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1 Feasibility Study project for the JCM FY 2014“Feasibility Study for developing future JCM project applying effective Japanese excellent energy saving technologies to Vietnam Steel Industry “ Report March, 2015 JFE Techno-Research Corporation JFE Steel Corporation

Feasibility Study for developing future JCM project ... · in this decade in Vietnam. Steel consumption grew to double from 2004 through 2011 backed by high growth of the economy

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Page 1: Feasibility Study for developing future JCM project ... · in this decade in Vietnam. Steel consumption grew to double from 2004 through 2011 backed by high growth of the economy

1

Feasibility Study project for the JCM

(FY 2014)

“Feasibility Study for developing future JCM

project applying effective Japanese excellent

energy saving technologies

to Vietnam Steel Industry “

Report

March, 2015

JFE Techno-Research Corporation

JFE Steel Corporation

Page 2: Feasibility Study for developing future JCM project ... · in this decade in Vietnam. Steel consumption grew to double from 2004 through 2011 backed by high growth of the economy

Table of contents

1. The Purpose of the Project...................................................................................................1

2. Present conditions of the steel industry in Vietnam and Study of the energy-saving

technologies .............................................................................................................................2

2.1 Present conditions of steel Industry and Energy situation in Vietnam ............................2

2.1.1 present conditions of the steel industry in Vietnam..................................................2

2.1.2 Energy situation in Vietnam.................................................................................3

2.1.3 Energy consumption condition of steel industry in Vietnam.....................................3

2.2 The Technologies Positive List .......................................................................................6

2.2.1 Overview of Electric Furnace Steel Mill....................................................................6

2.2.2 Superior Energy Saving Technologies at EAF Steel Mills in Japan.........................7

(1) Energy Saving Technologies for EAF Steelmaking Method ....................................8

(2) Energy Saving Technologies for RHF....................................................................10

2.2.3 The Positive List of Energy Saving Technologies for Electric Furnace Steelmaking

in Vietnam .......................................................................................................................11

(1) Energy Saving Technologies Regarding EAF Steelmaking (No.1 - 12): ................12

(2) Energy Saving Technologies Regarding RHF (No.13 - 16): ..................................19

(3) Other Energy Saving Technologies (No.17 – 18): .................................................21

3. The Reviews on the Specific Project Planning for Commercialization ...............................25

3.1 The Review on the Specific Project Planning for A-Company......................................27

3.1.1 Overview of A-Company ........................................................................................27

3.1.2 Specification of Issues on Energy Saving to study ................................................29

3.1.3 Diagnosis on Energy Saving Issues and Estimation of Applicable Technologies..30

(1) Study of energy saving technologies for the EAF: .................................................30

(2) Study of fuel consumption reduction for the RHF: .................................................35

3.2 The Review on the Specific Project Planning for B-Company......................................43

3.2.1 Overview of B-Company ........................................................................................43

3.2.2 Specification of Issues on Energy Saving to study ................................................44

(1) Study of energy saving technologies for EAF ........................................................45

(2) Study of fuel consumption reduction for ladle furnace ...........................................49

(3) Study of fuel consumption reduction for RHF ........................................................51

3.3 Estimation of Energy Saving and CO2 Reduction rate, and Economical Evaluation ...55

3.3.1 Estimation of Energy Saving and CO2 Reduction rate, and Economical Evaluation

for A-Company ................................................................................................................55

(1) Estimation of Energy Saving rate and CO2 Reduction rate ...................................56

(2) Estimation of economical condition........................................................................57

3.3.2 Estimation of Energy Saving and CO2 Reduction rate, and Economical Evaluation

for B-Company ................................................................................................................58

Page 3: Feasibility Study for developing future JCM project ... · in this decade in Vietnam. Steel consumption grew to double from 2004 through 2011 backed by high growth of the economy

(1) Estimation of Energy Saving rate and CO2 reduction rate ....................................59

(2) Estimation of economical condition........................................................................61

3.4 Finantial Scheme in Vietnam........................................................................................63

4. JCM methodology ..............................................................................................................66

4.1 Joint Crediting Mechanism Methodology of “Energy Saving by Introduction of Optimum

Power Regulation System at Electric Arc Furnace”............................................................67

4.2 Methodology of Ladle Preheating Oxygen/Fuel Burner................................................79

4.3 Joint Crediting Mechanism Methodology of “Introduction of Regenerative Burner to the

Reheating furnace for Semi-processed Steel”....................................................................90

5. Reporting of Energy Saving Technologies to Vietnam.......................................................99

5.1 Prior explanation to the government officials................................................................99

5.2 Seminar in Hanoi ........................................................................................................100

6. Economical Analysis for Commercialization.....................................................................103

7. Summery ..........................................................................................................................108

7.1 Policy reccomendation on JCM in Vietnam ................................................................108

7.2 Summery, Suggestion and Proposal for the activity for next fiscal year.....................110

Annex1 Commentary on technologies positive list ...........................................................112

Page 4: Feasibility Study for developing future JCM project ... · in this decade in Vietnam. Steel consumption grew to double from 2004 through 2011 backed by high growth of the economy

1

1. THE PURPOSE OF THE PROJECT

Japan has been working for solving the climate change issue, and has developed a lot of superior

technologies and products applicable to reducing greenhouse gas emissions overseas. “The Clean

Development Mechanism (CDM)” is now the sole global framework available for us to contribute to

reduction of greenhouse gas emissions in developing countries by promoting these technologies and

products. But there are still relatively few cases where those countries have adopted our low-carbon

technologies which are ones of Japan’s major strengths, such as the energy-saving technologies, the

new energy technologies, the technologies for high efficiency coal-fired power generation, etc.

Moreover, the CDM is difficult for smaller developing countries to utilize its system as it requires

difficult procedures and its validation process is complicated, and therefore it is insufficient

framework for Japan to contribute widely to reduction of greenhouse gas emissions in developing

countries by promotion of our low-carbon technologies and products.

The government of Japan has been building “the Joint Crediting Mechanism (JCM)” as a

complementary system for the CDM in order to push forward the global warming mitigation on a

worldwide scale by aggressive promotion of spreading the Japan’s world-class low-carbon

technologies and products in developing countries.

Japan signed the bilateral document for the JCM with countries in Asia and Africa, some of the

countries have started the implementations, and they are looking forward to the JCM and the spread of

the Japan’s low-carbon technologies.

This study includes introduction of Japan’s superior technologies to the steel industry in the Socialist

Republic of Vietnam (hereinafter referred to as “Vietnam”), field survey at two sites of steelworks in

the country, applicability study of the energy-saving technologies to the Vietnamese steel industry,

evaluation of cost performance and amount of CO2 reduction, and applicability study of the JCM.

Page 5: Feasibility Study for developing future JCM project ... · in this decade in Vietnam. Steel consumption grew to double from 2004 through 2011 backed by high growth of the economy

2

2. PRESENT CONDITIONS OF THE STEEL INDUSTRY IN

VIETNAM AND STUDY OF THE ENERGY-SAVING

TECHNOLOGIES

2.1 PRESENT CONDITIONS OF STEEL INDUSTRY AND ENERGY SITUATION IN

VIETNAM

2.1.1 PRESENT CONDITIONS OF THE STEEL INDUSTRY IN VIETNAM

Figure 2.1-1 shows the trend of steel consumption, steel production and steel self sufficient ratio

in this decade in Vietnam. Steel consumption grew to double from 2004 through 2011 backed by

high growth of the economy of Vietnam. The government tight-money policy for inflation restraint

in 2011 collapsed a real-estate bubble and forced to slow down the steel consumption, but it

gradually increases again recently. The increasing rate of production exceeds that of consumption

from 2004 through 2011, and the self-sufficiency ratio tends to increase. In 2012 and 2013, the

self-sufficiency ratio decreases slightly, because low-priced import steel from China in particular

has increased.

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Ste

el Cosu

mpt

ion, C

rude

Ste

el pr

odu

ct

steel

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Self sufficient

Steel Cosumption

Crude Steel production

Self sufficient ratio

Figure 2.1-1 Transition of crude steel production rate, steel consumption rate and self sufficient

ratio1

One major issue of the steel industry in Vietnam includes imbalance between supply and demand.

Productive capacity of some products such as rebar and rod becomes superabundant.

1 Based on the data of worldsteel ”Steel Statistical Yearbook 2014”

Page 6: Feasibility Study for developing future JCM project ... · in this decade in Vietnam. Steel consumption grew to double from 2004 through 2011 backed by high growth of the economy

3

Another major issue is the production cost. Outdated and small facilities are still left, and at the same

time new facilities have started in operation after 2000. It is said that old facilities cannot show their

efficiency, and new facilities cannot handle them sufficiently. This situation cannot control

competitive production cost. Meanwhile electric power price in Vietnam has been held down

politically. At present electric power price is 6 ~7 US cents/kwh, but it will be raised to 8 ~9 US

cents/kwh in 2020 according to Master Plan. On the other hand, low price steel from China tends to

increase. In order to overcome this situation, cost down of the steel production must be required from

now.

2.1.2 ENERGY SITUATION IN VIETNAM

Steel industry is one of the big energy consumng industry, and its energy saving activity can

contribute to big CO2 reduction. On the otherhand, profitability is important to introduce energy

saving technologies. Steel companies in Vietnam generally posess Electric Arc Furnace (hereinafter

referred to as “EAF”) and Reheating furnace (hereinafter referred to as “RHF”). EAF mainly

consumes electric power, and RHF maily consumes fuel such as coal, oil, natural gas etc. Accordingly

energy prices are key factor for production of steel..

Vietnam is blessed with energy resources, and the production of oil, natural gas, coal is an big scale

in the Southeastern Asian area. However, with recent economic growth, the energy demands increase

rapidly, and all these resources must be improted in the near future.

The master plan2 says that electric power price will be raised to 8~9 US Cents/kwh. Oil, natural gas,

and coal will be expected to be raised too. For example2 coal prices will be raised to 15% by 2020.

As mentioned above, in 2020 it is expected that electric power price will be raised by 30%, and oil,

natural gas, and coal will be raised by 15%.

2.1.3 ENERGY CONSUMPTION CONDITION OF STEEL INDUSTRY IN VIETNAM.

Through documents and a field work, the amount of energy saving and CO2 reduction potentials are

calculated when Japanese technologies are introduced.

UNIDO Vietnam Mission Report3 in 2011 and UNIDO Seminar4 in 2012 show energy intensity

(GJ/t-steel) and CO2 emission rate (kg-CO2/t-steel) of 18 steel companies joining Vietnam steel

association. Fig.2.1-2 shows both average value of CO2 emission and specific electric power

consumption calculated from energy intensity. CO2 emission and specific electric power consumption

is assumed to be almost 1.5 times as much as that of Japan.

In Figure 2.1-3, operation conditions and their operational indecis are arranged.

2 JETRO Hanoi Center March, 2011 3 UNIDO, "Energy and Resource Efficiency in the Vietnamese Steel Industry", July 2011 4 Green Industry Initiative and Promotion of Green Technologies 20120828-Green_Industry.pdf, (UNIDO Seminar, Tokyo (2012))

Page 7: Feasibility Study for developing future JCM project ... · in this decade in Vietnam. Steel consumption grew to double from 2004 through 2011 backed by high growth of the economy

4

0

200

400

600

800

1000

1200

1400

1600

L E O M K Q G J N A H D P I F C R B Average Japan

Ele

ctr

ic p

ow

er,

、C

O2 E

mis

sion

Electric power, kWh/t-liquid steel (2011/7)

Electric power, kWh/t-liquid steel (updatedbaseline, 2012/8)

CO2, kg-CO2e/t-steel billet(2011/7)

(Hot metal ratio/50%)

Figure 2.1-2 Specific electric power consumption and CO2 emission rate of 18 steel companies

joining Vietnam Steel Association

(Unit of data in Japan is expressed as “per t-steel billet”)

Page 8: Feasibility Study for developing future JCM project ... · in this decade in Vietnam. Steel consumption grew to double from 2004 through 2011 backed by high growth of the economy

5

Figure 2.1-3 EAF operation condition and its operational index of 18 steel companies joining Vietnam Steel Association

Production,x10,000t/y

EAFCapacity

,t/ch

SPH EBT CoolingPane

LadleFurnac

e

Warmor Hotcharge

EAF electric powerconsumption

,GJ/t-liquid steel(2011/7)

EAF electric powerconsumption,kWh/t-steel(2011/7) *3

EAF electricpower

consumption,kWh/t-steel

(2012/8) *8, *3

CC energyConsumptio

nGJ/t-billet

RHF EnergyconsuptionGJ/t-billet

EAFElectrode

consumption

kg/t-billet

Tap totap

,min

CO2Emission Factor*2

,kg CO2e/t-steel

1 A Private 20 15-20 × × × ○ ○ 2.7 540 672 0.5 1.5 3.4 96 690 Stage-1less advancedplant, fig4

2 B Private 25 60 ○ ○ ○ ○ × 4.1 820 706 0.4 no mill 2.7 60 1,180 Stage-1more advancedplant, fig4,10

3 C Public 7 15-20 × × × × × 3.45 690 754 0.2 no mill 4.1 70 930 Stage-1less advancedplant, fig4

4 D Public 10 15-20 × × × ○ ○ 3.1 620 602 0.3 1.6 3.1 80 720 Stage-1less advancedplant, fig4

5 E Private 45 60 ○ ○ ○ ○ ○ 2.1 420 717 0.2 1.2 1.45 60 620 Stage-1more advancedplant, fig4,10

6 F Public 50 60 ○ ○ ○ ○ × 3.3 660 593 0.3 1.7 1.35 45 820 Stage-1more advancedplant, fig4,10

7 G Public 2.6 520 564 3.8 150 520 Stage-2

8 H Public 3.1 620 660 2.6 75 1,450 Stage-2Hot metalratio50%,fig19, HP

9 I Public 3.25 650 646 5.8 158 780 Stage-2

10 J Private 2.6 520 655 3.3 110 790 Stage-2

11 K Private 2.55 510 586 3.3 80 720 Stage-2

12 L Private 2 400 459 2.7 80 530 Stage-2

13 M Private 2.55 510 561 3 90 580 Stage-2

14 N Private 2.6 520 593 3.15 110 620 Stage-2

15 O Private >50 2.2 440 494 2.7 76 750 Stage-2more advancedplant, fig4,10

16 P Public 3.15 630 684 2.25 56 800 Stage-2

17 Q Private 2.6 520 586 3 80 590 Stage-2RHF:CGF、lowproduction/ Fig18

18 R Private 3.8 760 892 4 120 930 Stage-2

min 2.0 400 1.2 1.4 45 520max 4.1 820 1.7 5.8 158 1450ave 2.9 575 1.5 3.1 89 779

380 *4 0.6-1.2 *6 530 *51.7 *1 345 *7 0.3 *1 0.5 *1 1.1 *7

Fig21 Fig5,6Table2

Fig5,6,10p.9 p.9 p.9

Table7,Fig17

p.9 Fig5,6,7,9,21 Table2 Table2 Fig17Fig12Table4

Fig20

Reference 2 *1

Operation Condition Operation Index

Plant*1

Average of 18companies

(Oxygen consumption=30~50Nm3/t-steel *3)

NoReference 1

*1

Japan levelworld revel

UNIDO Report *1→

*1: UNIDO, "Energy and Resource Efficiency in the Vietnamese Steel Industry", July 2011, *2: Total on and off site emissions *3: From Nguyen Thi Ngoc Tho (Energy Efficiency and Conservation Center of Ho Chi Minh City) "Overview of Steel and Paper Industry – Energy Saving Potential"2012,

and *1 (calculated with using 5.0GJ/MWh)。 *4: Handbook of Iron and Steel 5th edition, the 1st volume p.322 (2014), *5: Ferrum Vol.3 (1998) No.1, *6: Handbook of Iron and Steel 5th edition, the 6th volume p.216 (2014) *7: P.Dahlmann, R.Fandrich and H.B.Lüngen: Stahl Eisen, 132(2012), Nr.10, 29 *8: Green Industry Initiative and Promotion of Green Technologies 20120828-Green_Industry.pdf, (UNIDO Seminar, Tokyo (2012))

Page 9: Feasibility Study for developing future JCM project ... · in this decade in Vietnam. Steel consumption grew to double from 2004 through 2011 backed by high growth of the economy

6

2.2 THE TECHNOLOGIES POSITIVE LIST

We selected here the proposals for energy saving technologies which are effective in applying to the

Vietnamese steel industry by careful study and organization of the energy saving technologies for

EAF steelmaking mainly in Japan, and by comparison with such lists as 'the List of Energy-Saving

Technologies’ which is one of the deliverables from “the Global Warming Mitigation Technology

Promotion Project” so far. The Positive List has been drawn up simultaneously with and is

substantially similar to the Customized List of “the Promotion of ISO14404 (Calculation method of

carbon dioxide (CO2) emission intensity from iron and steel production)” in the FY2014

“Fundamental Projects on International Standardization and Dissemination of Energy Savings (Joint

Research and Development and Promotion of International Standards on Energy Savings)”.

In the following, we explain a basic process for an EAF steel mill, the Positive List in which the

proposals for effective energy saving technologies are listed, and the technologies in the List which

are subject to application examination in this study.

2.2.1 OVERVIEW OF ELECTRIC FURNACE STEEL MILL

EAF steel mill consists of a steelmaking process and a rolling process. In the former process, an

electric arc furnace (EAF) and a ladle furnace (LF) are mainly used for manufacturing semi-finished

products, and in the latter, the semis are converted into finished products.

It can be said that the steelmaking process is a process for manufacturing semi-finished products by

electric furnace steelmaking method. Electric furnace steelmaking method is, different from blast

furnace steelmaking method, basically a batch process method. On the other hand, a rolling process is

a continuous operation process in the same way as that of a blast furnace method.

Figure 2.2-1 shows a flowchart illustrating the process for manufacturing carbon steel products at

EAF steel mill. The flowchart explains the process from raw materials to carbon steel products

through electric furnace steelmaking method. EAF steel mills use recycled scraps (from bridges,

buildings and vehicles, etc.) and/or domestic scraps originated from production plants as raw

materials, while integrated steel mills use iron ore. The domestic generation of scraps is low in

Vietnam, and for most of them Vietnam relies on imports from other advanced steelmaking countries

such as US. In a series of smelting and refining process (electric furnace steelmaking), these steel

scraps are melted in an EAF, impurities are removed and the molten steel is adjusted at given

components and temperature. In the next process, a continuous caster produces a few types of

semi-products (such as billets, blooms and slabs) as source materials for rolling from molten steel.

The semi products are rolled several times at each of rolling mills after reheated at RHF, and so on

and converted into finished products such as rebar, wire rods and flat bars.

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7

(a) Process 1 (Steel making Process: from Scrap to Semi-product)

(b) Process 2 (Steel making Process: from Semi-product to final product)

Figure 2.2-1 Steel Process of Steel making plant with EAF5

2.2.2 SUPERIOR ENERGY SAVING TECHNOLOGIES AT EAF STEEL MILLS IN JAPAN

In this study, we screen suitable technologies for the Vietnamese steel industry from among the

superior energy saving technologies mainly for the electric furnace steelmaking method and the

reheating method at rolling process in Japan, and select applicable ones for the candidate steelworks

from among the suitable ones.

First of all, we organize and classify Japanese superior energy saving technologies into elemental

technologies.

5 Non- Integrated Steel Producers! Association : http://www.fudenkou.jp/manu_01.html

ビレット

ブルーム

スラブ

市中回収スクラップ(橋、ビル、自動車等)生産工場発生の加工スクラップ

バケット

電気炉へバケットでスクラップを装入

電炉工場へのスクラップ搬入

スクラップスクラップヤード

スクラップ配合 電気炉炉外精錬

(取鍋精錬)連続鋳造

鋳片(鋼片)半製品

出 鋼

ビレット

ブルーム

スラブ

市中回収スクラップ(橋、ビル、自動車等)生産工場発生の加工スクラップ

バケット

電気炉へバケットでスクラップを装入

電炉工場へのスクラップ搬入

スクラップスクラップヤード

スクラップ配合 電気炉炉外精錬

(取鍋精錬)連続鋳造

鋳片(鋼片)半製品

出 鋼

Scrap Scrapyard

Scrap mixing

EAFLadle

FurnaceContinuous

CastingSemi

Products

Tapping

ScrapBringing in

Scrap charging

billet

bloom

Slabbucket

Scrap gathering (Bridge, Building, Automobile, etc.Scrap from steel processing

加熱炉:1000~1200℃

小形棒鋼

線材

平鋼

棒鋼圧延機

線材圧延機

平鋼圧延機

粗圧延 中間圧延 仕上圧延

粗圧延機 中間圧延機仕上圧延機

(NTブロックミル) 冷水ゾーン

ステルモアクーリングコンベアー

粗圧延 中間圧延 仕上圧延

加 熱 炉 圧 延 機 主な製品

加熱炉:1000~1200℃

小形棒鋼

線材

平鋼

棒鋼圧延機

線材圧延機

平鋼圧延機

粗圧延 中間圧延 仕上圧延

粗圧延機 中間圧延機仕上圧延機

(NTブロックミル) 冷水ゾーン

ステルモアクーリングコンベアー

粗圧延 中間圧延 仕上圧延

加 熱 炉 圧 延 機 主な製品RHFSteel Rod Rolling Mill

Rolling Mill Major Products

Wire Rolling Mill

Flat Steel Rolling Mill

Rough Rolling Mill Middle Rolling Mill

Light steel bars

Finishing Rolling Mill

Rough Rolling Mill

Middle Rolling

Mill

Finishing Rolling

MillCoolingZone

CoolingConveyor

Rough Rolling Mill Middle Rolling Mill Finishing Rolling Mill

RHF :1000~1200 deg.C

Wire rod

Flat steel

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8

(1) ENERGY SAVING TECHNOLOGIES FOR EAF STEELMAKING METHOD

As mentioned above, EAF steelmaking method is, different from blast furnace steelmaking method,

basically a batch process in which molten steel is tapped every 40 to 80 minutes. The key factors in

energy saving technologies for EAF steelmaking method are improvement of heat transfer efficiency

into scraps and molten steel as well as reduction of thermal radiation from the furnace body. In EAF

process, the early phase is the scrap melting period during which scraps are mainly melted, and the

later phase is the refining period during which the temperature of molten steel is increased and the

component of it is adjusted. Therefore, it is effective to utilize the appropriate technology in response

to each of the operational situations and it is important to properly control the appropriate technology

in accordance with the change of the process.

①Scrap Melting Enhancement Technology during scrap melting period

The scrap melting period is a period during which electrodes are plugged into, strike an arc on, and

melt the scraps charged in the furnace with the large current conducting in. Therefore, it is an

important operation technique to keep on flowing large and stable electrical current.

