel Industry, we have a wide variety of solutions to keep your mill rolling.

Traversing Restbars allow for quick and accurate pass changes

· Honours existing mill attachment points and guide base, no machining on your stands required · Made from stainless steel and specifically tailored to your mill ensuring perfect fit, operation and longevity

Our roller entry guides keep your product on the pass · Single point, centralized adjustment during operation · 2, 3 and 4 roller configurations · Rigid, stainless steel construction · Broad size range

® spiral cooling system

Maximize your mill speed while meeting your quenching requirements on all bar sizes. Not just controlled cooling, but correct cooling

box configuration

· Fewer surface defects and better scale control · Available in Box, Trough and Restbar-mounted configurations

Contact Us www.fabris.com

info@fabris.com

905.643.4111

trough configuration

DIGITALIZATION

43

functionality is a key differentiator for the company and customers.

Thermal loss prediction based on ladle conditions and forecasted delays in operations provide ladle furnace operators with the right lifting temperature prediction to ensure heats reach the right superheat at the caster, hence the opportunity for the steelmakers to increase caster speeds and higher production from melt shops.

ABB Ability™ Smart Melt Shop displays many attributes of an internet of things (IoT) solution in that it connects all the processes, cranes and ladles, and tracks all these different objects uniquely in the melt shop and applies algorithms to improve the production ecosystem.

Ladle transfer by crane in a melt shop, ABB Ability™ Smart Melt Shop

ABB ABILITY™ SMART MELT SHOP: KEY BENEFITS • Increased caster speeds by ensuring the correct superheat at the caster.

• Improved people safety by reducing exposure to hazardous hot metal zones and allowing for decision-making based on information dashboards.

• Energy savings and quality improvements by predicting the ladle’s thermal loss during transfer and calculating the right temperature to avoid excess overheating.

• Improved service planning by tracking the history of ladle maintenance and contact with metal • Reduced tapping ladle delays for EAFs due to efficient crane scheduling for ladle movement.

• Detailed time motion analysis of work orders and overall system effectiveness with reports and KPIs. • Backed by knowledge built up during ABB’s more than 100 years in the steel industry.

Ladle tracking by itself is not enough to optimise melt shop operations, yet many vendors only offer ladle tracking solutions.

ABB Ability™ Smart Melt Shop additionally offers how to pace the heats and ladles www.steeltimesint.com

ABB.indd 2

optimally while eliminating delays caused by either processes or cranes. This ensures the correct superheat at the caster and that there are no tapping delays at the arc furnace or converter; this additional

Ladle and crane tracking engine: visibility and safety What do we mean by a ‘smart’ melt shop?

Take Uber cabs as an example. Customers are demanding a taxi to a certain location, with multiple users making the same request to a central server via an app. Uber looks at the availability in that area and then allocates a specific cab for a specific user.

Transfer this model to the steel melt shop, where you have multiple people requesting a crane to pick up the material at the right time. ABB Ability™ Smart Melt Shop makes the entire ladle and heat movement automated by tracking the cranes using radar technology, ladle transfer cars by laser and augmenting this data with an imagebased system to track the real time position of ladles/heats. This data is then fed into the scheduling engine, which automatically generates and schedules crane jobs based on real time visibility, with pick up and drop location information made available to the operator on a screen.

Instead of only ladle tracking, ABB’s solution extends to derive real values by scheduling crane operations, heat pacing and thermal model predictions to optimise melt shop operations with the preferred heats and speeds, and less arcing in ladle furnaces.

The ABB tracking engine has no sensors on the ladle itself, and instead radar-based technology for crane positioning and laser-based technology for transfer car positioning allow to logically and uniquely track the ladles in the steel melt shop.

This alternative approach reduces the hardware footprint, and saves melt shop October 2021

18/10/2021 09:04:49

44

DIGITALIZATION

dashboards, improved service planning, and better reaction time to work orders and overall system effectiveness through reports and KPIs.

ABB Ability™ Smart Melt Shop visualization of crane and ladle movements

clients having to spend time and money on additional hardware maintenance.

Crane scheduling engine: productivity Currently, crane operations are manually co-ordinated. Typically, each process station speaks to the operator via walkie-talkie, with a manager overseeing the process to ensure each station gets the material it needs on time. Manual co-ordinations may result in inefficient operations leading to delays in tapping the ladle for EAF or delays in ladle transfer to the caster.

ABB automated crane scheduling, part of its smart melt shop model, encompasses job forecasting, route planning, automatic crane scheduling and automatic acknowledgement of jobs for optimal work allocation. For example, when arcing is complete, the system identifies that a crane is needed, creates a job list and dispatches the crane on time based on legacy and current production data.

By centrally visualising what is happening in the melt shop in this way, the tracking engine replaces inefficient manual crane management with synchronised operations that streamline production. A major reduction in tapping delays is observed after the implementation of the smart melt shop system. In addition, the crane operator’s job is made easier, more predictable and less stressful via the automated generation of job lists, rather than co-ordinating operations via walkie talkie. Safety is also improved by minimizing exposure to hazards via full visibility of ladle and crane movements.

Thermal engine: heat compliance Effective superheat control for the heats at the caster is critical to running it at October 2021

ABB.indd 3

maximum speed. In addition to this, effective superheat control reduces the arcing requirement in ladle furnace processes, reducing the energy bill for melt shops. Lower superheat may lead to heat rejection at casters, while higher superheat requires casters to reduce speed, hence a loss in productivity.

The primary objective of ladle tracking and crane scheduling is to make the ladle transfer more certain, and hence calculation of thermal losses more accurate.

