Overview of Indian Iron & Steel Sector - Shanghai, China Prakash Tatia Former Chairman SIMA, India 23rd May, 2018 - International Energy Agency

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Overview of Indian Iron & Steel Sector - Shanghai, China Prakash Tatia Former Chairman SIMA, India 23rd May, 2018 - International Energy Agency
Overview of Indian Iron & Steel Sector

          Shanghai, China

                                  Prakash Tatia
                                  Former Chairman
                                  SIMA, India
                                  23rd May, 2018
Overview of Indian Iron & Steel Sector - Shanghai, China Prakash Tatia Former Chairman SIMA, India 23rd May, 2018 - International Energy Agency
AGENDA

 About SIMA

 Present Indian Steel Scenario

 Present Indian DRI Scenario

 Salient Features of National Steel Policy (NSP) 2017

 India’s Commitment on Reduction in Emission Intensity

 Issues and Challenges for the Indian Steel Industry
About SIMA

Sponge Iron Manufacturers Association (SIMA) – an all India apex
industry body of Indian DRI industry. Established in 1992 with
headquarter in Delhi.

  Main Functions
• Fulfills the multi-dimensional role of providing a common platform for
  exchanging knowledge, experience & growth related aspects.

• Reviews the industry vis-à-vis Government policies, global
  developments and market feasibilities and inter-act with different
  Govt. agencies.

• Maintains database of Industry statistics.
About SIMA

   Main Functions
• Organizes national and international technical seminars to update the
  members about the latest technological

• “4th India International DRI Summit- 2018” being organized on 13th
  August, 2018 in Delhi, India.

• Brings out an in-house magazine “DRI UPDATE”

• Organizes medical camps, training / skill development programmes etc.
Present Indian Steel Scenario

• Major growth in the steel sector took place after the deregulation and
  liberalization in 1991-92.

• On account of rapid industrial development and investment in infrastructure etc,
  from a modest crude steel capacity of 22 MT in 1991-92, India has achieved a
  capacity of 128 MT and crude steel production of more than 100 MT in 2017.

• India has become 2nd largest global steel producer during 2017-18.

• Iron and Steel Industry contributes around 2% to the Gross Domestic Product (GDP).

• It has an output multiplier effect of nearly 1.4x on GDP and employment
  multiplier factor of 6.8x .

• Indian steel industry employs about 0.5 million people directly and about 2.0 million
  people indirectly.
Route wise Steel Production in India

• Contribution of EAF and IF route to total steel production in the country increasing.
• In 1991-92, EAF and IF contributed merely 28%. Increased to 55% in 2009-10 and
  presently at 57- 58%.

                                                       120%
            % Contribution to total steel production

                                                       100%
                                                              28%   36%   48%   55%   56%   58%   58%   56%   57%   58%   57%
                                                       80%

                                                       60%

                                                       40%

                                                       20%
                                                              72%   64%   52%   45%   44%   42%   42%   44%   43%   42%   43%
                                                       0%

                                                               Contribution of IF&EAF Route
                                                               Contribution of BF/Corex-BOF Route
Present Indian DRI Scenario

• India’s growth story started with the initiative of Ministry of Steel, GOI
  when they together with UNDP set up a demonstration plant at Paloncha
  in 1980 to test the suitability of Indian iron ore and coal for the production
  of DRI.

• Major growth in coal based sector from 2003-04 to 2008-09.

• Domestic DRI capacity increased by about 280% in nine years during
  2005-14.

• India is the only country in the world making DRI from coal
  gasification .

