itp corporate peer review: steel...

ITP Corporate Peer Review:Steel Sub-Program

March 9, 2004

Presentation Outline

• Introduction: Si Friedrich• Overview of Program Planning: Si Friedrich• Program Analysis: Nancy Margolis• Ironmaking Focus Area: Larry Lehtinen• Other Focus Areas: Si Friedrich• Program Management: Si Friedrich• Recent Accomplishments: Si Friedrich

Snapshot of the U.S. Steel Industry• Ranks 5th of all manufacturing

industries in total energy use• Vital to the U.S. economy and

national defense• Few resources to invest in

R&D, particularly high-risk,long-term efforts on revolutionary technologies

• Significant improvements in energy efficiency over the last 20 years, but further gains needed to remain viable

Need for Industry/Government Partnership

• High energy intensity

• Reliance on coke


• Yield losses


• Yield losses

Energy Saving Opportunities for Steel

Steelmaking Reheating Forming/ FinishingIronmaking

EAFBOF

Energy Efficiency Challenges:

Key Processes:

ITP Program StructureIndustrial Technologies

Technology DeliveryAssessments, BestPractices

Advanced Process Systems

Chemical and Enabling Technologies

Metals & MiningMining, Steel, Metal Casting,Aluminum

Materials, Sensors, & AutomationGlass, Materials, Sensors

Chemical & Allied ProcessesChemicals, Forest Products

Industrial Energy SystemsCombustion, Supporting Industries, Tool Development

Portfolio & Financial Mgmt.

Golden Field Office, Regional Offices

Steel

EERE/ITP Mission & Goals Guide the Steel Program

EERE/ITP

• EERE:Increase the energy efficiency of industry

• ITP:By 2020, contribute to a 30% decrease in the energy intensity of energy-intensive industries

Steel Program

• Reduce the energy intensity of making iron and steel

• Improve steel industry productivity and reduce yield losses

• Help the industry maintain its competitive position

Petroleum

Petroleum

Chemicals

PaperPrimaryMetals

Nonmetallic MineralsWood

Mining

Energy-Intensive Industries

Energy Consumption

Ene

rgy

Inte

nsity

Other EERE

Mining

Energy Supply Solar

Wind

FreedomCar

Buildings

Fuel Cells

Hydrogen

Conventional Products

Energy Efficiency and Renewable Energy (EERE) Boundaries

Energy Flow

ITP BoundariesEnergy Flow

Cokemaking Ironmaking Steelmaking Casting Forming/Finishing

LEGEND

ITP

Analysis-Guided PlanningActivity

Project Selection & Execution

Assessment& Evaluation

• Program Goal Setting• Technology Area Planning

- Focus Areas- Project Solicitation

Supporting Analysis• Energy Footprints and

Other Energy Studies• Bandwidth Studies• Barrier/Pathway

Approach

• Expert Peer Reviews• GPRA• Milestone Tracking

• Corporate & PortfolioPeer Review

• Follow-Up Studies

Program Planning Inputs

Industry Input

ITP Strategic

Plan

Prioritized Focus Areas

Analytic Studies

Barriers/R&D Pathways

Industry Input: Steel Industry Partners

• Partners include– American Iron and Steel Institute (AISI)– Steel Manufacturers Association (SMA)

• Provide input to program direction and project selection

• AISI manages projects within the Technology Roadmap Program

Industry Input• Steel Industry Technology Roadmap

- Published by U.S. steel industry 1998 and updated 2001

- Identifies industry priorities for reducing energy intensity and increasing competitiveness

• Barriers and Pathways for Yield Improvements- Published 2003- Currently being used to solicit

proposals for the AISI Technology Roadmap program

Analytic Tools for Steel Program Planning

• Energy Bandwidth Analysis• Energy Footprint Analysis

Energy Benchmarking and Future Opportunities Study

Theoretical Minimum Energy Study

Alternative Ironmaking Study

Steel Industry Energy and Environmental Profile

Barrier/Pathway ApproachFootprint Studies

Industry Roadmaps

Bandwidth Studies

Documents & Data

FOCUS AREA

FOCUS AREA

FOCUS AREA

FOCUS AREA

Focus Area Barrier Pathways

FY FY FY FY FYPathway

Milestone Chart

Steel Industry Bandwidth Analysis(106 Btu/ton)

