1. Direct Reduction Iron Plant Group Golf Selimos, Blake A. Arrington, Deisy C. Sink, Brandon Ciarlette, Dominic F. (Scribe) Advisor: Orest Romaniuk 1

2. Table of Contents Page 3:Motivation Page 4:BFD/Design Basis Page 5:Process Flow Diagram Page 6:Energy Recovery Page 7:Environmental Considerations Page 8-12:Economics Page 13: Recommendations 2

3. Motivation 3 With natural gas prices trending down and an abundance of it available in Wiliston ND, a Midrex plant makes sense economically. The NPV for this plant is $1,254,000,000 Midrex process is more cost efficient and environmentally friendly than conventional blast furnaces.

4. Block Flow/Design Basis 4

5. Process Flow Diagram 5 12345678910 Feed CH4 & recycle stream Exhaust going to ejector Air coming from air blower Heated process gas Reduction gas going to Oxy Fuel booster CH4 to combustion chamber Recycle gas to combustion chamber Heated gas from combustion Heated air to combustion chamber Recycle gas from CO2 Removal CH4, H2, CO, CO2, H20, N2 CO2, H2O, N2 N2, O2CH4, H2, CO, CO2, H20, N2 CH4, H2, CO, CO2, N2 CH4, N2CH4, H2, CO, CO2, H20, N2, O2 CO2, H2O, N2CH4, H2, CO, CO2, H20, N2 CH4, H2, CO, H20, N2 1 3 2 4 5 6 7 8 9 10

6. Energy Sinks and Loads: Heat Exchangers 1076º F 60 psi 724 ºF 17 psi 180º F 75 psi 1878º F 19 psi 724º F 17 psi 420º F 15 psi 615º F 25 psi 77º F 32 psi Q=27 mmBtu/hrQ=113 mmBtu/hr Excess energy from the flue gas is used to heat the feed of gas in 6

7. Environmental Considerations 7 Midrex plants are designed with the goal of minimizing water, air, and noise pollution. In comparison to traditional blast furnaces, Midrex plants have much lower CO2 emissions due to using natural gas instead of coal, as well as having a reformer that can handle larger amounts of recycled CO2 than the average steam-methane reformer. 153 ton/year of CO2 emissions

8. Equipment 8 Equipment Cost (USD)Total Installed Cost (USD) Primary Reformer46,000,000188,000,000 Shaft Furnace39,000,000168,000,000 Oxygen fuel booster11,000,00040,000,000 Scrubber650,0002,000,000 Main Air Blower500,0002,000,000 Heat Exchanger 1120,000510,000 Heat Exchanger 2 100,000436,000 Zinc Oxide Bed3,000,00010,000,000 Compressor4,000,00015,000,000 CO2 Removal (MDEA)7,000,00029,000,000 Storage facility-12,000,000 Rail and Loading-18,000,000 Total110,000,000483,000,000

9. Expenses 9 1 Year (USD)5 Year (USD)10 Year (USD) Depreciation3,000,000 Electrical Transfer from Delta No Transfer CostBetween Groups Natural Gas Cost Transfer From Alpha No Transfer CostBetween Groups Oxygen Cost Transfer From Echo group No Transfer CostBetween Groups Transportation Costs 72,000,00078,000,00086,000,000 Salaries and Fringes ($100/hr.) 4,000,0004,500,0005,000,000 Maintenance15,000,00016,000,00017,000,000 Feed Ore406,000,000439,000,000485,000,000 Total Expenses500,000,000540,000,000600,000,000

10. Revenue 10 Products Sell Cost/Ton ($) TPD$/Day$/Year DRI4255,0002,000,000790,000,000 Carbon Dioxide 15 Giving to India No Transfer Costs Between Groups Total-5,0002,000,000790,000,000

11. Profit 11 1 Year (USD)10 Year (USD)17 Year (USD) Total Expenses529,000,000613,000,000660,000,000 Total Revenue790,000,000860,000,0001,000,000,000 Income Before Taxes 300,000,000350,000,000400,000,000 Taxes (40%)104,000,00099,000,000150,000,000 Income After Taxes 120,000,000140,000,000160,000,000 Total Cumulative Income 178,000,0002,000,000,0003,500,000,000

12. Payback Period 12 NPV1,254,000,000 IRR38.57% Payback Period4 Years

13. Recommendations 13 We recommend proceeding with the completion of the Midrex plant at the Williston ND location. We recommend changing the process so that there is no recycled stream going into the combustion chamber of the reformer. Instead, burn the CO and CH4 with some O2, then dry the stream to remove the water and send the remainder of the stream over to team India as CO2. Natural gas is the cheapest commodity in this plant so it makes sense to use a little more of that for the combustion rather than implementing a pricy MDEA system to remove the CO2 and allow us to burn the little bit of recycled CO and CH4 that’s left.

14. Questions? 14