• India is the largest DRI producer in the world for the last 14
  consecutive years and accounts about 25% of world production.
Structure of Indian DRI Industry

        1. Number of Operating Plants

            Gas Based             5 Nos
            Coal Based          315 Nos
            Total Plants        320 Nos

         2. Capacity

          Gas Based        12.60 million tonnes/year

          Coal Based       33.40 million tonnes/year

          Total            46.00 million tonnes/year
Top DRI Producers

                                                   (Million Tonnes)

             Country     2016    2015    2014    2013      2012

               India     18.47   17.68   17.31   17.75     20.05

               Iran      16.01   14.55   14.55   14.46     11.58

          Saudi Arabia   5.89    5.80    6.50    6.10       5.70

              Russia     5.70    5.44    5.35    5.33       5.24

             Mexico      5.31    5.50    5.98    6.13       5.59

           World Total   72.76   72.64   74.69   74.92     73.14

           India %age    25.38   24.34   23.17   23.69     27.41

   Source: Midrex
National Steel Policy (NSP) 2017

   Main Objectives
(I) Create a technologically advanced and globally competitive steel
    industry that promotes economic growth .

(II) Attain self sufficiency in steel production using own raw materials
     and energy resources.

(III) Increase per capita steel consumption to 158 Kg by 2031 from
      61 Kg.

(IV) Operate steel industry in environmentally responsible manner
     and reduce carbon foot print.
National Steel Policy (NSP) 2017

   Salient Features

   • Crude steel capacity by 2030-31         300 MT

   • Crude steel production                  255 MT

   • Finished steel production               230 MT

   • DRI Demand/Production                    80 MT

   • Per capita finished steel consumption   158 Kg
DRI Demand / Production as per NSP

NSP projected DRI demand / production = 80 MT by 2030-31 from a
current level of 21 MT

   Assumptions

   Steel Production through BF-BOF         60-65%
   Steel Production through EAF/IF         35-40%
   DRI Coal Based Production               70%
   DRI Gas Based Production                30%
India’s Commitment on Reduction in Emission Intensity

• COP-21 summit, held during 30th Nov to 12th Dec 2015 at
  Paris, a new pathway has been identified called the Paris
  Agreement, to address the Climate Change issues in the
  post 2020 scenario.

• India ratified the Paris Agreement on 2/10/2016 and had
  committed to reduce the emissions intensity of its GDP by 33
  to 35 percent by 2030 from 2005 level. The Agreement
  entered into force on 4 November 2016.

• Govt. of India has committed to reduce GHG emission per
  unit of GDP by 33-35% by 2030 vis-à-vis 2005 level as per
  India’s Intended Nationally Determined Contributions
  (INDCs).
Salient Features of India’s INDC

• To put forward and further propagate a healthy and sustainable way of living
  based on traditions and values of conservation and moderation.

• To adopt a climate friendly and a cleaner path than the one followed
  hitherto by others at corresponding level of economic development.

• To reduce the emissions intensity of its GDP by 33 to 35 percent by 2030 from
  2005 level.

• To achieve about 40 percent cumulative electric power installed capacity
  from      non-fossil fuel based energy resources by 2030 with the help of
  transfer of    technology and low cost international finance including from
  Green Climate Fund (GCF).

• To create an additional carbon sink of 2.5 to 3 billion tonnes of CO2
  equivalent through additional forest and tree cover by 2030
Salient Features of India’s INDC

• To better adapt to climate change by enhancing investments in development
  programmes in sectors vulnerable to climate change, particularly agriculture,
  water resources, Himalayan region, coastal regions, health and disaster
  management.

• To mobilize domestic and new & additional funds from developed countries
  to implement the above mitigation and adaptation actions in view of the
  resource required and the resource gap.

• To build capacities, create domestic framework and international
  architecture for quick diffusion of cutting edge climate technology in India
  and for joint collaborative R&D for such future technologies.

• MoS had submitted its INDCs for reducing GHG emissions in Iron & Steel
  sector which inter alia projects average Sp. CO2 emissions intensity to
  reduce from 3.1 T/Tcs in the year 2005 to 2.64 T/Tcs by the year 2020 and
  2.4 T/Tcs by the year 2030
Template on INDC Mitigation