Using forecast data from the tracking and scheduling engines, the system can predict the waiting and travel time for the ladle – and thus its thermal loss during transfer – and predicts the right lift temperature at the ladle furnace to avoid excess overheating so the caster can run at the highest possible speed. The thermal model takes into account the ladle’s recent tracking history for more accurate predictions.

An increase in caster speeds of 4–5% is observed after implementing the ladle tracking, crane scheduling and thermal model.

In addition to production optimisation, automated solutions such as those outlined above improve safety.

A melt shop is a dusty, hazardous environment, with hot metal temperatures exceeding 1,600°C, Now, personnel can visualise operations on a screen and tablet devices in an air-conditioned control room with much reduced footfall on the shop floor.

ABB digital and automated solutions for steel melt shops use standard industry protocols and are, therefore, easily incorporated with legacy and third-party supplier systems, resulting in more informed decision-making based on information

Case study: JSW Steel These benefits and others can be witnessed in India, where ABB has integrated ABB Ability™ Smart Melt Shop into a wider expansion at JSW Steel’s Dolvi Works.

Completed in March 2021, the project has improved productivity and energy efficiency for the steel melt shop using a ladle and crane tracking system, crane scheduling system and thermal loss models to predict target temperature for ladle furnaces and ensure the correct superheat at the caster.

These innovations are expected to increase the company’s EBITDA profit by approximately $2 million a year through 4% higher casting speeds, time savings of one working day per month and additional output equating to 24kt/yr.

The Dolvi Works plant now benefits from real time ladle tracking for process synchronization and better maintenance planning. The lower energy consumption means fewer consumables are used per batch and, therefore, a lower carbon footprint thanks to less CO2 per tonne of steel produced.

In addition, ABB’s automatic tracking and scheduling solution increases the safety of JSW Steel personnel by removing them from the busy production area during crane and ladle movements.

The evolution of Industry 4.0 Innovations such as these are just the beginning. Industry 4.0 is transforming many key facets of steelmaking operations and manufacturers that do not adopt an ‘early mover’ strategy when it comes to embracing the digital and automation revolution risk losing their competitive advantage.

There are also potential wins in terms of predictive solutions that use advanced analytics, AI and machine learning to further improve temperature optimisation, maintenance and plant uptime.

As a leading technology provider with proven experience in the steelmaking industry, ABB’s portfolio of digital and automation solutions will adapt and evolve in response to the challenges facing steel manufacturers as they look to boost production and profitability, and reach their sustainability targets. � www.steeltimesint.com

18/10/2021 09:04:51

IRONMAKING

45

Reducing CO2 Emissions in the BF/BOF This article will examine how far BF/BOF steel plants can progress towards carbon neutrality and will then look at different ironmaking strategies in the main steelmaking countries/regions. The information presented here was taken from one chapter of a White Paper being prepared (for 2022 release) by the International Iron Metallics Association (IIMA). By Dr. Joseph J Poveromo* A GREAT deal of what has been written about the roadmap to carbon-neutral steelmaking revolves around the shift from integrated steelmaking via the blast furnace/ basic oxygen furnace (BF/BOF) route to the direct reduction/scrap/electric arc furnace (DRI/scrap/EAF) route that is expected to take place over the coming decades.

However, there are at least two reasons for exploring what can be done with the existing BF/BOF steel production route: • In the interim, before process conversions take place, it is still desirable to reduce CO2 emissions in BF/BOF production.

For some regions of the world, especially where the majority of global steel production occurs, the ultimate conversion to DRI/scrap/EAF steel production might not be feasible, so it is essential to examine what can be done with the BF/BOF route.

Burden preparation Sintering process • replacing carbon (coke breeze,

anthracite) with biomass (such as charcoal) fuel sources, • utilize ‘green’ H2 as ignition furnace fuel, when ‘green’ H2 becomes available, • switch to electricity generated from renewable sources (so-called ‘green electricity’) for fans, drives, etc.

Pelletizing process • replacing carbon additions (coke breeze, anthracite, etc) with biomass (such as charcoal) fuel sources for hematite ore pelletizing; • due to the exothermic oxidation of magnetite to hematite, use of magnetite ores in pelletizing does not require carbon so, for example, by pelletizing magnetite ore LKAB in Sweden is already producing ‘greener’ pellets; • plasma torch-based induration using ‘green’ electricity: a supplier of plasma torches (PyroGenesis) is piloting this with a major pellet producer; • switch to green electricity for fans,

drives, etc.

Coke ovens • Real ‘green’ opportunities are limited to green electricity for motors, fans, etc.

CDQ (coke dry quenching) provides some BF coke rate reduction.

• Non-recovery coke ovens technology reduces emissions, • Biomass addition to coking coal.

Also the CO2 emissions of the met coal feed should be taken into account. By contrast, iron ore mines exhibit much lower CO2 emissions (kg/ton), associated with electrical power and fuel use in mobile equipment and processing facilities. Some examples are shown below, from Teck (coal) and Rio Tinto (iron ore). Fig 1 and 2.

Injection of hydrogen, natural gas, biomass/bioenergy, plastics Globally, nearly all blast furnaces, outside of North America and the CIS, inject pulverised

*Raw Materials & Ironmaking Global Consulting. Email: joe.poveromo@rawmaterialsiron.com www.steeltimesint.com

Poveromo.indd 1

October 2021

18/10/2021 09:41:58

LIGHTENING THE IMPACT OF HEAVY INDUSTRY CALL FOR SPEAKERS NOW OPEN

We’re looking for people at the frontier of cleaner industrial manufacturing who can ignite a discussion about the path to net zero on a game-changing scale. If you have ideas on, solutions for, or experience of how manufacturers in hard-to-abate sectors can embrace sustainable technologies, we want to hear from you.

