25-03-2013

1

� Costs of Climate Change

� Steel Industry

� RINL Profile

� Sustainability Approach of RINL

� Sustainable Business Growth

� Carbon Investments

� Renewable Energy

� PAT and RPPO Response

� Water and Environment Management

� Challenges

25-03-2013

2

Economic Survey 2012-13 :

Annual requirement is $200-290 billion additional investment every year till 2030 to return GHG current level( UNFCCC paper 2007 )

Global investments in power sector alone for 2 deg temp rise scenario

� $370 billion – for years from 2010-2020

� $630 billion – for year from 2020-2030

� $760 billion – for year from 2030-2050

Indian Scenario:

Investment Required to meet NAPCCC : Rs 2,30,000 Crore

� Accounts for 6% of GHG emissions of

India.

� Energy intensive industry

� Energy intensity 1.5 times more than

Japan

� Notified under pat mechanism

� Target to reduce energy

consumption: 1.64 Mtoe

� Mitigation cost for meeting pat

requirements: 12600 cr.

25-03-2013

3

55

Capacity 3 Mt liquid steel (BF-BOF route)

ProductsBars, Wire rods, Structurals, Rounds, Billets, Blooms,

Pig iron & By-products

Share of production in

India

• Crude steel – 5 %

• Longs – 10 %

Marketing network 23 branch offices & stockyards

Standards•Certified for ISO-9 001, 14001, 50001 and BS EN:

18001,5S,

Captive mines

•BF grade limestone:

•BF grade dolomite:

•Manganese ore:

Jaggayyapeta

Madharam

Garbham

Employees (as on

31.03.11)

Total:

•Executives:

•Non-executives:

18,079

5,516

12,563

Turnover (11-12) Rs. 14,462 Cr.

Net profit (11-12) Rs. 751 Cr.

BPTS

TRT

100% Continuous

Casting

LD gas

recovery

Evaporative

Cooling

CO Battery with Coke Dry Quenching and Back Pressure Turbine Station

3200 cum BF with Top Recovery Turbine and BF gas recovery

Rolling Mills with Stelmor & Tempcore (TMT) processes equipped with evaporative cooling for waste

heat utilization

Production Process flow at RINL

25-03-2013

4

RINL was conferred the Navratna status

in 2010-11 and thus included in the top

19 PSEs in India.

REBARS

8mm to 36mm

WIRE RODS

5.5 to 14mm

ROUNDS

16 to 80mm

Squares

65 - 90mm

STRUCTURALS

Long products manufacturer

– Market leader in Bars &

Rods with 10% market share

.

� Vision

� To be a continuously growing world-class company

� We shall

� Harness our growth potential and sustain profitable growth.

� Deliver high quality and cost competitive products and be

the first choice of customers

� Create an inspiring work environment to unleash the creative

energy of people.

� Achieve excellence in enterprise management.

� Be a respected corporate citizen, ensure clean and green

environment and develop vibrant communities around us.

◦ Protection of environment by mitigation of CO2 emission

by reducing energy consumption.

RINL Sustainability Approach

25-03-2013

5

SD Policy of RINL focuses on:

• Reducing and recycling waste, improving yields and productivity;

• identifying opportunities for reducing energy consumption and thereby

reducing carbon footprints;

• improving efficiency in water consumptions and gradually achieving zero

discharge;

• improving ambient air quality in and around its area of operations;

• adopting best practices for implementation and reporting of SD

initiatives;

• sensitising and engaging its employees and other stakeholders on aspects

related to SD and maintaining utmost transparency in disclosure of

relevant information to them.

Sustainable Development PolicySustainable Development Policy

Present

Cleaner Technologies

GHG emission mitigation

Carbon Management System

Energy Management System

Tomorrow

Green Steel

Breakthrough Technologies

Renewable Energy development

Societal development

Process management

Process upgrdation

Energy Efficiency

Past

1)Housekeeping measures( Leakage arresting, Air fuel ratio control)

2) Stabilisation of operations(reducing fixed losses)

Past

Climate Change mitigation

Sustainability Approach-Energy Management

25-03-2013

6

� Main energy inputs

• Coking Coal, Boiler coal, FO,

Electricity Import

• By product gases( COGas, BFgas

and LD gas-110 toe/hr)

generation & distribution.

