Direct Reduction Iron PlantGroup GolfSelimos, Blake A.Arrington, Deisy C.

Sink, BrandonCiarlette, Dominic F. (Scribe)

Advisor: Orest Romaniuk

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Table of Contents

Page 3-4: MotivationPage 5-6: BFD / Design BasisPage 7-8: Process Flow Diagram Page 9: Energy Recovery Page 10: Environmental Considerations Page 11-15: EconomicsPage 16: RecommendationsPage 17: Summary

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Motivation

• Natural Gas cost is expected to decrease further

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Motivation

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• With natural gas prices trending down and an abundance of it available in Wiliston ND, a Midrex plant makes sense economically.

• The NPV for this plant is $1,030,000,000• Midrex process is more cost efficient and

environmentally friendly than conventional blast furnaces.

Block Flow/Design Basis

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Design Basis

• 2700 tons/day of natural gas feedstock will be supplied for process and fuel•Natural gas and steam are the main sources of H2

•Air is used as the main source of N2

•Supply the back-end ammonia plant with H2 and N2 in a 3:1 molar ratio to make 3600 TPD of NH3

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Process Flow Diagram

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Process Flow Diagram

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Oxy Fuel Boost Reformer

Removal

GuardBed

Heater

Top Gas Scrubber

Midrex Reformer

Main Air Blower

Shaft Furnace

Ejector Stack

Iron Ore

Iron Briquettes

Compressor

Fuel Gas

Recycle

Ejector Stack

1 2 3 4 5 6 7 8 9 10Feed CH4 & recycle

stream

Exhaust going to ejector

Air coming from air blower

Heated process

gas

Reduction gas going to Oxy Fuel booster

CH4 to combustion

chamber

Recycle gas to

combustion chamber

Heated gas from

combustion

Heated air to combustion

chamber

Recycle gas from

CO2 Removal

CH4, H2, CO, CO2, H20, N2

CO2, H2O, N2

N2, O2 CH4, H2, CO, CO2, H20, N2

CH4, H2, CO, CO2, N2

CH4, N2 CH4, H2, CO, CO2, H20, N2,

O2

CO2, H2O, N2 CH4, H2, CO, CO2, H20, N2

CH4, H2, CO, H20,

N2

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Energy Sinks and Loads: Heat Exchangers

FEEDHEAT

EXHAUST1 EXHAUST2

FEEDIN

FEEDOUT

1076º F75 psi

724 ºF14.7 psi

180º F75 psi

1878º F14.7 psi

AIRHEAT

EXHAUST2 EXHAUST3

AIRIN

AIROUT

724º F14.7 psi

420º F14.7 psi

615º F14.7 psi

77º F14.7 psi

Q=27 mmBtu/hrQ=113 mmBtu/hr

• Excess energy from the flue gas is used to heat the feed of gas in

Environmental Considerations

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• Midrex plants are designed with the goal of minimizing water, air, and noise pollution.

• In comparison to traditional blast furnaces, Midrex plants have much lower CO2 emissions due to using natural gas instead of coal, as well as having a reformer that can handle larger amounts of recycled CO2 than the average steam-methane reformer.

• 153 ton/year of CO2 emissions

Equipment

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Equipment Equipment Cost (USD) Total Installed Cost (USD)

Primary Reformer 46,000,000 188,000,000

Shaft Furnace 39,000,000 168,000,000

Oxygen fuel booster 11,000,000 40,000,000

Scrubber 650,000 2,000,000Main Air Blower 500,000 2,000,000

Heat Exchanger 1 120,000 510,000

Heat Exchanger 2 100,000 436,000

Zinc Oxide Bed 3,000,000 10,000,000

Compressor 4,000,000 15,000,000

CO2 Removal (MDEA) 7,000,000 29,000,000

Storage facility - 12,000,000

Rail and Loading - 18,000,000

Total 110,000,000 483,000,000

Expenses

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1 Year (USD) 5 Year (USD) 10 Year (USD)Loan 29,000,000 24,000,000 17,000,000

Depreciation 3,000,000 3,000,000 3,000,000Electrical 20,000,000 22,000,000 24,000,000

Natural Gas Cost Transfer From Alpha No Transfer Cost Between Groups

Oxygen Cost Transfer From Matt’s group No Transfer Cost Between Groups

Transportation Costs 72,000,000 78,000,000 86,000,000

Salaries and Fringes ($100/hr.) 11,000,000 12,000,000 14,000,000

Maintenance 15,000,000 16,000,000 17,000,000Feed Ore 406,000,000 439,000,000 485,000,000

Total Expenses 556,000,000 594,000,000 646,000,000

Revenue

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Products Sell Cost/Ton ($) TPD $/Day $/Year

DRI 425 5,000 2,000,000 790,000,000

Carbon Dioxide 15 Giving to

IndiaNo Transfer

CostsBetween Groups

Total - 5,000 2,000,000 790,000,000

Profit

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1 Year (USD) 10 Year (USD) 17 Year (USD)

Total Expenses 550,000,000 640,000,000 720,000,000

Total Revenue 790,000,000 860,000,000 1,000,000,000

Income Before Taxes 240,000,000 270,326,000 370,000,000

Taxes (40%) 97,000,000 110,000,000 150,000,000

Income After Taxes 150,000,000 160,000,000 220,000,000

Total Cumulative Income 150,000,000 1,665,000,000 3,000,000,000

Payback Period

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NPV 1,030,000,000IRR 32.85%

Payback Period 4 Years

Recommendations

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• We recommend proceeding with the completion of the Midrex plant at the Wiliston ND location.

• We recommend changing the process so that there is no recycled stream going into the combustion chamber of the reformer. Instead, burn the CO and CH4 with some O2, then dry the stream to remove the water and send the remainder of the stream over to team India as CO2. Natural gas is the cheapest commodity in this plant so it makes sense to use a little more of that for the combustion rather than implementing a pricy MDEA system to remove the CO2 and allow us to burn the little bit of recycled CO and CH4 that’s left.

Summary

• The process starts with 2,700 tons/day of natural gas feedstock and will give enough H2 and N2 to the back-end ammonia plant to produce 3,600 tons/day of NH3

• Natural gas feedstock and convection section optimization will reduce expenses and payback period

• Projected payback period is 6.8 years• Net present value is 809 million USD (20 years)

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Questions?

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Recommendations (2)

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Flow Diagram (1)

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Flow Diagram (2)

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Flow Diagram (3)

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Flow Diagram (4)

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Steam System

References

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Questions?

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