1. New Technology Deployment in Indian Iron & Steel Sector
Energy Efficiency
&
New Technology Deployment in
Indian Iron & Steel Sector
S. K. Jain
General Manager
STEEL AUTHORITY OF INDIA LIMITED
INTERNATIONAL WORKSHOP ON INDUSTRIAL ENERGY EFFICIENCY – NEW DELHI

2. SAIL Today
A listed company, 86% owned by GoI; one of the “Navratna” PSUs
Authorized Capital: Rs Crore, Paid up capital: Rs 4130 Crore.
Largest Steel producer in India and 21st largest in the world (2008)
Highest ever turnover of Rs. 48,681 Crore in (equivalent to over $10 billion), 7% higher on YOY. (Rs. 20,481 Cr. in April-Sept )
SAIL’s PBT was Rs 9,404 Crore and PAT of Rs.6,175 Crore in inspite of the economic downturn and higher input costs. (PBT Rs Cr. & PAT Rs Cr. in April- Sept )
Highest PAT among all steel companies of the world in 1st half of January –June’09 (Rs Crore)

3. Energy Scenario in Indian Iron and Steel Industry
Is the largest consumer of energy among all industrial sectors.
Consumes about 10% of total electricity and 27% of coal used by Indian industry.
Energy cost contributes nearly 30 – 35% of this sector’s production cost.
Coking coal accounts for 65 – 85% of primary source of energy.

4. Energy Scenario in Indian Iron and Steel Industry
Iron making through BF route accounts nearly 70% of the total energy consumed by the industry.
Energy is essential for economic growth and to achieve the target growth in GDP.

5. Indian Steel Industry Crude Steel Production 2004-05
Major steel plants & Energy Cons. level
Crude Steel
Company
08-09 (Gcal/tcs)
BSP
6.50
DSP
RSP
7.09
BSL
6.73
ISP
8.27
SAIL
6.74
Tata Steel
6.59
RINL
6.77
ESSAR
5.81
ISPAT
5.21
JSW
6.70
Total
Source: Joint Plant Committee, Govt. of India

6. Energy Consumption in Indian Steel Industry
...Contd.
Specific energy consumption declined by >15% in last 10 years.
However, it is still more than World level of 4.5 Gcal/tcs

7. High Energy Consumption in India – Why ?
Out dated technology in older plants set up in 60s and 70s
Inferior raw material quality
High alumina and high alumina & silica ratio in iron ore
High ash content in coking coal even after blending
Low rate of recycling

8. Domestic installed capacity of crude steel (62.6 MT)- 2009
Other Integrated
Main Producers:
36.6%
SAIL is the largest domestic steel player

9. Top 5 countries in Crude Steel Production
2008
2009
Jan-Sep’2009
Rank
Country   MT 1
China
502 MT
420.4 2
Japan
119 MT
60.9 3 US
91 MT
India
41.74 4
Russia
68.5 MT
41.68 5
55 MT
United States
40.23
India has emerged 3rd largest steel producer in the world in 9M ’09
Source: WSA

10. Forecasted Growth rate 2005-15
Production sites will move to regions with both RM source and demand.
Excess
CIS
Latin America
Raw Material basin
Growth basin
India
Avail-ability of Iron Ore
USA / Canada
Eastern Europe EU
China
Other emerging Asian countries
Deficit
Mature basin
Japan
Low
High
Forecasted Growth rate

11. Indian Potential for Steel
Huge Potential for Demand
High GDP growth rate of 8%
1 billion population
Low per capita steel consumption of 34kg (World av. 170 kg)
Growth factors for India
Abundant Iron Ore
Skilled Human Resources
Reserves 23 billion tonnes
Government Policy
Encouraging trade relations with ASEAN and other countries
Infrastructure building
Exploring new Energy resources
Stable currency
Easing of regulations
Strong Banking & judicial system

12. Future Direction : National Steel Policy - 2005
Enhance indigenous production of steel to 110 MT by 2020 from a level of 38 MT in 2005 with a CAGR of 7.3 %
Exports 26 MT by 2020, from level of 4 MT in with a CAGR of 13.3 %
Iron ore requirement to increase to 190 MTPA by 2020 from about 54 MTPA in 2004.
Technology/ productivity in line with global standards
Demand Side
Strengthening of delivery chain linking the producers to the users, especially rural areas
Interface between producers, designers of steel intensive products, fabricators and ultimate user
Creating awareness about steel as a cost-effective and technically efficient end-use material