Information/Various Programs        BF-BOF based Integrated Route

Baseline Emission Scenario in       73 million tonnes @CO2
2005 in CO2 eq                      emission intensity of 3.10 T/Tcs
Mitigation scenario projection in   216-234 Million Tonnes @ CO2
2020 in CO2 eq in the proposed      emission intensity of 2.4-2.6
existing programmes                 T/Tcs (Avg 2.5T/Tcs)
Mitigation scenario projection in   462-504 million tonnes @ CO2
2020-2030 in CO2 eq in the          emission intensity of 2.2-2.4
proposed programmes                 Tonnes/Tcs (Avg 2.3 T/Tcs)
India’s Commitment on Reduction in Emission Intensity

Way forward to achieve the Target:

Crude steel production in India in 2016-17 was 97.44 MT, out of
this, production through BOF route is 43%. EAF is 27 % and
Induction Furnace is 30%.

CO2 emission intensity (BF-BOF) route is high @ 2.3 -2.8 T/Tcs as on
2016-17 which needs to be curtailed to meet the above emissions
targets.
Issues and Challenges for the Indian Steel Industry

In order to achieve the emission targets, Indian Steel Plants need to
primarily focus on the improvement on the fuel rate, BF Productivity
etc. which can be achieved through the following:

a) Improved Quality Raw Materials
b) Increase in hot Blast temperature ( >1000 deg. C)
c) High Top pressure
d) More allocation/ budgeting of clean fuel like NG etc.
e) Maximum Capacity utilisation of plant and equipment
f) Use of more scrap
g) Adoption of energy efficient technologies
Recommended Technologies for Fuel/Electricity and CO2
 Emission Reduction
                                                                             Effect of Technology

Sl.No.              Title of Technology                  Electricy Savings    Fuel Savings          CO2 Reduction

                                                         KWh/t of Product     GJ/t of Product       Kg-CO2/t of Product

         Sintering
   1     Sinter Plant Heat Recovery(Steam Recovery              -             0.251/t-sinter        23.9/t- sinter
         from Sinter Cooler Waste Heat)
   2     Sinter Plant Heat Recovery ( Power Generation   22.1 kWt/t-sinter                 -        19.9/t-sinter
          from Sinter Cooler Waste Heat)
   3     High Efficient(COG)Burner in ignition                  -             0.011/t-sinter        0.50/t-sinter
         Furnace for Sinter Plant
         Coke Making
                                                                -             1.9/t-coke            135/t-coke
   4     Coke Dry Quenching (CDQ)
                                                         150 kWh/t-coke              -              74.9/t-coke

   5
         Coal Moisture Control (CMC)                            -             0.3/t-coke            27.6/t-coke
         Iron Making
   6     Top Pressure Recovery Turbine (TRT)             50 kWh/t-pig iron           -              45.0/t-pig iron

   7     Pulverized Coal Injection (PCI) System                 -             1.55/t-pig iron       147/t-pig iron
                                                                              (at 125kg coal inj)

   8     Hot Stove Waste Heat Recovery                          -             0.08/t-pig iron       7.8/t-pig iron
Recommended Technologies for Fuel/Electricity and CO2
Emission Reduction
                                                                               Effect of Technology

Sl.No.                Title of Technology                  Electricy Savings    Fuel Savings          CO2 Reduction

                                                           KWh/t of Product     GJ/t of Product       Kg-CO2/t of Product

         Steelmaking
  9      Converter Gas Recovery Device                            -             0.84/t-steel          79.8/t-steel

  10     Converter Gas Sensible Heat Recovery Device              -             0.126/t-steel         12.0/t-steel

  11     Ecological and Economical Arc Furnacee            150 kWh/t-steel             -              135/t-steel

  12     Waste Heat Recovery from Electric Arc Furnace     87.7 kWh/t-steel            -              78.9/t-steel

         Common System
  13     Regenerative Burner Total System for                     -             0.17-0.21/t-billet    16.2-20.0/t-billet
         reheating furnace

         General Energy Savings & Environmental Measures
  14     Energy Monitoring and Management System                  -             0.12/t-steel          11.4/t-steel

  15     Cogeneration(include Gas Turbine Combined         47.5%(HHV) [*5]             -              56.1/t-steel
         Cycle (GTCC)
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