Posts Tagged ‘Corus’

LKAB’s ‘green’ DRI plant may come on line in 2011-2012

ULCOS – the programme of the European steel producers to develop new “Ultra Low” CO2 emitting steel-making processes seems to be gathering pace. Besides this project in Sweden, Corus has the HIsarna project in IJmuiden and ArcelorMittal is developing the TGR. There may be others as well? But all these projects will take many years to evaluate and ultimately also seem fairly dependent on the untried CCS. It would be useful to know the forecast impact on production costs, and the expected cut in CO2 emissions for each process.

SBB 23 Aug 2010 Swedish iron ore miner LKAB will take the final decision on building a test plant for its new low emissions DRI-making process, ULCORED, in Luleå early next year, a representative has told Steel Business Briefing.

The plant would take nine months to complete once the decision has been made, meaning it could be commissioned in late 2011 or early 2012. However, the company representative did not comment on funding.

The facility, part of the international Ultra Low-Carbon Steelmaking (ULCOS) project, will use natural gas and waste gases as the reducing agent rather than coke, eliminating the need for carbon dioxide-emitting coke ovens.

In addition, the remaining waste gas from the process would be very pure CO2 and therefore suitable for carbon capture and storage (CCS), SBB understands.

LKAB also said it is starting a new round of testing at its experimental Top-Gas Recycling (TGR) blast furnace in September. Pure oxygen is introduced to the blast furnace instead of air and waste carbon monoxide is fed back into the furnace. This allows emissions to be reduced and to be pure enough for CCS.

The results of the tests will be used as the basis for testing at ArcelorMittal’s upcoming TGR furnaces at Eissenhüttenstadt in Germany and Florange in France, LKAB added.

Corus is also hosting another ULCOS project, Hisarna, in IJmuiden, which could be commissioned in early January 2011, as previously reported.


Steel companies say carbon credit ‘surplus’ claims unfair

This report from Carbon Market Data seems to ignore last year’s recession as well as the waste gas recycling issue. Steel production fell massively, and is now picking up again.

SBB 11 June 2010 Figures suggesting European steelmakers have received surplus carbon credits are unrepresentative, Eurofer tells Steel Business Briefing. ArcelorMittal, Corus and ThyssenKrupp received the most unused carbon credits under the Emissions Trading System (ETS) in 2009 according to a Carbon Market Data report.

In phase II (2008-2012) of the ETS, steel companies receive free EUAs. Plummeting steel production in 2009 meant that allowances were more than sufficient to account for carbon dioxide emissions.

ArcelorMittal received 43 million European Union Allowances (EUAs) in 2009, which it did not redeem. At a price of €15.6 ($18.8) per credit (see related article) these have a market value of around €670.4m. Corus received 13m unused EUAs while ThyssenKrupp received 11m.

However, a ‘huge part’ of the unused credits are due to the recycling of waste gases, Eurofer spokesman, Axel Eggert, tells SBB. Some steel mills capture waste gases for use in power generation and some steel plants give EUAs to associated power plants to cover emissions generated by the process. These EUAs appear as unused in the report, although they are no longer held by the steel plants. One major steel producer says up to half of his ‘surplus’ EUAs in 2009 were actually held by power plants.

The producer also said it ‘made no sense to tax best-practice’, arguing that Europe’s steelmakers are among the greenest. ArcelorMittal has plans to cut CO2 emissions per tonne of steel by 8% by 2020, while Corus says it will emit less than 1.7 tonnes of CO2 per tonne of steel by 2012, SBB notes.

EU lists two steelworks in carbon emissions top 30 in 2009

The five largest EU steel mills in terms of CO2 emissions in 2009 include ArcelorMittal Dunkerque, ThyssenKrupp Steel in Duisburg, Corus Staal in IJmuiden and Teesside Integrated I&S (TCP), and ILVA Taranto. These are also most likely last year’s five largest integrated producers of crude steel in Europe. The companies themselves don’t give plant by plant production numbers, but it can be estimated that Dunkirk made around 4.6m t of crude steel in 2009 @ a CO2 intensity of 2t CO2/t crude steel, and similar rough calculations can be made for the other plants.

