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CCUS - A challenge for the Iron and Steel industry Henk Reimink 5-7 November 2013 Tokyo

CCUS - A challenge for the Iron and Steel industry and Steel 2 Secured...Presentation content Potential Crude steel and Iron production - 2050 - 2075 Global Iron and Steel industry

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Page 1: CCUS - A challenge for the Iron and Steel industry and Steel 2 Secured...Presentation content Potential Crude steel and Iron production - 2050 - 2075 Global Iron and Steel industry

CCUS - A challenge for the Iron and Steel industry

Henk Reimink 5-7 November 2013 Tokyo

Page 2: CCUS - A challenge for the Iron and Steel industry and Steel 2 Secured...Presentation content Potential Crude steel and Iron production - 2050 - 2075 Global Iron and Steel industry

2

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Distribution to third parties or reproduction in any form

is not permitted without written permission from worldsteel.

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Visit worldsteel.org. About us for detailed antitrust guidelines.

Page 3: CCUS - A challenge for the Iron and Steel industry and Steel 2 Secured...Presentation content Potential Crude steel and Iron production - 2050 - 2075 Global Iron and Steel industry

2022

Five key messages for the global steel industry

KEY MESSAGE 3 KEY MESSAGE 4 KEY MESSAGE 2

Sustainable

steel

Steel is

everywhere in

your life

Safe,

innovative and

progressive

steel

KEY MESSAGE 1

Steel is a key

indicator of the

world’s

economy

KEY MESSAGE 5

Life Cycle

Assesment,

new solutions

for new times

3

Page 4: CCUS - A challenge for the Iron and Steel industry and Steel 2 Secured...Presentation content Potential Crude steel and Iron production - 2050 - 2075 Global Iron and Steel industry

Steel is everywhere in your life

Page 5: CCUS - A challenge for the Iron and Steel industry and Steel 2 Secured...Presentation content Potential Crude steel and Iron production - 2050 - 2075 Global Iron and Steel industry

Safe, innovative and progressive steel

Page 6: CCUS - A challenge for the Iron and Steel industry and Steel 2 Secured...Presentation content Potential Crude steel and Iron production - 2050 - 2075 Global Iron and Steel industry

Steel: Life Cycle Thinking

Page 7: CCUS - A challenge for the Iron and Steel industry and Steel 2 Secured...Presentation content Potential Crude steel and Iron production - 2050 - 2075 Global Iron and Steel industry

Presentation content

Potential Crude steel and Iron production - 2050 - 2075

Global Iron and Steel industry impact on emissions

2D Scenario – allowance (50% on 2009 emitted level)

Scrap uprising scenario and impact on CO2 storage

Iron and steel industry activities on technology and practice transfer

CO2 Breakthrough Technologies programmes

Potential storage required for iron and steel industry by 2050 – 2075

Technical challenges in the Capture, Transport and Storage

Need for Political and Public sponsorship for CCS

7

Page 8: CCUS - A challenge for the Iron and Steel industry and Steel 2 Secured...Presentation content Potential Crude steel and Iron production - 2050 - 2075 Global Iron and Steel industry

Global crude steel volumes1980–2010,

potential scenario for 2015–2075*

8

• Source - 1980 – 2010 data worldsteel, 2015 – 2075 Example based on 9.9 Billion people in 2075 @ 255kg /capita,

updated with worldsteel megatrend details 2018 – 2025 in October 2013.

0

500

1 000

1 500

2 000

2 500

3 000

19

80

19

90

19

95

20

00

20

05

20

10

20

15

20

20

20

25

20

30

20

35

20

40

20

45

20

50

20

75

Thousands

Mt

Page 9: CCUS - A challenge for the Iron and Steel industry and Steel 2 Secured...Presentation content Potential Crude steel and Iron production - 2050 - 2075 Global Iron and Steel industry

Iron and steel industry impact on emissions

9

Year Global CO2

emissions Bt.

