THE ROLE OF TECHNOLOGY & INNOVATION IN ENERGY SAVING AND CO2 REDUCTION IN INDIAN IRON & STEEL INDUSTRY Ministry Of Steel Government Of India Innovation For Cool Earth Forum (ICEF) 2 nd Annual Meeting 7-8 th October 2015 Tokyo, Japan 1
Producer Route Capacity MTPA Production MT SAIL BF-BOF/TH 17.52 13.91 RINL BF-BOF 2.91 3.29 Total Public Sector 20.43 (19%) 17.20 (19%) Tata Steel, Essar Steel, JSW Steel, Jindal Steel & Power Bhushan Power & Steel Bhushan Steel Mini Steel Plants: EAF SNAPSHOT OF INDIAN STEEL INDUSTRY (2014-15) BF-BOF DRI/BF/Corex-EAF BF/Corex/DRI-BOF/EAF BF/DRI-EAF DRI-EAF BF/DRI-EAF 43.00 33.24 EIF 9.53 36.79 10.26 28.28 Total Private Sector 89.32 (81%) 71.78 (81%) Grand Total 109.85 88.98 Technology-Mix BOF & TH - 42% EAF- 26% EIF- 32% Steel Processors: SRRM, HRM, CRM, GP/GC, Colour Coated Units. 2
INDIAN STEEL CAPACITY & PRODUCTION 120 100 80 60 40 20 0 66.34 75 58.47 65.84 109.85 96.71 101.02 90.87 80.36 70.67 74.29 78.31 81.69 88.98 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 Production (MT) Capacity(MT) 4th Largest Steel Producer in the World Production grew at 8.9% in 2014-15 over 2013-14 During Jan-Aug 2015, India registered a growth of 4.1% as against decline of 2.3% globally 3 rd Largest Steel Producer during Jan- Aug, 2015 Largest Producer of DRI (24.24 MT) Net Importer of Steel (Import: 10.016 MT, Export: 5,945 MT) 3
STEEL HAS A FUTURE IN INDIA RESOURCES Abundant Iron Ore reserves, Non- Coking Coal & other Minerals. Strong Technical & Managerial skills in Iron & Steel making. Large pool of skilled Man-power. Established large Steel Players OPPORTUNITIES Low Per Capita Steel Consumption- Large Potential for growth High economic growth driven increasingly by industry. Faster Urbanisation & Growth in Infrastructure Sector. Increased Fixed Asset Building. Automobiles and component industry growth. Top FDI destination: $31 billion in the first half 2015. POLICY Pro-active Government Policies: Steel Industry delicenced & deregulated, Import of Technology freely permissible &100% FDI limit. An ambitious target of 300 MT Steel Capacity by 2025 4
TECHNO-ECONOMIC EFFICIENCY PARAMETERS IN INDIAN STEEL SECTOR ITEM BF Productivity (t / day / m3 of working volume) Coke rate (Kg / t HM) PCI (kg / t HM) Agglomerate (%) BF Slag rate (Kg / t HM) Energy Consumption (G cal / TCS CO2 emission (t / TCS) PARAMETERS 1.5-2.5/2.8 400-520 50-200 65-75 300-400/600 6-6.5 2.0 3.0 SPECIFIC ENERGY CONSUMPTION & CO2 EMISSION IS GENERALLY HIGH 5
REASONS FOR LOWER ENERGY EFFICIENCY Lower Energy Efficiency & higher CO2 emission are mainly due to: Technological Obsolescence Lower Economics of Scale Lower Harnessing of Waste Heat Quality Constraints in raw materials used Lack of R&D & Technological intervention. However, with Modernization/ Renovation/ Expansion of steel plants, world class facilities & state-of-the art technologies coming up, and Energy Efficiency is steadily improving: EE improvement by 30% in 22 years by SAIL EE improvement by 49% in 40 years by Tata Steel Correspondingly, CO2 emission intensity also reducing. 6
GOVERNMENT POLICY FRAMEWORK FOR ENHANCED ENERGY EFFICIENCY & MITIGATION OF CO2 EMISSION Planning Commission s Approach Paper for the 12th Plan: Lay down high priority on Increasing Energy Efficiency Specific Recommendations for sectors like Iron & Steel and Cement (accounting for over 60.0 per cent of industrial process emissions) Recommends: o Green-field plants to adopt best available technology; o Existing plants & SMEs to modernize and adopt green technology at an accelerated phase. 7
NATIONAL ACTION PLAN FOR CLIMATE CHANGE (NAPCC) NAPCC launched in 2008 to address Climate Change Challenges. India voluntarily committed to reduce the emission intensity of its GDP by 20-25% over 2005 levels by 2020. (Actual: 12% by 2010) 8 National Missions launched to form the core of NAPCC. National Mission for Enhance Energy Efficiency (NMEEE) to improve EE in industrial sector under the ambit of Energy Conservation Act, 2001 through BEE. Perform Achieve & Trade (PAT), a market based mechanism, is the flagship scheme under NMEEE. PAT Cycle-I (2012-13 to 2014-15) included 478 DCs in 8 Sectors (incl. 67 DCs in steel sector) with 36% share in total Energy Consumption. PAT Cycle II (2016-17 to 2018-19) envisages 900-950 DCs in 11 sectors with 50% share in total Energy Consumption. New Sectors (Railways, Refineries & Electricity DISCOMs) to be included. 8
