TECHNOLOGY ROAD MAP

FOR INDIAN STEEL INDUSTRY

23rd March 20123

A C R Das
Industrial Adviser
Ministry of Steel

World Steel Production

Indian Steel Production
World Ranking in Production
World Ranking in Consumption
Projected Capacity by 2016-17
Projected Capacity by 2019-20
Projected Capacity by 2030

: 1527 MT
: 72 MT
: 4th
: 3rd
: 150 MT
: 200 MT
: 500 MT

Indian Steel Production is bound to grow

manifold in years to come to sustain
Growth in infrastructure /Construction,
Automotive , Capital Goods and Consumer
Durable Sector i.e economic growth .

Structure of Iron & Steel Industry in India

Type of Plant

Number of
Units

Total Capacity
(million tonnes per
year)
29.997

BF-BOF based Integrated Steel

8
Plant
EAF Based Integrated Steel
3
10.600
Plant
EIF based plant
1170
28.833
EAF/ EOF based mini steel
37+2
9.500
plant
Gas Based DRI plant
3
8.000
Coal Based DRI plant
418
26.600
Mini BF based Pig Iron plant
42
Ferro Alloy Units
173
4.045
Hot Re-Rolling Mills
1794
40.844
Cold Re-Rolling Mills
65
10.200
Galvanising Units
20
5.593
Colour Coating Units
6
0.515
Tin Plate Units
2
0.250
Wire Drawing Units
69
1.222
Indian Steel Industry is highly fragmented with a variety of
process routes and thousands of small & medium units for iron &
steel making and also downstream processing

Process Routes in Integrated Steel Plants in

India
Plant
SAIL, BSP, Bhilai
SAIL, DSP, Durgapur
SAIL, RSP, Rourkela
SAIL, BSL, Bokaro
SAIL, ISP, Burnpur
RINL, VSP,
Vishkapatnam
Tata Steel,
Jamshedpur
JSW Steel, Bellary
JSW Ispat Steel, Dolvi
JSPL, Raigarh
Essar, Hazira

Process Route

BF-BOF/THF
BF-BOF
BF-BOF
BF-BOF
BF-BOF
BF-BOF

Capacity
(million tonnes per
year)
3.925
1.802
1.900
4.360
0.500
2.910

BF-BOF

6.800

BF/Corex-BOF
DRI/BF-Con Arc
DRI/BF- AC EAF
DRI/HBI/BF/Corex- DC
EAF

7.800
3.600
2.400
4.600

Even in Integrated Steel Plants, diverse process routes for iron

World: 2 main process routes

Basic Oxygen Furnace (BOF):
Electric Arc Furnace (EAF):
Others:

~ 70%
~ 29%
~ 1%

India: 3 main process routes

Oxygen Furnace (BOF/THF):
Electric Arc Furnace (EAF):
Electric Induction Furnace (EIF):

~ 45%
~ 23%
~ 32%

Induction Furnace Play dominant role in steel

production in India-a unique feature. Quality
issue remain unresolved
BF-BOF route is likely to gain momentum.

Iron & Steel Making is resource intensive and Energy

Intensive and have environmental Ramifications.
Globally 18 Tonnes of CO2 /tcs is emitted. India 2.5-3 T/tcs
Global CO2 emission is around 30 billion tonnes /year.
Indias contribution is around 1.15 billion tonnes/ year (4%), of
which
Steel sector contributes 117 million tonnes/ year (10%).
Integrated steel plants largest point sources of CO2 emission
and 85% of CO2 is from iron making.
With the increase in production, energy consumption and
GHG emissions will also increase correspondingly adding to
Global Warming: an issue of international criticism.
Therefore, it is necessary that along with capacity build-up,
suitable mitigation strategies are inbuilt into the strategy.

Advanced steel plants in the world already operate

close to theoretical limits.
There is ambitious target to cut CO2 emission by
50% by 2050 which is not possible adopting
conventional technologies and would require
Breakthrough Technologies.
Steel Making countries/ regions have embarked on
programmes to achieve targeted CO2 emission:

ULCOS (EU)
COURSE 50 (Japan)
CO2 Breakthrough Programme (USA)
POSCO Breakthrough Technology Programme (Korea)

Breakthrough Technologies being explored are:

innovations in BF (Oxygen Operation), Hydrogen
Reduction, Electron Reduction, Use of Biomass,
Carbon Capture & Storage (CCS) etc.

