Energy efficiency in

Steel Rerolling Mills

(SRRM) in India

K. Shanmuganathan
Project Assistant (Technical)
UNDP

06/09/2014

Indian Steel Scenario

World steel production 1,607 million tonnes
India ranks 4th in steel production with 81.2 million
tonnes per year
Average per capita consumption of steel in India
60 kg per capita per person
India is expected to be 2nd largest steel producer
very soon
Around 65% of finished products are from
secondary steel sector
1,797 SRRMs are in operation in SME sector

UNDP-GEF Steel Project

Need for energy efficiency:
Rise in fuel demand and its cost
Uncontrollable GHG emissions
Energy cost
30% of conversion cost

Barriers in implementing EE technology

in secondary steel sector:
Low awareness
Lack of incentives & technical guidance
Outdated technologies and practices
High investments towards EE options

Launched in the year 2004

Capital Cost
ProjectMpartners:
aintenance Cost
Ministry of Steel, Government of India
Global Environment Facility
United Nations Development Programme
SN

Key parameters
[energy use, production/ productivity]

Energy Cost

1
2
3

Oil consumption in the reheating furnace

Coal consumption [pulverized]
Gas consumption

4
5

Unit

Carbon

DIE
Status in the
beginning of the
project, 2004

Target/expected due
to project intervention
in model units

Oxide

l/t
kg/t
Nm3/t

42 to 45
80 to 120
48

<30
45 to 65
30

Productivity of furnace
Scale loss

kg/m2/h
%

120 to 220
2.5 to 3.5

300 to 350
<1

Power consumption

kWh/t

90 to 120

60 to 80

7
8

Yield
Utilization of mill

89 to 93
65 to 70

94 to 95
80 to 85

%
%

SRRM process layout

30%
Thermal

Energy share
70%

Electrical

Eco-tech options and technology packages

Reheating furnace
SN

2
3
4

6
7
8
9
10
11

Technology package

High efficiency metallic recuperator with

improved furnace
1.1 Improved furnace design to attain
proper heat distribution [5%]
1.2 Usage of improved refractory and
insulation material [5%]
1.3 High efficiency recuperator [10%]
1.4 Automation/control system [5%]
Biomass gasifier
Use of Coal Bed Methane
Use of lump coal to generate producer gas
Use of pulverized coal
5.1 Modified pulverizor with improved
combustion system [10%]
5.2 High efficiency recuperator [10%]
5.3 Automation and control system [5%]
Regenerative burner system
Hot charging
Top and bottom firing
Oxy-fuel combustion
Walking hearth/beam furnace
Direct rolling

Rolling mill
Estimated
energy
saving in
%

25

10
10
35

25

30
40
20
20
20
Over 50

SN

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19

Energy efficiency measure

Estimate
d power
saving in
%

Crop length optimization

Roller guides
Universal couplings
Antifriction roller bearing
Y-roller table
Stationery drop tilter
Tilting tables
Quenching and tempering
Oval repeaters
No twist blocks
Slit rolling
Computerized roll pass
Centralized lubrication
Cast in carbide rolls
Pre-stressed housing less
stands
Endless rolling
Reactive
power
compensation
Energy efficient drives
High voltage [HT] AC motors

5
4
5
4
3
2
3
Nil
2
20
30
5
2
10
10
20
4
4
4

Adoption of technology &

Baseline vs Post implementation
Technology adoptions - reheating furnace
High
efficiency
recuperator
9

34 model units were

commissioned.
S Parameters
N

Unit

1 Production

tph

8.33

10.47

F.O.

l/t

48.97

37.43

Coal

kg/t

105.15

62.59

SFC
(The
2
rmal
)

Baseline

70.24

Biomass

kg/t

104.1

Natural gas

Nm3/t

40.75

31.12

kWh/t

110.91

89.19

3 SPC (electrical)

Modified
pulverized
coal fired
system
13

Post
implemen
tation

Coal gasifier kg/t

Producer gas
based plant
5

Direct rolling
3
Oxy fuel
combustion
1

Baseline vs post implementation - summary

Biomass
3

Best achieved:
Unit
code

Energy
source

Savings

18.2 l/t
(692 MJ/t)