Regarding the technology for improving scrap melting efficiency, we have the auxiliary heating

burner technology as well as the hardware and software to supply large and stable electric current.

Generally, there is generated what is called “a cold spot” at the scraps in the furnace where electric

current is hard to flow, which causes delay in melting scraps, extension of the melting period and

increase in radiation loss of an arc. A burner for melting enhancement at “a cold spot” is usually

equipped in order to realize enhancement of scrap melting and reduction in radiation loss of an arc.

The burner for EAFs uses an auxiliary fuel such as heating oil, heavy oil and LNG, and supplements

scrap melting with high temperature flames obtained by burning the fuel effectively with enough

oxygen. The burner is set at “a cold spot” and solves the imbalance of partial melting. When the

burner is used during the scrap melting period, higher heat transfer efficiency is attained at “a cold

spot”. Melting period is also shortened by optimizing the position and the utilization of highly

efficient burner, and therefore energy efficiency is increased.

Figure 2.2-2 Image of inside-EAF and burners during scrap melting process

②Radiation Loss Reduction Technology from the end of melting period to refining period

The refining period is a period during which almost all of scraps are melted and the molten steel is

subject to adjustment of its component and temperature for tapping. From the end of the scrap melting

Burner

Fuel Oxygen

Cold Spot Scrap

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9

period to the refining period, melting of scraps is almost completed, an arc from electrodes exposes in

the furnace, and thermal radiation of the arc often increases.

The slag foaming technology is utilized as a countermeasure against the thermal radiation. The

principle of the technology is explained as follows: carbon particles are blown with oxygen into the

molten slag on the molten metal, CO gas bubbles are generated in the molten slag, the slag foams with

the gas bubbles, electrodes are covered with the foamed slag, the thermal radiation of an arc decreases

and the efficiency of heat into the molten metal is increased. The technology can also enhance the

heat transfer into the molten steel and reduce the thermal radiation to the furnace body because high

temperature atmosphere is created in the furnace due to secondary combustion of CO gas which is

generated by blowing carbons and oxygen (Secondary Combustion Technology).

This requires introduction and installation of the carbon-oxygen blowing equipment, and it is a key

point to design the suitable blowing facilities according to the local situations because the effect will

change depending on the installation site and the number of burners.

Figure 2.2-3 Image of inside-EAF and carbon injection during refining process

③ Other Energy Saving Technologies

During powering of EAF steelmaking, exhaust gas is always emitted at some high temperature. The

applicable technologies are limited because EAF is a batch process, nevertheless Japan have the

technology for pre-heating of scraps before charging and that for direct recovery of energy from

exhaust gas.

Usually, a ladle is preheated just before molten steel is tapped into it in order to reduce the power

consumption of an EAF. The process of ladle preheating is also a batch one and the preheating

facilities often have no heat recovery system. Therefore, some energy saving technology is applicable

to the ladle preheating process.

Figure 2.2-4 shows the energy saving technologies supporting the electric furnace steelmaking

method in Japan.

Arc

Pulverized Coal

Oxygen

Foaming Slag

Arc

Pulverized Coal

Oxygen

Foaming Slag

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10

Figure 2.2-4 Major Energy saving technologies for EAF

Classfied Energy

Saving Technologies

Tehcnologies Title Equipment and system for

technologies

① Scrap melting acceleration

technologies

High efficiency burner, High

efficiency oxygen lance

Scrap melting

technologies

② Radiation loss reduction

technologies during refining

process

High efficiency carbon injection,

High efficiency oxygen lance

EAF control system ③ Process control EAF for scrap

melting and refining

High efficiency power input control

system

Applecation of high

efficiency equipment

for EAF

④ Higher Power input

technologies

・High efficiency Transformer and

Reactance technologies

・Low impedance conducter arm

⑤ High temperature scrap

preheater

Environmental Economical arc

furnace

Waste recovery

technologies

⑥ Waste heat recovery

technologies of EAF

Waste heat recovery technologies

from EAF waste gas

Improvement of fuel

efficiency

⑦ High efficicncy preheater for

ladle preheating

Regenerative burner or oxygen/fuel

burner system for ladle preheating

(2) ENERGY SAVING TECHNOLOGIES FOR RHF

Major consumption sources of energy in a rolling process are the fuels at RHF and the electric power

required for rolling. RHF consumes more energy because billets or slabs must be heated to higher

than 1000 deg.C there. We suppose that advanced technologies are not sufficiently applied to fuel

saving at RHF, particularly in Vietnam. Figure 2.2-5 shows the technologies supporting energy

savings at RHFs in Japan.

Figure 2.2-5 Major Energy saving technologies for RHF

Classfied Energy Saving

Technologies

Tehcnologies Title Equipment and system for

technologies

Computer Control of

RHF

① Combustion control of RHF Optimum Air/fuel ratio

control, Optimum heat pattern

control

Improvement of fuel

efficiency

② Waste heat recovery system of

RHF

Regenerative burner system

These energy saving technologies for RHF are expected to be strong candidates applicable for the

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Vietnamese steel industry, and they are listed in the Positive List as concretely applicable equipment,

in the same way as the technologies for EAF steelmaking method.

In the Positive List, there are listed the feasible technologies applicable for the Vietnamese steel

industry considering those energy saving technologies described above, in reference to the following

documents:

①FY2013 Global Warming Mitigation Technology Promotion Project

”Technologies Customized List & Technologies One by One Sheets (Ver.2)” regarding energy

saving, a deliverable from the report “A Study on Project Development Planning to Disseminate

Energy Saving Technologies in the Iron and Steel Industry in India”

②FY2012 Small and Medium-sized Enterprises Support Survey

“The Current State of the Technologies for Practical Use of Unused Sensible Heat and Waste

Thermal Energy at Electric Furnace Steel Mills (The Results of Questionnaire)”, a deliverable from

the report “Survey on the Actual Conditions of Iron & Steel Industry Regarding the Effective

Utilization of Waste Thermal Energy and the Saving of Energy”

③ The State-of-the-Art Clean Technologies (SOACT) for Steelmaking Handbook (2nd Edition), Dec.

2010, available at http://asiapacificpartnership.org/japanese/soact2nd.aspx.

④Japanese Technologies for Energy Savings/GHG Emissions Reduction, NEDO, 2008 Revised

Edition (hereinafter referred to as NEDO), available at http://www.nedo.go.jp/content/100107259.pdf

⑤Best Available Techniques (BAT) Reference Document for Iron and Steel Production, EU, Latest

Edition, Mar. 2012 (hereinafter referred to as EU-BAT), available at

http://ftp.jrc.es/pub/eippcb/doc/IS_11_17-06-2011.pdf.

⑥Available and Emerging Technologies for Reducing GHG Emissions from the Iron and Steel

Industry, USA-EPA BACT, Latest Edition, Oct. 2010 (hereinafter referred to as EPA-BACT),

available at http://www.epa.gov/nsr/ghgdocs/ironsteel.pdf.

2.2.3 THE POSITIVE LIST OF ENERGY SAVING TECHNOLOGIES FOR ELECTRIC

FURNACE STEELMAKING IN VIETNAM

Figure 2.2-6 is the Positive List of the energy saving technologies for steelworks in Vietnam

classified into three categories according to the section 2.1 and the sub-section 2.2.2.

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Figure2.2-6 Technologies positive list for Vietnam Steel Industry with EAF

Items with 「○」in the figure are illustrated in Annex1

The summaries of the energy saving technologies are shown by category in the following. In

addition, we are explaining the technologies reviewed as recommendation in this study.

(1) ENERGY SAVING TECHNOLOGIES REGARDING EAF STEELMAKING (NO.1 - 12):

No.1, 2 are the energy saving technologies by raising the charging temperature of raw materials (DRI,

HBI, scraps) into an EAF.

No.3 is the technology to attain energy saving due to the melting time savings by

high-secondary-voltage (arc elongation) and low-secondary-current operation with

large-capacity transformers.

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No.4 is the technology to achieve an increase in the effective electric power due to reduction of the

reactance by using aluminum-alloy conductor support arms to support the electrodes on the

secondary side of the power supply.

No.5 is the energy saving technology due to conversion of EAF current from alternating current (AC)

to direct current (DC).

No.6 is the technology to accomplish energy saving due to enhancement of scrap melting by blowing

coke breeze or fossil fuels simultaneously with oxygen. Supersonic injection burners called

coherent burners are used for the technology to improve the heat of combustion of metal and the

cutting of scraps at the cold spot efficiently.

No.7 is called EBT (Eccentric Bottom Tapping), and attains energy saving due to power reduction by

bottom tapping instead of by tilting of the furnace. It also has secondary effects on improvement

of limestone’s and ferroalloys’ yields and savings of tapping time.

No.8 is the equipment to generate steam by sensible heat of EAF exhaust gases, and steam recovery is

expected to reduce fuel consumption.

No.9 is the technology for preheating tapping ladles, and there are two types of burner systems:

9.1 Regenerative burner system: efficient reuse of sensible heat of waste gas generated during

preheating of ladles for heating of combustion air used for the preheating of ladles,

9.2 Oxygen/fuel burner system: rapid heating is possible.

No.10 is the technology of automatic lifting system for electrodes to attain the desired current value

during the scrap melting and it can save the power consumption.

No.11 is the automatic control technology for the optimization of EAF operation and classified into

the four types of systems:

11.1 Automatic following system of preset patterns for power supply

11.2 Automatic operation system using exhaust gas analysis data as an indicator

11.3 Automatic assessment system for the optimization of melt-down period according to acoustic

sound and higher harmonic waves generated in the furnace in order to reduce the power

consumption rate

11.4:Fuzzy logic control system for electrodes due to multivariate analysis.

No.12 is the technology of carbon-oxygen injection for foaming slag in order to improve the thermal

efficiency by covering an arc with the foamed slag.

Among the technologies described above, we select the following three technologies as what should

be introduced according to this study and describe their details below:

・ No.6 Oxy-fuel Burners/Lancing (together with enough capacity of Direct Suction Type

Dust Collector)

・ No.11 .4 Control and Automation for EAF Optimization:Optimum Regulation System

with multi-variable control using Fuzzy logic

・ No.9.2 Ladle Preheating: Oxygen/fuel burner Total system

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“No.6 Oxy-fuel Burners/Lancing (together with enough capacity of Direct Suction Type

Dust Collector)”

Figure 2.2-7 is the photograph of “Oxy-fuel Burners/Lancing (or Supersonic Burner)”.

Figure 2.2-7 Photo of Oxy-fuel Burners/Lancing6

Compared to conventional burners, this technology enables the combustion flames/oxygen to

penetrate deeply into slag/molten steel in the furnace due to supersonic jet stream of the burner

flame, and it improves the efficiencies of scrap melting and slag/metal reactions.

Energy efficiency can be more improved by adoption of a door burner which is one of the associated

technologies for the Oxy-fuel Burners/Lancing technology.

Figure 2.2-8 shows an overview of a door burner.

Figure 2.2-8 Outline of door burner 6

The effect of the door burner is described as follows: Generally, EAF has an opening for discharging

slag (de-slagging) in the furnace, and the de-slagging is carried out through this opening during the

refining period. The slag opening is equipped with a slag door as the air outside can intrude into the

6 From NIKKO Industry CO.,LTD

Effective lengthEffective length〜2m〜2m

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furnace through it. Therefore, the slag door is closed during the scrap melting period in order to

prevent the outside air from infiltrating into the furnace. It is a key factor for progressing energy

savings to prevent the furnace from being cooled due to the air infiltration. On the other hand, it is

often the case that a burner/lance is equipped at the slag opening because there is no appropriate

position for setting up the burners/lances. That causes heat loss due to the lower temperature in the

furnace as the slag door must be open even during the scrap melting period and the air outside can be

easily absorbed in the furnace. The door burner is the technology for solving these problems. It

enables the utilization of burners/lances with the slag door closed and fuels/oxygen gas can be

efficiently supplied. Therefore, this effect can reduce in the power consumptions and the operation

hours.

The Oxy-fuel Burner/Lancing can be used not only as a burner with auxiliary fuel during the scrap

melting period, but also as a carbon injection facility for slag foaming at the end of the scrap melting

period and during the oxidizing period.

Figure 2.2-9 shows an integrated burner system equipped with a door burner which consists of all

as described above.

Figure 2.2-9 Burner system with door burner6

However, the application of this Oxy-fuel Burners/Lancing technology requires careful attention to

the following points:

・ Sufficient precipitation capacity is necessary for collecting gas and dust in the EAF, the lack of

collecting capacity causes energy loss because energy source like gas goes outside of the furnace.

・ it is possible to reduce the power consumption rate, nevertheless it requires auxiliary fuels for

scrap melting, Therefore, the reduction in power consumption does not often lead directly to

energy saving. We need to estimate the total reductions in energy savings and CO2 emissions

after due consideration of the auxiliary fuel consumptions.

“No.11 Control and Automation for EAF Optimization”

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An EAF is a batch process and there are many factors for controlling it. The control of electrodes is

one of the most important ones. In particular during the scrap melting period, it is necessary to

optimally control the position of electrodes and the input of electric power, and to give more electric

current efficiently to scraps because they collapse, fall and move as they melt. We can achieve more

efficient melting of scraps by properly controlling the electrodes.

Efficient input of electric power can be attained by the application of the new Power Regulation

System to controlling the electrodes. Figure 2.2-10 shows an overview of the Optimal Power

Regulation System.

Figure 2.2-10 Outline of Optimum Power Regulation System6

Usually, the positions of electrodes are controlled by considering only the impedance. However, in

this system, we consider many factors such as electric currents, power voltages, arc resistances, input

electric powers in order to control the electrodes appropriately according to Fuzzy Logic. More input

of electric power can be achieved by the proper control of electrodes.

The principle is derived from Fig. 2.2-11 showing the relation between the power and the current of

the arc and the input side circuit, and the power factor of the arc current at an identical voltage. As

electric current increases (up to some 50 kA), the power factor is lowered but the input power

increases. Therefore we can put the power into the arc more efficiently by increasing the arc current.

Identification of the

Mechanical system

CORRECTION OF PIPARAMETER BY

FUZZY LOGIC

Control Strategy by

Fuzzy logic

SETPOINTI:Current

RA:Arc ResistanceZ:Impedance

VA: Arc Voltage

Mast Position DIGITAL SIGNAL

PROCESSOR CARD

VOLTAGECURRENT

ACTIVE POWER

PLC PROCESSINFORMATION

MEASUREMENTI:Current

RA:Arc ResistanceZ:Impedance

VA: Arc Voltage

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Figure 2.2-11 Arcing power, Circuit input, and Phase factor at same input voltage 6

When this control technology is applied, it is necessary to review not only the renewal of control

system but also the controllability of the hardware related to electrode control.

“No.9.2 Ladle Preheating: Oxygen/fuel burner Total system”

A ladle is a container for receiving the molten steel from EAF and refining it at the ladle furnace.

After that the ladle is delivered to the continuous casting machine which casts slabs or billets to steel,

and holds the molten steel and preserves its temperature during casting. Therefore, it is important for a

ladle to minimize the molten steel temperature drop during holding, and a ladle is generally preheated

prior to its usage. Sufficient preheating of a ladle enables us to lower the tapping temperature of EAF,

to prevent the temperature drop at the ladle furnace, and to preserve molten steel temperature at the

continuous casting machine.

The ladle preheating is not very often equipped with any waste heat recovery unit, and it is

inefficient as a preheating process. As for high efficiency ladle preheating technologies, there are the

regenerative burner technology (No.9.1 – Integrated System for Regenerative Burner) and the

oxygen/fuel burner technology (No.9.2 – Integrated System for Oxygen/fuel Burner). We are

recommending the oxygen/fuel burner in this study.

Figure 2.2-12 illustrates the effects by the application of the oxygen/fuel burner.

New Regulation System Circuit Power (MW)

Tap/630 V Power Curve

Arc Power (MW)

Refractory Index (x100)

Power Factor

Current Condition

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Figure 2.2-12 Principle of oxygen/fuel burner7

A conventional burner generates the flame by combustion of fuels with the air to preheat a ladle. On

the other hand, the oxygen/fuel burner is supplied with nitrogen-free oxygen instead of air for

combustion (the Figure shows the case using 100% of oxygen), and the amount of waste gas is

reduced to about 25% after combustion. Therefore, the flame temperature becomes higher and high

efficiency preheating is attainable due to the increase in heat transfer efficiency, the reduction in

waste gas amount and the reduction in sensible heat of waste gases.

Figure 2.2-13 shows a comparison of the temperature changes in the ladle preheated with a

conventional burner and the oxygen/fuel burner, while both of them use natural gas as a fuel.

Figure 2.2-13 Comparison of Ladle inside temperature between conventional burner and

oxygen/fuel burner 7

In Fig. 2.2-13, blue lines indicate the temperature changes by a conventional burner, red lines by the

oxygen/fuel burner, and the two lines in each color indicate the inside surface temperature and the

7 From CHUGAI RO CO.,LTD

Conventional Air Combustion Oxygen Combustion

Waste gas Waste gas

Fuel FuelOthers

Gas volume

25%

0

200

400

600

800

1000

1200

1400

1600

0 50 100 150 200 250 300Heating Time (min)

Tem

pera

ture

 [℃

]

Difference heating capability

Ladle inner wall temperature by O2

Ladle inner wall temperature by Air

Ladle Casing

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outer shell temperature, respectively. Figure 2.2-13 shows that the flame temperature rises faster by

the use of the oxygen/fuel burner, and that it is possible to preheat the ladle in a shorter period.

Therefore, large energy saving can be achieved due to improvement of heat transfer efficiency and

shortened period of preheating according to the higher flame temperature.

However, we have to take heed of the oxygen usage in this technology. The technology needs the

supply of oxygen as a matter of course. At a steel mill which holds its in-house oxygen plant and is

capable to produce and supply oxygen, economic effects can be easily realized because the usage cost

of oxygen is lower than the benefits from the energy saving. On the other hand, some EAF plants

purchase liquid oxygen and utilize the vaporized oxygen. In this case, the application of this

technology may not be economically possible because the cost of liquid oxygen is generally high and

the economic effect becomes smaller.

(2) ENERGY SAVING TECHNOLOGIES REGARDING RHF (NO.13 - 16):

No.13 is the energy saving technology effective in preheating combustion air at RHF, and there are

three types of the technologies according to the desired temperature level of preheating air (Tair):

13.1 Integrated System for Regenerative Burner: suitable for Tair is higher than 1000 ℃(the

principle is the same as No.9-1),

13.2 Heat Exchanger using Cr-Si-Al heat resistant steel: suitable for Tair is around 600 ℃,

13.3 Commonly used Heat Exchanger suitable for Tair is around 400 ℃.

No.14 is the technology for reducing fuel consumption rate due to the reduction of heat loss through

the furnace walls by utilizing ceramic fibers with low thermal conductivity and high adiabaticity

for inside wall materials of the furnace.

No.15 is the technology for reducing the fuel consumption of RHF due to the introduction of

combustion control system for RHF. The system enables us to attain optimal combustion in

accordance with the heating conditions (such as heat pattern control, oxygen content control in

waste gas, and furnace pressure control, and so on).

No.16 is the technology for reutilizing heat of combustion waste gas from RHF which is used for

supplying hot water for cooling air with an absorption refrigerator.

“No.13.1 – Integrated System for Regenerative Burner at Preheating temperature ≧1000 ℃”

is the technology which is well known as regenerative burner system, and developed and commonly

used in Japan. It is also the technology which is recommended in this study, and the details are

described below:

“No.13.1 – Integrated System for Regenerative Burner at Preheating temperature ≧

1000 ℃”

Usually, waste heat recovery is realized in RHF due to utilizing the sensible heat of the waste gas

temperature for preheating the combustion air.

Figure 2.2-14 shows the effect of reducing fuel consumption by the method of preheating

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combustion air.

Figure 2.2-14 Relation between preheated air temperature and fuel saving (in case of furnace

temperature 1350 deg.C)8

An usually equipped heat exchanger preheats air to a temperature of around 400 ℃ as shown in

Fit.2.2-14. On the other hand, the heat exchanger with high thermostability can preheat air up to a

temperature of 650 ℃. Furthermore, the regenerative burner used in this technology can preheat air

to a temperature close to that of the furnace temperature and large energy saving can be achieved.

When the furnace temperature is 1350 ℃ as shown in Fig. 2.2-14, we can save some 30% of the

energy consumption by the regenerative burner compared to an usual heat exchanger, and some 15%

compared to even a heat-resistant one. However, the reduction of energy consumption changes

depending on the furnace temperature, and we can replace not all the burners but just the ones

subjected to higher combustion load into regenerative burners from the economical point of view.

Therefore, we need to estimate the energy savings as well as the profitability for each of the cases.

Figure 2.2-15 shows an overview of the regenerative burner system.

Figure 2.2-15 Outline of Regenerative burner system 8

8 State-of-the-Art Clean Technologies (SOACT)(2nd Edition)

Fuel

Billets 1250℃

1350℃

Air

Fuel

Billets 1250℃

1350℃

Air

Fuel

Billets 1250℃

1350℃

Fuel

Billets 1250℃

1350℃

Regenerative burner system Fuel

Burner ABurner B

CeramicRegenerator B

CeramicRegenerator

A

Exhaust gas 200 deg.CSwitch valve

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A regenerative burner has a structure in combination of a combustion unit (burner) with a thermal

storage unit (regenerator), and the burners are basically used in pairs.

While one burner (Burner B in the figure) is working with fuel and air having passed through the

ceramic regenerator B, the exhaust gas is induced to the ceramic regenerator A on the other side

(Burner A in the figure) and its sensible heat is stored there. After heat storage is completed at the

ceramic regenerator A, the burner A is switched to combustion and the ceramic regenerator B is

switched to heat storage. By this operation, the combustion air is always heated passing through the

regenerator and kept at a high temperature (that is, the waste heat is recovered).

The regenerative burner system can recover around 85% of waste heat, and the application of the

system is promoted widely in Japan not only to heating furnaces and heat treatment furnaces for steel

products, but also to ladle drying, aluminum melting furnaces, gas treatment, and so on.

The minimum unit of application is one pair (two burners) to RHF but several pairs are usually

equipped to a furnace. The application to RHF has the following merits besides high thermal

efficiency:

・ the maximum local flame temperature is possible to be lowered due to forced gas circulation in the

furnace and the NOx concentration decreases,

・ the average temperature in the furnace is possible to be raised and the operation of higher

productivity and flexibility can be achieved,

・ homogeneous distribution of temperature can be attained in the furnace due to alternate combustion

and forced gas circulation in the furnace,

・ zone heat control becomes easy as gas flow is small in the direction of a furnace length,

・ fluctuation or variation of excess air ratio does not affect much on the thermal efficiency, and so

on.