The Specific Energy Consumption (SEC) in

Indian
Steel
Plants
have
declined
substantially from 10 Gcal/MT in 1990 to 66.5 Gcal/MT in 2009 and are still declining.
Best available technologies indicate SEC of
around 4.5-5 Gcal/MT for BF-BOF route and
4 Gcal/Tcs for gas based DRI-EAF unit.
Integrated steel plants in India are 50%
more energy intensive than global average.
The same holds good for CO2 emission also.
There remains large scope for improvement
of energy intensity & reduction of CO2
emission
even
without
pursuing
breakthrough technologies.

India is committed to reduce GHG Emission Intensity of

its GDP by 20-25% by 2020 over 2005 level, through
pursuits of proactive policies.
Voluntary Initiatives by Steel Plants under Corporate
Responsibility for Environment Protection (CREP) for
energy efficiency improvement and reduction of GHG
emission.
National Mission for Enhanced Energy Efficiency (NMEEE)
under National Action Plan for Climate Change for energy
efficiency improvement.
Perform Achieve and Trade (PAT), a flagship market based
mechanism
to
enhance
cost
effectiveness
in
improvements in energy efficiency in energy intensive
large industries.
PAT is legally binding and there are penalties for non
fulfillment of earmarked targets.
GOI Sustainability Development Guidelines: 5% of total
MOU score for large PSUs to cover sustainability projects
with expenditure of 0.1 % of profit (after tax).

Gradually transform the technological face of the Indian steel

industry to achieve international benchmarks in long term
perspective through:
Modernisation & Technological upgradation of the existing plants to
phase out old/ obsolete/ energy inefficient/ polluting production
facilities.
Adoption of State-of-the-art technologies in Green Field Plants.
Harnessing of Waste Heat at every step of the production process.
Guidelines of modern/ state of art technologies are available in several
reference documents: SOACT Handbook of APP, BAT Handbook of EU.
Numerous
commercially
established
energy
conservation
technologies:
Sinter Cooler Waste Heat Recovery, Coke Dry
Quenching (CDQ), Coal Moisture Control (CMC) in Coke Ovens, BF Top
Pressure Recovery Turbine (TRT), waste heat recovery from BF stove
waste gases, OG boiler in BOF, Regenerative Burners, Near Net Shape
casting etc.: agenda for immediate adoption.
Strategies to ensure Raw material security- utilisation of low grade
ore through beneficiation & agglomeration or through Direct Smelting,
beneficiation of high ash coal and other inputs.
Pursuing Research & Development Programmes for Low Carbon
Footprints and production of value added/ high performance steel.
Securing talent and skilled manpower to support the above strategies.

BF is the most energy intensive units and call for specially

directed initiatives to improve the productivity and energy
efficiency:
Process

improvements viz. revamping/conveyorization of stock house and

increasing screening efficiency of ore, sinter and coke, strengthening stoves
capacity, increasing blast volume and flow rate, increasing oxygen enrichment
of blast, higher hot blast temperatures of at-least 1100 0 C etc.
High level of alternate fuels injection to drastically reduce coke rate:
incorporation of technologies for injecting pulverized/ granulated coal (+ 200
kg/thm), oil (100 kg/thm), Natural gas (100 kg/thm) and waste plastics
granules.
Adoption of energy efficiency measures in existing and new blast furnaces
e.g. Top pressure Recovery Turbine, use of waste heat stove gas for preheating
of gas, high efficiency stoves etc.
Increase in campaign life by introduction of various measures like copper
staves, Silicon carbide and monolithic linings in stack and bosh, closed circuit
demineralized water and provisions for regular monitoring of heat flux all
along the furnace height and cross-section, use of titanium bearing material
as a regular hearth protection measure etc.
Application of sophisticated probes (under and overburden probes, vertical
probes etc), models and computerized expert system for process analysis,
control and optimization are very important tools for bringing about quantum
jump in productivity levels of Indian blast furnaces.
Efficient casting practice through up-gradation of cast house equipment, clay
mass and liquid disposal system, incorporation of powerful mud gun and
drilling machines etc.