WE ARE LOOKING FOR: Presentations that will engage the audience in a highly creative or interactive way Content that is applicable to a broad range of hard-to-abate sectors

Real-world implementations Practical takeaways that attendees can implement, or that drive robust discussions about new ways to improve operations

INTRODUCING THE SIM STEERING COMMITTEE

Nadine Bloxsome Aluminium International Today

Matthew Moggridge Steel Times International

Greg Morris Glass International

Fiacre O’Donnell Vidrala Ltd

Melanie Williams Melanie Williams Consulting

Geoff Matthews EnergyFlex Pty Ltd

Pernelle Nunez International Aluminium Institute

Oscar Verheijen GlassTrend Board

PART OF:

Chris Bayliss Aluminium Stewardship Initiative ORGANISED BY:

APPLY TO SPEAK AT

www.SustainableIndustrialManufacturing.com/Europe

SIM_Europe_CallforPaper_1p_Ad.indd 1

14/09/2021 09:33

IRONMAKING

coal (PCI) at rates of 150-200 kg/ton hot metal; this could eventually be replaced by ‘green’ H2 injection; as an intermediate step, injection of natural gas or ‘blue’ H2 also reduces CO2 emissions. Steelmakers such as TKS are conducting trials with H2 injection. Natural gas injection is prominent in the CIS and NAFTA regions; in NAFTA many also co-inject coal and gas.

However, until H2 is available as an injectant in sufficient quantity and at economic cost, some PCI, along with natural gas injection, will still be desirable from the perspective of overall CO2 reduction as coke rates can be minimized with such ‘co-injection’ of natural gas and coal. Injection of H2 may be maximized with equipment modifications to recycle and reinject a portion of the top gas.

Satisfactory BF operation has been maintained with coke rates as low as 250 kg/tHM, suggesting that co-injection (coal, natural gas) rates of 250 kg/tHM or H2 rates of 40 kg/tHM are feasible.

Injection of biomass and plastics: Whereas biomass (such as charcoal) can be claimed to fit into a circular economy, plastic injection merely displaces primary carbon usage, similarly to CO2 use for chemical upgrading. Not all plastics are suitable for injection, such as high chlorides in PVC that are detrimental for the BF process.

Co-injection of multiple injectants: coinjection of coal, gas, biomass, plastics and so forth, can maximize coke replacement and yield net reduction in CO2 emissions.

All injectants, other than H2, convert to CO in the raceway. Though carbon exhibits the highest caloric value, gases with hydrogen promote direct reduction and might provide

1998 2010 2019

Fe

63.9 62.9 61.9

SiO2

4.11 4.10 5.16

Al2O3 1.70 1.73 1.87 P

0.048 0.056 0.067

Table 1. Decline in iron ore sinter feed grades (DSO) %

1998 2010 2019

Fe

67.3 66.9 67.2

SiO2 3.70 4.04 3.84 Al2O3 0.26 0.36 0.32 P

0.017 0.021 0.016

Table 2. Concentrates and pellet feed grades %

good replacement ratios.

Burden materials Higher grade iron ores: higher grade ores allow production of agglomerates (sinter, pellets) with higher Fe content, thus reducing required rates of sinter and/ or pellet consumption with attendant reduction of CO2 from these agglomeration processes. Agglomerates with higher Fe content also reduce blast furnace fluxing requirements (limestone/dolomite) and hence slag rates with attendant reduction in coke rate and CO2 emissions. Furthermore, higher proportions of agglomerates (i.e. less lump ore) in the BF burden reduce coke rates and, therefore, CO2 emissions.

However, working against this is the long term decline in Direct Shipping Ore (DSO) grades, summarized as the averages for nine of the principal sources of sinter feed fines in the table below (from Australia, Brazil, South Africa and Mauritania). Sinter feed is the largest component of global iron ore seaborne trade, comprising perhaps

47

>80%. Over a 20-year period there has been a clear decline in the Fe content and an increase in acidic gangue and P levels that has several implications: increased BF slag volumes, coke rates and increased BOF flux consumption. Table 1 and 2.

However, for iron ore concentrates and pellet feed, the history is somewhat different, due principally to the ability to maintain or improve grade through the use of beneficiation technology. The table above shows the same comparisons for 1998, 2010 and 2019 for Fe, SiO2, Al2O3 and P for five of the leading pellet feed and concentrate producers (from Brazil, Canada, Sweden and Mauritania) and indicates little substantive change in overall quality.

Charging metallic Charging of metallics offers significant benefits in coke rate reduction (0.3kg coke rate/1.0kg metallic Fe) and thus reduction in CO2 emissions; metallics can replace 25% to 40 % of charged Fe units, but some CO2 credit is needed to overcome the higher initial cost of metallics. The practical limit of HBI use in BFs is about 25% to 40 % of the iron bearing charge as a certain minimum level of coke is necessary to support the descending BF burden and maintain its permeability and to provide the gas volume necessary to preheat incoming raw materials.

Higher blast temperatures Higher blast temperatures achieved by plasma superheating of the hot blast can provide a direct benefit through reduction in the coke rate and thus in CO2 emissions (only if based on ‘green’ electricity) as every 100°C increase in hot blast temperature can

Fig 2. CO2 from iron ore production (Rio Tinto Iron Ore) Fig 1. CO2 from coal production (Teck)

www.steeltimesint.com

Poveromo.indd 2

October 2021

18/10/2021 09:41:59

48

IRONMAKING

Fig 3. Three different versions of the ULCOS blast furnace (source: Tata IJmuiden)

Fig 4.

Coke dry quenching: coke dry quenching (CDQ) is extensively used in countries with high energy costs and also has a small coke rate benefit and so could be helpful in reducing CO2 emissions.