In addition to them, a regenerative burner can be applied not just to a new RHF, but to an existing

one by revamping it.

(3) OTHER ENERGY SAVING TECHNOLOGIES (NO.17 – 18):

No.17 is the inverter control technology for changing the rotation speed of an electric motor such as a

fan and a pump, and saves electric power by controlling some kinds of flow rates, pumping head

and damper opening in accordance with the EAF operation.

No.18 is the supervisory and management control system for the optimization of energy consumption

in EAF steel mill, and is utilized to avoid overall energy loss of the whole steel mill.

The applicable positions for each of the energy saving technologies, No.1 – 18, as mentioned above

are illustrated with the indication by the numbers in Fig. 2.2-16 of the process of EAF steel mill.

The quantitative effects on the energy savings and CO2 emissions reduction by these technologies

are rearranged in Fig. 2.2-18. In the figure, the following data are used for the conversion of electric

power saving and heat saving into CO2 emissions.

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Figure 2.2-17 CO2 Emission Factor

Vietnam India Japant-CO2/MWh 0.564 *1 0.415 0.904 0.444 0.504t-CO2/GJ 0.095 *2 0.095

*2 Data collection user guide_v6. - World Steel Association

*3 CO2 Emissions from Fuel Combustion Highlights (2013 Edition), IEA

VietnamCO2

Emission Factor

Remarks

*1 http://pub.iges.or.jp/modules/envirolib/view.php?docid=2137 (20141031_iges_er_sheet_gridef_JP.xls)

IEA statistics, 2013 edition(average of '09-'11) *3

world*2

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Figure 2.2-16 Technologies positive list for steel making plant with EAF (The number of each title corresponds to the number of Figure 2.2-6)

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Figure 2.2-18 Presumed effect (power saving, CO2 reduction) of each technology from Technologies positive list

CO2Reductionkg-CO2/t

of productGJ/t

of productkWh/t

of product

1 Hot DRI/HBI Charging to the EAF 84.6 >150 ○

2 Scrap Preheating (ex. Ecological and Economical Arc Furnace) 84.6 150 1. reduction of DXN, Dust, Noise ○

3 Transformer efficiency—ultra-high power transformers 8.5 15 ○

4 Aluminium Alloy Conductor Arm for Supporting Electrode 1.6~3.3 3~6 *1

5 DC Electro Arc Furnace 5~10.1≦5%9~18

1.electrode consumption -(40-60)%2. reduction of flicker -(50-60)%, noise

○ ○

6 Oxy-fuel Burners/Lancing (together with enough capacity of direct suction type dust collector) 10.1~20.2 0.14 18~36 ○ ○

7 Eccentric Bottom Tapping (EBT) on existing furnace 3.9~1413.6

(7~25)1. 15-25% reduction of CaO(kg/t)2. shorter tap-to-tap times

8 Waste Heat Recovery from EAF 81.7 0.86 ○

9 Ladle Preheating9.1 -Regenerative Burner Total System 20.0 0.21 or 51% ○

9.2 -Oxygen/fuel Burner Total System ≧50% 1. life extension of refractory *2

10 Electrode Position Control for Power Optimization 10.4~16.9 0.11 301. electrode consumption -25%2. Productivity: +(9-12)%

○ ○

11 Control and Automation for EAF Optimization11.1 - by pattern presetting11.2 - by using Off-gas Analysis 19.7 35 ○ ○ *3

11.3 - Automatic Scrap Meltdown Timing Judgment System by Acoustic Spectrum Analysis for AC EAF 1.6~3.3 3-6 1. skill free *4

11.4 - Optimum Regulation System with multi-variable control using Fuzzy logic 10 *6

12 Carbon and Oxygen Injection System for foamy slag practice 2.8~3.90.04~0.05or 2.5~3%

5~7 ○ ○

13 Combustion Air Preheating for reheating furnace

13.1 - Preheating temperature ≧1000℃ by Regenerative Burner Total System 16.1~19.945%(S),

0.17-0.21(N)1. reduction of NOx ○ ○ ○

13.2 - Preheating temperature 600℃ by Recuperator using high heat resistance steel 10.7~13.3 30% ○

13.3 - Preheating temperature 400℃ by Recuperator 7.1~8.820% (S)0.7(E)

○ ○

14 Thermal insulation by Ceramic Fiber on inner wall of reheating furnace 15.2 2-5%, 0.16 ○ ○

15 Process Control for Reheating Furnace 19.9~79.8 0.21~0.84 ○

16 Air Conditioning by Hot Water Absorption Chiller utilizing Waste Heat 1.5 2.6 *5

17 Inverter (VVVF; Variable Voltage Variable Frequency) Drive for Motors 42% ○ ○ ○ ○

18 Energy Monitoring and Management Systems for Steel Plant with EAF 0.5% ○ ○ ○

Remarks;*1:*2:*3: Iron Steel Technol Conf Proc, vol.1, 2006, pp.509-518*4: Daido Steel*5:*6: NIKKO Industry CO.,LTD

estimated by JFE Techno-Research Corp. from data supplied from EBARA Refri. Equip. & Systems Co., Ltd.

CHUGAI RO Industry CO.,LTD, and http://www.klchem.co.jp/blog/2013/08/post_2094.phpNIKKO Industry CO.,LTD, and "Tekko-Binran" (Handbook of Iron and Steel) Vol.5, No.6, p.224

Miscellaneous

SO

AC

T

Indi

a T

CL

ver

.2No. Title of Technology

Technologies Reference

Mis

cell

aneo

us

Steelmaking

Reheating Furnace

Effect of Technologies IntroductionEnergy Savings

(Fuel)Co-benefits

EP

A-B

AC

T

NE

DO

EU

-BA

T

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3. THE REVIEWS ON THE SPECIFIC PROJECT PLANNING FOR

COMMERCIALIZATION

Upon commencement of the field surveys, we requested the government of Vietnam (Heavy

Industry Dept., Ministry of Industry and Trade (hereinafter referred to as MOIT) to select the

steelworks which are willing to accept the study of the project on energy diagnosis and technology

introduction to EAF mills in Vietnam, and two companies were the candidates. Both of the companies

desired to receive energy diagnosis and study of the project, and we finally determined field surveys

on both of the companies. Hereinafter, the companies are referred to as A-Company and B-Company,

respectively.

These 2 companies locate in the north area in Vietnam. One is a steelworks with its long history, the

other is a comparatively new one which was established after 2000, and then they are contrast

steelworks to each other.

In surveying both the companies, we implemented field surveys and presentations according to the

schedule below:

1st visit (Sep. 2014), Preliminary field surveys on both EAF steelworks

Contents: Presentation of the project purpose (including introduction of JCM scheme),

Understanding of the actual conditions (plant tours and operation observations)

Discussion of the issues on energy, and refinement of applicable technology

2nd visit (Nov. 2014), Technical study of both EAF steelworks

Contents: Energy diagnoses of the electric furnaces and the RHF

Diagnoses of each of the processes on energy saving, and study of feasibilities of the

technology

Collection and estimation of data to evaluate energy saving

3rd Visit (Jan. 2015): Seminar

Presentation of the diagnosis results, the estimation of profitability for each technology,

and explanation of JCM

As for both of the EAF steelworks in Vietnam, we refined the equipment and the technology

applicable to them through actual condition surveys on the steelworks, and discussions with the

officers of the steelworks during our 1st visit. During the 2nd visit, we practically implemented

surveys and diagnoses, and during the 3rd visit, we held a seminar to present the results from the

surveys and the diagnoses and to focus on the profitability of the application of the technologies.

During the 2nd visit and diagnosis, we were accompanied by people from engineering firms

specializing in EAFs and RHFs in iron and steel making process, they also implemented diagnosis

and study based on applicability of the technologies to estimate the cost for the applicable

technologies and to do trial calculations of the merits together with us.

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During the 1st and 2nd visits, we also explained to the relevant ministries and agencies to JCM in

Vietnam, the contents and activities of the project, and the details of JCM, which will be described

late in Chapter 5.

The contents of these three times of visits are described below.

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3.1 THE REVIEW ON THE SPECIFIC PROJECT PLANNING FOR A-COMPANY

To A-Company, the 1st and 2nd visits were made by the members and on the schedule shown in Fig.

3.1-1.

Figure 3.1-1 Visit to A-Company

Period Delegation member

1st visit Sep. 11th to 12th ,2014

11th : Explanation of outline of this

project and Fact findings of EAF and

RHF

12th : Fact findings of iron making

process and discussion

JFE Techno-Research:2

JFE Steel:2

2nd visit Nov. 17th to 19th ,2014

Study and diagnosis for targeted

technologies application

JFE Techno-Research:2

JFE Steel:2

EAF Engineering maker:2

RHF Engineering maker:2

3rd visit Jan. 20th ,2015

Reporting the result at Seminar in Hanoi

JFE Techno-Research:2

JFE Steel:1

3.1.1 OVERVIEW OF A-COMPANY

Figure 3.1-2 shows an overview of A-Company steelworks.

Figure 3.1-2 Overview of the steel plant

No.2 EAFCapacity: 45ton/heatproduction

:300,000ton/y

Main Facilities

Reheating FurnaceNo.2 RHF

Capacity: 50ton/h

No.1 EAFCapacity: 20ton/heatproduction

:150,000ton/y

Reheating FurnaceNo.1 RHF

Capacity: 30ton/h

Blast Furnaces, Sintering Plant, Cokes ovens

BFSinterCoke Making

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A-Company is a steelworks holding blast furnaces and coke ovens along the river, and behind them

an extensive site on which sintering furnaces and an electric furnace plant stand.

Its steelmaking process is an electric furnace one, and both scraps and hot metal from the blast

furnace are its iron sources. There are two units of EAFs as steelmaking equipment and two lines of

RHF and a rolling machine as rolling equipment in the plant, and the steelworks holds coke ovens,

sintering furnaces and blast furnaces in its upstream process. The steelworks is characterized by its

operation at the EAFs, where about a half of the iron source is hot metal from the blast furnaces and

the remainder relies on scraps.

The steelmaking plant holds two units of EAFs, the large scale No.2 EAF mainly produces molten

steel. Both of them are made in Chine and considerably old facilities.

Molten steel is treated at a ladle furnace (LF) and it is cast at a 4-strand continuous casting machine.

The cast products are transferred into RHF. There are two units of RHFs, one is the old and

Chinese-made No.1 RHF, and the other is the No.2 RHF which commenced operation in 1996.

A-Company intends that billets are supplied to No.2 RHF by hot charging from the steelmaking plant.

About 80 - 85% of the billets are supplied to the RHF at a temperature of 500 - 600℃, and the hot

charging is put into good practice (hot charging is not in operation at No.1 RHF).

Oil (Fuel Oil, F.O) is used as a fuel for both of No.1 and No.2 RHFs, however, we could not confirm

any information on type and property of the oil. No.1 RHF is a Chinese-made and old facility;

nevertheless, it is maintained sufficiently and kept in good condition. No.2 RHF is also kept up in

good condition.

This rolling process produces steel bars as finished products, which are shipped.

Meanwhile, the steelworks plans on expanding its annual production to about 1 million tons per year

in the future. The steelworks currently holds two blast furnaces, and a new blast furnace is under

construction. In line with this, the steelworks plans to construct a steelmaking plant as well as a

sintering plant and a coke oven. In addition, construction of new RHF is almost completed. It seems

that the steelworks enters a period of transition to some kind of integrated steelworks.

We describe the overviews of the EAF and the RHF below.

The following are the typical indices of operation for No.2 EAF and No.2 RHF which are finally

chosen as the facility subject to the study. The values below rely on the documents of A-Company

and the interviews with the officers.

EAF

・ Average tapping quantity: About 45 t-steel/heat

・ Average power consumption rate: 250 kwh/t-steel

・ Average oxygen consumption rate: 55 m3N/t-steel

・ Average coal consumption rate: 10 kg/t-steel

Much usage of hot metal gives the facility a feature that the power consumption is lower and the

oxygen usage is more than those of an average EAF.

RHF

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・ RHF capacity: 50 ton/h (walking hearth type)

・ Hot charging ratio: 80 – 85% (at an assumed temperature of 500 – 600℃)

・ Fuel: Oil (details unknown)

・ Fuel consumption rate: 24 l/t-steel (210,000 kcal/t-steel, when hot charged)

31 l/t-steel (273,000 kcal/t-steel, when cold charged)

Where the energy conversion factor is assumed as 8,800 kcal/l, supposing that Oil is fuel oil

A (JIS K2205 Class).

・ Furnace temperature: 1150℃

It is a very conventional RHF, however, the fuel consumption rate is lower compared to an average

RHF because of its intention of hot charging.

3.1.2 SPECIFICATION OF ISSUES ON ENERGY SAVING TO STUDY

On the 1st visit, we presented the technology in Japan, took a tour of the whole steelworks, and had a

discussion focused on issues A-Company has with energy saving.

Figure 3.1-3 Meeting with A-Company at 1st visit

Based on the discussion with officials of A-Company and the current situations witnessed through

plant tour, following technologies are the issues for study of the technologies.

(1) Study of energy saving technologies for EAF:

oxygen lances, burners, coal injection, and reduction in electric power consumption rate by

application of the technologies such as the optimal control for an EAF.

(2) Study of fuel consumption reduction for RHF:

diagnosis of the current operation and reduction in fuel usage by introduction of the

regenerative burners.

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(3) Utilization of gases in the whole steelworks:

gas balancing in the whole steelworks and effective utilization of B gas.

Based on the premise of study of the above items, we implemented surveys and study, and specified

technologies to introduce on the 2nd visit. The above item (3) is not likely linked to a practical project

at this moment. However, we considered it subject to the study because it is important to save energy

at the steelworks in future.

3.1.3 DIAGNOSIS ON ENERGY SAVING ISSUES AND ESTIMATION OF APPLICABLE

TECHNOLOGIES

As for the three items of issues as stated above, we implemented field study and diagnosis on the

2nd visit, accompanied by engineering makers specializing in EAFs and RHFs. In the field survey, we

observed operations at the plants, provided recommendations on improvement of the current

operations through observation of operations, and studied the optimal application of technologies. In

addition, the engineering firms studied the estimations and construction periods on the spot, and we

based them on our final estimation of economical evaluation.

We will describe the details on each of the technologies below.

(1) STUDY OF ENERGY SAVING TECHNOLOGIES FOR THE EAF:

On the study of technologies, we followed through such steps as witnessing the operation at the plant,

identifying issues, and studying appropriate technologies to introduce. We show the approximate

merits by introduction of the technologies below; nevertheless, further study in detail is required.

Figure 3.1-4 Photo of EAF under operation

① Observation of operation at the EAF plant

Figure 3.1-5 shows a result we obtained through the observation of an operation at the EAF.

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Figure 3.1-5 operation observation of EAF at the site

Results of the observation are summarized as below:

・ Charging 10 tons of scraps (referred to as SC① in the figure), cutting the scraps with oxygen

for around 3 min, and charging 20 tons of hot metal (HM in the figure).

・ After that, raising the voltage to start scrap melting, and charging some scraps for the second

time at the point when the scraps were melted to some extent.

・ Subsequently, melting the scraps in the same way, and charging once more scraps for the third

time at the point when the scraps were melted to some extent.

・ After the third charging, blowing just oxygen (for about 16 min.), and entering the refining

period at the point when the scraps were thoroughly melted. Foaming slag by carbon injection,

and completing the refinement.

② Findings on the operation

The findings as described below are extracted through the observation of the operation.

Finding 1: As shown as “①Oxygen Supply” in Fig. 3.1-5, the operation period is elongated due to the

long period of oxygen supply without turning on the electric power.

Finding 2: As shown as “②Tap change” in Fig. 3.1-5, the electric power is temporarily turned off

every time the voltage is changed. Moreover, there is large fluctuations of electric current through

each of the electrodes (Figure 3.1-6), and high electric power can not be inputted stably, which leads

to the elongation of the operation period.

500

450

4001 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62

442V

509V

442V

509V

442V428V

Time (min)

Tap V(V)

SC① 10t

HM 20t SC② 10tSC③ 5t

600 4511 7093 8244 10142Total (kWh)

Charge: SC 25t,HM 20t⇒Tap:42tPower consumption: 241kWh/tOxygen consumption:55Nm3/t

Oxygen

16minTap change Tap change Tap change

PON Tap

Cutting De-C Decarburization

Timing of Hot metal charge

Tap change

Oxygen supply

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Figure 3.1-6 Current fluctuation of each electrode

Finding 3: As shown as "③Timing of Hot metal charge" in Fig. 3.1-5, hot metal is charged just after

charging of scraps, which may cause to solidify the charged hot metal.

Finding 4: As shown in Fig. 3.1-4, flames are blown out of the furnace throughout the whole period of

operation. This leads to the loss of energy, causes damage to the peripheral equipment, and worsens

the surrounding work environment.

Based on the above issues, we recommend the introduction of appropriate technologies.

③ Recommended improvement

The Finding 1, 4 require a common measure to solve.

As for the facility concerning the Finding 4, first we confirmed that the EAF is not equipped with

any precipitator called “Dust Collector” which is indicated in Fig. 3.1-7 by the eclipse in red and is

usually installed on EAF. Therefore, flammable materials generated in the furnace are all emitted out

of the furnace, and they are to be collected into the dust collector equipped onto the ceiling over the

top of the EAF.

Figure 3.1-7 Dust Collector of EAF

Consequently, the pressure is always positive in the furnace, such materials as gas and dust that are

generated in the furnace will be all emitted out of the furnace, and they are to react with the air to

Dustcollector

Suction

Slag Door

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undergo combustion. In this case, there are the following points at issue:

・ Loss of energy is caused due to the combustion outside the furnace, of non-reacting materials in

the furnace.

・ Repairs cost will increase because of greater deterioration of the peripheral equipment such as a

furnace lid, electrode holders, and so on, due to the outside combustion.

・ Building dust collector can not sufficiently collect such materials as dust that is generated in the

furnace, which leads to worsening the surrounding environment.

Considering the above issues, we conclude that installation of the “Dust Collector” is the first and

direct measure to energy saving and environmental improvement.

Meanwhile, as for the Finding 1, because hot metal (usually including more than 4 % of carbon) is

used for the operation of the EAF, oxygen is required to lower the carbon content in the hot metal;

nevertheless, the sole source of oxygen supply is currently the oxygen from the oxygen lance which is

inserted through the slag opening. There is no “Dust Collector”, which causes the loss of energy; the

scrap melting rate is limited by the rate of oxygen supply and the power consumption rate will be

worsened by the elongation of operation period.

The measures to the above are as follows:、

・ Installing a “Dust Collector” with a sufficient capacity,

・ Progressing in promotion of scrap melting and positive supply of oxygen

As for the latter regarding oxygen supply, we can recommend application of the technology, “No.6

Oxy-fuel Burners/Lancing (in combination with direct-suction-type Dust Collector with

sufficient capacity)” in the Positive List. Furthermore, the energy efficiency can be more improved

by adoption of a door burner which is one of the associated technologies for the Oxy-fuel

Burners/Lancing technology.

Currently, oxygen is supplied into the melt in the EAF only by the lance at slag opening. By

installation of Oxy-fuel Burners/Lancing in combination with a door burner, it is possible to prevent

the furnace from infiltration of outside air and to supply oxygen efficiently. Therefore, the technology

can attain power saving and shorter operation time.

As mentioned above, we can recommend application of “Oxy-fuel Burner System + Introduction of

Direct Suction Type Dust Collector” technology to solve the Finding 1. In such a case, we expect that

the power consumption rate can be reduced by 25kwh/ ton-steel.

However, as stated above, an auxiliary fuel is required to use a burner. The auxiliary fuel can be

considered to rely on the C gas which is generated out of the coke ovens and is excessive in the

steelworks. As the steelmaking process utilizes hot metal, any burning function is required only at the

beginning of the scrap melting period, and therefore it requires an equivalent amount of an auxiliary

fuel to 5 Nm3/t-steel of natural gas. When C gas is used, the required amount is 11.1 Nm3/t-steel.

From the viewpoint of CO2 emissions reduction, if we can confirm that necessary and sufficient C

gas is currently emitted to the air for the EAF to require, there is no more cost of C gas and no more

emissions of CO2, however, the more study will be necessary to make it clear in future.

As for the Finding 2, it is necessary for the control system to improve. As a measure to it, we can

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recommend application of “No.11 Control and Automation for EAF Optimization” in the

Technologies Positive List. Renewal of the control system enables us to change the voltage setting

without turning off the electric power. In addition, the new “Optimal Power Regulation System”

mentioned above enables us to efficiently input the electric power. The estimated power saving will

be 10 kWh/t-steel by adoption of these systems.

Finally, as for the Finding 3, it is the point at issue that hot metal is charged just after scraps are

charged and they are cut with an oxygen jet. As shown in Fig. 3.1-8 which is the iron carbon (Fe-C)

binary phase diagram, when hot metal includes about 4% of carbon, its solidification point is 1147℃.

When hot metal is charged into a furnace which has been already charged with scraps, the hot metal is

cooled by the scraps in the furnace and it may be solidified. Therefore, a desirable operation shall be

as follows: Charge scraps into the furnace. Melt the scraps. Bore the scraps. Charge hot metal into the

furnace after scrap is bored. By prevention of hot metal from solidifying in the furnace, it leads to

avoiding electrode breakage and hot metal splash.

Figure 3.1-8 Phase diagram for Fe and Carbon

④ Summary on recommended technologies

As stated above, we recommended the following technologies through witnessing the operation.

・ ”No.6 Oxy-fuel Burners/Lancing (in line with direct-suction-type Dust Collector with

sufficient capacity)”

・ “No.11 Automatic Control for EAF Optimization”

In addition, as for the EAF operation, we recommended improvement of the timing for hot metal

charging.

Figure 3.1-9 shows the expected effects by application of these recommended technologies.

Fe-C diagram

1147℃

[C] = 4%

Fe-C diagram

1147℃

[C] = 4%

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Figure 3.1-9 Effect for proposed technologies to A-Company EAF

Items Effect

Electric Power

Saving

kWh/t-steel

Electric Power Saving

Oxy-fuel Burner System

+

Introduction of Direct

Suction Type Dust

Collector

Other merit

1. Increase of productivity

2. Saving of Operational expenses 15%

(Electricity / Electrode / Refractory /

Alloy / etc.)

3. Improvement of Environment & Safety

15

+

10

Electric Power Saving Electrode Regulation

and Automation Control

for EAF Optimization

Other merit

1. Increase of productivity

10

total 35

(2) STUDY OF FUEL CONSUMPTION REDUCTION FOR THE RHF:

On the study of technologies, we witnessed the operation at the plant, identified issues, diagnosed

the RHF and studied appropriate technologies to introduce. The observation was conducted only of

the No.2 RHF.

