TOWARDS A CLEANER, GREENER & SMARTER INDIAN STEEL INDUSTRY S. Das Gupta٭& Bhaskar Roy٭ ٭ The authors are with M. N. Dastur & Company (P) Ltd, Consulting Engineers, Kolkata Presentation made at 4th India Steel Summit organised by ASSOCHAM in New Delhi on 11th August 2010.

Indian Steel Industry – Future Prospects

Apparent Steel Consumption Trend Steady growth Accelerated growth Take-off point ! Apparent Steel Consumption Trend

Apparent Steel Consumption – India vs World 1981 1985 1990 1995 2000 2005 2009 World India China 542 Apparent Steel Consumption – India vs World

Indian Steel Industry on a Strong Growth Path 2009-10 55 mill. tons Actual consumption 2011-12 65 mill. tons Considering 7.5% CAGR between 2009-10 & 2011-12 2019-20 120 mill. tons Considering 8% CAGR between 2011-12 & 2019-20 140 mill. tons Considering 10% CAGR between 2011-12 & 2019-20 2015- 16 Likely Future Steel Demand Scenario in India

Scope for Increasing Rural Steel Consumption ! Year Population, mill Per capita steel, kg Total steel, mill. tons Urban Rural National 2009-10 345 810 153 3 53 2 55 2011-12 370 825 166 4 61.5 3.5 65 2015-16 430 835 210 6 90 5 95 Urban Rural Urban Rural 2 4 6 8 The Rural-Urban Steel Divide in India

Environmental Aspects of Indian Steel Industry

Major Factors in Ensuring Steel Industry Sustainability ٭ : Energy intensity. Greenhouse gas emissions. Material efficiency, i.e. % of by-products re-used. ٭ As defined by World Steel Association member companies.

Average of Integrated Plants  6.5 Gcal/tcs 2008-09 2007-08 2006-07 2005-06 2004-05 SPECIFIC ENERGY CONSUMPTIONS IN INDIAN INTEGRATED STEEL PLANTS

SPECIFIC ENERGY CONSUMPTION – INDIA VS OTHER COUNTRIES Considerable potential to reduce energy intensity in India. SPECIFIC ENERGY CONSUMPTION – INDIA VS OTHER COUNTRIES (2008/2009 figures)

STEEL INDUSTRY & GHG EMISSIONS Source: Meeting the Challenge of Climate Change by Ian Christmas, Secretary General, World Steel Association, 5th China International Steel Congress, Shanghai, 2nd June 2008. STEEL INDUSTRY & GHG EMISSIONS

CO2 EMISSION BY STEEL INDUSTRY– INDIA VS OTHER COUNTRIES (2008/2009 figures)

EXTENT OF BY-PRODUCTS REUSE– INDIA VS OTHER COUNTRIES <80% EXTENT OF BY-PRODUCTS REUSE– INDIA VS OTHER COUNTRIES (2008/2009 figures)

Making Indian Steel Industry More Environment Friendly : Domestic steel production bound to grow substantially in future. Inevitable impact on the environment. Indian steel producers seized of the situation - concerted efforts to mitigate harmful effects. However, need for more R&D efforts to develop ‘break-through’ technologies. Explore possibility of collaborating with agencies involved in R&D activities.

International Efforts at Developing New Technologies/Processes: POSCO: substantially reduce CO2 emissions in 10-12 years through hydrogen-based steelmaking. ULCOS (Ultra Low CO2 Steelmaking) program in EU since 2004 to develop ‘breakthrough’ technologies.

CONCEPTUAL SCHEME OF HYDROGEN-BASED Iron Ore CONCEPTUAL SCHEME OF HYDROGEN-BASED STEEL MAKING OF POSCO

Salient Features of ULCOS Program: Objective - R&D initiative to reduce CO2 emissions by developing new breakthrough technologies Consortium of major European steelmakers & Rio Tinto. Involves Carbon Capture & Sequestration (CCS).

Salient Features of ULCOS Program cont’d: Some of the process routes identified: Top Gas Recycling Blast Furnace (TGR-BF). Smelting reduction process – HIsarna; incorporating some features of HIsmelt process. Others: Shaft furnace DR process – ULCORED. Electrolysis variants – ULCOWIN & ULCOLYSIS.

