Transcript BEE present 27 jan 10 - Rev 1 SK JAIN

Energy Efficiency
&
New Technology Deployment
in
Indian Iron & Steel Sector
S. K. Jain
General Manager
STEEL AUTHORITY OF INDIA LIMITED
INTERNATIONAL WORKSHOP ON INDUSTRIAL ENERGY EFFICIENCY – NEW DELHI
SAIL Today
A 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 AprilSept. 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
and 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
and 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.
CrudeSteel
SteelIndustry
Production 2004-05
Indian
Major steel plants & Energy Cons. level
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
Source: Joint Plant Committee, Govt. of India
Energy Consumption in Indian Steel
...Contd.
Industry
• Specific energy
consumption
declined by >15% in
last 10 years.
• However, it is still
more than World
level of 4.5 Gcal/tcs
GCal/tcs
10.7
8.4
6.9
1985 1990 1995 2000 2005 2008
Year
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
ISPAT JSPL
Other Integrated
3.2% 2.4%
Main Producers:
Essar
36.6%
7.3%
SAIL
20.5%
TATA
Steel
11.2%
JSW
12.5%
RINL
4.8%
Secondary
producers
38.1%
SAIL is the
largest
domestic
steel
player
Top 5 countries in Crude Steel Production
2008
Rank
Country
1
2
3
4
China
Japan
US
Russia
5
India
MT
502 MT
119 MT
91 MT
68.5
MT
55 MT
2009
Jan-Sep’2009
Rank Country
MT
1
2
3
4
China
Japan
India
Russia
420.4
60.9
41.74
41.68
5
United
States
40.23
India has emerged 3rd largest steel producer in the world in 9M
Source: WSA
Production sites will move to regions with both RM
source and demand.
Avail-ability of Iron Ore
Excess
CIS
Latin
America
Raw Material
basin
India
Growth basin
USA /
Canada
EU
Deficit
Japan
Low
Eastern
Europe
Mature basin
Forecasted Growth rate 2005-15
China
Other
emerging
Asian
countries
High
Indian Potential for Steel
Huge Potential for Demand
• High GDP growth rate of 8%
• 1 billion population
• Low per capita steel consumption of 34kg (World av. 170 kg)
Skilled Human
Resources
Growth
factors
for India
Abundant Iron Ore
Reserves 23 billion tonnes
Government Policy
• Stable currency
• Easing of regulations
• Strong Banking & judicial
system
• Encouraging trade relations with
ASEAN and other countries
• Infrastructure building
• Exploring new Energy resources
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
Future Direction : National Steel Policy - 2005
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 Demand of Steel in India
Different projections for proposed capacity:
(In million tons)
Agency
National Steel Policy 2005
2019-20
110
Latest projection by Ministry of
Steel (MoS)
+ 200
Based on MOUs signed by the
private producers with various
State Governments
293
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 million
It is assumed that till 2051, population would be about : 1.4 bn.
GROWTH SCENARIOS
Optimistic
Case
Medium
Growth
Fin.
Steel
Cons.
Growth
Rate
Consumption
(mTpa)
Fin. Steel
Cons.
Growth
Rate
Consumption
(mTpa)
Fin. Steel
Cons.
Growth
Rate
Consumption
(mTpa)
20052020
7.6%
100
6.9%
90 *
5.5%
76
20202030
6.5%
188
5.5%
147
4.5%
118
20302040
5.0%
305
4.0%
217
3%
158
20402050
5.0%
498
4.0%
322
3%
212
Estimated Steel Production by 2020 = +200 MT
Conservative
* - Also projected by National Steel Policy
Energy Saving Potential in India
Specific Energy
Consumption for
Steel Industry :
India:
6.9 GCal / tcs
(07-08)
Specific Energy Consumption, Gcal/tcs
10
8
6.9
6
2.4
4.5
4
2
World:
4.5 GCal / tcs
(2008)
Energy saving potential
0
India
(Avg.)
World
(Avg.)
: 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
Coke
making
Sinter
making
Iron
making
Steel
making
Casting
Rolling
Energy-efficient Technologies
• Coke Dry Quenching (CDQ)
• Automatic Combustion Control
• Automatic Ignition for Coke Oven Flare
• Tall batteries and stamp charged batteries
• Sinter Cooler Waste Heat Recovery
• Multi-slit Burners
• Top Pressure Recovery Turbine (TRT)
• Hot Stove Waste Heat Recovery
• Coal Dust Injection (CDI)
• Bled BF Gas Recovery
• Bled BOF Gas Recovery
• BOF gas Sensible Heat Recovery
• Continuous Casting replacing Ingot Casting
• Thin Slab Casting / Near-net-strip Casting
• Walking Beam Furnace
• Reheating Furnace Waste Heat Recovery
To Conclude..
Indian steel industry has a bright future
RESOURCES
Abundant Iron Ore reserves
Strong Managerial skills in Iron and Steel making
Large pool of skilled Man-power
Established steel players with strong skills in steel making
OPPORTUNITIES
High economic growth driven increasingly by industry
Faster Urbanisation
Increased Fixed Asset Building
Automobiles and component industry growth
POLICY
Pro-active stance of Govt.
Encouragement for overseas investments
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