Global GHG

emissions in CO2

equivalent Bt

I&S CO2

emissions

Bt

Percentage of I&S

/ Global CO2

emissions

Percentage of I&S /

Global GHG & I&S

CO2 equivalent

1990 27.45 37.50 1.6365 5.96% 4.74%

1995 28.17 38.15 1.4568 5.17% 4.15%

2000 29.34 39.28 1.6071 5.48% 4.45%

2005 34.25 45.30 2.1349 6.23% 5.12%

2009 38.11 50.55 2.2443 5.89% 4.83%

2010 38.68 51.50 2.5975 6.72% 5.48%

2011 39.26 52.14 2.6860 6.84% 5.60%

2012 39.85 52.88 2.6831 6.73% 5.51%

Calculated percentage on Global CO2 emissions and GHG at CO2 equivalent GWP 100.

Source IEA (2010) CO2 emissions from Fuel Combustion, worldsteel data sources.

Page 10: CCUS - A challenge for the Iron and Steel industry and Steel 2 Secured...Presentation content Potential Crude steel and Iron production - 2050 - 2075 Global Iron and Steel industry

Likely emissions with BAU, 2DS level with 50% of 2009

10

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2015 2020 2025 2030 2035 2040 2045 2050 2075

50% of 2009 emission BAU emissions 70:30 BF-BOF / Scrap

Page 11: CCUS - A challenge for the Iron and Steel industry and Steel 2 Secured...Presentation content Potential Crude steel and Iron production - 2050 - 2075 Global Iron and Steel industry

Three key influencers on emissions

1 Raw Materials – demand high Fe ore and low ash Coal

Iron-ore beneficiate economically to high Fe rates (63-68%) saves on transport,

reduces slag rates, reduces energy intensity (reductants) and improves

efficiency of Blast furnaces (throughput rate)

2 Scrap usage – increase scrap volume to the maximum available

and economically equivalent to iron-ore.

Increase scrap usage in BOF 8-12 % to over 25%

Shift to Scrap instead of DRI for EAF (emits more overall than BF-BOF)

Shift balance of BF-BOF to EAF operation if economically viable

New build EAF instead of BF-BOF or reline BF

3 Improve industry wide operation to level of best practice

Only make what you have an order for

Key Technologies available on most sites but not effectively used globally

Shift industry to lowest energy intensity

Increase asset reliability levels

11

Page 12: CCUS - A challenge for the Iron and Steel industry and Steel 2 Secured...Presentation content Potential Crude steel and Iron production - 2050 - 2075 Global Iron and Steel industry

Likely emissions with BAU, Scrap shift from 30 – 45%, and

2DS level with 50% of 2009 allowance

12

0.000

0.500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

4.500

5.000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2015 2020 2025 2030 2035 2040 2045 2050 2075

total I&S CO2 emissions, incl scrap increase shift Bt 50% of 2009 emission BAU emissions 70:30 BF-BOF / Scrap

Page 13: CCUS - A challenge for the Iron and Steel industry and Steel 2 Secured...Presentation content Potential Crude steel and Iron production - 2050 - 2075 Global Iron and Steel industry

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Efficiency improvement by participating in worldsteel projects:

Active projects or ongoing metrics:

Safety improvement to zero injuries

Air Quality (Dust PM10/2.5, Mercury, Nox)

Energy use in the steel industry

Maintenance / Reliability

Water management

CO2 Data reporting and analysis

CO2 Breakthrough expert group

Completed projects:

Yield

By Products

Water management

Raw Materials beneficiation

The challenge starts: Practice transfer

Page 14: CCUS - A challenge for the Iron and Steel industry and Steel 2 Secured...Presentation content Potential Crude steel and Iron production - 2050 - 2075 Global Iron and Steel industry

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worldsteel projects participation benefit

Time (years)

Improvement

level

Step improvement

from projects

worldsteel committee

(SHCO, TECO, ECO)

membership benefit

worldsteel member

participation benefit is time a

significant savings / benefit

and economic advantage

Expected

incremental

improvement

steps

Project types: Technical & Best Practice Transfer, R&D (domestic & imported),

Fellowships, University research, Global partnerships, Innovation, Task

Forces, Coordination of Expert Group activities, steeluniversity.