Figure 3.1-10 No2 RHF of A-Company

① Observation of operation at the No.2 RHF

Figure 3.1-11 summarizes operational data of the No.2 RHF during the observation.

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Figure 3.1-11 Operation condition at the observation

We found that some data are not indicated on the monitor as shown in Fig. 3.1-11. Troubles of

instruments were the main cause of this problem. We consider it important to promote operational

control by grasping the accurate values in future.

Hot charging was in practice during the observation, the furnace temperature averaged 1150℃ and

the production rate was 43 t-steel/h. We could not obtain the actual usage of “Oil” and the calorific

value of it, and then it was impossible for us to estimate the fuel consumption rate exactly.

As stated above, hot charging was conducted during the witness, which is of high value. The

charging billets were faintly lit, and the temperature was supposed to be 500 – 600℃. It seemed that

the furnace is well insulated and we can suppose that the furnace refractory is in good condition.

② Issues on the operation

On witnessing the operation, we were also requested to diagnose the temperature of preheated air

which is some 350℃ in spite of the specified value of 400℃. Therefore we conducted the study

taking it into account.

However, as noted above, there are a lot of inaccessible operational values. It is important to

organize these values (including maintenance of measuring equipment) and to control them in order

to promote operational control in future.

The following findings are identified through the observation of the furnace and its associated

equipment.

Finding 1: Inspection of the heat exchanger

Finding 2: Air fuel ratio (Air/Fuel) appropriate control

Finding 3: Furnace pressure appropriate control

However, these findings were checked just visually, and it is necessary to confirm and correct them

through inspections, and so on in future.

Hot charge operation on November 18,

Zone1(PHZ)

Zone2(HZ)

Zone3(SZ1)

Zone4(SZ2)

Zone temperature (degC) 1038 1131 1168 1168

Oil flow rate (L/h) ? ? ? 285

Air flow rate (m3N/h) 1009 984 893 935

Zone1(PHZ)

Zone2(HZ)

Zone3(SZ1)

Zone4(SZ2)

Zone temperature (degC) 1038 1131 1168 1168

Oil flow rate (L/h) ? ? ? 285

Air flow rate (m3N/h) 1009 984 893 935

Waste gas temperature (degC) 662

Hot air temperature (degC) 391

Furnace pressure (??) -0.28

Waste gas temperature (degC) 662

Hot air temperature (degC) 391

Furnace pressure (??) -0.28

Furnace condition

Material condition

Size (mm) 150 x 150 x 6000

Charging temperature (degC) 300

Size (mm) 150 x 150 x 6000

Charging temperature (degC) 300

Insulation goodInsulation good

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Finding 4: Study of applying regenerative burners.

As for fuel reduction, we estimated introduction of ” No.13.1 – Integrated System for

Regenerative Burner at Preheating temperature ≧1000 ℃” in the Positive List, so-called

regenerative burners. However, we noted that it is necessary in installation of regenerative burners to

plan for revamping the facilities in consideration of utilizing surplus gas at the time of the capacity

extension in the future.

Summarizing the above issues, the Finding 1 to 3 is on improvement of the operations and the

Finding 4 is on study of new technology application.

③ Recommended improvement

As for the issue 1, we studied the heat exchangers focusing on insufficient preheating of air. There

was found such a point as shown in Fig. 3.1-12, and we proposed the necessity of inspection. First of

all, there is a possibility of waste gas leakage because we observed smoke emission from the top of

the heat exchanger. Second, the inlet temperature of the waste gas is low (suspicious of any leakage

of waste gas, and so on). Finally, it is necessary to check the leakage through bypass damper of

combustion air.

Figure 3.1-12 Combustion air Heat Exchanger

Figure 3.1-13 Improvement for Heat exchanger

As a measure to raise the temperature of reheated air from the standpoint of hardware, we

recommended revamping of the heat exchanger from the current parallel flow type into the cross flow

type, as shown in Fig. 3.1-13.

As for the Finding 2, we presumed that the air fuel ratio is not adjusted in accordance with the fuel

Fume from recuperator

Low waste gas temperature

Leakage inside ?

Leakage in duct ?

Bypass damper

Cold air mix with hot air?

Parallel flow type(Existing) Counter flow type

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usage because we observed the condition of combustion in the furnace changing with the alternation

of furnace load during the operation. In addition, we also presumed it because the fuel usage is not

indicated. If the flow rate of air is excessive, the flow rate of waste gas increases and the heat loss of

waste gas increases. On the contrary, when it is deficient, incomplete combustion of fuel causes the

loss of energy.

As for the Finding 3, although the furnace pressure is indicated, it is not controlled at all. We also

observed blow off of gas out of and suction of it into the furnace. The blow off of gas leads to the loss

of heat, and the suction of it cools the furnace and also leads to the loss of energy.

Our recommendation on the Finding 1-3 is all the improvement of the current operation. First of all,

it is required to maintain measuring equipment (sensors) and preserve the control functions with

accurate measuring apparatus as premised. Moreover, as we recommended, measured result during

operation should be recorded accurately and managed exactly, and after that it is necessary to advance

to the step of building an energy management system in order to keep operation in normal condition.

As for the Finding 4 on introduction of regenerative burners, we recommended the two ways of

replacement of the burners, the full replacement and the partial replacement, considering the furnace

layout as shown below, operation, and so on, as well as from an economical point of view. Figure

3.1-14 illustrates a schematic drawing for partial replacement of burners.

Figure 3.1-14 planned diagram of partial burner replacement

The furnace currently consists of the preheating zone 1 (equipped with 2 burners), the heating zone 2

(with 4 burners) and soaking zones 3 & 4 (with 5 burners, respectively) (as indicated in blue in the

figure). The plan of partial burner replacement suggests that a total of 6 burners at the preheating zone

and the heating zone will be replaced by 2 pairs of regenerative burners (as indicated in red). At the

same time, the new burners will be increased in capacity. The soaking zone will be untouched. The

plan aims at enhancement of energy saving effects by supplying more fuel through large-sized

regenerative burners.

Figure 3.1-15 shows the comparison of effects obtained by the full replacement and the partial one.

Zone1 & 2burner : 2+4

Zone3 & 4Burner : 10

Existing burnerZone1 & 2Regenerative burner2pairs Zone3 and 4

Burner : 10(same as existing)

After modification

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Figure 3.1-15 Comparison of effect for all burner replacement and partial burner replacement

Large effect will be obtained by the full replacement of burners because among the four zones, the

most burners are equipped in the soaking zone which will be also revamped in this case. However, the

investment cost will increase much more, and it is necessary to study the application considering its

profitability. In addition, there remains a room for more precise study of merits because we have

much lack of data for study.

Meanwhile, we studied gas balance associated with the capacity augmentation of A-Company in the

future.

When the expansion is completed, more by-product will be generated and some of the surplus gas

can be utilized as fuel in the RHF. “Oil” is currently used at the RHF, however, large energy saving

can be achieved by utilizing the surplus gas. We studied the gas balance in the whole steelworks and

the feasibility of surplus gas utilization to RHF. The result is described below.

④ Utilization of gases in the whole steelworks

On studying the gas balance, we obtained those data first. In addition, we also used various empirical

values for the estimation because we could not receive enough data on the generation or usage of

by-product gases in the steelworks.

Figure 3.1-16 shows the current gas balance and the future one after theaugmentation.

Figure 3.1-16 presumed results of present gas balance and future gas balance after augmentation

Each of the abscissas indicates from the left side, the generation of C gas from the coke ovens, the

consumption of C gas, the generation of B gas from the blast furnaces, the consumption of B gas, and

Case Energy saving ratio

Shut down period

A Replace all burnersZone 1 ~ 4

15.0% 4weeks

B Replace burners in Zone1 & 2

10.0% 3weeks

Case Energy saving ratio

Shut down period

A Replace all burnersZone 1 ~ 4

15.0% 4weeks

B Replace burners in Zone1 & 2

10.0% 3weeks

Present Condition (Gcal/y)

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

CO

G

Pro

duc

tion

CO

G

Con

sum

ptio

n

BF

Pro

duc

tion

BF

Con

sum

ptio

n

OIL

Con

sum

ptio

n

Expansion Condition (Gcal/y)

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

COG

Pro

duction

COG

Consu

mption

BFG

Pro

duction

BFG

Consu

mption

OIL

Consu

mption

Residual

Steam Boiler

Melting shop

Blast Furnace

Cokes Oven

Sinter

COG

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the usage of Oil by the RHF at the right end. The figure on the left hand side shows the estimations of

the current gas balance, and the one on the right hand side shows those of the gas balance after the

augmentation.

In addition, Fig. 3.1-7 shows the property of B gas and C gas used for the above estimations.

Figure 3.1.-17 Gas property of B-gas and C-gas9

Production rate Composition and Calorific Value

Cokes Oven gas

(C-gas)

300~400

m3N/t-coal

H2;50~54%、CH4;30~33%

CO;6~8%,CmHn;2~4%

Calorific Value;4,500~5,000kcal/m3N

Blast Furnace gas

(B-gas)

約1,500

m3N/t-hot metal

CO;21~23%、CO2:19~22%,

H2 :2~3%、Residue:N2

Calorific Value;700~750kcal/m3N

B gas is considerably excessive at the current gas balance, while C gas is not very much excessive.

After the augmentation, the excess of B gas will be remarkably increased, and C gas will become

some excessive. The usage of Oil will be also increased due to the augmentation. It seems possible to

change the RHF fuel “Oil” to surplus gas because B gas is more excessive calorimetrically. However,

it will be impossible to operate the RHF only with B gas, because 2,000 to 2,500 kcal/Nm3 of the gas

is necessary for securing the furnace temperature and calorie of B gas is as low as around 750

kcal/m3N. Therefore, the RHF will require 2,000 to 2,500 kcal/m3N of M gas which is made by

mixing B gas with C gas. It is because C gas has a calorie of around 4,500 kcal/m3N. The calorie

content of C gas should be higher than 75% in M gas in order that the calorific value of M gas

becomes higher than 2,000 kcal/m3N. If the production is extended in the same condition as of now, it

is presumed possible to change a part of the furnace fuel, however difficult to change all of the

furnace fuel because the excess of C gas will not reach 75% of Oil usage by the RHF.

On the other hand, the steelworks holds the processes of an integrated steelworks including a blast

furnace and a coke oven; therefore, there is a room in such other facilities for introducing energy

saving equipment, which may bring out more C gas than planned augmentation.

Figure 3.1-18 shows typical energy saving technologies at an integrated steelworks.

9 World Encyclopedia 2nd edition

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Figure 3.1-18 Major energy saving technologies for integrated steel plant

Figure 3.1-19 shows the future gas balance after the augmentation with the application of the

technologies which are relatively easy to introduce (as indicated in red letters within a red frame

together with its energy saving ratio) among these technologies.

Figure 3.1-19 Gas balance in the case of introducing some of the major energy saving

technologies to the steel plant

By introduction of the energy saving technologies, the excess of B gas will be increased and that of

C gas will be also increased. It will be possible to change all the RHF fuel into by-product gas (B gas,

C gas and in addition recovered gas from steel converter: LD gas) because the excess calorie of C gas

Improvement Condition (Gcal/y)

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

COG

Production

COG

Consumption

BFG

Production

BFG

Consumption

OIL

Consumption

LDG

Residual

Steam Boiler

Melting shop

Blast Furnace

Cokes Oven

Sinter

COG

BF

G +

LDG

BF

G +

LDG

・Off gas boiler•TRT

Energy: power station, utility supply

BFBF

Hot Stove •Combustion Control•Heat Exchanger

(Δ15%)

SinterSinter

Coke Making

・High efficiency ignition burner(Δ50%)

・Efficient power generation・Efficient air separator・Energy audit・Power saving

・Combustion Control(Δ15%)

BOFBOF

・BOF gas recoveryOG

Rolling mills

Furnace rolling

Rolling mills

Furnace rolling

・Regenerative burner

(Δ15%)

Coke OvenGas

Blast Furnace Gas

BOF Gas

By-product GasPower, Air, Steam, etc.

PowerSteam

Power・Slag

・CDQ

・Product cooler heat recovery

:Considered technologies

: other energy saving technologies

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42

will become almost 75% of Oil calorie. Introduction of energy saving facilities leads to increase in the

excess of by-product gas and it becomes possible to exclude “Oil” from the RHF due to conversion of

all the RHF fuel into by-product gas. This fuel conversion is considered to be the most efficient in

energy saving. Moreover, if a power facility is installed and it generates electric power using an

excess of by-product (including LD gas in the figure) after the fuel conversion of the RHF, the more

energy saving can be attained. A power facility with the generation efficiency of 30% will enable to

produce the power of 230 GWh/y.

As described above, the promotion of energy saving in the whole steelworks can achieve the fuel

conversion of “Oil” into surplus gas at the RHF(s). As far as installation of regenerative burners is

concerned, we presume that energy saving can be more efficiently attained due to avoiding duplicate

investment by simultaneous installation of regenerative burners at the time of the fuel conversion into

surplus gas.

⑤ Summary on recommended technologies

We recommended the following regarding the RHF.

・ Inspection and maintenance of heat exchanger,

・ Proper control of combustion and furnace pressure by restoring and normalizing measuring

equipment and controller,

・ Reduction of energy consumption by installation of regenerative burners.

Among them, we picked out regenerative burner “No.13.1 – Integrated System for Regenerative

Burner at Preheating temperature ≧1000 ℃” for the technology subject to the project study.

As for the installation of regenerative burners,

・ Study of the two ways of replacement, one is the full replacement which means that all the

existing burners are replaced into regenerative burners, and the other is the partial replacement

which means that not all but a part of the existing burners are replaced into regenerative burners,

・ Study of the future balance of surplus gas at the time of planned augmentation of A-Company,

and the fuel conversion of “Oil” of the RHF into by-product gas.

As for the latter regarding the fuel conversion, we presumed that it will be possible to change all the

RHF fuel “Oil” into surplus gas due to its excessive generation by introduction of appropriate

technologies to the currently existing facilities and/or the future planned facilities.

Although the fuel conversion of RHF will have a larger effect on energy saving, we recommended

the application of regenerative burners to the current RHF using “Oil” as fuel in this study.

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43

3.2 THE REVIEW ON THE SPECIFIC PROJECT PLANNING FOR B-COMPANY

To B-Company, the 1st and 2nd visits were made by the members and on the schedule shown in

Figure 3.2-1.

Figure 3.2-1 Visit to B-Company

Period Delegation Member

1st visit Sep. 9th to 10th ,2014

9th : Explanation of outline of this project

and Fact findings of RHF

1oth : Explanation of outline of this project

and Fact findings EAF

JFE Techno-Research:2

JFE Steel:2

2nd visit Nov. 20th to 22th ,2014

Study and diagnosis for targeted

technologies application

JFE Techno-Research:2

JFE Steel:2

EAF Engineering maker:2

RHF Engineering maker:2

3rd visit Jan. 20th ,2015

Reporting the result at Seminar in Hanoi

JFE Techno-Research:2

JFE Steel:1

3.2.1 OVERVIEW OF B-COMPANY

Figure 3.2-2 shows the overview of B-Company steel plant.

Figure 3.2-2 Overview of B-Company

Main Facilities

Reheating FurnaceCapacity: 50ton/h250,000ton/y

Electric Arc Furnace⇒ Consteel® SystemCapacity: 70ton/heat, 400,000ton/y

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44

B-Company is the typical steelworks with EAF. B-Company possesses 1 EAF and 1 RHF, and EAF

operates with 100% scrap as a raw material. The capacity of EAF exceeds that of RHF, and

operations are matched with RHF capacity. The special feature of this steel company is that EAF and

RHF are far by car for approximately 2 hours, and the transportation of billets must rely on land

transportation.

We describe the overviews of the EAF, Ladle preheater, and RHF which become the focus of this

study. These values below rely on the documents of B-Company and the interviews with the officers.

EAF:

・ Type of scrap charging system: Consteel®10 type

・ Tapping weight: approximately 70 t-steel

・ Specific power consumption: 345 kwh/ t-steel

・ Specific oxygen consumption: 39 m3N/ t-steel

・ Specific coal consumption: 24 kg/t-steel

This EAF has the special scrap charging system, so called Consteel®. Consteel® feeds scrap

continually from the side wall of the furnace, and at the same time as the waste gas from EAF passes

through the scarp passage, scrap is preheated before charging to the furnace. The power consumption

of EAF is comparatively low because of this continuous feeding and preheating of scrap. The oxygen

consumption is reasonable but the coal consumption is relatively high.

Ladle Preheater

・ Preheater:Vertical type ladle preheater: 2sets, Horizontal type ladle preheater: 2sets

・ Fuel; Coal gasification gas from coal gasification plant

・ Specific fuel consumption: 7 kg-Coal/t-steel(360kg/h)

・ Average preheating time: 40~50 minutes

This ladle preheater has the special feature that it uses coal gasification gas from coal gasification

plant.

RHF:

・ Heating Capacity: 50 t-steel/h (Walking hearth type)

・ Hot charge ratio: 0% (all cold charge)

・ Fuel: coal gasification gas from coal gasification plant

・ Fuel consumption rate: 71 kg-coal/t-steel

・ Furnace temperature: 1,170 deg.C

This RHF is the typical type furnace except that it uses coal as a fuel. This RHF used oil as a fuel

previously, but converted to coal from economical reason.

3.2.2 SPECIFICATION OF ISSUES ON ENERGY SAVING TO STUDY

On the 1st visit, we presented the technology in Japan. After plan tour, and had a discussion focused

10 http://www.tenovagroup.com/consteel_system.php?id_prodotto=8

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45

on issues B-Company has with energy saving. Because B-Company has EAF and RHF at different

place, meetings were held at each plant.

Figure 3.2-3 Meeting at 2nd visit

Visit to EAF plant

Based on the discussion with officials of B-Company and the current situations witnessed through

plant tour, following technologies are the issues for study of the technologies.

(1) Study of Energy saving technologies for EAF

Operation diagnosis for EAF and study about oxygen lance, burners, coal injection, optimum

control for EAF

(2) Study of Improvement of Ladle Preheater

Application of high efficiency of oxy-fuel burner to ladle preheater

These items were main study issues of 2nd visit, and through operational observation and study,

candidates of projects were identified.

Visit to RHF plant

(3) Diagnosis of present operation of RHF, study of fuel saving, and feasible study of capacity

improvements for RHF. (The capability of this RHF does not reach its specified value.)

(1) STUDY OF ENERGY SAVING TECHNOLOGIES FOR EAF

On 2nd visit, we followed the same step as A-Company after witnessing the operation and identifying

issues, and studying appropriate technologies to introduce.

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Figure 3.2-4 Site view of EAF

① Observation of operation at the EAF plant

Fig. 3.2-5 shows a result we obtained through the observation of an operation at the EAF.

Figure 3.2-5 operation observation of EAF at the site

The operation of this observation was as follows.

・ Holding 18 tons of molten steel from previous operation in the furnace, the operation started

with continuous scrap feeding.

・ After 10 minutes operation, EAF opened furnace lid, and big scrap was charged from the lid.

・ Restarted the operation and scrap was continuously fed to the furnace.

・ After 30 minutes operation, carbon injection from slag opening started in order to foam slag,

and slag flowed out through the slag opening.

・ After 50 minutes operation, operation moved into the refining stage. Within 10 minutes, molten

steel was raised to the prescribed temperature and then tapped.

② Findings on the operation

The following Operation findings were captured through observation.

Current (kA)

Power (MW)30 20~28 (Unstable)~30 20~35 25~35 30~35

25~30 25~30 20~30 26~30 30~32 30~32

30 20~28 (Unstable)~30 20~35 25~35 30~35

25~30 25~30 20~30 26~30 30~32 30~32

Oxygen lanceCarbon-Inj

Tapping3200~3300Nm3/hr

Tap

V(V

)

400 10 20 30 50 60

20

600

700

0

40

60

80

100

Scr

ap C

harg

e

(t)

630V

44.1

55.6

70.6

82.494

40.0

33.0

18.3

630V

Scrap Charge7ton Scrap Charge total

(t)

1565℃

Slag off

1575℃

Oxygen lanceCarbon-Inj

Tapping3200~3300Nm3/hrOxygen lanceCarbon-Inj

Tapping3200~3300Nm3/hr

Tap

V(V

)

400 10 20 30 50 60

20

600

700

0

40

60

80

100

Scr

ap C

harg

e

(t)

630V

44.1

55.6

70.6

82.494

40.0

33.0

18.3

630V

Scrap Charge7ton Scrap Charge total

(t)

1565℃

Slag off

1575℃

Tap

V(V

)

400 10 20 30 50 60

20

600

700

0

40

60

80

100

Scr

ap C

harg

e

(t)

Tap

V(V

)

400 10 20 30 50 60

20

600

700

0

40

60

80

100

Scr

ap C

harg

e

(t)

Tap

V(V

)

400 10 20 30 50 60

20

600

700

0

40

60

80

100

Scr

ap C

harg

e

(t)

630V

44.1

55.6

70.6

82.494

40.0

33.0

18.3

630V

Scrap Charge7ton Scrap Charge total

(t)

1565℃

Slag off

1575℃

(min)

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Finding 1: Fig 3.2-6 shows the current fluctuation of each electrode 10 minutes after operation started.

(The graph starts at this timing which corresponds to 0 second). The current fluctuation of No.1

electrode is the biggest, and that of No.3 is the most stable. 30 minutes after operation started (1200

seconds in graph), current fluctuation of all electrodes becomes stable. This imbalance of electrode is

one finding.

Figure 3.2-6 Current fluctuation from 10 minibus afar power on

Finding 2: Fig 3.2-6 indicates that current fluctuations of all electrodes are big. This big current

fluctuation may lead to low power input efficiency.

③ Recommended improvement

The current imbalance of Finding 1 is caused by the following phenomenon. The situation in the

furnace is presumed in Figure 3.2-7 from the understanding of Figure 3.2-6.

Figure 3.2-7 presumed furnace inside condition

#1,#2 fluctuate ,#3 stable

Unstable arc current

(A)

(second)

EBT

Scrap

Molten Steel Circulation

# 1(A) #2(B) #3(C)

Carbon InjectionOxygen lance

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48

Scrap is fed from the right side of this Figure. Because of that, non-melted scrap remains at the right

side of the furnace. Non melted scrap causes the high current fluctuation of No.1 and No.3 electrode.

Meanwhile, Carbon injection is supplied from the slag opening in order to foam slag. However,

foamed slag instantaneously flows out through the slag opening. AS slag flows out of the furnace

soon, it is hard for the foaming slag to cover all inside the furnace, which explains the high carbon

consumption rate.

