Japan’s steel sector cuts CO2 emissions by 6% in 2009/10

SBB 18 November 2010 Amid debate in Japan over carbon taxes and trading schemes, the Japan Iron & Steel Federation (JISF) says that the country’s steel industry emitted 165.6m tonnes of carbon dioxide last fiscal year, a 6% dip on the 2008 figure and a 17.5% drop on the benchmark fiscal 1990 total. The steel sector’s energy consumption also fell by 17.2% from 1990.

“CO2 emissions last year declined significantly mainly because of the large drop in crude steel output,” a JISF spokesman tells Steel Business Briefing. Japan’s crude steel output in the year to last March reached 93.7mt – a decrease of 10.5% from the 1990 total.

Japan’s steel industry is “voluntarily” cutting energy consumption by an average of 10% during fiscals 2008-2012 compared with 1990 levels, and CO2 emissions by 9% on the premise of 100m t/y of raw steel output.

By undertaking reduction schemes voluntarily, the steelmakers hope to dissuade the government from setting mandatory targets supported by fines and penalties, SBB notes.

The 2008-2009 reductions in emissions of 12.2% and 17.5% respectively from 1990 greatly exceeded the JISF’s target. “But steel output has been recovering and cutting CO2 emissions by 9% over the five years [to 2012] won’t be easy,” the JISF spokesman admitted. Japan’s crude steel output in April-September was up 28% year-on-year at 55.42m t.

The JISF says that outside of the voluntary scheme its members will continue “maximizing” energy savings and emissions reductions by supplying high-quality steel products to end-users to reduce CO2 emissions over the product life cycle.

Tata researches new uses for BF off-gasses, inc CO2

Tata Steel Europe (formerly Corus) is looking at using blast furnace waste gases, and in particular CO2, to spur the growth of algae for making biofuels.The project involves a new technology developed by Prof Zimmerman at Sheffield University.

5 November 2010 Tata Steel has signed a memorandum of understanding with the Centre for Process Innovation to establish a new High Temperature Innovation Centre at its Teesside Technology Centre in the UK, Steel Business Briefing understands.

One of the centre’s research objectives is trialling the use of waste and plastics as alternative fuels in blast furnaces, SBB learns. The facility will include a 350kg pyrolysis oven and a 2-metre diameter fully flexible gasifier.

“The project could offer a step change from existing technologies in terms of improved performance, energy efficiency and lower raw material costs similar to that offered by pulverised coal injection (PCI) since the late ‘90s,” SBB hears from a market observer.

Half of the £5 million ($8m) investment cost will come from One North East, the regional development agency covering Teesside.

In addition, Tata’s steelworks in Scunthorpe is hosting a Sheffield University research project into producing biofuel using blast furnace gases. The project feeds the carbon dioxide in waste gases to algae. The algae then produce biomass which can be turned into biofuels.

The process needs industrials facilities to be located near the sea. Tata Steel Europe’s major steelworks could all be suitable locations, SBB notes.

CO2 problem halts pellet project at Austrian iron mine

Though pelletising uses considerable amounts of energy, some reports have said that this is more than offset with reduced energy use in the blast furnace. It is unclear from the article, whether this is correct in this case.

SBB 18 Nov 2010 Austrian steelmaker Voestalpine’s domestic iron ore supplier, the Erzberg mine in Styria, has abandoned plans to install a pelletizing plant, as was projected earlier this year, and reported by Steel Business Briefing.

The decision against the project has been made in view of stricter rules for greenhouse gas emissions in the European Union as of 2013, which would render production of pellets from the mine uneconomical, VA Erzberg says. Due to the chemical consistency of the ore, pellet production would generate a considerable amount of CO2, the company explains.

Erzberg’s ore has an iron content of only 30-40%. According to the earlier plans, a pelletizing plant could lift the content to 50%, and thus increase the exploitation rate at Erzberg, which currently supplies 2m tonnes/year of fine ore to its indirect owner and only customer, Voestalpine. The steelmaker had considered spending €180m on the pellet project.

Russian steel projects ask for over $377m of carbon credits

After several years of delays, the Russian government finally began the process of issuing carbon credits to Joint Implementation projects this year. Now, Russian steel plants which have reduced their emissions canearn credits, while European steelmakers have access to a new source of offset credits for the emissions trading system.

SBB 3 November 2010 Eight Russian projects which have reduced greenhouse gas emissions in the iron and steel industry are among a total of 58 projects which have taken part in the second round of applications for carbon credits from Russia’s Sberbank, Steel Business Briefing learns.

Sberbank is offering a total of 30m Emissions Reduction Units (ERUs), worth more than $553m (€394m) according to a recent European auction, to projects which have successfully reduced emissions as part of the UN Joint Implementation programme. The state-owned bank should decide on which projects receive ERUs in this round by 22 November, SBB understands.

The largest project on the list is Magnitogorsk Iron & Steel’s (MMK) switch from open-hearth furnaces to electric arc furnaces and installation of continuous slab casters. It is asking for 7m credits to represent the 7m tonnes of CO2 equivalent emissions it has saved since the start of 2008.

In addition to six projects to upgrade or improve the efficiency of iron and steel production and rolling, Air Liquide-Severstal, which provides oxygen to Severstal’s basic oxygen furnaces, also applied. In total the eight projects asked for more than 20m ERUs.

In the first round of applications Evraz was granted the right to 2.12m ERUs, while Metalloinvest was granted 3.2m. They should receive the credits by the end of the year, SBB understands.

ERU futures and options contracts will begin trading on the London-based European Climate Exchange (ECX) on 8 November, SBB notes.