BOF off gas energy recovery: this is another technology that has required high energy costs to justify the investment involved, but otherwise has no other potential for process improvement.

Heat recovery from slags: dry granulation of slags is yet another technique that offers no additional process benefit, so project investment return depends upon energy pricing.

save about 9 kg/T coke.

Other BF energy efficiency measures include: • burden and gas distribution control to improve gas utilization: conversion of any remaining two bell top furnaces to bell-less tops can increase gas utilization and reduce coke rates; • digital process control to optimize hot metal: digitization of the BF process can also lead to reduced coke rates and CO2 emissions through more precise adjustment of blast conditions and burdening.

and H2 through the tuyeres. Utilization of CO2 scrubbed from top gas can be considered for other applications, such as chemicals. The ULCOS top gas recycle BF concepts (see below) have been well demonstrated at the LKAB experimental blast furnace. Fig 3.

Top gas recycling This includes injection of reducing gases in a second bustle pipe above the cohesive zone along with possible injection of additional reducing gases such as CO, CH4

Blast furnace top gas pressure recovery turbines (TRT): such turbines are incorporated into all of the newer, larger blast furnaces operating at high top pressure.

October 2021

Poveromo.indd 3

Best practice technologies Waste heat recovery: sinter plant waste heat recovery is incorporated into a number of the technologies aimed at sinter plant pollution control.

Utilization of slags: many BFs direct their slag to slag granulation facilities, usually joint ventures with cement producers to provide feed material for cement production. This does provide a CO2 reduction benefit for the cement producer as it offsets the production of clinker, normally produced in coal-based, environmentally unfriendly rotary kiln operations.

Power generation from any excess plant gas sources: many steel plants globally direct excess plant gas into co-generation plants that can generate electricity for plant or external use. However, the priority applications for plant gases are within the same or related processes such coke oven under firing, BF stoves, sinter plant burners or rolling mill reheat furnaces.

Carbon Capture Utilization and Storage (CCUS). This topic will be covered in the upcoming IIMA White Paper. www.steeltimesint.com

18/10/2021 09:42:05

IRONMAKING

Fig 5.

Differing regional approaches China, ASEAN Age of plant/equipment – The figure below (source: BHP) illustrates the median age of ironmaking/steelmaking facilities in all regions of the world. The facility ages in years in China (12), India (18) and other APAC (6) (Asia Pacific: Vietnam, Indonesia, Malaysia, etc) are in regions that account for over 75% of global steel production; thus the CAPEX barriers for major process equipment changes are formidable; the OPEX barriers (Australian iron ore less suitable for DRI) are already high. These barriers point in the direction of incremental CO2 reduction within the existing BF/ BOF route as exemplified by the Japanese Course50 programme outlined below. Also with respect to the BOF, increasing scrap ratios in the BOF charge can be expected as China’s scrap reservoir grows. Essentially, the same level of steel production, but with lower hot metal ratio in BOF decreases specific CO2 emissions per ton of steel.

Fig 4.

Japan: Course50 Programme The Japanese steel industry’s Course50 programme (CO2 Ultimate Reduction System for Cool Earth 50) consists of: • CO2 capture and storage from blast furnace gas: • direct CO2 capture (CO2 storage is not included in the project); • reduction of CO2 capture energy: by using waste heat from steelworks, input of external energy is minimized.

• Promotion of carbon-alternative reduction in the BF • utilization of H2 in coal as a BF reductant (conventionally used for power generation and heating); • development of a future H2 www.steeltimesint.com

Poveromo.indd 4

49

Fig 6.

reduction technology.

South Korea Posco’s earlier phases focus on energy efficiency, reduction of coal usage, COG or LNG as reducing agents and increased scrap use; the long range plan emphasizes the HyREX (modified FINEX process), as shown below. Fig 5.

Europe Europe is still heavily dependent upon the BF/BOF route. Current EU plans strongly emphasize a transition to the DRI/EAF route, as will be outlined in the upcoming IIMA White Paper.

NAFTA The DRI/scrap/EAF route is well established here. About 12Mt EAF capacity has been recently commissioned or is under construction in the USA, which will significantly increase the EAF share of steel production beyond the 69.7% of 2019 (see below) and thus demand for scrap and orebased metallics. Fig 6.

Brazil Brazil already has a well-established charcoal-based, lump ore-fed mini-BF sector that is primarily a producer of merchant pig iron for local and export markets for EAF and foundry applications. Brazil also has a large coke-based BF/BOF steel production sector where CO2 reduction efforts are focused on charcoal-based PCI along with natural gas injection. The large iron ore pelletizing sector, led by VALE, is exploring CO2 reduction via biomass replacement of anthracite, plasma indurating burners and other initiatives.

Another development is Vale’s plans to commercialize the Tecnored smelting reduction process using briquettes of iron ore fines, waste oxides and/or biomass materials.

How far can they go?

The question of how far can integrated mills go can be answered as follows: the Course50 programme in Japan is based on maintaining the BF/BOF route, but aiming at 50% reduction in CO2 emissions.

A study by SMS Paul Wurth indicates potential of up to 44-76% reduction in CO2. The pathways to carbon-neutral steelmaking will be evolutionary rather than revolutionary. There is considerable scope for reduction in CO2 emissions from the integrated steelmaking route, although not to the extent possible for the H2-based DRI/ EAF route.