According to this presumption, the followings are proposed as shown in Figure 3.2-8

Figure 3.2-8 proposed technology to the current imbalance among each electrode

Installment of oxy-fuel burner at the back side of No.1 and No.3 electrode eliminates the non-melted

scrap. Installment of carbon injection near No.1 electrode can easily cover all inside the furnace than

the present position with smaller amount of coal injection. Both improvements reduce the electric

power consumption of EAF. Further improvement is expected by installing door burner, which melts

the scrap more efficiently. As stated above, “No.6 Oxy-fuel Burners/Lancing (together with

enough capacity of Direct Suction Type Dust Collector) “ in the positive list, and application of

door burner associated with the technology of Oxy-fuel Burners/Lancing, enables more energy

efficient operation. Application of this technology improves the electric power consumption by 20

kwh/t-steel. At the same time, carbon injection consumption is saved to 10 kg/t-steel. In order to

apply this technology, auxiliary fuels are required, and this plant must procure fuels from outside. Oil

or coal is the candidate, but coal is hard to ignite, so Oil is the 1st priority.

As for the Finding 2, “No.11 Control and Automation for EAF Optimization” in the positive list is

proposed. Introduction of new Optimum Power Regulation System enables efficient power input and

reduces the electric power consumption rate by 10 kwh/ t-steel.

④ Summary on recommended technologies

The following technologies are recommended through witnessing the operation.

・ “No.6 Oxy-fuel Burners/Lancing (together with enough capacity of Direct Suction Type

Dust Collector) “

Oxygen lance

Carbon Injection

Carbon Injection

Burner and Carbon Injection

Oxy-fuel burner

Burner and Carbon Injection

Non-melted scrap

Molten steel Circulation

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49

・ “No.11 Control and Automation for EAF Optimization”

Figure 3.2-9 describes the effect of each proposal.

Figure 3.2-9 Effect of proposed technologies to B-Company EAF

Items Effect

Electric Power

Saving

kWh/t-steel

Electric Power Saving Introduction of Oxy-fuel

Burner System

& Multi Point Injection

System

Other merit

1. Saving Power on time (△5min)

2. Yield up by 1%

20

Electric Power Saving Electrode Regulation and

Automation Control for EAF

Optimization

Other merit

1. Saving Power on time (△ 3 min)

10

total 30

(2) STUDY OF FUEL CONSUMPTION REDUCTION FOR LADLE FURNACE

Figure 3.2-10 shows the diagram of the supply of fuel from gasification plant to ladle preheater. Coal

gasification gas from gasification plant preheats the ladles.

Figure 3.2-10 Schematic diagram of fuel supply to ladle preheater

① Observation of operation

Gasification plant is the coal bed type. Air is fed from lower part of the plant, combusts coal partially,

and the plant produces gasification gas. Feeding air is controlled according to the demand of fuel gas,

and at the same time coal is fed into the plant to keep the outlet gas temperature at 300 deg.C. The

calorific value of the gas is approximately 1,300 kcal/m3N, and is supplied to ladle preheater without

any cooling of the gas.

The preheating time of ladle is determined by the time cycle of ladles. Figure 3.2-11 shows this time

Coal Gasification Gas

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cycle.

Figure 3.2-11 Time schedule of ladle

Ladles must stay at continuous casting (CC) during its operation, because CC is casting the molten

metal. This time cycle generates 40~50 minutes of waiting time from the relation between the timing

required for EAF and the time required for CC. During this waiting time, ladle preheater works for the

purpose of minimizing the temperature drop of molten steel from EAF to CC.

② Findings of operation

Present ladle inside temperature after preheating is approximately 800 deg.C. Calorific value of coal

gasification gas is relatively low of 1,300 kcal/m3N. This low calorie gas cannot give the high

temperature flame, which hampers the high temperature preheating of the ladle.

③ Recommended improvement

“No.9.2 Ladle Preheating: Oxygen burner Total system” in the positive list provides the higher

flame temperature, and realizes high temperature preheating of the ladle.

On the other hand, there is a possibility to improve energy saving in another way. Figure 3.3-11

explains the reason why the 40~50 minutes of waiting time generates. Another method of energy

saving is achieved by shortening the EAF operation time. If the operation time of EAF became

enough shorter than the current condition, the number of the ladle would decrease from 3 to 2 shown

in Figure 3.2- 12. In this case, there will be little waiting time.

Figure 3.2-12 Time schedule of ladle at the time of saving EAF operation time

In this case ladles can receive molten steel just after they leave CC. No preheating of ladles is

required because there is little time for the ladles to wait.

This measurement is not proposed here because it requires other improvements. However from the

energy saving point of view, this time schedule must be always considered.

EAF

LF

CC

Pre-heater

1hr

Ladle#1

Ladle#2

Ladle#3

If EAF time is reduced… EAF

LF

CC

Pre-heater

1hr

Ladle#1

Ladle#2

Ladle#3

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④ Summary on recommended technologies

The followings are proposed according to the study above.

Figure 3.2-13 describes the study results.

Figure 3.2-13 Effect of proposed technologies to B-Company Ladle preheater

This technology saves fuel consumption by approximately 50%. Although this technology requires

oxygen, B-Company has oxygen plant in its site. It enables to provide cheaper oxygen, which makes

this technology more feasible.

(3) STUDY OF FUEL CONSUMPTION REDUCTION FOR RHF

RHF of B-Company uses coal gasification gas as a fuel shown in Figure 3.2-14. The principle of

coal gasification is the same as that of ladle preheater. However the size of the gasification plant is

much larger because of the amount of the energy consumed. Figure 3.2-15 shows the process of

gasification. This process produces coal gasification gas by feeding air and combusting coal partially,

cooling the gas, increasing the pressure, separating drain, and then this gas is supplied to RHF. The

gas produced has the calorific value of 1,350kcal/m3N.

Figure 3.2-14 Schematic diagram of fuel supply to RHF

Figure 3.2-15 Coal gasification process

Coal Gasification

plant

CoolingpressureIncrease To RHF

Original burner

O2 burner

Burner capacity 2250Mcal/h →45~55% down

1000Mcal/h

Fuel consumption 7.0kg/ton 3.5kg/ton

Coal Gasification gas (80~100%O2) 1890m3/h 840m3/h

Supplied O2(80~100%) volume *1 Nothing 200~250m3/h

Reheating FurnaceCapacity: 50ton/h250,000ton/yCoal Gasification

Gas

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Through operation observation at the site, applicable technologies were studied and specifying

operation findings

① Observation of operation

Figure 3.2-16 summarizes the operation condition at observation.

Figure 3.2-16 Operation condition at the observation

We found that some data are not indicated on the monitor as shown in Fig. 3.2-16. Troubles of

instruments were the main cause of this problem. We consider it important to promote operational

control by grasping the accurate values in future.

At observation, RHF operated at furnace temperature of 1,168 deg.C, and at 50 t-steel/h. Specific

fuel consumption was not clear at this moment because of the uncertainness of coal and gas

consumption

② Issues on the operation

There are many uncertainness of the operation condition, it is recommended to maintain the

instruments and manage these values.

Through this observation, the following findings appeared.

Finding 1: Inspection of the thermometer of heat exchanger

Finding 2: Air fuel ratio (Air/Fuel) appropriate control

Finding 3: Furnace pressure appropriate control

These findings include presumption, and check and correction will be necessary

Finding 4: Study of applying regenerative burners

“No.13-1 Preheating temperature ≧1000℃ by Regenerative Burner Total System” in

positive list is effective for the energy saving and restoration of furnace capability, so this technology

was studied.

③ Proposals for improvement

Production on November 20,2014

Zone1 Zone2 Zone3 Zone4

Zone temperature (℃) 1031 1031 1168 1168

Gas flow rate (m3N/h) ? ? ? ?

Air flow rate (m3N/h) 5750 11500 ? ?

Zone1 Zone2 Zone3 Zone4

Zone temperature (℃) 1031 1031 1168 1168

Gas flow rate (m3N/h) ? ? ? ?

Air flow rate (m3N/h) 5750 11500 ? ?

Waste gas temperature (℃) Inlet 845

Waste gas temperature (℃) outlet 389(?)

Hot air temperature (℃) 553(?)

Furnace pressure (mmH2O) 1.72

Waste gas temperature (℃) Inlet 845

Waste gas temperature (℃) outlet 389(?)

Hot air temperature (℃) 553(?)

Furnace pressure (mmH2O) 1.72

Furnace condition

Material conditionSize (mm) 130 x 130 x 12000

Charging temperature (℃) 20

Production rate (t/h) 50

Size (mm) 130 x 130 x 12000

Charging temperature (℃) 20

Production rate (t/h) 50

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Finding 1 is related to the temperature measurement of the heat exchanger. In figure 3.2-16.

pre-heated air temperature indicated higher value than that of waste gas outlet temperature. It was

hard to believe considering that the heat exchanger is parallel-flow type. And to convert the heat

exchanger from parallel flow type to counter flow type was also proposed as same as that of

A-Company.

Finding 2 suggested that combustion condition inside the furnace was altering according to the load

change by visual observation. Air/Fuel ratio control was not executed because of non gas flow

measurements. We recommend the same countermeasures as A-Company.

Finding 3 suggests that furnace pressure was basically positive, but there was no indication of

furnace pressure and no furnace pressure control. The effect of Finding 3 is the same as that of

A-Company.

Findings 1~3 are the proposals to operation improvement. We recommended the same

countermeasures as A-Company too.

Finding 4 studied the installment of regenerative burner system. we recommended the two ways of

replacement of the burners, the full replacement and the partial replacement as same as in the case of

A-Company. This RHF is almost same as that of A-Company except that the fuel is coal gasification

gas. Figure 3.2-17 shows the plan about regenerative burner system with partial burners’ replacement,

and this is same as that of A-Company.

Figure 3.2-17 planned diagram of partial burner replacement

Figure 3.2-18 describes this effect. These values are also the same as A-Company.

Zone1 & 2burner : 2+4

Zone3 & 4Burner : 10

Existing burnerZone1 & 2Regenerative burner2pairs Zone3 and 4

Burner : 10(same as existing)

After modification

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54

Figure 3.2-18 Comparison of effect for all burner replacement and partial burner replacement

Energy saving rate of all burners’ replacement is bigger, but the investment becomes much bigger

because this replacement includes zone 3 & 4 which possesses many burners. On the other hand, the

investment of partial burners’ replacement is lower although the energy saving rate is low. The

selection depends on economical situation. However, more precise study is desirable in order to

clarify energy saving effect.

To the problem that the furnace capacity does not reach its specification, enlargement of burner

capacity is required. Another cause of this problem is the low calorific value of the gas which is

approximately 1,350kcal/m3N. This low calorific value gas may hamper the increase of furnace

temperature. Because regenerative burner system recovers high temperature combustion air, it

increases the furnace temperature, and at the same time it enlarges the burner capacity.

④ Summary on recommended technologies

Proposals for RHF are

・ Recommendation for check of thermometer of heat exchanger

・ Proper control of combustion and furnace pressure by restoring and normalizing measuring

equipment and controller,

・ Reduction of energy consumption by installation of regenerative burners.

“No.13-1 Preheating temperature ≧1000℃ by Regenerative Burner Total System” is the

candidate of the JCM project.

Both regenerative burner system with all burners’ replacement and partial burners’ replacement

are studied. This technology has not only energy saving effect but also restoration of furnace

capability, which is expected to contribute operation improvement.

Case Energy saving ratio

Shut down period

A Replace all burnersZone 1 ~ 4

15% 4weeks

B Replace burners in Zone1 & 2

10% 3weeks

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3.3 ESTIMATION OF ENERGY SAVING AND CO2 REDUCTION RATE, AND

ECONOMICAL EVALUATION

Energy Saving rate and CO2 Reduction rate of each Technology are estimated, and at the same time

each technology is economically evaluated. Engineering makers cooperated together to estimate the

investment and merit of each technology.

Figure 2.2-1 describes the premise condition for economical evaluation. In Vietnam, deprecation

period of facilities is generally 10 years, interest rate from city banks are 10%, and their loan period is

6 years. VAT is 10%, which assumes to apply only for domestic procurement.

CO2 Emission Factor is shown again in Fig. 3.3-2 as mentioned before.

Figure 3.3-1 Conditions for economical evaluation

Estimated condition

Depreciation period 10years

Remaining book value 10%

Interest rate 10.0 %

Depreciation method Fixed Installment

Budget Loan from the bank

Loan period 6 years

Maintenance Expense 3 % of initial investment /year

Depreciation period 10years

Figure 3.3-2 CO2 Emission Factor

Conversion factor

CO2 Coefficient for Electric Power 0.564 t-CO2/MWh

CO2 Coefficient for Fuel Energy 5.9GJ-CO2/MWh

3.3.1 ESTIMATION OF ENERGY SAVING AND CO2 REDUCTION RATE, AND

ECONOMICAL EVALUATION FOR A-COMPANY

The following 4 technologies are studied.

Technologies for EAF

1. Direct Suction Dust Collector & Installment of Oxy-fuel burner system

Introduction of Oxy-fuel burner system with direct suction collector

2. Electrode Regulation and Automation Control for EAF Optimization

Introduction of new electrode Regulation system for EAF

Technologies for RHF

3. Regenerative Burner Total System :Replacement of all burners

4. Regenerative Burner Total System :Replacement of partial burners

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56

Regenerative Burner Total System with either replacement of all burners or replacement of

partial burners

Fig 3.3-2 indicates the energy cost in economical evaluation. These values are based on the hearing

from B-Company.

Figure 3.3-2 Energy Cost

Utility price

Electric power price 1,374VDN/kwh

Coal price 4,414VDN/kg

Oil price (Assumed) 19,751VDN/l

COG Price 0.0VDN/m3N

*)Exchange rate 21,358 VND/USD

Economical evaluation describes one more case in which NEDO’s scheme of 201411 is available.

NEDO’s scheme is to entrust the Japanese portion of the facility to the Japanese Company, and after 1

year depreciation (remaining book value 10%) out of 4 years depreciation period, NEDO sells this

Japanese portion of the facility to the Japanese Company after 1 year. Pay back years using this

NEDO’s scheme is evaluated.

(1) ESTIMATION OF ENERGY SAVING RATE AND CO2 REDUCTION RATE

Technologies for EAF

1. Direct Suction Dust Collector & Installment of Oxy-fuel burner system

Introduction of Oxy-fuel burner system with direct suction collector

Introduction of Oxy-fuel burner system with direct suction collector can save the electric power of

25kwh/t-steel. Although this technology can save the electric power, it requires fuels at the same time.

In case of A-Company, COG is assumed to be used as this fuel, because COG is presumed to be

vented into the air. Because of this reason, this COG is assumed to be free of cost.

The following value is calculated according to the COG property in Figure 3.1-17.

COG:

Consumption rate: 11.1 m3N/t-steel (equivalent to 10 m3N/t-steel of Liquid natural gas)

CO2 emission rate from COG: 0.21 t-CO2/ t-steel

COG must be compressed to 0.3 Mpa and this electric power consumption is calculated as 0.138

kwh/m3N-COG.

According to these assumptions, energy saving rate and CO2 reduction rate are evaluated.

2. Electrode Regulation and Automation Control for EAF Optimization

Introduction of new electrode Regulation system for EAF

11 NEDO : http://www.nedo.go.jp/koubo/EX2_100021.html

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Introduction of new electrode Regulation system can upgrade control of power input to EAF, and

save electric power. This effect is reduction of 10 kwh/t-steel, which leads to cost reduction of

electricity.

Technologies for RHF

3. Regenerative Burner Total System :Replacement of all burners

4. Regenerative Burner Total System :Replacement of partial burners

Regenerative Burner Total System with either all burners’ replacement or partial burners’

replacement

Regenerative Burner Total System generates profit of fuel reduction to RHF. In A-Company case,

oil is the targeted fuel of energy saving.

Fig. 3.3-3 shows the evaluation results.

Figure3.3-3 Evaluation of CO2 reduction and energy saving rate

Electrical Arc Furnace Reheating Furnace

Technology

Direct Suction Dust

Collector and

Installment of Oxy-fuel

burner system

Electrode

Regulation and

Automation

Control for EAF

Optimization

Regenerative

burner :

Replacement

of all burners

Regenerative

burner :

Replacement

of partial

burners

Merit:

Electric power Saving

of EAF 25kwh/t-steel

(Requires Consumption

of COG gas

11.1m3N/t t-steel)

Electric power

Saving of EAF

10kwh/ t-steel

Fuel Saving at RHF

Each Energy Saving 15% &

10%

CO2 Reduction

(t-steel/y) ▲ 2,798

*1)

2,142 2,411 1,607

Energy Saving

(GJ/y) ▲ 23,435 22,511 32,368 21,578

*1) If C gas is assumed to be free of carbon, the result is 5,326t-steel/y & 56,068 GJ/y

CO2 reduction and energy saving of Direct Suction Dust Collector & Installment of Oxy-fuel burner

system has conversely minus effect, because CO2 from C gas is bigger than CO2 reduction from

electric power. If enough amount of C gas is confirmed to be vented to the air, C gas becomes free of

carbon. In this case, big CO2 reduction and energy saving has appeared, which is written in the note

of the figure 3.3-3. It is important to confirm how much C gas is vented in order for this technology to

become JCM.

(2) ESTIMATION OF ECONOMICAL CONDITION

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58

Fig 3.3-4 describes trial calculations of pay back years and Internal Return Rate (IRR: 10yers) on the

basis of the investment cost estimated by engineering makers. At the same time, it also includes the

case in which NEDO’s scheme is available. In order to calculate NEDO’s case, Japanese portion of

the investment is shown together.

Figure 3.3-4 Economical Evaluation of each technology

Electrical Arc Furnace Reheating Furnace

Technology

Direct Suction

Dust Collector

and Installment

of Oxy-fuel

burner system

Electrode

Regulation and

Automation

Control for EAF

Optimization

Regenerative

burner :

Replacement of

all burners

Regenerative

burner :

Replacement of

partial burners

Investment

US$

VND

3,000,000

66,423,380,000

600,000

12,942,948,000

4,300,000

93,676,188,000

2,100,000

45,748,836,000

Japanese

portion(%) 63.3 90.0 80.0 80.0

Pay Back

(years) 8.1 2.7 8.7 6.1

IRR (%) 4.6 35.5 2.8 10.8

In the case of Application of NEDO Scheme

Pay Back

(years) 6.3 2.3 6.2 4.3

Considering that loan period in Vietnam is generally 6 years, Electrode Regulation and Automation

Control for EAF Optimization is the most feasible out of 4 candidates, which is most likely to become

JCM project. About RHF, regenerative burner system with partial replacement of burners has the

possibility of the project if this project could use the NEDO’s scheme. However, regenerative burner

system with all replacement of burners would not become feasible even though it could use the

NEDO scheme. Although regenerative burner system with partial replacement of burners with

NEDO’s scheme seems to be feasible, conversion of fuel from Oil to by-product gas is the first

priority for energy saving of RHF in A-Company.

3.3.2 ESTIMATION OF ENERGY SAVING AND CO2 REDUCTION RATE, AND

ECONOMICAL EVALUATION FOR B-COMPANY

The following 7 technologies are studied.

Technologies for EAF

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59

1. Installment of Oxy-fuel burner system with oil as a fuel

2. Installment of Oxy-fuel burner system with coal as a fuel

Introduction of Oxy-fuel burner system

2 cases are studied for this technology. One is using oil as a fuel, and another is using coal as a fuel.

3. Electrode Regulation and Automation Control for EAF Optimization

4. Electrode Regulation and Automation Control for EAF Optimization with hardware

Introduction of new electrode Regulation system for EAF

B-Company demands us to study not only for improvement of only control system but also

improvement of control system together with its related hardware. The hardware has the possibility

not to work as the improved control system instructs, and therefore more precise study is required to

become real project. Final investment cost will exist between these 2 investment costs.

Technologies for Ladle Preheater and RHF

5. Ladle Preheater

Introduction of Oxy fuel burner to ladle preheater

6. Regenerative Burner Total System :Replacement of all burners

7. Regenerative Burner Total System :Replacement of partial burners

Regenerative Burner Total System with either replacement of all burners or replacement of partial

burners

Figure 3.3-5 shows the energy cost for this evaluation.

Figure 3.3-5 Energy Cost

Utility price

Electric power price 1,484VDN/kwh

Coal price 3,441VDN/kg

Oil price (Assumed) 19,751VDN/l

*)Exchange rate 21,358 VND/USD

The evaluation of economical condition also includes the NEDO’s case as described before.

(1) ESTIMATION OF ENERGY SAVING RATE AND CO2 REDUCTION RATE

Technologies for EAF

1. Installment of Oxy-fuel burner system with oil as a fuel

2. Installment of Oxy-fuel burner system with coal as a fuel

Introduction of Oxy-fuel burner system

This technology enables to reduce the electric power of EAF by 20 kwh/t-steel, but at the same time

it requires a fuel. Therefore, 2 cases are evaluated. One is oil as a fuel, and another is coal as a fuel.

Furthermore, the energy saving and CO2 reduction is evaluated at a condition that coal for slag

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60

foaming is reduced by 15 kg-coal/steel.

The related value of Oil and coal is shown in Figure 3.3-6

Figure 3.3-6 value of Oil and coal for calculation

Heavy oil

(grade A)

Coal

(data* from B-Company)

Consumption rate 10 l/t-steel 15 kg/t-steel

Calorific value, kcal/kg-coal 8,800 6,500

Carbon, kg/l or kg 0.87 0.85

CO2 emission rate,t-CO2/t-steel 3.19 3.12

*: Moisture: 2,703%, Ash: 12.48%, Volatile matter:3.21%, Carbon: 84.31%

The energy saving and CO2 reduction rate are evaluated by using the above mentioned value.

3. Electrode Regulation and Automation Control for EAF Optimization

4. Electrode Regulation and Automation Control for EAF Optimization with hardware

Introduction of new electrode Regulation system for EAF

Introduction of electrode Regulation system upgrades the electrode control to reduce the electric

power consumption by 10 kwh/ t-steel, which generates cost merit.

Technologies for Ladle Preheater and RHF

5. Ladle Preheater

Introduction of Oxy fuel burner to ladle preheater

Oxy fuel burner can realize 45~55 % reduction of a fuel. Merit of this technology is evaluated by

assuming that supplied oxygen has 80 % concentration and the energy saving ratio is 40% from

conservative point of view. Although this technology requires oxygen plant, this steel plant possesses

the oxygen plant. The electric power consumption of this oxygen plant for consumed oxygen is 1.57

kwh/m3N-O2. This value is used for economical evaluations.