Smarter Steels

Major Demand Drivers for Indian Steel Industry: Construction, Automotive & Infrastructure sectors – major drivers of steel demand in India. Automobiles - Second fastest growing market after China. Need to develop/produce ‘smart’ steels with desired properties to support sectoral growth. Typical requirements: For automotive steels - superior formability, without compromising on weldability. For structural applications - high strength, high corrosion resistance, better weldability.

High-Strength Steels for Automotive Applications: High-strength steels provides better mechanical properties or greater resistance to corrosion than carbon steel. Few grades developed: Dual phase steel TRIP steel TWIP steel Evolving AHSS grades: Nano steels Ultra-fine grain steels

MECHANICAL PROPERTIES OF SOME HIGH STRENGTH AUTO-GRADE STEELS DP TRIP IF Mild Austenitic-Based Steels, e.g. TWIP MECHANICAL PROPERTIES OF SOME HIGH STRENGTH AUTO-GRADE STEELS

Development of steel foam: Metal foams with controlled porosity - emerging class of ultra-lightweight materials receiving increased attention. Weight reduction, improved fuel efficiency & increased passenger safety in transportation systems. Safer vehicles due to crash energy absorption capabilities.

Status of Developmental Work in India: Work on TRIP / TWIP & other high strength steels in progress. R&D activity on development of steel foam. Bulk production of high strength steels for automotive application still to take off.

Few Action Points for Indian Steel Industry

Better Utilisation of Iron Ore Resource: India endowed with large reserves of iron ore – need for a policy for better resource utilisation. Lowering cut-off grade from 55-58% to ~45% & exploration to greater depths for resource estimation. With advances in beneficiation techniques, lower grade in-situ material, reject dumps & slimes can be economically upgraded & gainfully utilised. Lowering environmental degradation – 2.5 mtpy washing plant impacts 5 acres of forest land & about 12,500 trees annually.

Better Operating Practices for Reducing Energy Intensity: Higher agglomerates in BF burden  lower Si in hot metal for 1 mt hot metal – 7,000 Gcal less energy required for every 0.1% lowering in Si content. Greater application of heat recovery systems – introduction of modern, energy efficient technologies. maximising waste energy recycling, e.g. CDQ, TRT, sinter waste heat recovery, BF stoves waste heat recovery. Wider utilisation of NNS casting beam blank strip casting

Utilisation of Iron & Steel Making Slags: At ThyssenKrupp Stahl, BF & SMS slags processed into valuable materials for use in cement making, road construction, or as soil conditioner. ArcelorMittal in Brazil has developed a new way of producing construction bricks from steel mill slag. What Nippon Steel is doing:

Green Buildings & Energy Optimisation: Misc. Equipment Typical Energy Consumption Pattern in Buildings: Source: CII-Sohrabji Godrej Green Business Centre Potential for energy savings 40 – 50% in new buildings; for existing buildings, the potential can be 20-25%. Design should ensure building gets maximum day lighting. Maximise use of solar power; explore wind energy possibility. Use of energy saving materials & equipment like heat resistive paints, fly ash blocks, insulation materials, lighting controls, BIPV (Building Integrated Photo Voltaics), etc.

Stricter Monitoring of Air & Water Pollution: Mandatory environmental audit to identify & prioritize areas for short, medium & long term addressal through appropriate mitigation measures. Formation of dedicated & specialised Environment Management Divisions at corporate & plant levels. Stricter enforcement of relevant provisions of Environment (Protection) Acts & Rules, with severe penalties for deliberate non-compliance.

Concluding Remarks

Indian steel industry already on high growth path. Enhanced domestic steel production will call for higher demands on various inputs & also entail greater emissions. Indian steel industry required to adhere to commitments made at Kyoto & Copenhagen. Industry competitiveness to be ensured by balancing economic & environmental aspects.

Indian steel industry seized of the matter & various steps already initiated. However, considerable potential exists to improve sustainability of Indian steel industry. Significant reduction of CO2 emissions possible by developing ‘breakthrough’ technologies.

Thank you for your kind attention!