11.7

0

2

4

6

8

10

12

14

Iron-Making

BOF Steel EAF Steel Reheating

Area of Opportunity

Today’s Actual Energy Use

Theoretical Minimum Energy

Requirement

8.5

Practical MinimumEnergy Requirement 9.0

Impact of highly variable loads not shown in area of opportunity

Steel Energy Footprint Analysis

Energy Supply 1672

•Fuels

•Purchased Electricity and Steam

Central Energy Generation/

Utilities 1672

Energy Distribution

1647

Energy Export ~0Electricity

Energy Losses

Steel Plant Boundary

Utility/ Power Plant 163

Recycle Energy

Electricity generation and transmission losses 339

Losses in boilers and electricity generation losses 25

Losses in pipes, valves, traps, electrical transmission lines 62

Losses due to equipment inefficiency (motors, mechanical drive, waste heat) 291

Losses from waste heat, by-products TBD

Process Energy Systems

Recycle EnergyBy-product fuels and

feedstocks, heatSteam,

heat

Energy Conversion 1529

• Process Heating (1392)(coke ovens, blast furnaces, reheat furnaces)

• Process Cooling/ Refrigeration (4)

• Electrochemical (5)

• Machine Drives (116)(pumps, compressors, fans, blowers, conveyors, grinders)

• Other (12)

Process Energy Use

1238

Distribution losses 45

Facilities/HVAC/Lighting 56

• Steam Plant (77)• Power Generation

(18)• Direct Fuel Supply

(1389)• Purchased

Electricity (163)

• Steam Piping• Fuel Piping• Transmission Lines

• Cokemaking• Ironmaking• Steelmaking• Ladle refining• Casting• Reheating• Forming• Finishing• Waste Handling

Energy Losses

Fossil Energy Supply

1509

Total Steel Industry Energy Supply: 2056 Trillion Btu

• Evaluates end-use and loss patterns to clarify best opportunities for energy efficiency improvements

• Losses occur in equipment and distribution systems supplying energy to process operations or converting energy to usable work

Steel Energy Savings Potential Bandwidth

Analytic Basis for Steel Program Priorities• Used analytic tools to identify the best opportunities for reducing energy intensity• Set focus areas based on gap between current use and theoretical need• Quantified potential energy savings in each focus area• Issued solicitations and selected projects in each focus area

Steel Focus Areas

CokelessIronmaking

Next GenerationSteelmaking

Advanced Process*

Power DeliveryModeling**

Trillion Btu

Semi-Fabrication

Rolling/Reheating

Casting

Ladle Metallurgy

Steelmaking

Ironmaking

0 100 200 300 400

1

3

2

*Retrofit technologies addressing all areas**Bandwidth does not reflect impact of highly variable loads

4

Summary of Steel R&D Focus Areas

Focus Area

1. Cokeless Ironmaking

2. Next Generation Steelmaking

3. Advanced Process Development

4. Power DeliveryModeling

Goal

Make high-quality iron without coke

Revolutionize the way steel is made from both ore and scrap

Maximize energy efficiency while improving productivity (undergoing shift to focusing on yield improvement)

Develop technology to nullify adverse impacts of large, varying loads

Focus Area 1. Cokeless Ironmaking

Barriers• Making high-

quality iron without coke

• Risk of scaling -up to pilot plant

• Quality of pilot plant product

Pathways• Make iron with

reductants other than coke, such as coal

• Evaluate ITmk3®process at pilot scale

• Test iron product ina commercial steelmaking facility

1.4 MMTCeCarbon Reduction

$172 millionCost Savings

60 trillion BtuEnergy Savings

2020Metric

Metrics

Issued the Ironmaking Challenge solicitation in FY02;projects selected based on formal Merit Review

