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P2G TECHNOLOGIES IN IRON ORE
PELLETIZING PROCESS
15.2.20165th Researcher’s Seminar
Mariana Carvalho, LUTEsa Vakkilainen, LUT
Agenda
• Rationale• Steel production• Markets• Technical implementation• General assumptions• Mass and energy balances• Profitability• Summary and conclusions• Next steps
Rationale• Iron and steel sector is the major
industrial CO2 source
• Uniform quality ores increase energy efficiency agglomeration processes
• Fines are a significant type of iron ore corresponding to ~70% of global demand1
Source: IEA/OECD 2009. Energy Technology Transitions for Industry. Available at
https://www.iea.org/publications/freepublications/publication/industry2009.pdf
1 CRU Group 2012. Available at: http://www.slideshare.net/informaoz/laura-brooks-25739095
Steel Production
Source: World Steel Association. Fact Sheet Energy use in the steel industry. Available at https://www.worldsteel.org/publications/fact-sheets/content/02/text_files/file0/document/fact_energy_2014.pdf
Markets• Global iron ore production: 3220 Mt in 20141
– ~20% of the global market for pellets2
– Varies by country e.g. in Brazil ~90% of the production are ore fines3
• Who and where– Top three countries: China, Australia and Brazil – Top three companies: Vale, Rio Tinto and BHP Billiton
• Future outlook: growth follows steel production, expected to grow 1.5 times by 20504
1 USGS 2015. Iron ore statistics and information. Available at: http://minerals.usgs.gov/minerals/pubs/commodity/iron_ore/mcs-2015-feore.pdf
2 Poveromo, JJ 2013. Raw Materials & Ironmaking Global Consulting. Available at: http://www.steeltimesint.com/contentimages/features/iron_ore_joe_web_res.pdf
3 DNPM 2014. Sumário Mineral. Available at: http://www.dnpm.gov.br/dnpm/sumarios/ferro-sumario-mineral-2014
4 World Steel Association 2015. World Steel in Figures. Available at https://www.worldsteel.org/dms/internetDocumentList/bookshop/2015/World-Steel-in-Figures-
2015/document/World%20Steel%20in%20Figures%202015.pdf
Technical Implementation• Traveling grate pelletizing process
Hydrogen from AEC to substitute NG
Flame temperature is the main parameter
Estimated emissions ~55 Mt CO2/year
globally
General Assumptions• Break even electricity price was calculated as function of operating time for
different scenarios
• FCR markets not considered
• Profit from heat not considered
General Assumptions• Plant production 5 Mt/year, 8000 h/year
• Fixed specific energy consumption:
– Pelletizing: 1.12 GJ/t pellet, 42% NG and 58% solid (coal + coke breeze)
• Electrolyser efficiency (LHV) 65% at 70 ºC
• Required hydrogen was calculated in order to maintain flame temperature
as for the original fuels
Material and Energy Balances:Pelletizing Travelling Grate
NG AR 4,90Temperature CO2 Emissions
kg/s kmol/s Nm3/s Nm3/min [K] 78,08 kg/GJfuel
Air 321,2 11,20 250,0 15 000 1 273 15,18 kg/sCH4 1,693 0,094 2,094 126 298 87,45 kg/tSolid 3,851 0,443 - - - 437 234 t/yearFlue gas 326,7 11,36 252,3 15 139 1 714TOTAL IN - - 252,1 15 126 1441 oC
194,44 MW
AR 5,18Temperature CO2 Emissions
kg/s kmol/s Nm3/s Nm3/min Vol. Diff. [%] [K] 54,65 kg/GJfuel
Air 321,2 11,20 250,0 15 000 0,00 % 1 273 10,63 kg/s
H2 0,700 0,35 7,80 468 272 % 298 61,21 kg/tSolid 3,851 0,44 - - - - 306 049 t/year -30,0 %Flue gas 325,7 11,43 253,3 15 195 0,37 % 1 714TOTAL IN - - 257,8 15 468 2,26 % 1441 oC
196,79 MW 1,2 % 129 MW
Gas consumption 84,0 MW 2,8 % 1028 GWh/year
PhaseMass Balance
Hydrogen
Electricity demand
PhaseMass Balance
CAPEX, OPEX and Incomes • 20 years lifetime
• Oxygen not utlized in process
• Total O&M 2.4%, water 0.4 €/m3
• Different scenarios were considered varying:
– WACC: 8 – 12%
– Electrolyzer investment cost: 621 – 1165 €/kWe
– Oxygen selling price: 0, 20 – 70 €/t
– Natural gas purchase price: 35 – 50 €/MWh
– CO2: 0 – 10 €/t
Profitability 1/3
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0 1 000 2 000 3 000 4 000 5 000 6 000 7 000 8 000
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Electrolyser operating hours [h/year]
Investment Cost
IC -20% Base IC +20% IC +50%
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Oxygen Price
O2 70 Base O2 20 O2 0
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Electrolyser operating hours [h/year]
Natural Gas
NG 50 Base NG 35
Base Case:IC = 717.12 €/KWeO2 = 50 €/tNG = 40 €/MWhWACC = 10% aCO2 = 5 €/t
Profitability 2/3
Base Case:IC = 717.12 €/KWeO2 = 50 €/tNG = 40 €/MWhWACC = 10% aCO2 = 5 €/t
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WACC
WACC 8% Base WACC 12%
CO2 and WACC does not seem to have much
impact
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CO2
CO2 10 Base CO2 0
Profitability 3/3
Optimistic:IC = 621.36 €/KWeO2 = 70 €/tNG = 50 €/MWhWACC = 8% aCO2 = 10 €/t
Base Case:IC = 717.12 €/KWeO2 = 50 €/tNG = 40 €/MWhWACC = 10% aCO2 = 5 €/t
Pessimistic:IC = 1165.05 €/KWeO2 = 0 €/tNG = 35 €/MWhWACC = 12% aCO2 = 0 €/t
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Electrolyser operating hours [h/year]
Scenarios
Optimistic Base Pessimistic 2010 Prices Cumulative average price
Summary and Conclusions
• Agglomeration process are relevant for the Iron & Steel industry
• Use of hydrogen can be feasible:
– Investment costs is the main parameter
– Followed by electricity price
– NG price also play a important role
• Expected substantial CO2 emission reduction
– 30% CO2 emission reduction expected for pellet kilns
– But only 6% expected for sintering
– Evaluate possibility to increase gas share in sintering kilns
Next steps
• Hydrogen effects in the grate
• Use of oxygen to increase productivity
• Integration to steel mill
THANK YOU FOR YOUR ATTENTION!
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