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The Steel Industry & Climate Change Swansea University, 17th April 2013
Dr Paul Brooks Group Director, Environment
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Introduction Contents
• Introduction • Tata Group & Tata Steel • Climate Change Vision & Strategy
1. Continuing to improve current processes 2. Investing in breakthrough technologies 3. Developing new products and services to reduce environmental impact 4. Actively engaging our workforce 5. Further developing our pro-active role in global steel sector initiatives
• Conclusions
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• Indian conglomerate founded by JN Tata >140 years history • Strong social responsibility ethic • ~ 425,000 employees in 114 countries • Combined turnover of ~$80bn • Presence in a number of business sectors
- Materials - Engineering - Energy/power - Transport - Consumer goods - Chemicals - Communication & information systems - Services
Tata Group & Tata Steel Tata Group
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Tata Values A responsible and long term perspective
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“In a free enterprise, the community is not just another stakeholder in business but is in fact the very purpose of its existence”
Jamsetji Tata, Founder, Tata Group
Integrity • Fair, honest and transparent
Understanding • Care, respect and genuine
interest
Excellence • Highest standards, right first
time
Unity • Working together
Responsibility • Commitment and ownership
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Western Europe
Western Europe
India
SE Asia
South Africa
CIS
Turkey
Scandinavia
Japan
China
CEE
Western Africa
Ivory Coast (iron ore)
Mozambique (coal)
Oman (limestone)
Orissa
Steel making operations
Sales offices
Mining assets & projects
South East Asia
Jamshedpur 10mt
Tata Steel Thailand 1mt
Natsteel 1mt
Orissa
North America
Latin America
IJmuiden 7mt
Rotherham 1mt Scunthorpe 4.5mt Port Talbot 5mt
New Zealand
Tata Group & Tata Steel Tata Steel: Global reach
• 6th largest steelmaker with capacity of 28 Mt/a • Turnover of US$ 26 billion • No. of employees: 81,000 fte; R&D: 700 fte
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The Tata Steel vision is to be the world steel industry benchmark for value creation and corporate citizenship
• The vision translates into a number of ambitious five year goals which are measurable and tangible
• A performance culture supports the vision and goals.
Corporate Citizenship
Our People
Value Creation +
Tata Group & Tata Steel Tata Steel: Our vision
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Polymer coated steel for new can concepts
Rails for record-breaking high speed TGV trains
Ultra high performance steels for Airbus
Ympress S700 – strongest in the Ympress range of high strength, low-alloy steels
MagiZinc – award-winning coating with 4 times corrosion
protection
Steel plate for the pioneering Talisman Beatrice wind farm
off east coast of Scotland
Tata Group & Tata Steel Tata Steel: New products – fit for the future
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The rise of the middle-class consumer
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Increasing Demand For Resources
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Steel The backbone of continued economic development
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Global Steel Market The rise of China
Source:Worldsteel oct 2010
China
China
China
6 19
8 27
17 26
45 20
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Climate Change
Continued emissions would lead to further warming of 1.1ºC to 6.4ºC over the 21st century (best estimates: 1.8ºC - 4ºC) Source: IPCC
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Growth Sustainability World steel consumption Ambition to cut CO2 emissions will double by 2050 by at least 50% by 2050
Climate Change Vision & Strategy Steelmaking & Climate Change: The challenge
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SWOT Analysis
Strengths • Recyclability • Potential for Re-use • High Recycling Rate • Durability • Governance/Organisation • Track record
Weaknesses • CO2 intensity of steel • High weight to strength ratio • Limited scope for improvement • Constraints on CapEx • Legacy issues • Proximity to local communities
Opportunities • Low CO2/sustainable business opportunities • Financial benefits from energy efficiency & emissions trading • Life cycle thinking • Waste recovery • Positive image building
Threats • Minimum recycled content criteria • Inappropriate policy & regulation • Cap & Trade Schemes • Unlevel regulatory playing field • High energy prices • Poor perception/image
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Sustainability Steel is used, but never consumed
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• Efficient infrastructure exists for recycling steel
• All scrap steel is recycled in the most economical manner
• Any grade of steel can be made from recycled scrap
• All steel production uses recycled scrap – every steel plant is a recycling plant
• Steel manufacturers have been recycling for hundreds of years
Steel represents a sustainable investment
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Cradle to Grave To genuinely impact on the future it is essential to take a life-cycle approach
For a true comparison of the sustainability performance of products, the impacts of all phases of the lifecycle of the product must be assessed….
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Sustainability Requires Informed Choices
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Policy direction provides short term competitiveness and long term strategic challenges
CO2 implications: Long term development implications Today’s EU steel industrial footprint likely to be impacted by policy drivers
Schematic of EC’s 2050 road map to a decarbonised Europe
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CO2 Regulation Coverage and Impact What share of world steel production is impacted?
Cap & trade in place(EU & NZ)
Voluntary 'cap' scheme(Japan)
Processing 'cap'scheme (Australia)
Discussing 'cap'scheme (South Korea)
Other
Global steel production 2010, split by type of national coverage of CO2 legislation
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Climate Change Policy for Tata Companies
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Climate change is one of the most pressing issues the world faces today.