Economics: CAPEX and the reliance on expensive DR grade pellets versus lower cost sinter feed ores and waste oxides will play a role in steel company decisionmaking, as will the attitudes and policies of governments and regulators. Also, additional processes will be needed to utilize waste oxides. � October 2021

18/10/2021 09:42:23

Furnaces International brings readers a selection of technical features focusing on all aspects of the international furnaces market, as well as industry news, investments, and the latest products and projects Published quarterly in a digital format, Furnaces International and the new monthly newsletter, are sent to the inbox of over 25,000 industry professionals As publishers of Aluminium International Today, Steel Times International and Glass International, we are able to compile this knowledge and bring you the latest developments on: • Energy Efficiency • Hot Repairs

• Maintenance • Heat Treatment

• Thermal Processes • Testing and Measurement

Look out for the December issue which contains The Furnaces International Buyers’ Guide. It is the essential guide to furnace manufacturers and suppliers of furnace equipment and services to the industrial heating/ process industry.

SIGN UP TODAY TO RECEIVE YOUR FREE COPY

CONTACT US NOW: Esme Horn

Sales Manager +44 (0) 1737 855136 esmehorn@quartzltd.com

Nadine Bloxsome

Editor, Furnaces International +44 (0) 1737 855115 nadinebloxsome@quartzltd.com

Zahra Awan

Editorial Assistant +44 (0) 1737 855038 zahraawan@quartzltd.com

WWW.FURNACES-INTERNATIONAL.COM

Furnaces_1p_Ad_Sept21.indd 1

11/10/2021 10:16

ARTIFICIAL INTELLIGENCE

51

How AI can reduce losses Most steel manufacturers struggle with consistent production losses, which cost them dearly – both in terms of the losses themselves, as well as missed profits. These losses usually fall into one of four categories: quality, scrap, throughput and yield. But artificial intelligence can help, says Liran Akavia* THE most common examples of steel production losses include: � Weight inconsistencies � Size and shape variabilities � Inner quality issues � Surface parameter flaws � Problematic analysis characteristics � Sub-optimal mechanical properties The common denominator of all these losses is that they are all process-driven.

They can’t be tackled by replacing or maintaining machinery, or changing one particular set-point. Instead, the true cause is buried deep within the process itself, posing a uniquely frustrating challenge for manufacturing teams.

Reducing quality, scrap, throughput and yield losses – a never-ending battle Another thing that all these losses have in common is that they are a constant battle.

There is no ‘eureka!’ moment, when the process expert finally discovers all the root causes, fixes all the inefficiencies, and walks off into the sunset.

In fact, the struggle begins anew each day, with competing KPIs making it seem impossible to achieve a comprehensively

efficient production process: for example, increasing quality while reducing scrap; or increasing yield and throughput, without compromising on quality.

How do you approach losses reduction at your factory?

At Seebo, we conducted an informal survey of hundreds of leading continuous process manufacturers, including dozens of leading steel manufacturing executives. We asked all of these senior executives the same questions: how do you approach losses

reduction at your factories? Incredibly, nearly all of them told the same story: they dedicate very significant resources – including the best minds in the industry – to reducing production losses. These process experts or engineers often do manage to reduce some of these losses, but at a certain point they hit an invisible barrier.

None of them could explain why, but there was a considerable gap between their goals and what they were able to achieve.

No matter the precise category of loss, or how they approached the problem, or

Why is it so hard to reduce loss KPIs?

* Chief operating officer and co-founder of Seebo. www.steeltimesint.com

Seebo.indd 1

October 2021

19/10/2021 15:52:42

52

ARTIFICIAL INTELLIGENCE

even how much money and resources they dedicated to it: in the majority of cases that gap was unbridgeable.

It was such a common gripe that we coined a term for it – The Complexity Gap. Having identified a clear common problem, we set about trying to understand why this gap was occurring. Throughout our many interviews we began to hear yet another common theme: when conducting traditional root-cause analysis, there is an inherent, gaping blind spot – a black hole of ‘unknowns’ that is often even bigger than what process experts actually do know about their processes.

Steel manufacturing process relies on human decision-making – but humans have limits This blind spot is the result of a simple fact: the production line ultimately relies on the calculations and decisions of human beings.

Talented, intelligent and experienced human beings – but flesh and blood nonetheless.

Process experts and production teams make dozens of critical, process-related decisions every day. These decisions can certainly be enhanced, informed and effectively executed via analytics platforms, measuring tools, and so on. But ultimately, the decisions are made and carried out by human beings.

This is an inherent limitation, as every person approaches a problem with their own biases and preconceptions. It is natural: when approaching something as complex as a steel manufacturing production line, human beings cannot possibly consider all the options at all times.

Engineers and experts have no choice but to conduct ad-hoc analyses based on their own past experience, knowledge and, in some cases, intuition.

Typically, root cause analysis at a steel October 2021

Seebo.indd 2

manufacturing line looks something like this: the process expert/engineer studies the problem and comes up with a theory – or a set of theories – based on their experience and intuition. They will then select a handful of tags they believe are most likely contributing to the problem; conduct several mathematical or statistical calculations with those tags, and then come to a set of conclusions.

Here is where the blind spot is so glaring.

Since the human brain can’t analyze every single data tag on the line – including all the complex interrelationships between each tag and how these might themselves contribute to a given problem – the analysis is limited to just a handful of tags.

Often this works, but other times it doesn’t – and this type of ad hoc analysis certainly doesn’t have a long shelf-life, as the line is constantly changing. So even a correct decision or analysis today might not be correct tomorrow – or even in a few hours’ time!

The bottom line: it is extremely difficult for human beings to conduct continuous, multi-variate analysis of all the data.

Ultimately, process-driven losses are caused due to a variety of factors – a ‘perfect storm’ of conditions on the line that’s invisible to the human eye because each individual data tag is still within the permitted range when taken individually.

That’s where Artificial Intelligence comes in.

Make the right decisions with AI This isn’t an article on how AI can run a steel factory. Hollywood aside, the reality is that AI – and in our case Industrial Artificial Intelligence – won’t be replacing human beings any time soon. On the contrary: Industrial AI enables teams to make the right decisions and improve their performance, by providing them with insights they wouldn’t have otherwise discovered.