The coal consumed for the gasification gas is the same one as used for EAF, and same value is

applied. Ladle preheater has the possibility of improving coal consumption rate by improving time

cycle of the ladle. The time cycle of ladle must be watched。

6. Regenerative Burner Total System :Replacement of all burners

7. Regenerative Burner Total System :Replacement of partial burners

Regenerative Burner Total System with either replacement of all burners or replacement of partial

burners

The application of regenerative burner total system has the same effect as the case in A-Company,

which realize the reduction of coal,

Figure 3.3-7 indicates the evaluation result of the technologies for EAF, and Fig 3.3-8 shows the

evaluation result of technologies for Ladle Preheater and RHF.

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Figure 3.3-7 Evaluation of CO2 reduction and energy saving rate for EAF

Electrical Arc Furnace

Technology

Installment of

Oxy-fuel

burner system

with oil as a

fuel

Installment of

Oxy-fuel burner

system

with coal as a

fuel

Electrode

Regulation and

Automation

Control for EAF

Optimization

Electrode

Regulation and

Automation

Control for EAF

Optimization

with hardware

Merit:

Electric power Saving of EAF

25kwh/t-steel

(Requires Consumption of

5l-kg/t-steel for oil,

15kg-coal/tos-s for coal

Electric power Saving of EAF 10kwh/

t-steel

Control system only, and Control

system with hardware

CO2 Reduction

(t-steel /y) 4,484 2,848 1,424 1,424

Energy Saving

(GJ/y) 40,020 29,979 14,990 14,990

Figure 3.3-8 Evaluation of CO2 reduction and energy saving rate for heating technology

Heating Technology

Technology

Ladle Preheater

with oxygen/fuel

burner

Regenerative burner :

Replacement of all

burners

Regenerative burner :

Replacement of partial

burners

Merit: Reduction of fuel

at Ladle Preheating

Energy Saving 40%

Fuel Saving at Reheating Furnace

Each Energy Saving 15% & 10%

CO2 Reduction

(t-CO2 /y) 2,238 8,156 5,437

Energy Saving

(GJ/y) 20,294 80,590 53,727

(2) ESTIMATION OF ECONOMICAL CONDITION

Fig 3.3-9 describes trial calculations of pay back years and Internal Return Rate (IRR; 10years) for

EAF, and Fig 3.3-10 describes those for Ladle Preheater and RHF on the basis of the investment cost

and merit estimated together with engineering makers. At the same time, it also includes the case

when NEDO’s scheme is available. In order to calculate NEDO’s case, Japanese portion of the

investment is shown together.

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Figure 3.3-9 Economical Evaluation of each technology for EAF

Electrical Arc Furnace

Technology

Installment of

Oxy-fuel burner

system

with oil as a

fuel

Installment of

Oxy-fuel burner

system

with coal as a

fuel

Electrode

Regulation and

Automation Control

for EAF

Optimization

Electrode

Regulation and

Automation

Control for EAF

Optimization

with hardware

Investment

US$

VND

2,000,000

43,997,480,000

2,000,000

43,997,480,000

800,000

17,257,264,000

2,200,000

47,457,476,000

Japanese

portion(%) 70.0 70.0 90.0 90.0

Pay Back

(years) No return 9.6 7.2 27.6

IRR (%) - 0.8 7.4 ▲ 17.3

In the case of Application of NEDO Scheme

Pay Back

(years) No return 7.1 4.9 14.3

Figure 3.3-10 Economical Evaluation of each technology for heating technology

Heating Technology

Technology

Ladle Preheater

with oxygen/fuel

burner

Regenerative burner :

Replacement of all

burners

Regenerative burner :

Replacement of partial

burners

Investment

US$

VND

225,000

4,997,772,000

4,300,000

93,676,188,000

2,100,000

45,748,836,000

Japanese

portion

70.0% 80.0% 80.0%

Pay Back (years) 3.0 20.2 13.2

IRR (%) 33.3 Δ12.0 Δ5.0

In the case of Application of NEDO Scheme

Pay Back

(years) 2.2 12.3 8.8

Installment of Oxy-fuel burner system with oil as a fuel cannot recover the investment because Oil

price is much higher compared with the price of electricity. Even though in case of coal, this

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63

technology cannot give good pay back years. It is because the price of electricity is relatively

inexpensive compared with the price of oil and coal. In future, if the price of electricity is raised

compared with the price of oil and coal, the technology might become feasible.

Considering that loan period in Vietnam is 6 years, Ladle Preheater is the most feasible

technology because it has shortest pay back years. Electrode regulation system is the second

candidate of the feasible projects from the pay back years. However, in case of this technology,

it is necessary to ascertain a remodeling range about the hardware, and further study is expected.

On the other hand, although regenerative burner system with partial burners’ replacement has better

pay back years than that of all burners’ replacement, it still has long pay back years than loan period.

NEDO’s scheme is not enough assistance to shorten pay back years even for regenerative burner

system with partial burners’ replacement. However regenerative burner system has the effect of

restoring and reinforcing furnace capacity, it is worth studying considering these conditions.

As a result of economical evaluations on these 2 companies, each technology locates at the following

state in the steel industry in Vietnam.

Installment of Oxy-fuel burner system is aiming at reducing electric power consumption, but it is

hard to apply because the price of electric power is cheap compared with the price of fuels and CO2

factor of electric power in Vietnam is low. In future increase of CO2 factor and the price of electric

power may assist to be able to incorporate this technology.

Technologies of reducing fuels are also hard to incorporate because the price of energy is still cheap

in Vietnam. Especially regenerative burner system is hard to apply as its installment costs much and

requires time to install when it is applied to existing facilities. Regenerative burner system with partial

burners’ replacement can shorten pay back years and make economical situation better, but it is still

hard to adopt. In the case of newly construction or reinforcement of RHF, the cost of installing

regenerative burner system becomes much cheaper, which makes regenerative burner system more

feasible.

3.4 FINANTIAL SCHEME IN VIETNAM

In order to study and seek efficictnt financing scheme to lead to the realization of this study, the

study and hearing of the aid package of finance situation in Vietnam is investigated.

As a result, government financial agencies like Vietnam Development Bank (VDB) and city banks

do not have preferential scheme for introduction of energy saving equipment or new technologies at

present, and any special preferential scheme for steel industry.

On the other hand, Vietnamese government starts to regulate the introduction or import of

equipments and facilities which are cheap but outdated, and basically takes a stance of introducing

efficient equipments and technologies and developing high value-added steel products. However,

fund support to promote these measures is not enough at present.

However these days, concrete aid package begins like special tax measures, fund aid etc.

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Special tax measures to enterprises which perform new investment project like energy saving

activities and production of high value-added steel will start soon. For example, “National

Technology Innovation Fund” is available from 2016, which is related to Ministry of Science and

Technology. Such financial aids have just been embodied

Whether these new aid packages are applicable to actual energy saving project or not, is not clear,

because they have just started or will start in near future.

Accordingly economical evaluations of each technology detailed before is estimated on the basis of

general city bank loan conditions.

Fig 3.4-1 shows interest rate, loan period, etc on the basis of hearings to banks in Vietnam.

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Fig 3.4-1 Reference: Interest rate and loan period of city banks in Vietnam

Name of bank

Interest rate for

Medium-term loans/

Loan Period

Interest rate for

Long-term loans/

Loan Period

Notice

Vietinbank Around of 11%

Maximum 7 years

Around of 11%

Maximum 7 years

Determined case-by-case. If the Branch can

arrange the funding sources, the loan term can

be more than 7 years

Asia Commercial

Bank (ACB)

from 8-11%

Maximum 84 months

from 8-11%

Maximum 84 months

Depends on customers’ requirements, capable of

paying, value of collateral, etc

TP Bank Around of 9.5%

From 1 to 5 years

Around of 9.5%

More than 5 years but not exceeding 10

years

Grants credit case-by-case

HD Bank The Clients rated AAA ability: around

of 11.75%;

the FDI enterprise: around of 10.75%.

Maximum 5 years

The Clients rated AAA ability: around of

11.75%;

the FDI enterprise: around of 10.75%.

Maximum 20 years

Depends on the investment sector,

capital-recovering capacity of the project, the

time of depreciation of fixed assets and so on.

Viet Bank The first 3 months: 12%; from the 4th

month: calculated on the 12

month-term deposit interest rate plus

margin (currently applied: 8+4.5%)

Max 5 years

The first 3 months: 12%; from the 4th month:

calculated on the 12 month-term deposit

interest rate plus margin (currently applied:

8+4.5%)

From 5 to 10 years or longer

For real estate as loan collateral, the interest

rate plus 0.5%.

Principal repayment period: one time

within 3 months or 6 months and Interest

amounts must pay per month; Allowed to

extend loan period in duration of operation,

construction.

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4. JCM METHODOLOGY

JCM methodologies are built up for the technologies which are economically feasible in this study.

These methodologies follow to the methodology development guidelines agreed in the second joint

committee between Japan and Viet Nam. Effort is made to make methodologies as concise and

intelligibly as possible.

This study propose 3 methodologies, which correspond to the technologies of the positive list

described in 2.2,

(1) Energy Saving by Introduction of Optimum Power Regulation System at Electric Arc Furnace

(2) Ladle Preheating Oxygen/Fuel Burner

(3) Introduction of Regenerative Burner to the Reheating furnace for Semi-processed Steel

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4.1 JOINT CREDITING MECHANISM METHODOLOGY OF “ENERGY SAVING BY

INTRODUCTION OF OPTIMUM POWER REGULATION SYSTEM AT ELECTRIC ARC

FURNACE”

At electric arc furnace (EAF), the steel scrap is melted to molten steel with electricity through the

electrodes. The key technology of the “JCM Methodology” is the optimum power regulation system

which controls the position of electrodes and the tap voltage. The introduction of the system is

expected to save electricity and reduce CO2 emission.

JCM Proposed Methodology Form

Cover sheet of the Proposed Methodology Form

Form for submitting the proposed methodology

Host Country Socialist Republic of Vietnam

Name of the methodology proponents

submitting this form

JFE Steel

JFE Techno-Research

Sectoral scope(s) to which the Proposed

Methodology applies

4. Manufacturing industries

Title of the proposed methodology, and

version number

Energy Saving by Introduction of Optimum

Power Regulation System at Electric Arc

Furnace

Version number: 1.0

List of documents to be attached to this form

(please check):

The attached draft JCM-PDD:

Additional information

Date of completion

History of the proposed methodology

Version Date Contents revised

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A. Title of the methodology

Energy Saving by Introduction of Optimum Power Regulation System at Electric Arc Furnace

Version number: 1.0

B. Terms and definitions

Terms Definitions

Billet Semi-processed steel which have square or circle cross

section. The products are manufactured by continuous

casting.

Electric Arc Furnace (EAF) The furnace which melts steel scrap to molten steel with

electricity through the electrodes. The molten steel is

simultaneously refined by oxygen blowing in the furnace.

Continuous Casting machine

(CC)

The machine which continuously solidifies molten steel into

the billets.

Ladle furnace (LF) The furnace which is placed between EAF and CC, if

necessary. The main purpose of introduction of the ladle

furnace is reduction of S content in the molten steel.

Hot pig iron The molten iron produced by blast furnace. Temperature of

the hot pig iron is around 1500 degrees Celsius after tapping

from blast furnace. The main content of the hot pig iron is

iron (Fe). The hot pig iron contains around 4% carbon.

Cold pig iron Solidified “Hot pig iron”.

Tap temperature Temperature of the molten steel. The tap temperature is

measured at EAF before tapping molten steel from EAF to

the ladle.

C. Summary of the methodology

Items Summary

GHG emission reduction

measures

The Optimum Power Regulation System is introduced into the

established EAF. The system improves the electricity efficiency,

so that the project reduces CO2 emission that originated from

electricity and fossil fuel.

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Calculation of reference

emissions

The reference data measurement period should be provided

before the project. The reference emissions are calculated from

the quantities of electricity, fossil fuel etc. at the EAF during the

reference period and their CO2 emission factors.

Calculation of project

emissions

The project emissions are calculated from electricity, fossil fuel

etc. at the EAF and CO2 emission factors during project period.

Monitoring parameters 1) Production of billets

2) Consumption of electricity at the EAF

3) Consumption of cold pig iron at the EAF

4) Consumption of hot pig iron at the EAF

5) Consumption of EAF coal at the EAF

6) Consumption of natural gas at the EAF

7) Consumption of heavy oil at the EAF

8) Consumption of oxygen at the EAF

9) Consumption of electricity at the oxygen plant

10) Consumption of steam at the oxygen plant

11) Consumption of oxygen at the other process

12) Tap temperature

D. Eligibility criteria

This methodology is applicable to projects that satisfy all of the following criteria.

Criterion 1 The project of improving energy efficiency at electric furnace process by

introducing the electric furnace electrodes control system into an existing electric

furnace.

Criterion 2 Electrode control system, which is based on the impedance, is used before the

Scrap

Electricity

EAF coal

Natural Gas

Heavy Oil

Electric Arc Furnace(EAF)

Continuous Casting machine

(CC)

BilletLadle

furnaceLF

Hot pig iron

Cold pig iron

Oxygen

Oxygen Plant

Electricity

Steam Other Process

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project.

Criterion 3 Electrode control system, which is based on multi-variable information, is

introduced at the project.

Criterion 4 All molten steel, which are produced at EAF, are casted to billets.

Criterion 5 The tap temperature difference between of the reference and of the project is

within 10 degrees Celsius.

E. Emission Sources and GHG types

Reference emissions

Emission sources GHG types

Electricity, which is consumed at the EAF CO2

Carbon of the cold pig iron, which is consumed at the EAF CO2

Carbon of the hot pig iron, which is consumed at the EAF CO2

EAF coal, which is consumed at the EAF CO2

Natural gas, which is consumed at the EAF CO2

Heavy oil, which is consumed at the EAF CO2

Electricity, which is consumed at the oxygen plant CO2

Steam, which is consumed at the oxygen plant CO2

Project emissions

Emission sources GHG types

Electricity, which is consumed at the EAF CO2

Carbon of the cold pig iron, which is consumed at the EAF CO2

Carbon of the hot pig iron, which is consumed at the EAF CO2

EAF coal, which is consumed at the EAF CO2

Natural gas, which is consumed at the EAF CO2

Heavy oil, which is consumed at the EAF CO2

Electricity, which is consumed at the oxygen plant CO2

Steam, which is consumed at the oxygen plant CO2

F. Establishment and calculation of reference emissions

F.1. Establishment of reference emissions

The reference data measurement period, which is more than three months, should be provided

before the project. The consumption of electricity, fossil fuels (coal, natural gas, heavy oil) and

oxygen at the EAF, also the production of billets are measured. The CO2 emission factors are of

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the project period. The yearly production of billets during the project is used when the reference

values are converted to the yearly amounts. The carbon contents of the cold pig iron and the hot

pig iron are fixed 4 mass %, because these contents do not vary significantly.

F.2. Calculation of reference emissions

REy = (ERelec + REcm + REhm + REcoal + REng + REoil + REo2)

/WRbillet ×WPbillet,y

Where,

REy : Reference emissions in year y [t-CO2/y]

REelec : CO2 emission from electricity, which is consumed at the EAF during the

reference period [t-CO2]

REcm : CO2 emission from carbon of the cold pig iron, which is consumed at the EAF

during the reference period [t-CO2]

REhm : CO2 emission from carbon of the hot pig iron, which is consumed at the EAF

during the reference period [t-CO2]

REcoal : CO2 emission from EAF coal, which is consumed at the EAF during the

reference period [t-CO2]

REng : CO2 emission from natural gas, which is consumed at the EAF during the

reference period [t-CO2]

REoil : CO2 emission from heavy oil, which is consumed at the EAF during the

reference period [t-CO2]

REo2 : CO2 emission from oxygen, which is consumed at the EAF during the

reference period [t-CO2]

WRPbillet : Production of billets during the reference period [t-billet]

WPbillet,y: Yearly production of billets during the project [t-billet/y]

REelec = EReaf × EFelec

Where,

EReaf : Consumption of electricity at the EAF during the reference period [MWh]

EFelec : CO2 emission factor for the Viet Nam grid system [t-CO2/MWh]

REcm = WRcm × 0.04 × (44/12)

Where,

WRcm : Consumption of cold pig iron at the EAF during the reference period [t]

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REhm = WRhm × 0.04 × (44/12)

Where,

WRhm : Consumption of hot pig iron at the EAF during the reference period [t]

REcoal = WRc × EFcoal

Where,

WRc : Consumption of EAF coal at the EAF during the reference period [t]

EFcoal : CO2 emission factor for the EAF coal [t-CO2/t]

REng = QRng × EFng

Where,

QRng : Consumption of natural gas at the EAF during the reference period [km3N]

EFng : CO2 emission factor for the natural gas [t-CO2/km3N]

REoil = QRoil × EFoil

Where,

QRoil : Consumption of heavy oil at the EAF during the reference period [m3]

EFoil : CO2 emission factor for the heavy oil [t-CO2/ m3]

REo2 = (ERo2 × EFelec + WRsteam × EFsteam)

×QRo2 / (QRo2 + QRo22)

Where,

ERo2 : Consumption of electricity at the oxygen plant during the reference period

[MWh]

EFelec : CO2 emission factor for the Viet Nam grid system [t-CO2/MWh]

WRsteam : Consumption of steam at the oxygen plant during the reference period [t]

EFsteam : CO2 emission factor for the steam [t-CO2/ t]

QRo2 : Consumption of oxygen at the EAF during the reference period [km3N]

QRo22 : Consumption of oxygen at the other process during the reference period

[km3N]

G. Calculation of project emissions

PEy = (PEelec + PEcm + PEhm + PEcoal + PEng + PEoil + PEo2)

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Where,

PEy : Project emissions in year y [t-CO2/y]

PEelec : CO2 emission from electricity, which is consumed at the EAF during the

project [t-CO2/ y]

PEcm : CO2 emission from carbon of the cold pig iron, which is consumed at the EAF

during the project [t-CO2/ y]

PEhm : CO2 emission from carbon of the hot pig iron, which is consumed at the EAF

during the project [t-CO2/ y]

PEcoal : CO2 emission from EAF coal, which is consumed at the EAF during the

project [t-CO2/ y]

PEng : CO2 emission from natural gas, which is consumed at the EAF during the

project [t-CO2/ y]

PEoil : CO2 emission from heavy oil, which is consumed at the EAF during the project

[t-CO2/ y]

PEo2 : CO2 emission from oxygen, which is consumed at the EAF during the project

[t-CO2/ y]

PEelec = EPeaf, y × EFelec

Where,

EPeaf, y : Consumption of electricity at the EAF during the project [MWh/ y]

EFelec : CO2 emission factor for the Viet Nam grid system [t-CO2/MWh]

PEcm = WPcm, y × 0.04 × (44/12)

Where,

WPcm, y : Consumption of cold pig iron at the EAF during the project [t/ y]

PEhm = WPhm, y × 0.04 × (44/12)

Where,

WPhm, y : Consumption of hot pig iron at the EAF during the project [t/ y]

PEcoal = WPcoal, y × EFcoal

Where,

WPcoal, y : Consumption of EAF coal at the EAF during the project [t/ y]

EFcoal : CO2 emission factor for the EAF coal [t-CO2/t]

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74

PEng = QPng, y × EFng

Where,

QPng, y : Consumption of natural gas at the EAF during the project [km3N/ y]

EFng : CO2 emission factor for the natural gas [t-CO2/km3N]

PEoil = QPoil, y × EFoil

Where,

QPoil, y : Consumption of heavy oil at the EAF during the project [m3/ y]

EFoil : CO2 emission factor for the heavy oil [t-CO2/ m3]

PEo2 = (EPo2, y × EFelec + WPsteam, y × EFsteam)

×QPo2, y / (QPo2, y + QPo22, y)

Where,

EPo2, y : Consumption of electricity at the oxygen plant during the project

[MWh/ y]

EFelec : CO2 emission factor for the Viet Nam grid system [t-CO2/MWh]

WPsteam, y : Consumption of steam at the oxygen plant during the project [t/ y]

EFsteam : CO2 emission factor for the steam [t-CO2/ t]

QPo2, y : Consumption of oxygen at the EAF during the project [km3N/ y]

QPo22, y : Consumption of oxygen at the other process during the project [km3N/ y]

H. Calculation of emissions reductions

Emission reductions are calculated as the difference between the reference emissions and

project emissions, as follows.

DPRy = REy - PEy

Where,

DPRy :GHG emission reductions in year [t-CO2/y]

I. Data and parameters fixed ex ante

The source of each data and parameter fixed ex ante is listed as below.

Parameter Description of data Source

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75

EFelec CO2 emission factor for

the Viet Nam grid system

The combined margin(CM) emission factor in Viet

Nam from "IGES CDM project data base"

(http://www.iges.or.jp/en/cdm/report.html)

EFcoal CO2 emission factor for

the EAF coal

1) The data is calculated from the carbon content of

the coal, which is measured by chemical analysis.

2) The data is sourced from "CO2 EMISSIONS

DATA COLLECTION, User Guide, Version 6"

(worldsteel).

(unless instructed by the Joint Committee)

EFng CO2 emission factor for

the natural gas

1) The data is calculated from the carbon content of

the natural gas, which is measured by chemical

analysis.

2) The data is sourced from "CO2 EMISSIONS

DATA COLLECTION, User Guide, Version 6"

(worldsteel).

(unless instructed by the Joint Committee)

EFoil CO2 emission factor for

the heavy oil

1) The data is calculated from the carbon content of

the heavy oil, which is measured by chemical

analysis.

2) The data is sourced from "CO2 EMISSIONS

DATA COLLECTION, User Guide, Version 6"

(worldsteel).

(unless instructed by the Joint Committee)

EFsteam CO2 emission factor for

the steam

1) The data is sourced from "CO2 EMISSIONS

DATA COLLECTION, User Guide, Version 6"

(worldsteel).

(unless instructed by the Joint Committee)

As an example, JCM Methodology Spreadsheets (Input sheet, Calculation process sheet) are shown in

Figure 4.1-1 and Figure 4.1-2.

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76

Figure 4.1-1 Input sheet

JCM_VN_F_PMS_ver01.0

Joint Crediting Mechanism Proposed Methodology Spreadsheet Form (input sheet) [Attachment to Proposed Methodology Form]

Table 1: Parameters to be monitored ex post(a) (b) (c) (d) (e) (f) (g) (h) (i) (j)

Monitoringpoint No.