Page 15: CCUS - A challenge for the Iron and Steel industry and Steel 2 Secured...Presentation content Potential Crude steel and Iron production - 2050 - 2075 Global Iron and Steel industry

Reduction in storage need from scrap, practice transfer

15

0.00

0.50

1.00

1.50

2.00

2.50

3.00

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2015 2020 2025 2030 2035 2040 2045 2050 2075

CO2 to be stored BAU less 2DS allowance CO2 volume to be stored with scrap & TT

Page 16: CCUS - A challenge for the Iron and Steel industry and Steel 2 Secured...Presentation content Potential Crude steel and Iron production - 2050 - 2075 Global Iron and Steel industry

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The next challenge:

CO2 Breakthrough 7 programmes

AISI - Paired Hearth Furnaces, Molten Oxide Electrolysis, Flash Smelting

Australian Programme – Charcoal use waste heat recovery

Baosteel - Ethanol production from BOF off gas, Solar

China Steel Corporation (CSC) - Oxy fuel burners, Storage

“Course 50” Programme, reduce CO2 intensity, re-use, store

ULCOS – Hisarna, Top Gas recycling

POSCO CO2 - Finex to minimise intensity using H2 reduction, Capture

technology.

Page 17: CCUS - A challenge for the Iron and Steel industry and Steel 2 Secured...Presentation content Potential Crude steel and Iron production - 2050 - 2075 Global Iron and Steel industry

CO2 to be stored per year for all improvements,

50% of 09, scrap T&P transfer and CO2 BT.

17

0.00

0.50

1.00

1.50

2.00

2.50

3.00

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2015 2020 2025 2030 2035 2040 2045 2050 2075

CO2 to be stored BAU less 2DS allowance CO2 volume to be stored with scrap & TT

CO2 to be stored incl. scrap, TT & CO2 BT

Bt

CO

2

Page 18: CCUS - A challenge for the Iron and Steel industry and Steel 2 Secured...Presentation content Potential Crude steel and Iron production - 2050 - 2075 Global Iron and Steel industry

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Common methodologies for measurement

Standardised method of measurement or management

Safety metrics methodology and leading indicators

Life Cycle Assessment process and standard

CO2 intensity t of CO2 / t of Crude steel cast

Energy intensity on a process by process bases

Maintenance & Reliability methodology developed

Page 19: CCUS - A challenge for the Iron and Steel industry and Steel 2 Secured...Presentation content Potential Crude steel and Iron production - 2050 - 2075 Global Iron and Steel industry

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CO2 emission measurement methodology

System boundaries

CO2 emissions = Direct + Indirect – Credit

CO2 intensity = CO2 emissions(tonne)/crude steel(tonne)

Scope 1

Scope 2

Scope 3

Page 20: CCUS - A challenge for the Iron and Steel industry and Steel 2 Secured...Presentation content Potential Crude steel and Iron production - 2050 - 2075 Global Iron and Steel industry

Data coverage based on crude steel production

Region

Number of companies Number of sites

2007 2008 2009

2010 2011 2012 2007 2008 2009

2010 2011 2012

Global 38 49 45 51 52 49 188 207 208 212 212 212

EU-27 13 16 13 17 19 17 69 69 66 67 71 69

Other Europe 0 3 4 2 2 1 3 6 7 5 4 4

C.I.S. 2 2 2 1 2 1 5 7 5 4 5 4

North America 5 6 6 7 7 7 61 61 63 65 65 65

South America 2 4 4 5 4 5 11 14 22 19 18 20

Africa 0 0 0 0 0 0 6 6 6 6 6 6

Middle East 1 2 3 2 2 3 1 2 3 3 3 3

Developed

Asia 8 10 8 11 12 11 20 36 31 32 36 37

Other Asia

(excl. China & India) 0 1 1 1 1 1 0 1 1 1 1 1

China 0 0 0 0 0 0 0 0 0 0 0 0

India 7 5 4 5 3 3 12 5 4 10 3 3

20

2012 CO2 data collection (Submitted & Approved, Oct.2, 2013)

Page 21: CCUS - A challenge for the Iron and Steel industry and Steel 2 Secured...Presentation content Potential Crude steel and Iron production - 2050 - 2075 Global Iron and Steel industry

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CO2 intensity (tCO2/tCS) Pareto for Steel making route

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

1 6 11 16 21 26 31 36 41 46 51 56 61 66 71 76 81

CO

2 i

nte

nsit

y [

tCO

2/t

CS

]

Scope 1 Scope 2 Scope 3 total

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

Page 22: CCUS - A challenge for the Iron and Steel industry and Steel 2 Secured...Presentation content Potential Crude steel and Iron production - 2050 - 2075 Global Iron and Steel industry

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New Work Item proposal accepted in September 09

by Technical Committee ISO/TC 17, steel

Title: Calculation Method for CO2 emission Intensity at steel production

sites

A new working group (WG21) set up, Japan provides the secretariat

Standard published by ISO in March 2013 ISO 14404 part 1 for BF/BOF

and ISO 14404 part 2 for EAF process only (latter excludes DRI).

