View
221
Download
0
Category
Tags:
Preview:
Citation preview
Energy Efficiency &
New Technology Deployment in
Indian Iron & Steel Sector
S. K. JainGeneral Manager
STEEL AUTHORITY OF INDIA LIMITED
INTERNATIONAL WORKSHOP ON INDUSTRIAL ENERGY EFFICIENCY – NEW DELHI
SAIL TodayA listed company, 86% owned by GoI; one of the “Navratna” PSUs
Authorized Capital: Rs. 5000 Crore, Paid up capital: Rs 4130 Crore.
Largest Steel producer in India and 21st largest in the world (2008)
Highest ever turnover of Rs. 48,681 Crore in 2008-09 (equivalent to over $10 billion), 7% higher on YOY. (Rs. 20,481 Cr. in April-Sept. 09-10)
SAIL’s PBT was Rs 9,404 Crore and PAT of Rs.6,175 Crore in 2008-09 inspite of the economic downturn and higher input costs. (PBT Rs. 4529 Cr. & PAT Rs. 2994 Cr. in April- Sept. 09-10)
Highest PAT among all steel companies of the world in 1st half of January –June’09 (Rs. 2627 Crore)
Energy Scenario in Indian Iron Energy Scenario in Indian Iron and Steel Industryand Steel Industry
• Is the largest consumer of energy among all industrial sectors.
• Consumes about 10% of total electricity and 27% of coal used by Indian industry.
• Energy cost contributes nearly 30 – 35% of this sector’s production cost.
• Coking coal accounts for 65 – 85% of primary source of energy.
Energy Scenario in Indian Iron Energy Scenario in Indian Iron and Steel Industryand Steel Industry
• Iron making through BF route accounts nearly 70% of the total energy consumed by the industry.
• Energy is essential for economic growth and to achieve the target growth in GDP.
Crude Steel Production 2004-05
Crude Steel
Company 08-09 (Gcal/tcs)
BSP 6.50
DSP 6.50
RSP 7.09
BSL 6.73
ISP 8.27
SAIL 6.74
Tata Steel 6.59
RINL 6.77
ESSAR 5.81
ISPAT 5.21
JSW 6.70
Total 6.50-7.00
Indian Steel Industry
Source: Joint Plant Committee, Govt. of India
Major steel plants & Energy Cons. level
Energy Consumption in Indian Steel Industry
• Specific energy consumption declined by >15% in last 10 years.
• However, it is still more than World level of 4.5 Gcal/tcs
10.7
8.4
6.9
1985 1990 1995 2000 2005 2008
Year
GCal/tcs
...Contd....Contd.
High Energy Consumption in India – Why ?
• Out dated technology in older plants set up in 60s and 70s
• Inferior raw material quality
• High alumina and high alumina & silica ratio in iron ore
• High ash content in coking coal even after blending
• Low rate of recycling
Domestic installed capacity of crude steel (62.6 MT)-
2009
TATA Steel
11.2%
J SW12.5%
RINL4.8%
J SPL2.4%
Essar7.3%
ISPAT3.2%
Secondary producers
38.1%
SAIL20.5%
SAIL is the largest domestic steel player
Other IntegratedMain Producers:36.6%
India has emerged 3rd largest steel producer in the world in 9M ’09
Top 5 countries in Crude Steel Production
2008 2009
Jan-Sep’2009
Rank Country
MT Rank Country
MT
1 China 502 MT 1 China 420.4
2 Japan 119 MT 2 Japan 60.9
3 US 91 MT 3 India 41.74
4 Russia 68.5 MT
4 Russia 41.68
5 India 55 MT 5 United States
40.23
Source: WSA
Low High
Deficit
Excess
Ava
il-ab
ility
of
Iron
Ore
Forecasted Growth rate 2005-15
CIS Latin America
USA / Canada
Eastern EuropeEU
Japan
India
China
Other emerging Asian countries
Raw Material basin
Growth basin
Mature basin
Production sites will move to regions with both RM Production sites will move to regions with both RM source and demand. source and demand.
Skilled Human Resources
Abundant Iron Ore
Government Policy
Huge Potential for Demand
• High GDP growth rate of 8%• 1 billion population• Low per capita steel consumption of 34kg (World av. 170 kg)
Reserves 23 billion tonnes
• Stable currency• Easing of regulations• Strong Banking & judicial
system
Growth factors
for India
•Encouraging trade relations with ASEAN and other countries
• Infrastructure building• Exploring new Energy resources
Indian Potential for Steel
Future Direction : National Steel Policy - 2005
Enhance indigenous production of steel to 110 MT by 2020 from a level of 38 MT in 2005 with a CAGR of 7.3 %
Exports 26 MT by 2020, from level of 4 MT in 2004-05 with a CAGR of 13.3 %
Iron ore requirement to increase to 190 MTPA by 2020 from about 54 MTPA in 2004.