Based on our conversations with hundreds of continuous process manufacturers, we’ve found three key criteria for an AI solution which, if met, can empower teams to achieve continuous process mastership:

www.steeltimesint.com

19/10/2021 15:52:47

ARTIFICIAL INTELLIGENCE

53

� Reveal the hidden causes: The one thing holding manufacturing teams back the most is the ‘unknown unknowns’ – those hidden causes of inefficiencies and production losses that they aren’t even aware of.

By revealing those hidden causes, teams would be empowered to take their efficiency to the next level – and in the process significantly reduce losses. � Continuous, scalable, multi-variate analysis of all the data: Another glaring gap in the current state of affairs is the ability to continuously analyse all the data, all the time, while taking into account all the complex interrelationships between different points throughout the line.

While humans can’t do that, Artificial Intelligence certainly can, specifically by using supervised Machine Learning algorithms to understand the patterns of behaviour that commonly lead to losses. � Focus on the process: Finally, in steel manufacturing (as with other process manufacturing industries), the process is key.

We can’t look at one point in isolation. Artificial Intelligence can provide us with insights – but those insights will only be relevant if the algorithms understand the full, unique complexities of the process.

If there is no embedded process expertise within the algorithm, the AI will simply analyze the data without the unique context – and come to the wrong or incomplete conclusions.

So what would such a technology look like in practice? We call it automated root cause analysis.

If manual root cause analysis is what’s holding steel manufacturers back, then automated root cause analysis is the solution.

Automated root cause analysis conducts continuous, multivariate analysis of the entire data set, and reveals the hidden causes of production losses that process experts couldn’t have figured out on their own. This is possible due to proprietary process-based Artificial Intelligence™. This technology embeds sophisticated Machine Learning algorithms with deep process expertise about each production line, enabling the algorithms to not simply analyse the data, but to understand each unique production process and thereby analyse the data correctly, in context.

Manufacturing teams can answer three critical questions from this automated root cause analysis: For process experts/engineer: 1. Why are losses occurring?

2. How can those losses be prevented in the future?

For production teams: 3. When should they take action to prevent those losses?

Reducing KPI losses with Artificial Intelligence This is the core benefit of Artificial Intelligence for steel manufacturers: to overcome the limitations of human analysis and reveal the hidden causes of production losses – whether in quality, scrap, yield, or throughput.

Armed with clear, real-time insights on why losses occur, how to prevent them, and when to act, even an ‘ordinary’ team can produce extraordinary results. � www.steeltimesint.com

Seebo.indd 3

HBI is here to stay!

For 40 years, Köppern briquetting machines have played a key role throughout the world in the production of HBI for DRI processes.

And HBI is still in demand, as demonstrated by the new HBI plants equipped with Köppern roller presses at LEBGOK (Russia) and Voestalpine (USA) and the upcoming installation at CLIFFS (USA). » » » »

State of the art technology Experts in process technology High plant availability Long-lasting equipment

Köppern – Quality made in Germany.

www.koeppern.de

October 2021

19/10/2021 15:52:49

54

PERSPECTIVES Q&A: CPL INDUSTRIES

Low-carbon fuel solutions CPL Industries’ ecoke product has been developed for the entire steel industry, but will be used primarily in the UK and European markets. We spoke to Jason Sutton* about decarbonisation of the steelmaking process and where his company fits in.

1. How are things going at CPL INDUSTRIES? Is the steel industry keeping you busy?

Business growth is strong as we continue to invest in new technology to aid the transition to net zero for our customers as well as enter new markets that are particularly hard to decarbonise, such as the steel industry.

The steel industry as a whole is a new target market for us and one in which we see enormous growth potential.

The industry faces a huge challenge in decarbonising its processes, and we have been able to adapt our technology used for home heating products to make it work for industries such as steel.

We have made trial volumes of our new ecoke product, which has already gained significant interest from various stakeholders in the steel industry, so I think the industry will be keeping us very busy in the future.

2. What is your view on the current state of the global steel industry?

The dynamics of the global steel industry are ever-fluid and highly cyclical. Right now, we are seeing a cooling off from the recent historic highs for steel prices.

Coupled by the ongoing energy crisis that is hitting steel production across Europe, and in particular the UK, steel manufacturers are having to assess their production and, in many cases, postpone decisions to re-start furnaces.

On top of their vulnerability to energy prices, manufacturers are also tackling increased carbon taxes which at the end of September stood at £75 per tonne in the UK and €63 in Europe. This punitive taxation, as well as the cost for transporting goods and raw materials, means that manufacturers are looking at nearshoring and re-shoring which will bolster production in the UK and across Europe

overnight cut to their carbon emissions.

Jason Sutton

as demand continues to recover postpandemic.

3. In which sector of the steel industry does CPL Industries mostly conduct its business?

As we enter the steel industry our focus is on targeting and supporting the whole of the industry as it meets the challenge of decarbonisation.

Our ecoke product has been developed for the entire steel industry and is not limited to a specific sector. We foresee it being primarily used in the UK and European steel markets.

4. Can you discuss any major steel contracts you are currently working on?

We are engaging with several steel manufacturers at the moment around ecoke and are experiencing strong interest.

We are targeting significant supply for the sector but do have some capacity constraints, so it really is first come first served for a manufacturer to make an

5. Hydrogen steelmaking appears to be the next big thing. What’s your view?

There is no doubt that hydrogen will have a future role in the decarbonisation of the steel industry, but there are other options.

While hydrogen is a solution, it’s not the solution. 100% biomass products and advanced biofuels will also play a role because they are affordable and will not require significant upfront costs from steel manufacturers who may otherwise have to modify their plants or change processes.