In response to this challenge, Tata Steel will be part of the solution and will achieve a leading position within the steel industry whilst creating value through:
(1) continuing to improve its current processes, improving energy efficiency & reducing emissions
(2) investing in breakthrough technologies
(3) developing new products and services to reduce environmental impact over the product lifecycle, offsetting emissions in manufacture
(4) actively engaging its workforce
(5) further developing its pro-active role in global steel sector initiatives.
Climate Change Vision & Strategy Vision
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Operational & Commercial Implications Working across a number of time horizons
CO2 impact (likely log scale)
Time to achieving impact
• Information campaigns & ‘evangelism’
•Consistent, common measurement/monitoring
•Voltage optimisation, VSDs, efficient lighting
•Yield improvements, raw material changes
•New power stations •Renewable energy •Product marketing •Brand differentiation
•HIsarna •Utilisation •New products/markets
Reshaping the ‘now’
Breakthrough technology
‘step change’ Behavioural and
incremental change
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Climate Change Vision & Strategy Improve current processes: MoniCA (1)
Requirements to improve current processes: • Knowledge on current CO2 emissions • Knowledge on improvement opportunities • Monitor impact of improvements
Project: Monitoring & Benchmarking CO2 Emissions Company-wide project led by R&D on authority of Group Environment Objectives:
• Monitor CO2 emissions per site and facility with time • Compare CO2 emissions of similar facilities • Help to identify opportunities for CO2 emission reduction • Benchmark the position of Tata Steel Group in the world
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Climate Change Vision & Strategy Improve current processes: MoniCA (2)
Approach: • Calculation method developed, aligned to
external reporting standards • Software tool MoniCA internally developed • Network constructed of ~100 colleagues at
30 sites in EU, USA and India • Best practices defined to allow benchmarking
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Distribution System
Power Plant
MARGM ABoiler 3
Boiler 5 MARAM B
Mitchell Boiler
MARGAM C
Boiler 6
Boiler 7
BOS Plant Gas Recovery at Port Talbot (an investment of ~£60m) • Increases on-site generation from 61 MW to 76MW; • Reduces electricity & natural gas imports • Reduces CO2 emissions by 240 kt/a and particulate emissions by ~40 t/a
Climate Change Vision & Strategy Improve current processes: BOS gas recovery
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Climate Change Vision & Strategy Improve current processes: Dry rolls DSP
Dry furnace transport rolls for Direct Sheet Plant at IJmuiden • High alloy steel rolls remove need for water cooling • Reduces natural gas consumption by 50% or 18 MW and thus 25 ktCO2/a)
Natural gas consumption Zone 7
0
50
100
150
200
250
300
350
01/01/10 02/04/10 02/07/10 01/10/10 31/12/10 01/04/11 01/07/11Date
Nat
ural
gas
flow
[Nm
3 /h]
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• Focus on ironmaking (~80% of CO2 emissions) • Present operation close to “best practice” Further energy saving will not deliver long term target Breakthrough development needed and done with partners via ULCOS - Carbon Capture & Storage - New steelmaking technologies Blast Furnace – Reductant usage Approaching the limits
Climate Change Vision & Strategy Need to invest in breakthrough technology
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Comparison with the blast furnace route:
Iron ore
coal
coke
sinter
Liquid iron
Blast furnace
First two campaigns with pilot plant at Tata Steel in IJmuiden show promising results
Climate Change Vision & Strategy Investing in breakthrough: HIsarna process
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Strategic Studies: CO2 Utilisation (Algae)
• Possible products: Bio-diesel, bio-mass, animal feed, etc
• To date: (1) Partnering with University of Sheffield (micro-
bubble technology), using 2m3 pilot reactor using off-gas from Scunthorpe on-site power station
(2) Working with Swansea University and others on ACCOMPLISH (Algal carbon capture and biomass production), which will capture CO2 from the coke ovens at Port Talbot to produce algae at a small facility located at site to test the viability of the technology.
+ CO2 + + + O2 ++ CO2 + + + O2 +
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Automotive – High strength steels reduce weight – Low friction engineering steels for
gearboxes and engines
Construction – Light-framed steel housing – Carbon neutral cladding, roofing & housing,
sustainable construction, flood defences
Power – Offshore/onshore wind turbines – Photovoltaic coatings
Tata Steel develops products and solutions that will help our customers and their customers to reduce their carbon footprint
Climate Change Vision & Strategy New products: Reduce customers’ CO2 footprint
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To date: • Presentation pack provided for cascade • Initially focussed on “Small Actions, Big Results”, now part of “I-MAD” • Further work to be done by business units on implementation
Ongoing: • Regional/local campaigns, possible cascade to local schools.
A long term campaign, not a one off
Climate Change Vision & Strategy Engaging workforce
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Reporting and targeting – Common reporting methodology – Third party endorsement
Technology
– Technology transfer / Asia-Pacific Partnership – Breakthrough programme / ULCOS project
Off-setting with steel solutions
– Automotive – Construction – Energy
Climate Change Vision & Strategy Pro-active in industry: Working with worldsteel
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• Tata Steel has a strong vision and strategy on climate change
• Improvements are identified via monitoring and benchmarking
• Short to medium carbon footprint improvements are possible as shown, but are limited with current technology
• Breakthrough technology developments are needed for the longer term, of which HIsarna is a good example
• Steel is a (significant) part of the solution to climate change – steel enables CO2 emissions reduction in daily life!
Conclusions
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End of presentation.
Thank you for your attention!
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