Technology/ productivity in line with global standards
Demand Side
Strengthening of delivery chain linking the producers to the users, especially rural areas
Interface between producers, designers of steel intensive products, fabricators and ultimate user
Creating awareness about steel as a cost-effective and technically efficient end-use material
Supply side
Enhanced and easy access to critical inputs – iron ore & coking coal
Expansion and improvement in quality of infrastructure – Energy, railways, ports and other means of transport
Well developed financial market with efficient financial instruments
Increased focus on R&D, training of manpower and integrated information services
Future Direction : National Steel Policy - 2005
Future Demand of Steel in India
Agency 2019-20
National Steel Policy 2005 110
Latest projection by Ministry of Steel (MoS)
+ 200
Based on MOUs signed by the private producers with various State Governments
293
Different projections for proposed capacity:
(In million tons)
Projected per Capita consumption of Finished Steel in India (kg)
Year Per Capita Steel Consumption
2011-12 48
2019-20 80
2024-25 110
2029-30 135
2034-35 175
India’s current population is - 1160 millionIt is assumed that till 2051, population would be about : 1.4 bn.
Optimistic Case
Medium
Growth
Conservative
Fin. Steel Cons.
Growth
Rate
Consum-ption
(mTpa)
Fin. Steel Cons. Growth Rate
Consum-
ption
(mTpa)
Fin. Steel Cons. Growth
Rate
Consum-ption
(mTpa)
2005-2020
7.6% 100 6.9% 90 * 5.5% 76
2020-2030
6.5% 188 5.5% 147 4.5% 118
2030-2040
5.0% 305 4.0% 217 3% 158
2040-2050
5.0% 498 4.0% 322 3% 212
GROWTH SCENARIOS
* - Also projected by National Steel Policy Estimated Steel Production by 2020 = +200 MT
Energy Saving Potential in India
Specific Energy Consumption for Steel Industry :
India: 6.9 GCal / tcs (07-08)
World: 4.5 GCal / tcs (2008)
6.9
4.5
0
2
4
6
8
10
India(Avg.)
World(Avg.)
Specific Energy Consumption, Gcal/tcs
2.4
Energy saving potential : 200x(6.9-4.5) = + 484 million GCal / yr
Energy Saving Potential in India
• To achieve this potential, Asia-Pacific partnership for clean development and climate has suggested adoption of Energy efficient “Best Available Technologies (BAT)” in
– Coke Making
– Sintering
– Iron Making
– BOF/EAF Steel Making
– Finishing
Barriers in implementing Energy Efficiency Technologies
• Focus on reducing capital cost rather than being concerned about energy input
• Difficulty in acquisition of energy-efficient technologies
• Space constraints/retrofit ability problem in adoption of clean technologies in existing set up
Barriers in implementing Energy Efficiency Technologies
• Focus on reducing capital cost rather than being concerned about energy input
• Difficulty in acquisition of energy-efficient technologies
• Space constraints/retrofit ability problem in adoption of clean technologies in existing set up
• Low rate of recycling.
Energy-efficient Technologies for Iron and Steel Making
Process Energy-efficient TechnologiesCoke making
• Coke Dry Quenching (CDQ)• Automatic Combustion Control• Automatic Ignition for Coke Oven Flare• Tall batteries and stamp charged batteries
Sinter making
• Sinter Cooler Waste Heat Recovery• Multi-slit Burners
Iron making
• Top Pressure Recovery Turbine (TRT)• Hot Stove Waste Heat Recovery• Coal Dust Injection (CDI)• Bled BF Gas Recovery
Steel making
• Bled BOF Gas Recovery• BOF gas Sensible Heat Recovery
Casting • Continuous Casting replacing Ingot Casting• Thin Slab Casting / Near-net-strip Casting
Rolling • Walking Beam Furnace• Reheating Furnace Waste Heat Recovery
RESOURCESAbundant Iron Ore reservesStrong Managerial skills in Iron and Steel makingLarge pool of skilled Man-powerEstablished steel players with strong skills in steel making
Pro-active stance of Govt.Encouragement for overseas investments
High economic growth driven increasingly by industryFaster UrbanisationIncreased Fixed Asset BuildingAutomobiles and component industry growth
OPPORTUNITIES
POLICY
To Conclude..
Indian steel industry has a bright future
To Conclude…
• At this juncture, when demand for steel in India is fast growing to meet domestic and global demand, energy efficiency is the only option to counteract the associated maladies.
• However lack of financing capabilities as well as lack of incentives impede the implementation of such measures.
• Sectoral policies to be developed to promote such incentives
• Policy strategy would consists of mix of regulatory and price based incentives
There’s a little bit of SAIL in everybody’s life
Recommended