For some markets where the steel making industry is under pressure to remain profitable and where there may be concerns over medium term viability, making big capex investments into hydrogen will be a decision put on ice for the time being.

However, it’s not just the cost that will prevent steel players from switching, it’s also the scalability of delivery infrastructure which will take time to strengthen. Many regions across the world will have to wait decades for the roll-out and yet, will still be under pressure to meet carbon targets. This is where ecoke comes in.

Overall, it’s important to focus on the route to decarbonisation and low-cost options that will enable the steel industry to gradually transition to net zero. Biomass can provide an immediate step that steel manufacturers can take to reduce their carbon emissions without having to pay for new infrastructure or modifying their plants.

6. In your dealings with steel producers, are you finding that they are looking to companies like CPL INDUSTRIES to offer them solutions in terms of energy efficiency and sustainability? If so, what can you offer them?

* CEO, CPL Industries October 2021

perspectives.indd 1

www.steeltimesint.com

18/10/2021 09:45:26

55

PERSPECTIVES Q&A: CPL INDUSTRIES

“However, many of these innovations will take 20 years to come into fruition.

Even within the UK, hydrogen isn’t a reality for all until the 2040s.”

Steel producers are increasingly looking for suppliers to help them reach their own internal carbon emission targets and begin their journey towards net zero. While trying to avoid having to make significant capex investments, businesses are looking for plug and play solutions that can help them begin the journey of cutting their carbon emissions, while making use of their existing infrastructure and processes. Our new manufactured fuel, ecoke, incorporates 30% sustainable renewable biomass content and can lower carbon emissions by up to 30%.

7. How quickly has the steel industry responded to ‘green politics’ in terms of making the production process more environmentally friendly and are they succeeding or fighting a losing battle?

Previously, the response from the steel industry was not immediate because the industry is reliant upon the wider infrastructure and technology developments and this has made it difficult to decarbonise.

The imperative to improve is also relatively new. The much-vaunted hydrogen solution remains in its infancy and needs further innovation and then investment in the delivery infrastructure which is expensive and inflexible for steel plants that operate in remote locations.

However, within the last two years we have seen a real step change in the level of manufacturers that are now responding to the green agenda and recognising that they need to start making the required investments.

Ultimately the steel industry will be one that goes through several phases of its transition – there is no silver bullet available right now. As a result, steel manufacturers are studying and pursuing the solutions available today to kick start the transition.

to start cutting their carbon emissions.

9. How do you view CPL INDUSTRIES’s development over the short-to-medium term in relation to the global steel industry?

There is a significant opportunity which is confirmed by the fact that we are in conversations with a number of potential partners in the steel industry. Trial production continued throughout the summer months alongside rigorous testing and analysis and had excellent results. We have a go-to, immediately available product for the industry.

10. Where do you see decarbonisation innovation?

Innovations will be focused on reducing CO2 emissions from steelmaking and we are likely to see a move to EAF production alongside a combination of hydrogenfuelled technologies and carbon capture and storage.

However, many of these innovations will take 20 years to come into fruition. Even within the UK, hydrogen isn’t a reality for all until the 2040s. In the meantime, innovations like ecoke offer an interim solution and can still reduce carbon emissions by up to 30%.

11. How optimistic are you for the global steel industry going forward and what challenges face global producers in the short-to-medium term?

Right now, the industry is having to navigate rising energy prices and carbon taxes which vary significantly across regions and jurisdictions.

Steel producers are also having to

respond to consumers and their growing awareness of the environmental impacts of steelmaking. To meet this demand, they have to source cleaner products and introduce renewable-powered processes, all without sacrificing their profit margins or jobs. However, I am optimistic that the steel industry will be able to adapt to this changing environment.

12. Apart from strong coffee, what keeps you awake at night?

Clearly global commodity price increases are a major factor for many industrial businesses right now and CPL is no different. We are closely monitoring the current volatile situation.

On the positive side, CPL as a business has some really great opportunities to use its technologies and products to aid the journey towards decarbonisation. Driving the roll-out of these with our partners is an interesting, exciting and stimulating challenge.

Failing that, I have a two-year-old daughter who is equally capable of keeping me awake if the mood takes her.

13. If you possessed a superpower, how would you use it to improve the global steel industry?

If I had a superpower (and I think this would definitely take one), it would be to have the global steel industry on a level playing field when it comes to decarbonisation. We all recognise the need to get greener, but in a global industry such as steel, exporting pollution is not solving the problem and we need to be very mindful of this across all energy-intensive industries. �

CPL Industries’ Immingham plant

8. Where does CPL INDUSTRIES lead the field in terms of steel production technology?

Our focus is on providing immediately available and proven low-carbon fuel solutions that will allow steel manufacturers www.steeltimesint.com

perspectives.indd 2

18/10/2021 09:45:28

56

HISTORY

The blast furnaces of William Blake A new interpretation of Blake’s well-known poem The Tyger Below is an intriguing interpretation of William Blake’s poem, ‘The Tyger’ but one that is fanciful as explained at the end of the article by Dr. Tim Smith, secretary of the Wealden Iron Research Group.

BLAKE in his younger days used to take long walks out of London. One of these walks was into the South Surrey Wolds and Weald area, where there were working blast furnaces in the 1790s. It is possible that he saw a blast furnace and this inspired him to write The Tyger.

I now interpret the poem as an engineer and as, in my opinion, Blake intended it to be understood.

It is my opinion that Blake could only have written the poem if he had firsthand knowledge of a blast furnace and the horrible experience of men working in such terrifying and difficult conditions. His collection of poems in ‘Songs of Experience’ in which The Tyger was published were

based in the main on real life experiences, not on visions with metamorphical interpretations which is the way academics have all interpreted the poem.