• Using Coke Oven gas in Reheating

furnaces to replace Furnace Oil.

• Minimum FO consumption

Energy Mix at VSP

85

13

1.8

0.2

Coking Coal Boiler Coal Electricity Import FO

� Energy cost accounts for

40% of cost of

manufacturing cost.

� Company has unveiled the

energy policy in 1993.

� RINL revised energy policy

in1998, 2004, 2008

� RINL revised energy policy

in 2010,2012 to meet

Energy Management

System requirements.

25-03-2013

7

� Energy Costs are about 40% of operation cost of Steel Making

� Strategy◦ Adoption of Energy management systems-ISO 50001

◦ Energy Conservation by Conducting Energy Audit and Process management.

◦ Bench marking, Gap Analysis and Road Map to Meet Target

� Installing Energy Efficient Technologies in Design Stage

� Adoption of Cleaner technologies in design stage itself ( Impact SEC reduction by 0.645 Gcal/tCS, Cost reduction Rs 1000/t)

� Modernization of existing equipment

� Pulverized Coal Injection in Blast Furnaces

� International Cooperation Agreement-Sinter Cooler Waste Heat Recovery

� Up gradation of Sinter Plants and Blast Furnaces

� Energy Efficient Technologies in Expansion

� BF Stoves Waste Heat Recovery System

� 120 MW Waste Gas Based Captive Power Plant

� Features:� Identification of significant energy aspects � Developing Energy Management

programmes.� Operational control of identified energy

aspects� Monitoring and Measurement � Internal Audit� Management ReviewRINL implemented BS EN: 16001 Energy

Management systems at VSP work division and certified in Dec, 2010.

Benefits:Reduced energy consumption, GHG

emissions.First PSU to be certified for BS EN: 16001

energy management systemFirst Integrated Stee Plant to be certified for

EnMSWorking Towards migration to ISO:50001

Energy Management SystemCertified for ISO: 50001 in Aug’12

25-03-2013

8

6.060

5.439

4.000

4.500

5.000

5.500

6.000

6.500

7.000

RINL Nippon Steel

Unit

International Bench Marking of SEC(Gcal/tCS)

Comparison with Nippon Steel(2009-10)

Energy(2010-

11)

GHG

Emission Gap :0.661 Gcal/tCS

RINL NSC

RIN

L NSC

1) Scrap usage : 200 kg/thm( As per Japanese

Industry)-RINL:80 kg/tcS

3) All Energy Conservation technologies

Coke Dry Quenching,

Top Pressure Recovery Turbine,

BOF Gas Recovery,

Sinter Cooler waste heat recovery

Pulverized Coal Injection,

BF stoves Heat Recovery,

Billet Caster,

Hot Charging,

Regenerative Burners,

Coal Moisture Control

Sensible Heat recovery from BOF gas

2) Waste Plastics Injection and tires(0.2 million

tons- 6 kg/tCS)

3) Petro fuel 16 lts/Tcs

6.12 5.439 2.615 1.943

25-03-2013

9

Name of

Technology

Features Energy

Savings(TOE)

GHG

redn(tCo2)

Coke Dry

Quenching Plant

Power gen:

2X7.5MW

115285 689586

Top Pressure

Recovery Turbine

Power gen; 2x12

MW

21257 127152

LD Gas Recovery

System

80000 Cum 58022 347060

Evaporative

Cooling System

13 ata steam: 19

t/hr

12173 72814

Preheating of

combustion air at

CRMP

Air preheating:

250degc

3469 21062

Gas and air

recuperators in

ROLLING MILLS

Air : 450 degC

Gas:250 degC

16105 57088

Reducing GHG emission by about 13 lakh tons annually

Adoption of Energy Efficient Technologies

Name of Technology Level of

Diffusion

Coke Dry Quenching

Plant

First Time in

India(1990)

13.5%

Top Pressure Recovery

Turbine

First Time In

India(1993)

13.9%

LD Gas Recovery

System

First Time in

India(1991-93)

50%

Evaporative Cooling

System

First Time in

India(1993)

25%

Sinter Cooler Waste

Heat Recovery

First Time in

India(2009)

0

120 MW Gas Based

captive power Plant

First Time In

India(2011)

0

Adoption of Energy Efficient Technologies-Unique Features of

RINL

25-03-2013

10

� BF Coke is used as reducing agent in Blast

furnace to reduce Iron oxides in to hot

Iron.