13. Future Direction : National Steel Policy - 2005
Supply side
Enhanced and easy access to critical inputs – iron ore & coking coal
Expansion and improvement in quality of infrastructure – Energy, railways, ports and other means of transport
Well developed financial market with efficient financial instruments
Increased focus on R&D, training of manpower and integrated information services

14. Future Demand of Steel in India
Different projections for proposed capacity:
(In million tons)
Agency
National Steel Policy 2005
110
Latest projection by Ministry of Steel (MoS)
+ 200
Based on MOUs signed by the private producers with various State Governments
293

15. Projected per Capita consumption of Finished Steel in India (kg)
Year
Per Capita Steel Consumption 48 80
110
135
175
India’s current population is million
It is assumed that till 2051, population would be about : 1.4 bn.

16. GROWTH SCENARIOS Optimistic Case Medium Growth Conservative 2005-2020
Fin. Steel Cons.
Rate
Consum-ption
(mTpa)
Fin. Steel Cons. Growth Rate
Consum-
ption
Fin. Steel Cons. Growth
7.6%
100
6.9%
90 *
5.5% 76
6.5%
188
147
4.5%
118
5.0%
305
4.0%
217 3%
158
498
322
212
Estimated Steel Production by 2020 = MT
* - Also projected by National Steel Policy

17. Energy Saving Potential in India
Specific Energy Consumption for Steel Industry :
India: GCal / tcs (07-08)
World: GCal / tcs (2008)
2.4
Energy saving potential : 200x( )
= million GCal / yr

18. Energy Saving Potential in India
To achieve this potential, Asia-Pacific partnership for clean development and climate has suggested adoption of Energy efficient “Best Available Technologies (BAT)” in
Coke Making
Sintering
Iron Making
BOF/EAF Steel Making
Finishing

19. Barriers in implementing Energy Efficiency Technologies
Focus on reducing capital cost rather than being concerned about energy input
Difficulty in acquisition of energy-efficient technologies
Space constraints/retrofit ability problem in adoption of clean technologies in existing set up

20. Barriers in implementing Energy Efficiency Technologies
Focus on reducing capital cost rather than being concerned about energy input
Difficulty in acquisition of energy-efficient technologies
Space constraints/retrofit ability problem in adoption of clean technologies in existing set up
Low rate of recycling.

21. Energy-efficient Technologies for Iron and Steel Making
Process
Energy-efficient Technologies
Coke making
Coke Dry Quenching (CDQ)
Automatic Combustion Control
Automatic Ignition for Coke Oven Flare
Tall batteries and stamp charged batteries
Sinter making
Sinter Cooler Waste Heat Recovery
Multi-slit Burners
Iron making
Top Pressure Recovery Turbine (TRT)
Hot Stove Waste Heat Recovery
Coal Dust Injection (CDI)
Bled BF Gas Recovery
Steel making
Bled BOF Gas Recovery
BOF gas Sensible Heat Recovery
Casting
Continuous Casting replacing Ingot Casting
Thin Slab Casting / Near-net-strip Casting
Rolling
Walking Beam Furnace
Reheating Furnace Waste Heat Recovery

22. To Conclude.. OPPORTUNITIES POLICY
Indian steel industry has a bright future
RESOURCES
Abundant Iron Ore reserves
Strong Managerial skills in Iron and Steel making
Large pool of skilled Man-power
Established steel players with strong skills in steel making
OPPORTUNITIES
High economic growth driven increasingly by industry
Faster Urbanisation
Increased Fixed Asset Building
Automobiles and component industry growth
POLICY
Pro-active stance of Govt.
Encouragement for overseas investments

23. To Conclude…
At this juncture, when demand for steel in India is fast growing to meet domestic and global demand, energy efficiency is the only option to counteract the associated maladies.
However lack of financing capabilities as well as lack of incentives impede the implementation of such measures.
Sectoral policies to be developed to promote such incentives
Policy strategy would consists of mix of regulatory and price based incentives

24. Thank You
There’s a little bit of SAIL in everybody’s life 24