Direct Reduced Iron (DRI)

Accounts for 45% of iron production in India 25% gas based & 75% coal
based

Technology of Natural Gas based plants world class and energy

consumption in Gas DRI-EAF is the lowest, but no growth because of non
availability of natural gas.

Technology of Coal based plant is mixed and energy consumption in Coal

DRI-EAF units highest.
Technological obsolescence, Poor quality of
inputs/products and higher environmental emissions are issues of concern.

Solutions:

Syn-gas based DRI plant ( Economic Viability?)

Improving energy efficiency and reduction of environmental emission in coal
based DRI plants failing which gradual shut down of inefficient& polluting plants
Jumbo Rotary Kiln of Outotech: a ray of hope.
FASTMET: Reduction of ore-coal composite pellets in RHF using coal, coke breeze
and carbon bearing waste as a reductant. DRI with high degree of metallization
can be charged in EAF in SME sector.
ITmk3: Flexible and environment friendly technology for smelting iron ore fines
using non-coking coal to produce iron nuggets with 96-97% iron in a RHF. Ideal
material for EAF /SME sector.

Smelting Reduction Processes

Primary objective is to produce liquid iron directly
from iron ore (fines & concentrates) and non coking
coal, by-passing agglomeration and coke making
requirements (reduced investment cost : 10-15%).
Plant emissions contain only insignificant amounts
of NOx, SO2, dust, phenols, sulfides and,
ammonium
besides
far
lower
waste-water
emissions.
The promising alternative technologies which have
been commercialized/ are in the process of
commercialization and appear to be relevant are
COREX, FINEX, HISMELT, HISARNA, TECHNORED etc.

Process
Characteristics
Corex is a twostage process:
in
the
first
stage
(Reduction
Shaft), iron ore
is reduced to
DRI using the
reduction
gas
(65-70% CO +
20-25%
H2)
from the Melter
Gasifier and in
the
second
stage
(Melter
Gasifier),
DRI
produced
in
reduction shaft

Merits/Demerits

Status

Merits: Cost saving (up to

15%) and
Environment
friendly
vis--vis
Coke
oven-sinter plant.-BF route
Demerits: Limited modular
size (largest corex plant is
of
1.5
million
tonne
capacity), Dependence on
lumps/ pellets/ coke/ weak
coking
coal,
high
consumption
(cost)
of
oxygen,
necessity
of
gainful utilization of Corex
gas and generated coal
fines.

COREX is a proven
smelting-reduction
(SR)
process
developed
by
Siemens VAI for the
cost-effective
and
environment
friendly production
of hot metal.
Well established in
India and abroadJSW Steel and Essar
steel
successfully
adopted the Corex
process
(C-2000
Module) .

Process Characteristics
FINEX: an innovative
iron
making
technology developed
by Siemens VAI and
POSCO.
Like Corex, Finex also
involves two reactorsFluidised Bed Reactors
(FBR)
and Melter
Gasifier (MG). In the
FBR, iron ore fines are
reduced to sponge iron
fines
which
are
compacted to produce
Hot Compacted Iron
(HCI). The HCI is then
charged in MG where
non
coking
coal
briquettes (65%) are
also
charged.
The
balance (35%) coal is
injected in the MG as

Merits/Demerits
Merits: Direct use of iron
ore fines, no need of
lumps/pellets.
Significant
reduction of SOx, NOx and
dust emissions.
Limitations:
i) Necessity
of inputs in melter gasifier
largely in lumpy form
(lumps/ briquettes)
ii) Need of either lumpy
coal or coal briquettes.
iii) Like Corex gas, Finex
gas is also of high calorific
value and needs to be
utilized gainfully to make
the process economically
viable.
iv) The claims on lower
CO2
emission
vis--vis
Blast Furnace route is yet
to be established and
needs further investigation.