� Coke is produced by Coal Carbonization

process in Coke Ovens.

� One ton coke consumes about 1.4 Gcal of

energy and emit 0.4-0.5 tCo2

� Instead of using coke , carbonaceous

material can be injected into the BF

through tuyeres

� RINL is installing Pulverized Coal injection

system in blast furnaces to substitute

coke partially by coal.

� Coke Replacement Ratio:1:1

� Bowl Mills to grind the coal,

� Coal drying using waste flue gases of BF

stoves.

� India and Japan Technologicalcooperation in Climate change

� JP Steel Plantech (Japan)conductedfeasibility study in various sinter plants inIndia

� The sinter produced in Sinter Machines isat 750-800 0c is cooled by blowing airthrough sinter cooler blower fans(8*630KW)

� Estimated that 20.6 MW Power can begenerated from waste gases

� NEDO funded partially (Green Aid Plan)

� MOU was signed between RINL, Ministry

of Steel, Ministry of Finance and NEDO of

Japan on 25th May, 2009 at New Delhi.

� Investment: Rs 252 Cr

� Japan: Rs148.9 Cr

� RINL Share: Rs 103.0 cr

� Co2 reduction: 220616 tons

25-03-2013

11

Dust catcher

8000C 8000C

20.6 MW

Energy saving : 36813 TOE

Coal reduction : 130542 TCE

BF-3 Stoves Waste heat Recovery system

ParametersUnit Value

Waste Gas Volume Ncum/hr 385200

Waste Gas inlet Temperature 0c 328

Waste Gas outlet

Temperature0c 175

BF Gas flow rate (max) Nm3/hr 2,21,300

BF Gas inlet temperature 0c 47

BF Gas outlet temperature 0c 189

Exchanged heat (avg) Gcal/hr 9.08

Combustion air flow rate

(max)Nm3/hr 1,87,800

Combustion air inlet

temperature0c 30

Combustion air outlet

temperature0c 189

Exchanged heat (avg) Gcal/hr 7.93

The waste heat of stoves flue gas

is recovered to preheat combustion

air and fuel gas

25-03-2013

12

� Installation of Blast Furnace -3(2.5 MtpA)

� Up gradation of existing Blast furnaces to 2.5Mtpa each .

� Likely bleeding of BF gas

� Utilizing Surplus waste BF gases forgeneration of electricity

� Design to fire low calorific value gases.

� Improved burner design in boilers� Low volumetric heat release rate with larger

boiler furnace (higher residence time & higherheat surface area).

� Scroll type burner (provides spin to the BFG atthe point of air fuel mixing)

� Adequate refractory lining on water wall tubesof furnace heat surface and it will reradiateheat into the flame.

� Low flue gas temperature (155 Deg.c)

� Lower heat release rate

BF Gas Balance(Ncum/hr)

Gen 1,517,857

CO 149,678

SP-1 &2 11,570

SP-3 3,532

BF 1&2 300,754

BF-3 179,885

Others 71,447

TPP-Existing 300,000

Surplus 500991

Power generation : 840000 MWH

Expected Coal reduction: 8,80,000 tons

GHG emissions reduction: 11,97,387 tCO2

25-03-2013

13

Total Installed capacity: 523 MW

Total Power generation from Waste Energy: 323 MW

% of Power Generation through Waste Energy: 62%

Power Generation capacity from Waste Energy (MW)

Type Existing Expansion Total

Carbon investment(Rs

Cr)

521 2849 3370

Total Investment(Rs Cr) 8690 14710 23400

%Carbon

Investment

6% 19.36% 14.4%

25-03-2013

14

Energy Performance

6.11 6.096.12

6.06

2008-09 2009-10 2010-11 2011-12

Sp. Energy Consumption-Gcal/tCS

2.686

2.595 2.615 2.61

2008-09 2009-10 2010-11 2011-12

CO2 Emission-tCO2/tCS

Road map for Energy Consumption & GHG Emission

6.12

6.06

5.77

5.45 5.41 5.40

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Sp. Energy Cons.-Gcal/tCS

2.615 2.605

2.404

2.278

2.188 2.182

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Sp. CO2 Emission- tCO2/tCS

25-03-2013

15

PAT Compliance

1st Cycle 2012-13 to

2014-15

Baseline

Sp. Energy

Cons.