The script is taken from Blake’s hand written notebook and includes a verse, which has never been published.

Verse 1 Tyger Tyger, burning bright In the forests of the night What immortal hand or eye.

Could frame thy fearful symmetry.

Blake came to a blast furnace possibly in evening light in the North Weald. He saw the symmetrical structure and the glowing

tuyere and access holes and was in awe at the quite frightening scene of men working the furnace. Tigers are not symmetrical, their markings are random. Blast furnaces are normally very symmetrical structures, with access holes through which the red hot interior can be seen. They are also very frightening environments if not accustomed to them.

Verse 2 In what distant deeps or skies.

Burnt the fire of thine eyes?

On what wings dare he aspire?

What the hand, dare seize the fire?

Here Blake sees the glowing metal

*David Paylor is a civil engineer October 2021

History.indd 1

www.steeltimesint.com

18/10/2021 09:48:33

HISTORY 57

COMMENT BY DR TIM SMITH, HON SEC OF THE WEALDEN IRON RESEARCH GROUP Even if we should dismiss Blake’s own illustration of a tiger sketched below his manuscript, now held in the British Library, as a metaphor for a blast furnace, the dates during which Blake could have visited a furnace on the Weald were at a time of marked decline of operations on the Weald, the industry having moved north to coal fields. This was also a period when the few surviving furnaces, were out of use for several years at a time.

The poem was published in 1794. Blake was born in 1757 in Soho, London and died in 1827 in London. He spent 1800 in a cottage on the coast near Bognor Regis in West Sussex, an area remote from the

Wealden furnaces, and also the poem was published before this date.

Out of 23 furnaces operating on the Weald in the 18th century, only three were in the northern Weald, the area David Paylor says Blake visited and claims operated into the 1790s: Burningfold in Dunsfold parish (some 15km south of Guildford) operated from 1568 to 1753 so closed before Blake was born. Thursley (16081719) in Goldaming (some 5km south of Guildford) was also shut long before Blake’s birth. It is believed that the third furnace, in Witley Park, also in Godalming, was run in conjunction with Thursley, but we have no documentary evidence of the dates for this

Did God smile to see the awful suffering of workmen in the furnace area?

And Blake queries if God who made the Lamb (Jesus), could he also make the frightening fiery blast furnace with men toiling to work it? Showers of red hot metal and sparks are often expelled from furnaces descending like tears from on high.

Blake is asking the question. He was often controversial on religious matters.

through the holes at the base of the furnace. Then the men would poke tools into the embers to shake the inside to get the slag to settle away from the molten iron. There is nothing in this verse that could apply to a tiger.

Verse 3 And what shoulder & what art Could twist the sinews of thy heart?

And when thy heart began to beat What dread hand & what dread feet.

Blake's Cottage, Blake's Road, Felpham

Here Blake is watching the half-naked men sweating away in working with the terrifying heat of the molten metal and he is conveying the feelings and physical stress of the workmen.

Unpublished verse (from Blake’s original note book): Could fetch it from the furnace deep And in thy horrid ribs dare steep In the well of sanguine woe?

In what clay & in what mould Were thy eyes of fury roll’d ?

Blake sees the molten iron released from the furnace and it rolls down channels cut in the clay or sand on the floor, which are the ribs and into the clay moulds. The red (sanguine) eyes of the furnace are released and the molten iron rolls down into the moulds. There is no connection to a tiger. www.steeltimesint.com

History.indd 2

furnace. However, since Thursley was shut by 1719, it is very unlikely that Witley would have survived at a time when Blake could have visited, well into the second half of the century.

By 1794, the date The Tyger was published, only one furnace was in operation on the Weald, that at Ashburnham in East Sussex and this closed in 1813.

Thus, this intriguing analysis does not stand up to close scrutiny and the more usual interpretation of the tiger representing evil in contrast to its sister poem, The Lamb – representing good – stands.

Verse 4 What the hammer what the chain, In what furnace was thy brain?

What the anvil? What dread grasp, Dare its deadly terrors clasp!

After the iron has cooled and solidified a large hammer is used to break each bar from its mould and adjoining bars. Chains are involved in lifting some very large hammers and for lifting the iron bars. No tiger here.

Verse 5 When the stars threw down their spears And watered heaven with their tears Did he smile his work to see?

Did he who made the Lamb make thee?

Verse 6 Tyger, Tyger, burning bright In the forests of the night, What Immortal hand & eye Dare frame thy fearful symmetry?

Blake repeats the first verse but in the final line changes ‘could’ to DARE. He asks the question whether God’s immortal hand or eye could be responsible for constructing this terrible beast of a blast furnace.

He was obviously moved by what he had witnessed.

Blake’s picture of a tiger in his published work does not look like a fierce beast, more like a child’s stuffed toy. He was a skilled artist and could have shown it as a ferocious beast baring its teeth had he intended that. �

October 2021

18/10/2021 09:48:34

When you need to know it’s safe* ARL iSpark. The trusted standard.

Metal is the backbone of our society. It’s in the structures we ride, work and live on every day. That’s why you’ve trusted the detection technology inside every ARL iSpark for over 80 years to ensure every piece of steel and metal you produce is safe. With so much riding on that, why would you choose anything else?

Find out more at thermofisher.com/ispark *Based on a data comparison, completed by Thermo Fisher Scientific in 2021, of detection limits for OES systems using data published in specifications and applications notes for ARL iSpark and competitors. ©2021 Thermo Fisher Scientific Inc. All rights reserved. All trademarks are the property of Thermo Fisher Scientific and its subsidiaries unless otherwise specified. AD41409 0821