Worldsteel expert group is being re-convened in 2014 along the ECO

meeting to establish other options to capture the DRI component for

EAF producers.

CO2 Methodology adopted as ISO standard

Page 23: CCUS - A challenge for the Iron and Steel industry and Steel 2 Secured...Presentation content Potential Crude steel and Iron production - 2050 - 2075 Global Iron and Steel industry

Scheme recognizes that a steel producer has fulfilled its commitment

of the worldsteel CO2 data collection programme

Recognition can be obtained at a corporate level or at a site level if

data has been received for more than 90% of total crude steel

production

Data must be complete, verifiable and approved each year

2007 38 companies covering 188 sites were eligible

2008 49 companies covering 207 sites were eligible

2009 43 companies covering 206 sites were eligible

2010 44 companies covering 209 sites are eligible

2011 52 companies covering 212 sites are eligible

2012 49 companies covering 212 sites are eligible

2012 report will be available to participating companies

in December 2013

Climate Action recognition

Page 24: CCUS - A challenge for the Iron and Steel industry and Steel 2 Secured...Presentation content Potential Crude steel and Iron production - 2050 - 2075 Global Iron and Steel industry

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Challenge continued:

Products – develop and application of new steels

Examples:

Only make what you have an order for.

Turn off assets when there is no demand

Design for yield within the I&S processes, test logistics

Design for yield with customers products and processes

Increase share of High strength steel for car bodies (BIW)

High strength steel for Commercial and Residential buildings

High Strength steel for construction, machines and tools

HSS for Railway networks

HSS for Rail Rolling stock, Bridges, Power transmission grids

Gas transportation networks, CCS technology

Power station boiler materials and equipment

Oil and Gas product used outside the industry

Page 25: CCUS - A challenge for the Iron and Steel industry and Steel 2 Secured...Presentation content Potential Crude steel and Iron production - 2050 - 2075 Global Iron and Steel industry

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Carbon Capture and Storage

CO2 capture technologies have long been used in gas streams

treatment (ammonia and hydrogen production, natural gas processing) –

15-30 Mt/yr – all chemical absorption based

For the steel industry trials have been held successfully using a

experimental blast furnace

Full scale commercial site needs to be established to prove up-scaling is

practical (was planned as part of the the ULCOS programme in EU).

Transportation is not a problem provided the sulphur content can be

managed

Storage pressures are high at 200 – 250 Bar requiring significant energy

for the large volumes produced on sites.

Page 26: CCUS - A challenge for the Iron and Steel industry and Steel 2 Secured...Presentation content Potential Crude steel and Iron production - 2050 - 2075 Global Iron and Steel industry

Political and Public support to change

Funding is the key issue for both technologies

CO2 Breakthrough technologies

CCS Implementation technologies

Capture technology is available on small scale

Transport infrastructure from major industrial centres to storage sites needs

to be established

Storage opportunities / understanding of impact needs to be tested

urgently.

Governments support for public / private development

Government need to be involved in the transport infrastructure and storage

sites (state ownership)

Timing

Any delay in projects will impact the results for both CO2 BT

Any delay will impact on the outcome for CCS and volumes required to store

Public and political awareness needs to be increased by setting up forums

such as these and through publications

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Page 27: CCUS - A challenge for the Iron and Steel industry and Steel 2 Secured...Presentation content Potential Crude steel and Iron production - 2050 - 2075 Global Iron and Steel industry

Thank you for your time and interest

Please feel free to contact me anytime

Henk Reimink

Director – Safety, Technology and Environment

World Steel Association

[email protected]

Phone: +32 2 702 8939

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Page 28: CCUS - A challenge for the Iron and Steel industry and Steel 2 Secured...Presentation content Potential Crude steel and Iron production - 2050 - 2075 Global Iron and Steel industry

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