Energy Efficiency in Steel sector

1. Our Challenge for Clean Development and Climate
Steel Industry’s Global Sector-based &Technology-based Approach/Challenge
APP Steel Task Force
Asia-Pacific Partnership on Clean Development and Climate
1. Overview of Global Steel Sectoral Approach (GSSA)
2. Corporative(cooperative) industrial Action
GSSA : NC(nippon-chugoku), APP and worldsteel
3. Summary
Hisatsugu Kitaguchi
Senior Manager
Environmental Affairs Division
Nippon Steel Corporation
NEW EARTH 2008 ,Osaka,27th Nov. 2008

2. Blast Furnace
Coke oven
Sintering
Basic Oxygen
Furnace
Continuous Casting
0. Introduction
2
FeO
Fe2O3
Fe3O4
+ C →Fe +CO2

3. World-wide crude steel production 1. Overview
●Rapid growth in China, last decade almost five times.
3
13221250
970
904
850848789777799750752725728719734
769
1141
1069
0
200
400
600
800
1,000
1,200
1990年
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
(百万ｔ）
＜世界計＞
0
100
200
300
400
500
600
1990年1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
出所：ＩＩＳＩ
＜各国の粗鋼生産＞
(百万ｔ）
中国
120(日本)
176(EU15)
423
124(CIS)
356
280
222
489
京都議定書採択
日本 1億t
中国 1億t
Million -t/year World-wide crude steel production
Kyoto Protocol adoption
China=Japan=100million-t/y
China
EU15
Japan CIS
1323
2050

4. Comparison of Energy Efficiency
4
1. Overview
Source: Estimates by RITE from IEA (2006), IISI (2005) etc.
100
117
120 122
125 127 129
132 134 136
107
80
100
120
140
日 韓 独 仏 英 米 加 中 印 豪 露
Japan
Korea
Germany
France
UK
USA
Canada
China
India
Australia
Russia

5. 5
1. OverviewCO2 Reduction Potentials in Iron and
Steel in 2005,Based on Best Available
Technology

6. 4.7
Kyoto
40%
Uni-
lateral:
“pleadge and
review” action
World-wide
100%
13.2
1.8
Coverage
EU15
0.3Other EU
1.2CIS
0.2Canada
Japan
1.5Others
1.0USA
0.1Australia
0.5India
0.5Korea
China 4.9
1.2
Multi-lateral:
worldsteel GSSA
8.4
APP
60%
Seven-lateral:
APP
6.16.1
China-Japan
50%
Bi-lateral:
nippon-chugoku
Overview of Steel’s Sector-based Approaches
World-wide crude steel production (2007)
6
1. Overview
108ton/year, 2007Cy crude steel production
●Sectoral approaches with
various levels.

7. Overview of APP
APP:Asia-Pacific Partnership on Clean Development and Climate
・Established at 2005
・Australia, Canada, China, India, Japan, Korea, USA
【Focusing on Energy and SOx/NOx issues】
【Government-Private Partnership with small number of nations】
Characteristics
of APP
• Huge potential for CO2 emissions reduction
– APP seven nations CO2 emissions are approx. 60% oｆ a whole world.
• Technology oriented, sector-based and bottom-
up approach
• Government-Private collaborations
– Non-legally binding
– Dynamism of private sector and potential for R&D activated
7
2. GSSA-APP
●Sectoral approach is ongoing with achieving milestones.

8. APP structure
＜Benefit of sector-based approach＞
• Based on the actual technical situations of each sector, it is possible to evaluate
accurate and practical potential of CO2 emissions reduction.
• Energy efficiency of developed and developing countries can be evaluated.
• Best practices can be shared in the easier way.
• Practical projects can be Implemented.
8
PIC
(USA)
CFE
(Australia)
REDG
(Korea)
PTG
(USA)
Steel
(Japan)
Aluminium
(Australia)
Cement
(Japan)
Coal
(USA)
BA
(Korea)
( ) : Chair
PIC: Policy and implementation Committee
CFE: Cleaner Fossil Energy, REDG: Renewable Energy and Distributed Generation, PGT: Power
Generation and Transmission, Coal: Coal Mining, BA: Buildings and Appliances
2. GSSA-APP