Parameters Description of dataEstimated

ValuesUnits

Monitoringoption

Source of data Measurement methods and proceduresMonitoringfrequency

Othercomments

(1) WPbillet,y Production of billets per ayear ex post

250,000 t-billet/y C Monitored data

- Counting the number of the produced billets divided intoeach billet size.- Having data of the weight per a billet of each billet sizeby direct mesuaring or by calculating using billet size anddencity.- Calculating "Pbillet,y" from the number of the producedbillets and the weight per a billet of each billet size

once at theend of theyearlymonitoring

(2) Epeaf, y Consumption of electricity atthe EAF

97,500 MWh/ y C Monitored data - Measuring the Watt-hour meter equipped to the EAFat the startand the endof the period

(3) WPcm, y Consumption of cold pig ironat the EAF

12,500 t/ y C Monitored data- Measuring the weight of the charged cold pig iron- Integration of the weights

at everycharge toEAF

(4) WPhm, y Consumption of molten pigiron at the EAF

0 t/ y C Monitored data- Measuring the weight of the charged molten pig iron- Integration of the weights

at everycharge toEAF

(5) WPcoal, y Consumption of EAF coal atthe EAF

6,250 t/ y C Monitored data- Reading the delivery amount of the EAF coal describedin the invoice

at everydelivery

(6) QPng, y Consumption of natural gasat the EAF

0 km3N/ y C Monitored data- Measuring the integrating flowmeter equipped to theEAF

at the startand the endof the period

(7) QPoil, y Consumption of heavy oil atthe EAF

0 m3/ y C Monitored data- Reading the delivery amount of the oil described in theinvoice

at everydelivery

(8) QPo2, y Consumption of oxygen atthe EAF

10,000 km3N/ y C Monitored data- Measuring the integrating flowmeter equipped to theEAF

at the startand the endof the period

(9) EPo2, y Consumption of electricity atthe oxygen plant

8,750 MWh/ y C Monitored data- Measuring the Watt-hour meter equipped to the oxygenplant

at the startand the endof the period

45 WPsteam, y Consumption of steam at theoxygen plant

1,563 t/ y C Monitored data- Measuring the integrating flowmeter equipped to theoxygen plant

at the startand the endof the period

(11) QPo22, y Consumption of oxygen atthe other plant

2,500 km3N/ y C Monitored data- Measuring the integrating flowmeter equipped to theother plant

at the startand the endof the period

(12) Ttap, y Tap temperature 1,600degreesCelsius

C Monitored data- Immersion thermocouple is used to measure thetemperature of steel bath at EAF- Average value during the project period

At least, oncea day duringoperation

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Table 2: Project-specific parameters to be fixed ex ante

(a) (c) (d)

ParametersEstimated

ValuesUnits

EFelec 0.564 t-CO2/MWh

EFcoal 3.257 t-CO2/t

EFng 2.014 t-CO2/km3N

EFoil 2.907 t-CO2/m3

EFsteam 0.195 t-CO2/t

WRbillet 50,000 t-billet

EReaf 20,000 MWh

WRcm 2,500 t

WRhm 0 t

WRc 1,250 t

QRng 0 km3N

Qroil 0 m3

QRo2 2,000 km3N

ERo2 1,750 MWh

WRsteam 313 t

QRo22 500 km3N

Ttap, ref 1,601degreesCelsius

Table3: Ex-ante estimation of CO2 emission reductionsUnits

tCO2/y

[Monitoring option]Option AOption BOption C

Consumption of natural gas at the EAFduring the reference period

CO2 emission factor for the EAF coal

1) The data is calculated from the carbon content of the coal, which is measured bychemical analysis.2) The data is sourced from "CO2 EMISSIONS DATA COLLECTION, User Guide,Version 6"(worldsteel).(unless instructed by the Joint Committee)

CO2 emission factor for the natural gas

1) The data is calculated from the carbon content of the natural gas, which is measuredby chemical analysis.2) The data is sourced from "CO2 EMISSIONS DATA COLLECTION, User Guide,Version 6"(worldsteel).(unless instructed by the Joint Committee)

CO2 emission factor for the heavy oil

1) The data is calculated from the carbon content of the heavy oil, which is measured bychemical analysis.2) The data is sourced from "CO2 EMISSIONS DATA COLLECTION, User Guide,Version 6"(worldsteel).(unless instructed by the Joint Committee)

Consumption of cold pig iron at the EAFduring the reference period

Based on the amount of transaction which is measured directly using measuring equipments (Data used: commercial evidence such as invoices)

Consumptio of electricity at the EAF duringthe reference period

Monitored data.- Measuring the Watt-hour meter equipped to the EAF

Consumption of molten pig iron at the EAFduring the reference period

Monitored data.- Measuring the weight of the charged molten pig iron- Integration of the weights

Consumption of EAF coal at the EAF duringthe reference period

Monitored data.- Reading the delivery amount of the EAF coal described in the invoice

Consumption of heavy oil at the EAF duringthe reference period

Consumption of oxygen at the EAF duringthe reference period

Monitored data.- Measuring the weight of the charged cold pig iron- Integration of the weights

(e)

Source of data

The combined margin(CM) emission factor in Viet Nam from "IGES CDM project database"(http://www.iges.or.jp/en/cdm/report.html)

Based on the actual measurement using measuring equipments (Data used: measured values)

(b)

Description of data

CO2 emission reductions

1,409

CO2 emission factor for the Viet Nam gridsystem

Based on public data which is measured by entities other than the project participants (Data used: publicly recognized data such as statistical data and specifications)

(f)

Other comments

CO2 emission factor for the steamThe data is sourced from "CO2 EMISSIONS DATA COLLECTION, User Guide, Version6"(worldsteel).(unless instructed by the Joint Committee)

Production of billets during the referenceperiod

Monitored data.- Counting the number of the produced billets divided into each billet size.- Having data of the weight per a billet of each billet size by direct mesuaring or bycalculating using billet size and dencity.- Calculating "Pbillet,ref" from the number of the produced billets and the weight per abillet of each billet size

Monitored data.- Measuring the integrating flowmeter equipped to the EAF

Monitored data.- Reading the delivery amount of the oil described in the invoice

Monitored data.- Measuring the integrating flowmeter equipped to the EAF

Consumption of electricity at the oxygenplant during the reference period

Monitored data.- Measuring the Watt-hour meter equipped to the oxygen plant

Consumption of steam at the oxygen plantduring the reference period

Monitored data.- Measuring the integrating flowmeter equipped to the oxygen plant

Tap temperature during the reference period

Monitored data.- Immersion thermocouple is used to measure the temperature of steel bath at EAF- At least, once a day during operation- Average value during the referencce period

Consumption of oxygen at the other plantduring the reference period

Monitored data.- Measuring the integrating flowmeter equipped to the EAF

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Figure 4.1-2 Calculation process sheet

JCM_VN_F_PMS_ver01.0

1. Calculations for emission reductions Fuel type Value Units Parameter

Emission reductions during the period of year y 1,410 tCO2/y DPRy

2. Selected default values, etc.

CO2 emission factor for the Viet Nam grid system ----- 0.564 t-CO2/MWh EFelec

CO2 emission factor for the EAF coal ----- 3.257 t-CO2/t EFcoal

CO2 emission factor for the natural gas ----- 2.014 t-CO2/km3N EFng

CO2 emission factor for the heavy oil ----- 2.907 t-CO2/m3 EFoil

CO2 emission factor for the steam ----- 0.195 t-CO2/t EFsteam

3. Calculations for reference emissions

Reference emissions during the period of year y 82,781 tCO2/y REy

Production of billets during the reference period ----- 50,000 t-billet WRbillet

Consumptio of electricity at the EAF during the reference period Electricity 20,000 MWh EReaf

Consumption of cold pig iron at the EAF during the reference period ----- 2,500 t WRcm

Consumption of molten pig iron at the EAF during the reference period ----- 0 t WRhm

Consumption of EAF coal at the EAF during the reference period Fossil Fuel 1,250 t WRc

Consumption of natural gas at the EAF during the reference period Fossil Fuel 0 km3N QRng

Consumption of heavy oil at the EAF during the reference period Fossil Fuel 0 m3 Qroil

Consumption of oxygen at the EAF during the reference period ----- 2,000 km3N QRo2

Consumption of electricity at the oxygen plant during the reference per Electricity 1,750 MWh ERo2

Consumption of steam at the oxygen plant during the reference period ----- 313 t WRsteam

Consumption of oxygen at the other plant during the reference period ----- 500 km3N QRo22

4. Calculations of the project emissions

Project emissions during the period of year y 81,371 tCO2/y PEy

Production of billets per a year ex post ----- 250,000 t-billet/y WPbillet,y

Consumption of electricity at the EAF Electricity 97,500 MWh/ y Epeaf, y

Consumption of cold pig iron at the EAF ----- 12,500 t/ y WPcm, y

Consumption of molten pig iron at the EAF ----- 0 t/ y WPhm, y

Consumption of EAF coal at the EAF Fossil Fuel 6,250 t/ y WPcoal, y

Consumption of natural gas at the EAF Fossil Fuel 0 km3N/ y QPng, y

Consumption of heavy oil at the EAF Fossil Fuel 0 m3/ y QPoil, y

Consumption of oxygen at the EAF ----- 10,000 km3N/ y QPo2, y

Consumption of electricity at the oxygen plant Electricity 8,750 MWh/ y EPo2, y

Consumption of steam at the oxygen plant ----- 1,563 t/ y WPsteam, y

Consumption of oxygen at the other plant ----- 2,500 km3N/ y QPo22, y

Joint Crediting Mechanism Proposed Methodology Spreadsheet Form (Calculation Process Sheet)

[Attachment to Proposed Methodology Form]

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79

4.2 METHODOLOGY OF LADLE PREHEATING OXYGEN/FUEL BURNER

This methodology describes that retrofitting an existing burner into an oxygen/fuel burner can

improve fuel efficiency, resulting in reduction of CO2 emissions during ladle preheating.

JCM Proposed Methodology Form

Cover sheet of the Proposed Methodology Form

Form for submitting the proposed methodology

Host Country Socialist Republic of Vietnam

Name of the methodology proponents

submitting this form

JFE Steel

JFE Techno-Research

Sectoral scope(s) to which the Proposed

Methodology applies

4.Manufacturing industries

Title of the proposed methodology, and

version number

Oxygen/Fuel Burner System for Rapid Ladle

Preheating in Elevated Temperature Application

Version number: 1.0

List of documents to be attached to this form

(please check):

The attached draft JCM-PDD:

Additional information

Date of completion

History of the proposed methodology

Version Date Contents revised

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A. Title of the methodology

Oxygen/Fuel Burner System for Rapid Ladle Preheating in Elevated Temperature Application

Version number: 1.0

B. Terms and definitions

Terms Definitions

Coal Gasification Furnace

(CGF)

Furnace to produce mixed gas from coal and air.

Coal Gas (CG) Mixed gas produced from coal in CGF. which consists

primarily of carbon monoxide (CO), hydrogen (H2), carbon

dioxide (CO2), methane (CH4), nitrogen (N2) and moisture

(H2O).

Ladle (LD) Vessel or container of molten steel

Oxygen/fuel Burner total

system for Ladle preheating

Burners designed to fire coal gas mixed with oxygen in high

temperature applications.

Electric Arc Furnace (EAF) A furnace that heats and melts steel scraps by means of an

electric arc charging between electrodes. The steel melt is

refined by blowing oxygen into melt.

Ladle Furnace (LF) Facility to refine and reheat molten steel in ladle to targeted

steel compositions and temperature after Electric Arc

Furnace.

Continuous Caster (CC) Facility to solidify molten steel into a semi-finished product,

billet, for subsequent rolling in hot rolling mills. (Continuous

Caster can also produce bloom, or slab, larger section than

billet.)

Billet Semis which rectangular or round steel bar in an intermediate

stage of manufacture. Bar, rod, wire, and etc. can be

produced from steel billets.

C. Summary of the methodology

Reduction of CO2 emission from ladle preheating furnace can be performed by improving fuel

efficinecy at ladle preheating. As co-benefits through an introduction of “Oxygen/Fuel Burner System

for Rapid Ladle Preheating in Elevated Temperature Application”, reduction of electricity

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consumption in EAF by decreasing tapping temperature is expected as a result from preheating

temperature increase (ex. from 900 deg C. to 1400 deg C.) of ladle inner refractory. If an operation to

decrease tapping temperature is not applied in EAF, reduction of electricity consumption in LF is

expected by decreasing amount of temperature rising up to targeting temperature of steel melt in LF.

These co-benefits mentioned above strongly affect by operational conditions in EAF and LF, and it is

also difficult to quantitatively evaluate the co-benefits.

Therefore, a methodology in a boudary shown in figure below is focussed hereafter.

Items Summary

GHG emission reduction

measures

Reduction of fuel and electricity consumption in CGF by

efficiency improvement of ladle preheating through an

introduction of “Oxygen/fuel Burner System for Rapid Ladle

Preheating in Elevated Temperature Application.”

Calculation of reference

emissions

Calculated using CO2 emission originated from fuel and

electricity consumed at ladle preheating furnace (LPF) before an

introduction of “Oxygen/Fuel Burner System for Rapid Ladle

Preheating in Elevated Temperature Application.”

Calculation of project

emissions

Calculated from CO2 originated from oxygen, fuel, steam, and

electricity consumed at LPF after introduction of “Oxygen/Fuel

Burner System for Rapid Ladle Preheating in Elevated

Temperature Application.”

Monitoring parameters 1) Coal consumed in CGF produced as a fuel for LPF

2) Natural gas consumed for LPF

3) Heavy oil consumed for LPF

4) Electricity consumed at CGF and LPF

6.O2

10.Billet

LF

CC

9.Steel

temperature

before tapping

Oxygen

Production

Plant (OPP)

5.O2

7.Power

LD

LD

8.Steam EAF

steel flow

2.Natural gas

3.Heavy oil

Coal

Gasification

Furnace (CGF)1.Coal

4-1.Power

Oxygen/fuel

Burner

system

for Ladle

4-2.Power

Boundary

gas/oil flow

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5) Oxygen consumed in oxygen production plant (OPP) for

ladle preheating

6) Oxygen consumed in OPP for other plant except for LPF

7) Electricity consumed in OPP

8) Steam consumed in OPP

9) Steel temperature before tapping from EAF

10) Production of billet

D. Eligibility criteria

This methodology is applicable to projects that satisfy all of the following criteria.

Criterion 1 Proposed methodology is applied to improve efficiency of preheating ladle by

retrofitting an existing burner into an “Oxygen/Fuel Burner System for Rapid

Ladle Preheating in Elevated Temperature Application” in billet production route

of EAF-LF-CC.

Criterion 2 At the beginning of project, existing burners for preheating ladle have been

already operated, and “Oxygen/fuel Burner System for Rapid Ladle Preheating

in Elevated Temperature Application” has not been introduced.

Criterion 3 Easily possible to be certificated by analyzing actual data that efficiency of

preheating ladle can be improved by an introduction of “Oxygen/fuel Burner

System for Rapid Ladle Preheating in Elevated Temperature Application.”

Criterion 4 A fuel to preheat ladle should be one of coal gasification gas, natural gas, or

heavy oil.

Criterion 5 Difference of tapping temperature of molten steel in EAF between reference and

project should be within ten degree centigrade.

E. Emission Sources and GHG types

Reference emissions

Emission sources GHG types

CO2 originated from electricity consumed at CGF and LPF CO2

CO2 originated from coal consumed in CGF as a fuel at LPF CO2

CO2 originated from natural gas consumed as a fuel at LPF CO2

CO2 originated from heavy oil consumed as a fuel at LPF CO2

Reference emissions

Emission sources GHG types

CO2 originated from electricity consumed at CGF and LPF CO2

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CO2 originated from coal consumed in CGF as a fuel at LPF CO2

CO2 originated from natural gas consumed as a fuel at LPF CO2

CO2 originated from heavy oil consumed as a fuel at LPF CO2

CO2 originated from electricity and steam consumed at OPP CO2

F. Establishment and calculation of reference emissions

F.1. Establishment of reference emissions

1. Reference CO2 emissions can be converted and summarized following data measured during

at least three months. In this case, CO2 emission factors of coal, natural gas, heavy oil,

electricity, and steam at the time of project year can be applied.

1) Elecricity consumed at CGF and LPF

2) Fuel consumed at LPF

2. CO2 emissions due to billet manufacturing can be strongly influenced by not only electricity

efficiency of plant facilities but also fuel consumption at LPF and production amount of billet.

In consideration of the above,

3. Reference CO2 emissions of fuel consumed for ladle preheating are calculated by using

reference fuel consumption compensated with project production amount of billet.

4. Reference CO2 emissions of electricity consumed for ladle preheating are calculated by using

reference electricity consumption compensated with project production amount of billet.

F.2. Calculation of reference emissions

Reference CO2 emmisions are calculated based on following equations.

REy = ( REcoal + REng + REoil + REelec ) / WRbillet × WPbillet,y (t-CO2/y)

where,

REy : Reference emissions during the period of year y(t-CO2/y)

REcoal:CO2 emissions from coal consumed in CGF produced as a fuel for LPF(t-CO2)

REng:CO2 emissions from natural gas consumed for LPF(t-CO2)

REoil:CO2 emissions from heavy oil consumed for LPF(t-CO2)

REelec:Electricity consumed at CGF and LPF(t-CO2)

WRbillet : Reference production of billet(t-steel billet)

WPbillet,y : Project production of billet(t-steel billet/y)

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REcoal = WRcoal × EFcoal (t-CO2)

where,

WRcoal : Reference coal consumed for CGF(dry t-coal)

EFcoal : CO2 emission factor of consumed coal(t-CO2/dry t-coal)

REng = QRng × EFng (t-CO2)

where,

QRng : Reference natural gas consumed for ladle preheating(km3N-ng)

EFng : CO2 emission factor of consumed natural gas(t-CO2/ km3N-ng)

REoil = QRoil × EFoil (t-CO2)

where,

QRoil : Reference heavy oil consumed for ladle preheating(km3-oil)

EFoil : CO2 emission factor of consumed heavy oil(t-CO2/ km3-oil)

REelec = ER × EFelec (t-CO2)

where,

ER:Reference elecricity consumed(MWh)

EFelec : CO2 emission factor of consumed grid electricity(t-CO2/MWh)

ER = ERcgf + ERld

where,

ERcgf:Reference elecricity consumed at CGF (MWh)

ERld:Reference elecricity consumed at LPF (MWh)

G. Calculation of project emissions

Project CO2 emmision is calculated based on following equations.

PEy = PEcoal + PEng + PEoil + PEelec + PEsteam(t-CO2/y)

where,

PEy : Project emissions during the period of year y(t-CO2/y)

PEcoal:Project CO2 emissions originated from coal consumed(t-CO2/y)

PEng:Project CO2 emissions originated from natural gas consumed(t-CO2/y)

PEoil:Project CO2 emissions originated from heavy oil consumed(t-CO2/y)

PEelec:Project CO2 emissions originated from electricity consumed(t-CO2/y)

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PEsteam:Project CO2 emissions originated from steam consumed in OPP(t-CO2/y)

PEcoal = WPcoal,y × EFcoal (t-CO2/y)

where,

WPcoal,y : Project coal consumed for CGF(dry t-coal/y)

EFcoal : CO2 emission factor of consumed coal(t-CO2/dry t-coal)

PEng = QPng,y × EFng (t-CO2/y)

where,

QPng,y : Project natural gas consumed for ladle preheating(km3N-ng/y)

EFng : CO2 emission factor of consumed natural gas(t-CO2/ km3N-ng)

PEoil = QPoil,y × EFoil (t-CO2/y)

where,

QPoil,y : Project heavy oil consumed for ladle preheating(m3-oil/y)

EFoil : CO2 emission factor of consumed heavy oil(t-CO2/ m3-oil)

PEelec = EPy × EFelec (t-CO2/y)

where,

EPy:Project elecricity consumed(MWh/y)

EFelec : CO2 emission factor of consumed grid electricity(t-CO2/MWh)

EPy = EPcgf, y + EPld, y + EPld o2, y (MWh/y)

where,

EPcgf,y:Project elecricity consumed at CGF (MWh/y)

EPld,y:Project elecricity consumed at LPF (MWh/y)

EPo2,y:Project elecricity consumed in OPP for producing oxygen consumed for ladle

preheating (MWh/y)

In case of in-house oxygen production ;

EPo2,y =[QOld,y/(QOld,y+QOother,y )] × EPo2plant,y(MWh/y)

where,

QOld,y:Oxygen produced in OPP for ladle preheating (m3N-o2 /y)

QOother,y:Oxygen produced in OPP for other plant except for LPF (m3N-o2 /y)

EOo2 plant,y:Electricity consumed in OPP(MWh/y)

PEsteam = WPsteam,y × EFsteam (t-CO2/y)

where,

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WPsteam,y:Steam consumed for production of oxygen used at LPF( t-steam/y)

EFsteam :CO2 emission factor of steam(t-CO2/ t-steam)

WPsteam,y =[QOld,y/(QOld,y+QOother,y )] x WSy

where,

QOld,y:Oxygen produced in OPP for ladle preheating (m3N-o2 /y)

QOother,y:Oxygen produced in OPP for other plant except for LPF (m3N-o2 /y)

WSy:Project steam consumed in OPP( t-steam/y)

In case of purhased oxygen ;

EPo2,y = QOp,ld,y × UOP (MWh/y)

where,

QOp,ld,y:purchase oxygen consumed for ladle preheating (m3N-o2 /y)

UOP:Electricity equivalent value of oxygen (kWh/ m3N-o2)

H. Calculation of emissions reductions

Reduction of CO2 emmision is calculated based on a following equation.

DPRy = REy - PEy

where,

DPRy : Emission reductions during the period of year y(t-CO2/y)

REy : Reference emissions during the period of year y(t-CO2/y)

PEy : Project emissions during the period of year y(t-CO2/y)

I. Data and parameters fixed ex ante

The source of each data and parameter fixed ex ante is listed as below.

Parameter Description of data Source

EFcoal CO2 emission factor of coal due to the

project

1. Actual value

2. Value in “CO2 EMISSIONS DATA

COLLECTION, User Guide, Version 6”

published from worldsteel

EFng CO2 emission factor of natural gas due

to the project

1. Actual value

2. Value in “CO2 EMISSIONS DATA

COLLECTION, User Guide, Version 6”

published from worldsteel

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EFoil CO2 emission factor of heavy oil due

to the project

1. Actual value

2. Value in “CO2 EMISSIONS DATA

COLLECTION, User Guide, Version 6”

published from worldsteel

EFelec CO2 emission factor of grid electricity

due to the project

1. Value (CM) in ”IGES CDM Project

database”

http://www.iges.or.jp/en/cdm/report.html

published from IGES

EFsteam CO2 emission factor of steam utilized

for producing oxygen due to the

project.