SBB 9 April Two steelworks are on the European Commission’s list of the 30 largest carbon dioxide emitters in the European Union last year, Steel Business Briefing has learnt from preliminary data recently published.

ArcelorMittal Dunkirk was No.15 on the list with 9.2m t of carbon dioxide emissions in 2009. ThyssenKrupp Duisburg was at No. 26 with 6.6m t of CO2 emitted.

Both plants ended the year with a surplus of carbon credits. ArcelorMittal Dunkirk was allocated 11.7m European Union Allowances (EUAs), each with a value of one tonne of CO2. This was 2.5m more than the amount of CO2 actually emitted. ThyssenKrupp Duisburg received 19.6m EUAs, 13m more than were necessary to cover its emissions, the Commission data show.

Corus Staal in the Netherlands, Teesside Integrated Iron & Steel in the UK and Italy’s Ilva Taranto just missed inclusion in the top 30, according to SBB’s own analysis of the data. Each had CO2 emissions of over 5m t in 2009. And all three had a surplus of EUAs.

Other companies with plants among the largest CO2 emitters in the sector include Salzgitter and Dillinger. On average, an integrated steelworks emits almost two tonnes of CO2 for every tonne of crude steel produced.

ArcelorMittal has no plans to sell EU carbon allocations

Yet another report on the EU steel industry’s surplus EUAs: this time from Sandbag. I would say it is fairly inevitable that the steel industry in Europe has excess allowances for 2008 and 2009, given the 30% decline in crude production in the EU in 2009. And given the declining cap on allowances/emissions in phase 3, also fairly predicatble that the mills would want to hang on to most, if not all their EUAs.

SBB 12 March ArcelorMittal has no plans to sell its surplus EUAs (European Union Allowances) gained under the EU’s carbon Emissions Trading Scheme (ETS). Moreover it tells Steel Business Briefing, any proceeds from any possible sale in the future would be reinvested into improving the company’s energy efficiency.

A recent report by UK-based climate campaigner, Sandbag, suggests ArcelorMittal accumulated a surplus of 14.4m EUAs in 2008, worth some €200m, and a further 42m EUAs in 2009. These figures were not confirmed by the company.

The report also claims SSAB, Corus, Salzgitter and US Steel gained surplus EUAs. The second largest surplus was held by SSAB which reportedly gained 3.25m EUAs in 2008. Again, these figures were not confirmed to SBB by the companies in question.

But ArcelorMittal has told SBB it had expected a deficit of EUAs in 2008 as the new regulations for Phase II of the scheme took effect. But cut backs in production during the downturn in 2008/9 lead to a reduction in emissions, generating a surplus in EUAs.

Though the EUAs have a high sale value, ArcelorMittal says it takes the long view and may need surplus EUAs in the future. Its emissions will increase as production picks up. Surplus EUAs carried into Phase III (2013-2020) could be used to cover excess carbon emissions in this period, the company notes.

Over the three years 2007-2009, ArcelorMittal made a $108m net gain from the sale of purchased international carbon credits, according to its latest annual report. – News – Business News – Corus in £250m carbon credits wrangle – News – Business News – Corus in £250m carbon credits wrangle.

The closure of Corus’ Teesside Cast Products (TCP) in the UK – whether temporary or permanent, we will have to wait and see – has highlighted the value of carbon dioxide permits/credits to the European Union steel industry. SBB estimates their total current value/cost to the European steel industry at very approximately€5bn/year, depending on price etc, but the real numbers are very hard to calculate.

The UK’s Community Union, which has members at the steel plant, is calling on the UK Environment Agency to hold in trust the carbon credits for TCP, until such a time as steel making is resumed.  The mothballing of the 3 million  tonnes/year slab making plant has led to fears that Tata Corus will seek to sell carbon credits freely allocated to the plant.

The £250m calculation is for carbon credits over three years – 2010, 2011, and 2012. It is a gross exaggeration, as no-one knows what will happen in 2011 and 2012 – the plant may well re-open. A more reasonable estimate  – by SBB – for 2010 is a few tens of milions of euros.

Roger Manser