9. APP Steel TFSteel TF / Sectoral Approach
:High coverage / Over 60% of crude steel production
:Technology oriented / Experts of steel industry participates
:Government – Private collaboration
APP
Possible milestoneSet ambitious and realistic
milestone
Set milestone
Energy efficiency survey
Potential survey
Proposal for improvement
Flagship project selection
Diagnosis on selected site
Implement flagship project
Model project
approach
Diffusion Survey of SOACT
Energy intensity Survey by common boundary
Barrier Survey
Review current status
SOACT handbook
Workshop
Share state of the art save
energy technology
General
approach
ActionPurposeStep
Application of SOACT
Energy intensity
Others
9
3- 1) APP-data&target

10. SOACT Handbook is
under compiling to be
shared state-of-the-art
clean technologies
relating environmental
protection and energy
saving by the member
countries.
22 of environmental protection
technologies and 42 of energy saving
technologies are compiled.
By the end of 2007,
<Steel T/F Action-1>
SOACT handbook (project-5)
SOACT is posted on the APP Website in Jan. 2008
http://asiapacificpartnership.org/
10
3- 1) APP-data&target

11. <Steel T/F Action-2>
Establish of Common Methodology
to Identity Reduction Potential and Performance Benchmarking
Step-1: Status Review
Diffusion rate of technologies
Intensity benchmarking
Step-2: Reduction potential
Step-3: Target setting
A common Methodology
setting for benchmarking
Formula
Boundary
Conversion
Factors
Selection of technologies for survey
from a common data base, SOACT handbook
Diffusion Survey
Barriers Survey
Intensity Survey
11
3- 1) APP-data&target
●Step-by-step approach for target setting.

12. Major technology for energy saving and environment
protection
Utilization of slag, sludge and dustRecycling
Flue Gas and Water Treatment
Evacuation
Basic Oxygen
Furnace
Direct Reduced Iron
Regenerative Burner
ＰＣＩ : Pulverized Coal Injection
Hot Stove heat recovery
ＴＲＴ
Flue Gas Treatment
Blast Furnace
ＳＣＯＰＥ21
ＣＭＣ : Coal Moisture Control
ＣＤＱ : Coke Dry Quenching
Cokes
Waste heat recovery
Flue Gas Treatment
Sinter
Technology for Steel IndustryProcess
Power generation by Waste Heat
Recovery Technology（CDQ）
12
3- 1) APP-data&target

13. CO2 Mitigation Potential by
technology diffusion (APP)
13
3- 1) APP-data&target
20.24
5.27
5.14
5.30
3.65
0.86
9.57
4.98
36.09
36.10
0 10 20 30 40
CDQ
Coal moisture control
COG Recovery
Sinter Waste Heat Recovery
BFG Recovery
TRT
PCI
Hot Stove Waste Heat Recovery
BOF Gas Recovery
BOF Gas Sensible Heat Recovery
million t / year
CO2 emissions reduction Potential
127 million t-CO2/year

14. A common methodology for
target setting , discussion has just started, to be a
main agenda in the 6th Steel Task Force in Beijing.
14
Identifying
Huge
potential ?
Best Performer
Group
Challenging Target setting?
Or grouping?
Worst
Performer
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
CO2排出量
Baseline-1: “グローバル・トップランナー方式“
Bseline-2: “Cap and Trade”
EnergyIntensity
3- 1) APP-data&target
●Using collected data, target setting will be issue. A common
methodology for target setting should be discussed & shared.

15. ◆Short / Medium-term target
-Deploy existing technology
-Focused to the theoretical limit at the year of xx.
-Different milestone for each producer
◆Long term target
-CO2 Break through program
2005
EnergyEfficiency
Timeframe
20
2020 xx
30
CO2 Break through
technology
Theoretical
Limit of
BF/BOF
Steel Making
Process
CO2 BT develop
BAT transfer
[ Gj/t ]
Time-scope for APP
Mid-term Target Setting
Conceptual Image for Integrated Steel Plants
(under preliminary discussion by the Expert Group)
3- 1) APP-data&target
15
●A common? for longer-term and differentiated for mid-term?