Barrier-Pathway Approach and Project Selection

Cokeless Ironmaking R&D Pathways: Assumptions and TargetsEnergy• Up to 30% less energy-intensive than current BF-BOF

steelmaking routeMarkets• Commercial introduction in 2006• Market saturation in 20 years

Cokeless Ironmaking ExampleMesabi Nugget - Direct Ironmaking (CPS# 1846)

Technology Description:• One-step ironmaking production replaces three-step operation• Produces iron feedstocks to all existing iron and steel making furnaces

(basic oxygen, electric arc and foundries)Benefits

• Up to 30% energy savings• 21% reduction in CO2 emissions• Reduction in NOx, SO2, and PM emissions• Lower capital and operating costs

Status• Third production test starts March 2004

Partners: DOE, Ferrometrics, Cleveland-Cliffs, Kobe Steel, Steel Dynamics, and State of Minnesota

Cokeless Ironmaking: Management by MilestoneITP Milestones (CPS #1846)

Sept 02 Initiate R&D May 03 Pilot plant start-upJuly 03 Production Test 1 completedAugust 03 Began steel maker melt testsSept 03 Production Test 2 beganDec03 Production Test 2 completedMar 04 Begin Production Test 3June 04 Complete Production Test 3August 04 Complete melt testsSept 04 Disseminate R&Dresults

MYPP Milestones

Focus Area 2. Next-Generation Steelmaking:

Barriers• High energy use of making steel via multiple inefficient processes

• High cost of developing new technology

• Risk of scaling up to pilot plant

• Maintaining quality

Issued the Steelmaking Challenge solicitation in FY02; projects selected based on formal Merit Review


Pathways• Integrate iron and steelmaking production processes

• Develop processes that are less capital-intensive

• Investigate novel combinations of existing technologies

0.1 MMTCeCarbon Reduction$14 millionCost Savings5 trillion BtuEnergy Savings

2020Metric

Metrics

Next Generation Steelmaking R&D Pathways: Assumptions and TargetsEnergy

• 10-20% less energy-intensive than cokemaking/blast furnace ironmaking/basic oxygen furnace steelmaking route

Markets

• Commercial introduction in 2012

• Adopted by 20% of the applicable U.S. market (~10 million tons steel/year)

• Market saturation in 20 years

Next Generation Steelmaking Projects• Novel Direct Steelmaking by Combining

Microwave, Electric Arc, and Exothermal Heating Technologies- Eliminates ironmaking- Produces steel directly from

an agglomerate of iron oxidefines and powdered coal

• Future Steelmaking Processes- Flexible, fossil-fuel-based process- Combines series of process units to

continuously melt, refine, and cast steel

Focus Area 3. Advanced Process Development

Barriers• Costly yield

losses throughout the processing chain

• Energy inefficiency of major equipment

• Collaborative R&D with AISI members addressing improvement and energy efficiency

• Selected high-priority process improvement projects


Pathways• Improve the energy

efficiency of hot processing steps

• Improve the yield of steel production processes

• Integrate technological advances into existing processes

4.6 MMTCeCarbon Reduction$332 millionCost Savings

129 trillion BtuEnergy Savings

2020Metric

Metrics

Advanced Process Development R&D Pathways: Assumptions and Targets• Metrics represent combined savings of about 25 technologies

(most initiated 2-3 years ago)• Projects address incremental improvements in ironmaking,

steelmaking, casting, rolling, fabrication, finishing, application• Focus area is currently undergoing shift to focus on yield

improvementEnergy Savings Target

(million Btu/ton)

0.1 - 0.20.2 – 0.30.2 – 0.3

1.7

Current Yield Loss (%)

2-67-96-819

Unit Operation

IronmakingBOF SteelmakingEAF SteelmakingApplications/Mtrl Properties

Advanced Process Development ProjectsIronmaking• Pulverized Coal Injection (PCI) Combustion Behavior

in the Blast Furnace During PCI at High Rates

Casting and Finishing• Automated Steel Cleanliness Analysis Tool• Hydrogen and Nitrogen Control in Ladle and