6.05 Gcal/tCS

Target 5.71

Gcal/tCS

RPPO� APERC Regulation No. 1 of 2012, issued on

27-03-2012

� Solar Obligation : 0.25%

� Non Solar Obligation: 4.75%

� Liability to Meet RPPO: Rs

241.5 Crores

� Strategy:

� 10MW Solar plant and 30MW Wind

farm is proposed

� Obtaining REC for waste energy

recovery projects by applying for

accreditation.

� Purchased 100 No of REC onVoluntary basis for year 2012-13

Name of System Energy

Saving

Co2

reductio

n

Solar Water Heating

system of 1500 LPD in

Ukku house and VSGH

50000

KWH

42.5 t

Polycarbonate sheets

to use natural lighting

438000

KWH

372.3 t

Bio gas plant using

kitchen waste

26

kg (LPG)

0.144 t

Solar Energy based

traffic signal lights

210kwh 189

Solar Energy Lamps

under CSR scheme

1468

lamps

Solar Energy City at SOS

Village

12848 11658

25-03-2013

16

Sustainable Development is part

of MOU for 2012-13

Projects-2012-13

Migration from BS EN:16001 to

ISO:50001 Energy Management

System

Registration of CDM projects

Installation of 20.6 MW Waste Heat

Recovery System

Rain Water Harvesting

Purchase of Renewable Energy

Certificates (REC) to offset carbon foot

prints

Training on Sustainable Development

Programmes

Total No. of Projects 19

PDD Developed 11

HCA Obtained 10

HCA Pending 1

Under Validation 6

Validation tendering 4

25-03-2013

17

� High Investment Cost of Technologies

� No Financial Flow from International agencies

� Constraints for Brownfield expansion/modification

due to layout configuration

� Lack of Fiscal Incentives

� Lack of quality raw material

Environment

al initiative

Impact Social

Benefit

Afforestation of

4.8 million

trees

Micro climate

3-4o C less

Absorbs about 96,000 tons

CO2 per year

Water

conservation

Saving of about 67,000

m3/day

Water to ~ 3 lakh citizens

per Day

Clean

technology

implementation

Saving burning of 6, 00,000 t

coal /year

13 lakhs of CO2 emissions

avoided /year

Phasing out

ODS

Reduction of ozone

depletion potential -50000

R11 equivalent

Preventing Ozone depletion

Solid Waste

Utilsiation

Utilisation of more than 3

million tons of

wastes /year

Saving of scarce raw

materials

25-03-2013

18

Three pronged strategy for water conservation.

• Reduction or elimination of wastages in

recirculation water systems and increasing Cycles

of Concentration ( COC),

Water saved : ~1800 Cu m/Hr

• Reduction in Fire & Drinking water

consumption inside the plant and township by

reducing wastages and pumping time regulation.

Water saved : 300 Cu m/hr

• Adoption of technologies such as deep bed

filtration for utilisation of waste water after

treatment.

Water saved : 250 Cu m/hr

Ultra filtration Plant:

An innovative scheme of Ultra

Filtration Plant was implemented at

VSP to convert township sewage

water into make-up water grade for

use at SMS & Rolling Mills

Waste Water Unit Water

Saved(cum/hr)

Balacheruvu 350

Appikonda 500

RO Unit-Sewage Plant-1 80

RO Unit-Sewage Plant-1 80

Investment( Rs 115 Cr)

1. Grants from National Clean Energy Fund(NCEF) for

clean energy projects

2. Inclusion of “ Waste Energy “ in the definition of

Renewable Energy

3. Incentives for promoting carbon dioxide reduction

projects like Tax holiday

4. Access to quality raw materials

5. Natural Gas allocation to Steel industry

25-03-2013

19

� Winner of National Energy Conservation Award for

Seven consecutive years from Ministry of Power

� CII Excellent Energy Efficient Unit Award-2011

� CII Award for Excellence in Water Management

� Prime Ministers Trophy for Best Integrated Steel Plant