16. <Steel T/F Action-3>
Technology deployment based on performance diagnosis
Step-1: Site visit (Project-4)
Fact findings
Recommendations
Step-2: Prioritization and selection of actual flagship projects using results of site visits
Step-3: Proposal to the Steel Task Force as actual model projects.
Appropriate and suitable implementations from
SOACT for each steelworks
Energy saving
SOx, NOx etc.
On-site evaluations, candidate technologies for improvement of a
particular steelworks
Compilation of all
sites data and list-up
the candidate
projects
-Barriers for realization (financial, technological etc.)
-Cost-effectiveness etc.
Evaluation and prioritization
of all candidate projects
16
3- 2) APP-cooperation
●Another step-by-step approach for acceleration/promotion of
technology transfer/diffusion among APP seven nations.

17. Beijing
〇
●China
Mongolia
①①TaiyuanTaiyuan((太原太原))：：JFEJFE
②②JinanJinan((済南済南)) ：：Nippon SteelNippon Steel、、KobeKobe
③③JiangyinJiangyin((江陰江陰))：：SumitomoSumitomo
ScheduleSchedule：： Dec. 2007Dec. 2007
33～～44 Specialists/Experts (from Japan)Specialists/Experts (from Japan)
at each siteat each site
China (3plants)
Taiyuan
(太原)
●
●
Jinan
(済南)
Jiangyin
(江陰)
Technology Transfer China Sites
17
3- 2) APP-cooperation

18. Information of China Sites
18
3- 2) APP-cooperation
Steel bar
(Special steel)
2.3Jiangyin
Hot rolled steel
Heavy plate
Steel bar
11.2Jinan
Stainless steel6.4Taiyuan
Main productSteel production
(million ton 2006)
Site
China Steel Statistics

19. China Sites – Jinan Steel
19
3- 2) APP-cooperation

20. Technology Transfer India Site
スライド 1
Steel Plants to be surveyedSteel Plants to be surveyed
SAIL（Rourkela）: Conducted in January 2008
Another 5 Works: Will be conducted one after the other after April 2008
Essar Steel Ltd. (Hazira)
Ispat Industries Ltd. (Dolvi)
JSW Steel (Vijayanagar)
Tata Steel Ltd. (Jamshedpur)
SAIL (Rourkela)
Rashtriya Ispat Nigam Ltd.
(Visakhapatnam)
20
3- 2) APP-cooperation

21. India Site-SAIL(Rourkela)
Overview of the steel plant
21
3- 2) APP-cooperation
・ The Rourkela Steel Plant of SAIL is an integrated steel
plant of an annual crude steel production of two
million tons, mainly producing steel sheets and pipes.
・They are highly conscious of energy conservation and
environmental protection as they are conducting their
own unique measures.
・Since blast furnace ignition in 1959, the existing
facilities have been altered and renewed but enough
energy conservation facilities have not been introduced
partly because many facilities have small capacities.
・ In addition, the regulations about atmospheric
environmental conservation are still loose and
environmental protection facilities have not been
introduced enough.

22. India Site-SAIL(Rourkela)
22
3- 2) APP-cooperation

23. Results of Site visit by the experts.
Energy Conservation Measures
23
3- 2) APP-cooperation
Steel Plant B
No. Subject
Energy
Reduction
Potential
(TJ/year)
CO2 Reduction
Potential
(kt-CO2/year)
1 Improvement of LDG recovery rate 2,138 244
2
Improvement of sensible heat recovery
recovered from steel converter
568 32
3
Blast furnace top equivalent pressure gas
recovery (TGR)
105 12
4
Blast furnace hot stove waste heat hot air
recovery etc.
3,500 400
5
Effective utilization of reheating furnace
skid boiler fired heater skid steam
539 54
6
Improvement of unit specific fuel
consumption of by sintering plant
480 55
7
Improvement of unit specific fuel
consumption of cokes conversion
1,950 223
8
Improvement of unit specific fuel
consumption of hot rolling mill reheating
furnace
840 96
9
Reduction of Gby-product gas diffusion
reduction (installation of new BTG)
8,424 963
Total 18,544 2,080
TJ : 1012J, kt : 103t