Status
The FINEX process
has
been
successfully
demonstrated
at
Pohang, POSCO in
two modulesat
0.75 MTPA and 1.5
MTPA.
Adoption
of
this
process
is
also
being considered for
POSCOs venture in
Orissa.
SAIL has signed an
MOU with POSCO to
incorporate
the
technology under JV
for creating a 2.5
3.0 MTPA additional
capacity at Bokaro

Process
Characteristics
Direct use of iron
ore and coal fines in
a
single
step
reactor.
Involves moderate
to
high
degree
(70% and above) of
post
combustion.
The gas generated
during
the
reactions is post
combusted
to
around 50% just
above the bath and
the heat energy of
the
post
combustion
is
transferred back to
the main process
through the liquid
fountain of molten

Merits/Demerits

Status

A
distinguishing
feature of the process
is oxidation level of
the slag bath (5% FeO
in slag), which helps
in partitioning of a
large
portion
of
phosphorous to slag.
Further,
silicon
is
practically
absent,
making the hot metal
an ideal feed for BOF.
Being a bed less
process,
problem
faced
in
BF
in
handling high alumina
ore is resolved to a
large extent.
The process seems to
have
considerable
promise
in
Indian

1st demonstration plant 0.8

MTPA
commissioned
in
2005 at Kwinana, Western
Australia.
Major
shut
down
in
February,
2006
for
modification.
Since
its
restart in March, 2006, the
Plant achieved a capacity
utilisation of about 60%.
Plans to scale up the size
(internal diameters) of the
SRV from 6m to 8m for
achieving a production of 2
MTPA from the single
module. However, due to
market softening in 2008,
the demonstration unit was
put down without any
definite plan for restart.
Remains closed .

Process

Merits/Demeri Status
ts

Combines
coal
preheating
and
partial pyrolysis in
a
reactor,
a
Cyclone
Furnace
for ore melting of
partially reduced
ore and a Smelter
Reduction Vessel
for
final
ore
reduction and iron
production.

Significantly
less coal usage
and
thus
reduces
the
amount
of
carbon dioxide
(CO2) emissions.

A
flexible
process
that
allows
partial
substitution of
The
three coal
by
separate
biomass,
technologies
natural gas or
associated
with even hydrogen

Developed as part of the

EU- ULCOS programme,
can produce hot metal
from iron ore fines (incl.
slime) using non-coking
or thermal coal or
charcoal. Rio Tinto and
Tata
Steel
have
commissioned a 65,000
tpa pilot plant at the
IJmuiden Steel Works in
Netherlands.
The process is claimed
to most energy efficient
with least CO2 emission
having a 20% reduction
in CO2 emission and

Process Characteristics
A ne approach to iron
making using cold bonded
self
reducing
pellets
/briquettes produced from
iron ore fines, low met DRI
or iron bearing residues
plus low cost solid fuels
(green pet coke fines, high
ash coal/coke,
charcoal/
biomass or carbon bearing
residues.

Merits/Demerits

Merits: Flexibility to
used different types
of raw materials.
Eliminates need of
Coke oven, sinter
plant and tonnage
oxygen plant i.e
lower
investment
and opration cost
(30%)
. Clean &
Green Technology.
Demerits:
Limited
Pellets/Briquettes smelted module size but
in a high efficiency
of flexible
to
be
unique Shaft Furnace with combined to add up
very low stack height
capacity.
using combination of hot &
cold blast requiring no
additional Oxygen.

Present Status
A Demo plant of
75,000
tpa
is
under operation in
Sao Paulo, Brazil.
Technology still at
first
stage
of
maturity.
Proposal to set up
a
300,000
tpa
industrial plant ( 4
modules of 75000
tpa) in next two
years.

Steel has a future in India & and there are strong

fundamentals to support the growth.
Indian steel production is growing and is expected to
grow at 8-10% decadal growth rate.
Helping hand required from Government to resolve
contentious issues like land acquisition, amicable
policies for environment & forest clearance and creating
an investment friendly atmosphere.
Technological Upgradation
to adopt commercially
available energy efficient clean and green technologies
in all production units to maximise productivity with
minimum damage to the environment and minimise
energy consumption an CO2 emission .
New Plants must adopt stat-of-the-art technologies.
BF most established route of iron production and likely
to grow, followed by DRI & SR routes.
Raw material upgradation and new Product development
have to be given due importance.
Increased R&D investment development of design &
engineering capabilities necessary to support long term
growth in the steel sector.