INDIA s INTENDED NATIONALLY DETERMINED CONTRIBUTION (INDC) On 2 nd October, India submitted it s INDC reflecting its ambitious climate action plans adopting mitigation, adaptation, finance, technology transfer and capacity building. Key Features of the INDC are: Healthy & Sustainable Lifestyles Climate Friendly & Cleaner Economic Development Reduce Emission Intensity of GDP by 33-35% by 2030 Share of Power from Green Sources (Solar, Wind, Biomass, Nuclear) to increase from 30% (2015) to 40% (2030). Enhanced carbon Sink of 2.5-3 billion tonne of CO2 by enhanced Forestry & Tree cover by 2030. Better Adaptation to Climate Change Mobilising Domestic and New & Additional Finance from Developed Countries Technology Transfer & Capacity Building 9
TECHNOLOGICAL INTERVENTION & INNOVATION Technology of paramount importance in improving efficiency of all operations in iron & steel making & processing: Raw material beneficiation, Mixing & Blending and Agglomeration directly affect Energy Consumption. Harnessing Waste Heat in coke making, sinter making, iron & steel making and rolling significantly improve energy efficiency. Waste Utilization also helps in improving energy intensity & reducing CO2 emission. India is largely dependent on imported technology, Knowhow, Design & Drawings and Equipment. Adoption of BAT Technology Transfer, MOU, JV etc necessary to support Modernisation & Expansion, and improve operational efficiency of Indian steel plants. 10
THE POSITIVE IMPACT OF R&D TECHNOLOGY & INNOVATION Tech. Profile of Older Plants changing by Modernisation & Renovation adopting latest Technologies & Equipment. New/Green-field plants set up adopting state-of-the-art Technologies-- World class Plants & Facilities set up. Special emphasis on Harnessing Waste Energy, Energy & Environment Management. Raw material Quality fast Improving with large scale beneficiation /agglomeration and R&D/Innovation- difficult to beneficiate Ores. Positive Result In terms of Improved Productivity, En-Eff. & Reduced CO2 Emission and Environmental Pollution. Some of the plants attained Global bench-marks in Production, Productivity and Efficiency Parameters. Value added Eco Steel products developed with MOU & JV route also. Greater Role Of R&D, Technology and Innovation To Improve EE & Reduce CO2 Emission Beyond BAU Scenario Specially To Achieve the Set Targets Of Government / INDC. 11
IMPACT OF TECHNOLOGY INTERVENTION IN SECONDARY STEEL SECTOR UNDP-GEF-MoS Project (2004-2012): Facilitated adoption of Low Carbon Technologies in 34 Steel Re- Rolling Mills (Model Units) resulting: 25-50% (Av: 30%) Reduction in EC and GHG emissions Average Investment US$ 20000-250000 Improved Fuel Preparation & Combustion and Rolling, Brought in Innovation Direct Rolling in SRRM Sector leading to: 80-100% saving in Fuel consumption. UNDP-MoS-AusAID Project (2013-2015): Aims to further Replicate Energy Efficiency Improvement in SRRM Sector. Expand the interventions to other SME Sector like induction furnaces. 300 Units identified- Implementation Complete in 222 Units Measurement & Verification complete in 50 units. Savings in EC ~15% established with US$ 50000-100000 investment per unit. 12
THE ROLE OF JAPAN IN ENERGY SAVING & CO2 EMISSION REDUCTION Japanese steel industry sets the benchmark in EE & Environment Cleanliness and Harnessing Waste Heat & Energy. India & Japan has a long history of friendship & Co-operation and Japan contributing in EE Improvement & Reduction of CO2 in Indian Plants. NEDO Model Projects, 3 EE Improvement Projects Set Up leading to: Project EC Effect (toe/y) CO2 Reduction (t/y) 1 BF Stove Waste Heat Recovery 8,110 25,090 2 CDQ 50,000 1,37,000 3 Sinter Cooler WH Recovery 39,000 1,17,000 Two more projects (EMS & Reg. Burner) are at preliminary stage. Further Strengthening Bilateral Cooperation through Public Private Collaborative Meetings to encourage Tech transfer for EE improvement. Technology Customised List Prepared: 11 out of 19 Low Carbon Technologies to reduce 13 MT CO2/year in India. Exploring Joint Consultative Mechanism (JCM) to Achieve the Objectives. 13
CONCLUSIONS & WAY FORWARD R&D, Technology & Innovation will continue to play dominant role to improve EE and reduce CO2 emission. Indian Government in association with the Steel Industry taking proactive role to improve energy efficiency and reduce CO2 emission By adopting the Best Available Technologies, some of the steel plants attained Global bench-marks in Production, Productivity and Efficiency Parameters. The Government has set ambitious targets for INDC for reducing Emission Intensity of GDP by 33-35% by 2030 Challenging task -Massive Capacity Building, Framework Creation for Quick Diffusion of Cutting Edge Low Carbon Technologies, Massive Investment (US$ 2.5 Trillion). Japan will continue to play very important role to overcome challenges & enable India achieve the set targets 14
THANK YOU Website: www.steel.gov.in 15