24. Results of Site visit by the experts.
Environmental Protection Measures
24
3- 2) APP-cooperation
Steel Plant B
1 ・Reinforcement of SOx regulations and enforcement of
sinter exhaust gas desulphurization by 2010.
・Pilot tests on the original method are conducted at sinter
plant.
・ Recommendation of another method, such as
activated-coke-type, should be examined with
consideration of future regulation trends (such as NOx and
dioxin).
2 Recommendation of online monitoring to deal with the
increase of NOx due to abnormal heating.

25. Results of Site visit by the experts.
CO2 emissions reduction potential
25
3- 2) APP-cooperation
●So far four site-visits, identifying a set of appropriate
technologies for each site and also reduction potential.
Estimation of CO2 emissions reduction potential as results of sites visit
Energy saving CO2reduction
（TJ/y） （kt-CO2/y）
China AA - -
BB 18,544 2,080
CC 2,308 279
China total 20,852 2,359
India D 9,209 1,019
Site

26. Recent Topics
26
3- 2) APP-cooperation
1.1. China SitesChina Sites
2525thth Nov. at BeijingNov. at Beijing
Follow up meeting of 2007 sites survey.Follow up meeting of 2007 sites survey.
2.2. India Sites Sites surveyIndia Sites Sites survey
TATATATA（（12/312/3--5 NIPPON STEEL, KOBE STEEL)5 NIPPON STEEL, KOBE STEEL)
RINL (12/8RINL (12/8--10 JFE, SUMITOMO METAL)10 JFE, SUMITOMO METAL)

27. World SteelWorld Steel’’s CO2 Breakthroughs CO2 Breakthrough
ProgramProgram October 2003~October 2003~
North American
Program
South
American
Program
Korea
Program
*Ultra Low CO2 Steelmaking
CO2 separation
Hydrogen production etc.
Japan
Program
JISF
Phase-1: Seeds R&D （until 2008）
Phase-2: Pilot project（2009～）
Phase-3: Demonstration Plant
EU
ULCOS
3-3). Long term
R&D
27
Australia
Program
Eletrolysis etc.
CCS, H2, BFG recycling with
CO2 separation

28. （IISI Policy Statement with a shared vision)
③A common methodology
CO2 intensity and energy intensity calculation
GSSAGuideline
⑤CO2 Breakthrough Program
and acceleration of technology establishment
①A common technology handbook?
②A common methodology
for target- (CO2 intensity-) setting①SOACT handbook
⑥A common 2050 vision/scenarios
Emissions Trading
④ Technology diffusion/transfer
and its acceleration mechanism
APPFlagships
②Target-setting
③Technology diffusion/transfer
-Promoting Sectoral
Approach at all levels
● World-wide Comparable Effort s⇒ Establishing a global level playing field
Keidanren Pledge &
Review (commitment
and progress)
A Core of GSSA Global Steel Sectoral Approach
28
4. Summary
●Four commons（①・②・③・⑥） and
two categories of technology（④・⑤）.

29. Summary
1) Participation of all major emitters (countries, sectors, entities ~)
2) Technology ~Solution
- Diffusion of Best Efficient Technologies
- CO2 Breakthrough Technologies
3) Sector-based and technology-based collaborations
- “Sectoral Approach”
4) Taking action toward a challenging target
- “Global top-runner (front-runner)
- Challenging target with pledge and review
5) Mechanisms for promoting and accelerating technology transfer
and R&D
4. Conclusion
29

30. Are there limits to adaptation?
Dutch cow ready for sea level rise?
Dr. Ottmar Edenhofer / Kai Lessmann
Europe-Asia Dialogue on Climate Challenge of the 21st Century
The Finnish Parliament Group for Global Issues
Helsinki, 8th September 2006
Thank you for your
kind attention!