M1

Furnace oil

M12

Coal

92.32 kg/t
(2,382 MJ/t)

M6

Electrical

43.85 kWh/t
(515 MJ/t )

Consolidation of average savings from 34 model units

SN
1
2

3
4
5
6
7
8
9
10

11
12
13

Parameter
Average
Specific
consumption [baseline]
Interventions

Reheating furnace
Rolling section Total
energy
2,150 MJ/t
1,302 MJ/t
3,452 MJ/t
[56 liters of furnace oil]
[110 kWh/t]
One of the options from A set of options
identified technology from identified
EE tech options
Investments by units
Rs 1,42,76,594
Rs 24,25,203
Investment by GEF and MoS
Total investments
Rs 1,67,01,798
Specific energy consumption [post
2,354 MJ/t of
1,307 MJ/t
1,047 MJ/t
commissioning interventions]
steel
Average reduction per tonne of
1,098 MJ/t of
843 MJ/t
255 MJ/t
steel
[22.2 liters of furnace oil]
[21.7 kWh/t]
steel
Average
reduction
of
GHG
0.065 tCO2/t
0.020 tCO2/t
0.085 tCO2/t
emissions per tonne of steel
Average steel production per year
29,987 t/y
Average energy reduction per year
20.9 TJ/y
7.29 TJ/y
28.19 TJ/y
[5,50,347 liters of furnace [6,19,897 kWh]
oil]
Average reduction in energy cost
Rs 117 lakhs
Rs 31 lakhs
Rs 148 lakhs
per year
Average payback on investment
Average GHG reduction per year

14 months
2,041 tCO2/y
559 tCO2/y

2,600 tCO2/y

Direct rolling a revolution in SRRM sector

3 units:
M/s Shri Bajrang Power & Ispat Ltd.
M/s Real Ispat & Power Ltd. and
M/s Indus Smelters Pvt. Ltd.
Now, many units have started to replicate
direct rolling

Pros:
Eliminates the usage of reheating furnace
Fuel savings and GHG emission reduction
Cons:
Can be employed only in composite mills

Awards & Recognition

All 34 units were awarded by MoS(GoI), GEF & UNDP with energy efficiency certificate.
M/s MPK Steel Pvt. Ltd received Rajasthan Energy Conservation Award (RECA) by the
Department of Energy, Government of Rajasthan for year 2010.
M/s Pulkit Steel Rolling Mills received Energy Conservation Award from Government of
Puducherry for adopting bio-mass technology.
M/s Shree Prithvi Steel Rolling Mill has received the following awards:

Rajasthan Energy Conservation Award for year 2008- 09

National Energy Conservation Award for year 2009-10

Our journey continues

Launch of Upscaling Steel Project -- 25/11/2013.
In aiming:
Replication energy efficiency measures in 300 SRRM units
Piloting energy efficiency in induction furnaces [15 nos.]
Piloting second generation energy efficiency measures in SRRM units
No
.

Partners

Budget

Ministry of Steel,
(GoI)

$ 2,000,000

Australian aid
program

$ 675,000

UNDP

$ 950,000
Total

$ 3,625,000

Cluster details
No

Cluster

Total
number of
units

Target
units

250
120
200
100
60

90
20
60
30
20

60

20

150

45

Jalna, Aurangabad

40

10

Kolkata, Durgapur, Giridh,

Jamshedpur, Bokaro

60

20

10

Chennai, Hosur, Salem

11

Guwahati, Shillong

60
25

20
10

12

New Delhi, Jaipur, Bhiwadi,

Ajmer, Muzzafarnagar, Haridwar

50

35

1,175

380

Mandi Gobindgarh

Ludhiana and Kalamb

Raipur

Nagpur & Indore

Coimbatore, Palakkad

Wada, Nashik, Goa, Silvasa

Bhavnagar, Ahmedabad, Sihor,

Kutch

Total

Project design
Submission of EoI & Affidavit

Approval of committee
Conduction of baseline study
Implementation of EE tech option/package

Conduction of post implementation study

Award of financial incentive and energy efficient award

Benefits provided (Technical & Financial)