Casting Operations• Submerged Entry Nozzles that Resist Clogging

(Plant Trials)• Controlled Thermal-Mechanical Processing of

Tubes and Pipes

Steel Quality and Downstream Processing• Clean Steels – Advancing the State of the Art

• Life Improvement of Pot Hardware in Continuous Hot Dipping Processes

• Constitutive Behavior of High-StrengthMultiphase Sheet under High Strain RateDeformation Conditions

• Appropriate Resistance Spot Welding Practice for Advanced High-Strength Steels

• Ultra-Low Carbon High-Strength Steels for Enhanced Stretch Formability and Dent Resistance

Advanced Process Development Projects

Environmental• Nitrogen Removal in EAF Steelmaking

by Direct Reduced Iron Fines Injection

• Recycling and Reuse of BOF/BOP Steelmaking Slags

• Inclusion Optimization for Next Generation Steel Products

• Low-NOx Heating Alternative for Round Shapes, Steel Substrate (Strip), and Coil Box Transfer Bars

Advanced Process Development Projects

Focus Area 4. Power Delivery Modeling:

Barriers• The random

nature and large size of electric loads contributed by electric arc furnaces and rolling mills

• Enhancing the Operation of Highly Varying Industrial Loads− Assessing opportunities to address large, non-conforming

electric loads from steelmaking operations


Pathways• Develop short-term

load forecasting and intelligent control of electric load dispatching that can be integrated with regional steel mill operators

0.4 MMTCeCarbon Reduction$102 millionCost Savings18 trillion BtuEnergy Savings

2020Metric

Metrics

Power Delivery Modeling R&D Pathways: Assumptions and TargetsEnergy• Highly varying loads disproportionately impact control area

regulation requirements with clear cost consequences• Highly varying loads increase load-following requirements but

the cost consequences are not clear

Markets• Commercial• Adopted by 10% of the 150 grid areas in the U.S. (those

heavily populated with steel mills)• Market saturation in 10 years

Program Management Resources• Headquarters Project Management:

Simon Friedrich

• Analytical SupportNancy Margolis, Energetics with industry experts

• Golden Field Office- Project Manager:

Debo Aichbhaumik(formerly of Weirton Steel)

- Contract Administrator- Financial Accounting

Program Review and Assessment• Rigorous evaluation process for program and projects:

- Annual portfolio review (most recently September 2003)- Quarterly milestone review (most recently January 2004)- Ongoing project management by the field office

• Annual analysis of expected benefits (in accordance with Government Performance and Results Act) serves multiple purposes:- Up-front program planning and project selection- Benefits projection and project justification

Milestone Tracking System

Milestone Tracking System (cont)

Key MilestonesMilestone Expected Completion

Cokeless Ironmaking• Begin production in Mesabi Nugget pilot plant 5/03• Complete Mesabi Nugget demonstration 8/04Next Generation Steelmaking• Complete lab-scale microwave steelmaking test 9/04• Complete lab-scale future steelmaking test 3/05Advanced Process Development• Initiate near-term yield improvement program 11/04• Complete thermo-mechanical processing project 6/05• Begin pilot-plant demo of direct flame impingement 2/05• Complete steel cleanliness project 9/04Power Delivery Modeling• Assess results of power delivery modeling program 10/04

FY03-04 Accomplishments

• Mesabi Nugget Direct Ironmaking- Pilot plant has successfully completed

two continuous operation trials- Iron nuggets successfully used by an

EAF steel maker

FY03-04 Accomplishments• Novel Direct Steelmaking

by Combining Microwave, Electric Arc, and Exothermal Heating Technologies- Experimental development and

feasibility analysis- 85% of work completed


• Hot Strip Mill Model- Commercially available- Simulates hot strip mill operations

and predicts final mechanical properties

• Laser-based Ultrasonic TubeWall Thickness Gauge- Commercially available - Has tested close to 1,000,000 tubes

at a Timken mill


• Nickel Aluminide Transfer Rolls- Full-scale commercial use in a Burns

Harbor plate mill

- Allows non-stop processing with 33% energy savings

• Life Improvement of Pot Hardware in Continuous Hot Dip- Major progress made in developing

materials to increase equipment life 10X