Hipótesis específica

7.2.1 Given the various process combination of steel making from iron ore, there exist substantial differences in the specific energy consumption & carbon emissions levels or intensities. The Electric Arc Furnace (EAF) route using steel

140 scrap involves the lowest energy intensities as it is required only to melt the scrap. On the other hand the BF-BOF route which produces steel from iron ore through many intermediate operations generally involves higher energy consumption and associated carbon emissions. The energy and carbon intensity of steel production from iron ore is the lowest for Gas based DRI-EAF route, followed by BF-BOF route and with the Coal DRI- EAF/IF route being the highest.

7.2.2 Over the years, the energy intensity in integrated steel plants has been brought down substantially by improvements in raw material quality, processes and operational practices to current level of 6.0-6.7 GCal/tcs. This is still higher than the 4.5-5.5 Gcal/tcs levels achieved by steel plants in other countries. The energy intensities (in Gcal/tcs) for some of the steel plants in India during 2008- 09 and 2009-10 were as given below:

Unit BSL BSP DSP ESSAR ISPAT JSPL JSW RINL RSP TATA 2008- 09 6.36 6.28 6.50 5.81 5.61 6.61 7.34 6.11 6.22 6.45 2009- 10 6.36 6.38 6.55 5.89 6.01 6.38 6.69 6.09 6.18 6.01

7.2.3 With gradual reduction in energy intensity of Indian steel plants, the carbon intensities have also been declining and the actual values (in tonnes/tcs) for the above two years were as shown below:

Unit BSL BSP DSP ESSAR ISPAT JSPL JSW RINL RSP TATA 2008-09 2.62 2.71 2.68 1.51 1.86 2.70 2.97 2.63 3.12 2.39 2009-10 2.71 2.74 2.65 1.46 2.04 2.59 2.68 2.55 3.00 2.42

The differences in the energy consumption levels may be explained by factors such as economies of scale, the level of waste energy recovery , the quality of raw materials used , operational know how and quality control standards adopted .

7.2.4 With higher cost of energy and introduction of regulatory and voluntary initiatives, the Indian steel industry has been gradually modernized and renovated to adopt energy efficient and environment friendly technologies. Newer facilities are also being set up with clean and green, state-of –the - art technologies. However, due to technological and space constraints diffusion of energy efficient technologies has remained relatively lower in the case of old/existing units.

7.2.5 Given below are some of the important energy conservation technologies that can be harnessed to improve the energy intensity of domestic steel industry:

141

Technology Potential reduction

1. Sinter cooler – waste heat recovery 500-550 MCal/ton of sinter

2. Coke dry quenching 200-280 Mcal/ton of coke

3. Coal moisture control in coke ovens 70 Mcal/ton of coal 4. Top gas recovery turbine in BF 40-60 kwh/ton of iron 5 Waste heat recovery from stove waste gases

of Blast furnace

18-20 Mcal/ ton of iron

6. OG boiler in BOF 80 MCal/ton of steel

7. Regenerative burners 10-15 Mcal/ton of steel

7.2.6 Of the above mentioned technologies, the Top gas recovery turbine in BF (TRT) has been adopted by several plants like RINL, Tata Steel, JSW Steel and JSW Ispat Steel. Coke Dry Quenching (CDQ) has also been adopted in RINL and NINL. Sinter cooler waste heat recovery has been adopted in JSW Ispat Steel. While other technologies are yet to be fully harnessed,, technologies like TRT and CDQ, waste heat recovery from stoves and sinter cooler have also been introduced as part of the expansion programmes of several steel plants. 7.2.7 With a number of large new steel making capacities being added based

on the BF-BOF route, the share of this segment is expected to increase in future leading to reduction in the overall carbon intensity. As regards the secondary steel producers, supply constraints of natural gas, good quality scrap, high grade ore for sponge iron making, along with the compulsions to adhere to energy reforms and reduced energy intensity/carbon emissions may put pressure on them to improve productivity, energy efficiency and environmental sustainability. This can not be avoided, if they are to ensure their survival.

7.2.8 Currently, tax benefits are being provided to promote implementation of energy conservation measures. It is imperative that all the steel units to exploit this opportunity for conserving energy and also to reduce costs of operation. Since it is the secondary steel makers that need to catch up urgently in terms of energy efficiency, a separate scheme to benefit them is being proposed for implementation during the 12th plan as below :

7.2.9 About 40% of India‘s crude steel is produced by the mini steel plants comprising of Electric Arc Furnace (EAF) and Electric Induction Furnace (EIF) units. Besides more than 60% of long steel products are also produced by the Secondary Steel Sector i.e., the EAF, EIF as well as the Re-rolling Mills. The Re- rolling Mills normally source their inputs, viz., pencil ingots and continuously cast billets, mostly from the EAF and EIF units. All these units are characterized by high levels of energy consumption and Green House Gas (CHG) emissions. Therefore, adoption of clean, green and energy efficient technology by them has become over the years a subject requiring special attention both from the point of view of improving their productivity as well as for ensuring environment protection. The Ministry of Steel has devised a New Scheme for improving

energy efficiency of the Secondary Steel sector – the details of which are given in the section on New Schemes in Chapter VIII.

7.2.10 As regards policy implementation for ensuring energy efficiency, the Steel industry is also required to conduct at regular intervals an energy audit by certified energy auditors and Energy efficiency labeling for the equipment. The

142 minimum percentage of electricity to be purchased from renewable sources are also notified by the various SERCs (State Electricity Regulatory Commission) as provided in National Electricity Policy and the policy framework provided by the Electricity Act, 2003. Renewable energy sources (solar energy, bio-mass, municipal waste, small hydro power, wind energy etc) also qualify under these provisions. The Industry is also expected to meet their Renewable Energy Purchase Obligation as and when applicable and mandated by respective State Electricity Regulatory Commission (SERC) in order to meet the Govt. of India‘s target under National Solar mission, under NAPCC (National Action Plan for Climate Change).

7.2.11 The specific areas of focus during the 12th plan (2012-17) for reducing carbon and energy intensity may therefore need to cover:

 Technological upgradation in the existing steel units by adoption of energy conservation measures.

 Adoption of clean and green energy efficient technologies by all new plants.

 Diffusion of energy efficient technologies in all segments of iron and steel making

 Research & Development in improving raw material quality (coal & iron ore)

 Process and energy efficiency of operations in secondary steel sector

 Utilising incentives available for energy conservation; and

 Energy auditing and energy leveling