Technical assistance
Baseline measurements
Customised solutions
Technical assistance for implementation
including support to vendor selection,
supporting the unit when implementing EE
measures
Training on SOP/SMP and 5S lean
manufacturing
Post commissioning measurements

Financial assistance
Financial incentive of Rs 2 lakhs for group 1
[very low cost] and group 2 [low to
moderate cost] interventions for replication
category
Upto Rs 5 lakhs for interventions of direct
rolling
Upto Rs 40 lakhs for piloting EE in Induction
furnaces
Upto Rs 20 lakhs for piloting EE as second
generation interventions in SRRM

5 groups of technology were designed.

 3 groups of technologies are identified.
(20 eco-tech options / packages)
 Group 1 A -11nos. low end equipments
 Group 1 B 7no. low end packages.
 Group 2 1 no. scrap based unit
 Group 3 1no. high end technology
 2 groups are yet to identified.

Developments so far

Around 310 affidavits are generated

300 units were approved
EE tech packages booklet was developed
110 baseline studies were conducted
20+ units initiated the commissioning of EE
technologies
8 baseline studies were conducted in IF units
Scouting of 2nd generation technologies and induction
furnace technologies are under process
Cluster Level Agencies (CLA) are appointed
A e-network created to disseminate the project
progress and other details
Furnace drawings are uploaded in our website

Project deadline
30/06/2015

212
days left

SAVE ENERGY SAVE EARTH

THANK YOU

No
.

Categor
y

EE Technology

Investm
Implem
ent
Saving
entatio
estimat potential
n
e
period

Shell in shell type recuperator for pulverized coal firing system

Modified pulverized coal firing system
Energy efficient pulverizor
Installation of automation & control system (Proportional Integrated
GROUP
Derivative [PID] based for reheating furnace air-fuel ratio control
1A
system)
SRRM Low end High efficient U-tube cross flow type metallic recuperator (for furnace oil INR 3
EE tech / gas fired reheating furnaces)
15 lakhs
equipme Variable Voltage Variable Frequency (VVVF) drive
nt
Universal spindles & couplings
Antifriction roller bearings
Installation of Y-roller table in 3-Hi mill stands of rolling mills
Installation of tilting table for 3-Hi mill stand
Energy efficient drives for rolling mills
Replacement of existing furnace with new energy efficient furnace
Conversion of fossil fuel to CBM based reheating furnace
Conversion of fossil fuel to biomass based producer gas re-heating
GROUP
furnace
1B
SRRM Revamping / modernisation of pulverized coal fired re-heating furnace
INR 1 2
Low end
crores
Revamping existing furnace with energy efficient top fired re-heating
EE
furnace
technol
Revamping of rolling mill
ogy
package
Revamping furnace with new insulation & refractory lining
GROUP
2 SRRM
Low
end EE
technol
ogy
GROUP
3 SRRM
- High
end
technol
ogy

Revamping of mini scrap based rolling mill

Direct rolling

Savings in
specific
fuel
consumpti
on by 5 15%

Financial
incentive

Maxi
mum
per
unit

2 3
months

20% of
capital cost

INR 2
lakhs

4 8
months

20% of
capital cost
or
consultancy
fee or both

INR 2
lakhs

Less
than 6
months

20% of
capital cost
or
consultancy
fee or both

INR 2
lakhs

6 8
months

20% of
capital cost
or
consultancy
fee or both

INR 5
lakhs

Savings in
specific
power
consumpti
on by 2 10%

Savings in
specific
fuel
consumpti
on by 20 35%
Savings in
specific
power
consumpti
on by 10 15%
Savings in
specific
INR upto
energy
15 lakhs consumpti
on by 5
15%
Savings in
specific
INR 1.5- 3
fuel
crores
consumpti
on by 80 100%

GHG emission reduction

No.

Parameter

1.

Reheating furnace

2.

Rolling mill

3.

Total

Unit

kgCO2/t

Baseline

Post implementation

Reduction

166

101

65
(39.21 %)

100

80

20
(19.58%)

266

181

85
( 31.85%)

SAVE ENERGY
FOR A GREEN FUTURE