1. Actual value

2. Value in “CO2 EMISSIONS DATA

COLLECTION, User Guide, Version 6”

published from worldsteel

EFo2 CO2 emission factor of oxygen due to

the project

1. Actual value

2. Value in “CO2 EMISSIONS DATA

COLLECTION, User Guide, Version 6”

published from worldsteel

UOP Electricity consumption for production

of 1 km3N oxygen (electricity

consumed for production of steam

used for producing oxygen is not

included)

1. Actual value

2.Calculating as EFo2 / EFelec

Concrete examples of spreadsheet including “PMS(input)” and “PMS(calc_process)” are shown in

Figures 4.2-1 and 4.2-2.

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Figure 4.2-1 An example of JCM spreadsheet “PMS(input)”

Table 1: Parameters to be monitored ex post(a) (b) (c) (d) (e) (f) (g) (h) (i) (j)

Monitoringpoint No.

Parameters Description of dataEstimated

ValuesUnits

Monitoringoption

Source ofdata

Measurement methods andprocedures

Monitoring frequencyOther

comments

1 WPcoal,yProject consumption of coal in coalgasification furnace(CGF) for ladlepreheating furnace(LPF)

1,020 drt t-coal/y CMonitoreddata

- Measuring the weight of the chargedcoal- Integration of the weights

at every charge to LPF

2 QPng,yProject consumption of natural gasfor LPF

0 km3N-ng/y CMonitoreddata

- Measuring the integrating natural gasflowmeter equipped to LPF

at the start and the end ofthe period

3 QPoil,yProject consumption of heavy oil forLPF

0 m3-oil/y CMonitoreddata

- Measuring the integrating oil flowmeterequipped to LPF

at the start and the end ofthe period

4-1 EPcgf,yProject consumption of elecricity forCGF

200 MWh/y CMonitoreddata

- Measuring the Watt-hour meterequipped to CGF

at every charge to CGF

4-2 EPld,yProject consumption of elecricity forLPF

400 MWh/y CMonitoreddata

- Measuring the Watt-hour meterequipped to LPF

at every charge to LPF

5 QOld,yProject consumption of oxygenproduced in oxygen productionplant(OPP) for LPF

300 km3N-o2/y CMonitoreddata

- Measuring the integrating O2flowmeter equipped to LPF

at the start and the end ofthe period

5 QOp,ld,yProject consumption of purchaseoxygen for LPF

0 km3N-o2/y CMonitoreddata

- Measuring the integrating O2flowmeter equipped to LPF

at the start and the end ofthe period

6 QOother,yProject consumption of oxygenproduced in OPP for other plantexcept for LPF

10,212 km3N-o2/y CMonitoreddata

- Measuring the integrating O2flowmeter equipped to the other plantexcept for LPF

at the start and the end ofthe period

7 EPo2 plant,yProject consumption of elecricity forOPP

2,064 MWh/y CMonitoreddata

- Measuring the Watt-hour meterequipped to OPP

at every charge to OPP

8 WSyProject consumption of steam forOPP

1,314 t-steam/y CMonitoreddata

- Measuring the integrating steamflowmeter equipped to OPP

at the start and the end ofthe period

9 TPtap,yProject average tappingtemperature of molten steel in EAF

1,600 deg C. CMonitoreddata

- Measuring molten steel tempareture inEAF before tapping from EAF

at every charge from EAF

10 WPbillet,y Project production of billet 220,000 t-billet/y CMonitoreddata

- Counting the number of the producedbillets divided into each billet size.- Having data of the weight per a billetof each billet size by direct mesuaring orby calculating using billet size anddencity.- Calculating "Pbillet,ref" from thenumber of the produced billets and theweight per a billet of each billet size

at the start and the end ofthe period

Table 2: Project-specific parameters to be fixed ex ante(a) (c) (d)

ParametersEstimated

ValuesUnits

EFcoal 3.257 t-CO2/dry t-coal

EFelec CO2 emission factor of grid electricity 0.564 t-CO2/MWh

EFo2 CO2 emission factor of oxygen 0.355 t-CO2/km3N-o2

EFng CO2 emission factor of natural gas 2.014 t-CO2/km3N

EFoil CO2 emission factor of heavy oil 2.907 t-CO2/m3

EFsteam CO2 emission factor of steam 0.195 t-CO2/t-steam

WRbillet 250,000 t-billet

WRcoal 1,700 dry t-coal

QRng 0 km3N-ng

QRoil 0 m3-oil

ERcgf 200 MWh

ERld 400 MWh

ERld 400 MWh

TRtap,y 1,600 deg C.

Table3: Ex-ante estimation of CO2 emission reductions

Unitst-CO2/y

[Monitoring option]Option AOption BOption C

Reference elecricity consumed at LPFMonitored data,- Measuring the Watt-hour meter equipped to LPF

Reference average tapping temperature of moltensteel in EAF

Monitored data,- Measuring molten steel tempareture in EAF before tapping

The data is sourced from "CO2 EMISSIONS DATA COLLECTION,User Guide, Version 6"(worldsteel) unless instructed by the JointCommittee.

Monitored data,- Measuring the integrating natural gas flowmeter equipped to LPFMonitored data,- Measuring the integrating heavy oil flowmeter equipped to LPF

Reference production of billet

Monitored data.- Counting the number of the produced billets divided into eachbillet size.- Having data of the weight per a billet of each billet size by directmesuaring or by calculating using billet size and dencity.- Calculating "Pbillet,ref" from the number of the produced billetsand the weight per a billet of each billet size

Reference consumption of elecricity for LPFMonitored data,- Measuring the Watt-hour meter equipped to LPF

Reference consumption of coal for CGF

Reference consumption of elecricity for CGF

Reference consumption of natural gas for LPF

Based on the amount of transaction which is measured directly using measuring equipments (Data used: commercial evidence such as invoices)Based on the actual measurement using measuring equipments (Data used: measured values)

Based on public data which is measured by entities other than the project participants (Data used: publicly recognized data such as statistical data and specifications)

CO2 emission factor of coalThe data is sourced from "CO2 EMISSIONS DATA COLLECTION,User Guide, Version 6"(worldsteel) unless instructed by the JointCommittee.

Monitored data,- Measuring the weight of the charged coal

CO2 emission reductions

Monitored data,- Measuring the Watt-hour meter equipped to CGF

1,502

Reference consumption of heavy oil for LPF

(b)

Description of data

(e)

Source of data

(f)

Other comments

The combined margin(CM) emission factor in Viet Nam from"IGES CDM project database"(http://www.iges.or.jp/en/cdm/report.html)The data is sourced from "CO2 EMISSIONS DATA COLLECTION,User Guide, Version 6"(worldsteel) unless instructed by the JointCommittee.The data is sourced from "CO2 EMISSIONS DATA COLLECTION,User Guide, Version 6"(worldsteel) unless instructed by the JointCommittee.The data is sourced from "CO2 EMISSIONS DATA COLLECTION,User Guide, Version 6"(worldsteel) unless instructed by the JointCommittee.

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Figure 4.2-2 An example of JCM spreadsheet “PMS(calc_process)”

1. Calculations for emission reductions Fuel type Value Units Parameter

Emission reductions during the period of year y 1,502 t-CO2/y ERy

2. Selected default values, etc.

CO2 emission factor of coal ----- 3.257 t-CO2/dry t-coal EFcoal

CO2 emission factor of electricity ----- 0.564 t-CO2/MWh EFelec

CO2 emission factor of oxygen ----- 0.355 t-CO2/km3N-o2 EFo2

CO2 emission factor of natural gas ----- 2.014 t-CO2/km3N EFng

CO2 emission factor of heavy oil ----- 2.907 t-CO2/m3 EFoil

CO2 emission factor of steam ----- 0.195 t-CO2/t-steam EFsteamElectricity equivalent value of oxygen ----- 0.629 MWh/km3N-o2 UOP

3. Calculations for reference emissions

Reference emissions during the period of year y 5,170 t-CO2/y REy

CO2 emissions by reheating ladle fossil fuel 5,537 t-CO2 REcoal

CO2 emissions from coal 5,537 t-CO2 REcoal

CO2 emissions from natural gas 0.0 t-CO2 REng

CO2 emissions from heavy oil 0.0 t-CO2 REoil

CO2 emissions by electricity consumption electricity 338 t-CO2 REelec

4. Calculations of the project emissions

Project emissions during the period of year y 3,668 t-CO2/y PEy

CO2 emissions by reheating ladle fossil fuel 3,322 t-CO2/y PEcoal

CO2 emissions from coal 3,322 t-CO2/y PEcoal

CO2 emissions from natural gas 0 t-CO2/y PEng

CO2 emissions from heavy oil 0 t-CO2/y PEoil

CO2 emissions by electricity consumption electricity 338 t-CO2/y PEelec

59 MWh/y EPld o2,y

CO2 emissions by steam consumption steam 7 t-CO2/y PEsteam

38 t-steam/y WPsteam.ySteam consumption for production ofoxygen used at ladle preheating

Electricity consumption for oxygen used atladle preheating

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4.3 JOINT CREDITING MECHANISM METHODOLOGY OF “INTRODUCTION OF

REGENERATIVE BURNER TO THE REHEATING FURNACE FOR SEMI-PROCESSED

STEEL”

The old burners, which are attached to the reheating furnace are replaced to the regenerative burners

in the process of producing steel bars by rolling the heated billets. The burner combustion exhaust gas

is discharged to the outside of the system at high temperatures until introduction of the project.

However, after introduction of the project, heat loss to the outside of the system is significantly

reduced. Therefore, the consumption of fossil fuel for the burners and relating CO2 emission are

reduced.

JCM Proposed Methodology Form

Cover sheet of the Proposed Methodology Form

Form for submitting the proposed methodology

Host Country Socialist Republic of Vietnam

Name of the methodology proponents

submitting this form

JFE Steel

JFE Techno-Research

Sectoral scope(s) to which the Proposed

Methodology applies

4. Manufacturing industries

Title of the proposed methodology, and

version number

Introduction of Regenerative Burner to the

Reheating furnace for Semi-processed Steel

Version number: 1.0

List of documents to be attached to this form

(please check):

The attached draft JCM-PDD:

Additional information

Date of completion

History of the proposed methodology

Version Date Contents revised

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A. Title of the methodology

Introduction of Regenerative Burner to the Reheating Furnace for Semi-processed Steel

Version number: 1.0

B. Terms and definitions

Terms Definitions

Billet Semi-processed steel which have square or circle cross

section. The products are manufactured by continuous

casting.

Reheating furnace (RHF) The furnace which reheats the semi-processed steel like

billets. The fossil fuel such as natural gas, coal gas and heavy

oil is used for the burner of the RHF.

Semi-processed steel Billet slab etc. These are rolled into sheets, steel bars etc.

C. Summary of the methodology

Items Summary

GHG emission reduction

measures

The old burners, which are attached to the reheating furnace are

replaced to the regenerative burners in the process of producing

steel bars by rolling the heated billets. The energy efficiency of

the burner fuel is improved. Therefore, the consumption of

fossil fuel for the burners and relating CO2 emission are

reduced.

Billet

Electricity

Coal

Natural Gas

Heavy Oil

Reheating Furnace(RHF)

Heated Billet

Coal Gasification

PlantElectricity

Coal gas

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Calculation of reference

emissions

The reference data measurement period should be provided

before the project. The reference emissions are calculated from

the quantities of electricity, fossil fuel etc. at the RHF or at the

coal gasification plant during the reference period and their CO2

emission factors.

Calculation of project

emissions

The project emissions are calculated from electricity, fossil fuel

etc. at the RHF, coal gasification plant and CO2 emission

factors during the project period.

Monitoring parameters 1) Supply of billets

2) Consumption of natural gas at the RHF

3) Consumption of heavy oil at the RHF

4) Consumption of electricity at the RHF

5) Consumption of coal at the coal gasification plant

6) Consumption of electricity at the coal gasification plant

D. Eligibility criteria

This methodology is applicable to projects that satisfy all of the following criteria.

Criterion 1 The project of reducing consumption of fossil fuel by improving the energy

efficiency at RHF for billet.

Criterion 2 The burners of the RHF are not regenerative type before the project.

Criterion 3 The burners of introducing to the RHF are regenerative type.

Criterion 4 The burner fuel is natural gas, heavy oil, or coal gas.

E. Emission Sources and GHG types

Reference emissions

Emission sources GHG types

Natural gas, which is consumed at the RHF CO2

Heavy oil, which is consumed at the RHF CO2

Electricity, which is consumed at the RHF CO2

Coal, which is consumed at the coal gasification plant CO2

Electricity, which is consumed at the coal gasification plant CO2

Project emissions

Emission sources GHG types

Natural gas, which is consumed at the RHF CO2

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Heavy oil, which is consumed at the RHF CO2

Electricity, which is consumed at the RHF CO2

Coal, which is consumed at the coal gasification plant CO2

Electricity, which is consumed at the coal gasification plant CO2

F. Establishment and calculation of reference emissions

F.1. Establishment of reference emissions

The reference data measurement period should be provided before the project. The

consumption of electricity and fossil fuels (coal, natural gas, heavy oil) at the RHF and the coal

gasification plant, also the supply of billets to the RHF are measured. The CO2 emission factors

are of the project period. The yearly supply of billets to the RHF during the project is used

when the reference values are converted to the yearly amounts.

F.2. Calculation of reference emissions

REy = (REng + REoil + REelec + REcoal + REelec2 )/WRSbillet ×WPSbillet,y

Where,

REy : Reference emissions in year y [t-CO2/y]

REng : CO2 emission from natural gas, which is consumed at the RHF during the

reference period [t-CO2]

REoil : CO2 emission from heavy oil, which is consumed at the RHF during the

reference period [t-CO2]

REelec : CO2 emission from electricity, which is consumed at the RHF during the

reference period [t-CO2]

REcoal : CO2 emission from coal, which is consumed at the coal gasification plant

during the reference period [t-CO2]

REelec2 : CO2 emission from electricity, which is consumed at the coal gasification plant

during the reference period [t-CO2]

WRSbillet : Supply of billets to the RHF during the reference period [t-billet]

WRSbillet,y : Yearly supply of billets to the RHF during the project [t-billet/y]

REng = QRng × EFng

Where,

QRng : Consumption of natural gas at the RHF during the reference period [km3N]

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EFng : CO2 emission factor for the natural gas [t-CO2/km3N]

REoil = QRoil × EFoil

Where,

QRoil : Consumption of heavy oil at the RHF during the reference period [m3]

EFoil : CO2 emission factor for the heavy oil [t-CO2/ m3]

REelec = ERrhf × EFelec

Where,

ERrhf : Consumption of electricity at the RHF during the reference period [MWh]

EFelec : CO2 emission factor for the Viet Nam grid system [t-CO2/MWh]

REcoal = WRc × EFcoal

Where,

WRc : Consumption of coal at the coal gasification plant during the reference period

[t]

EFcoal : CO2 emission factor for the coal[tCO2/t]

REelec2 = ERcgp × EFelec

Where,

ERcgp : Consumption of electricity at the coal gasification plant during the reference

period [MWh]

EFelec : CO2 emission factor for the Viet Nam grid system [t-CO2/MWh]

G. Calculation of project emissions

PEy = (PEng + PEoil + PEelec + PEcoal + PEelec2)

Where,

PEy : Project emissions in year y [t-CO2/y]

PEng : CO2 emission from natural gas, which is consumed at the RHF during the

project [t-CO2/ y]

PEoil : CO2 emission from heavy oil, which is consumed at the RHF during the

project [t-CO2/ y]

PEelec : CO2 emission from electricity, which is consumed at the RHF during the

project [t-CO2/ y]

PEcoal : CO2 emission from coal, which is consumed at the coal gasification plant

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during the project [t-CO2/ y]

PEelec2 : CO2 emission from electricity, which is consumed at the coal gasification plant

during the project [t-CO2/ y]

PEng = QPng, y × EFng

Where,

QPng, y : Consumption of natural gas at the RHF during the project [km3N/ y]

EFng : CO2 emission factor for the natural gas [t-CO2/km3N]

PEoil = QPoil, y × EFoil

Where,

QPoil, y : Consumption of heavy oil at the RHF during the project [m3/ y]

EFoil : CO2 emission factor for the heavy oil [t-CO2/ m3]

PEelec = EPrhf, y × EFelec

Where,

EPrhf, y : Consumption of electricity at the RHF during the project [MWh/ y]

EFelec : CO2 emission factor for the Viet Nam grid system [t-CO2/MWh]

PEcoal = WPcoal, y × EFcoal

Where,

WPcoal, y : Consumption of Coal at the coal gasification plant during the project [t/ y]

EFcoal : CO2 emission factor for the coal [t-CO2/t]

PEelec2 = EPcgf, y × EFelec

Where,

EPcgf, y :Consumption of electricity at the coal gasification plant during the project

[MWh/ y]

EFelec : CO2 emission factor for the Viet Nam grid system [t-CO2/MWh]

H. Calculation of emissions reductions

Emission reductions are calculated as the difference between the reference emissions and

project emissions, as follows.

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DPRy = REy - PEy

Where,

DPRy :GHG emission reductions in year [t-CO2/y]

I. Data and parameters fixed ex ante

The source of each data and parameter fixed ex ante is listed as below.

Parameter Description of data Source

EFng CO2 emission factor for the

natural gas

1) The data is calculated from the carbon content of

the natural gas, which is measured by chemical

analysis.

2) The data is sourced from "CO2 EMISSIONS

DATA COLLECTION, User Guide, Version 6"

(worldsteel).

(unless instructed by the Joint Committee)

EFoil CO2 emission factor for the

heavy oil

1) The data is calculated from the carbon content of

the heavy oil, which is measured by chemical

analysis.

2) The data is sourced from "CO2 EMISSIONS

DATA COLLECTION, User Guide, Version 6"

(worldsteel).

(unless instructed by the Joint Committee)

EFelec CO2 emission factor for the

Viet Nam grid system

The combined margin(CM) emission factor in Viet

Nam from "IGES CDM project data base"

(http://www.iges.or.jp/en/cdm/report.html)

EFcoal CO2 emission factor for the

coal

1) The data is calculated from the carbon content of

the coal, which is measured by chemical analysis.

2) The data is sourced from "CO2 EMISSIONS

DATA COLLECTION, User Guide, Version 6"

(worldsteel). The factor of steam coal is the first

choice in the 2nd case.

(unless instructed by the Joint Committee)

As an example, JCM Methodology Spreadsheets (Input sheet, Calculation process sheet) are shown in

Figure 4.3-1 and Figure 4.3-2.

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Figure 4.3-1 Input sheet

JCM_VN_F_PMS_ver01.0

Joint Crediting Mechanism Proposed Methodology Spreadsheet Form (input sheet) [Attachment to Proposed Methodology Form]

Table 1: Parameters to be monitored ex post(a) (b) (c) (d) (e) (f) (g) (h) (i) (j)

Monitoringpoint No.

Parameters Description of dataEstimated

ValuesUnits

Monitoringoption

Source of data Measurement methods and proceduresMonitoringfrequency

Othercomments

(1) WPSbillet, y Supply of billets to the RHFper a year ex post

250,000 t-billet/ y C Monitored data

- Counting the number of the supplied billets divided intoeach billet size.- Having data of the weight per a billet of each billet sizeby direct mesuaring or by calculating using billet size anddencity.- Calculating "Sbillet, y" from the number of the suppliedbillets and the weight per a billet of each billet size

once at theend of theyearlymonitoring

(2) QPng, y Consumption of natural gasat the RHF

0 km3N/ y C Monitored data- Measuring the integrating flowmeter equipped to theRHF

at the startand the endof the period

(3) QPoil, y Consumption of heavy oil atthe RHF

2,250 m3/ y C Monitored data- Reading the delivery amount of the oil described in theinvoice

at everydelivery

(4) EPrhf, y Consumption of electricity atthe RHF

2,500 MWh/ y C Monitored data - Measuring the Watt-hour meter equipped to the RHFat the startand the endof the period

(5) WPcoal, y Consumption of coal at thecoal gasification plant

0 t/ y C Monitored data- Reading the delivery amount of the coal described in theinvoice

at everydelivery

(6) EPcgf, y Consumption of electricity atthe coal gasification plant

0 MWh/ y C Monitored data- Measuring the Watt-hour meter equipped to the coalgasification plant

at the startand the endof the period

Table 2: Project-specific parameters to be fixed ex ante(a) (c) (d)

ParametersEstimated

ValuesUnits

EFng 2.014 t-CO2/km3N

EFoil 2.907 t-CO2/m3

EFelec 0.564 t-CO2/MWh

EFcoal 2.461 t-CO2/t

WRSbillet 50,000 t-billet

QRng 0 km3N

QRoil 500 m3

ERrhf 500 MWh

WRc 0 t

ERcgf 0 MWh

Table3: Ex-ante estimation of CO2 emission reductionsUnits

tCO2/y

[Monitoring option]Option AOption BOption C

(f)

Other comments

(e)

Source of data

1) The data is calculated from the carbon content of the natural gas, which is measuredby chemical analysis.2) The data is sourced from "CO2 EMISSIONS DATA COLLECTION, User Guide,Version 6"(worldsteel).(unless instructed by the Joint Committee)

Based on the actual measurement using measuring equipments (Data used: measured values)

(b)

Description of data

CO2 emission reductions

726

CO2 emission factor for the natural gas

Based on public data which is measured by entities other than the project participants (Data used: publicly recognized data such as statistical data and specifications)

CO2 emission factor for the coal

1) The data is calculated from the carbon content of the steam coal, which is measuredby chemical analysis.2) The data is sourced from "CO2 EMISSIONS DATA COLLECTION, User Guide,Version 6"(worldsteel). The factor of steam coal is the first choice in the 2nd case.(unless instructed by the Joint Committee)

Consumption of heavy oil at the RHF duringthe reference period

Based on the amount of transaction which is measured directly using measuring equipments (Data used: commercial evidence such as invoices)

CO2 emission factor for the heavy oil

1) The data is calculated from the carbon content of the heavy oil, which is measured bychemical analysis.2) The data is sourced from "CO2 EMISSIONS DATA COLLECTION, User Guide,Version 6"(worldsteel).(unless instructed by the Joint Committee)

CO2 emission factor for the Viet Nam gridsystem

The combined margin(CM) emission factor in Viet Nam from "IGES CDM project database"(http://www.iges.or.jp/en/cdm/report.html)

Consumption of natural gas at the RHFduring the reference period

Monitored data.- Measuring the integrating flowmeter equipped to the RHF

Monitored data.- Reading the delivery amount of the oil described in the invoice

Consumption of electricity at the RHF duringthe reference period

Monitored data.- Measuring the Watt-hour meter equipped to the RHF

Supply of billets to the RHF during thereference period

Monitored data.- Counting the number of the supplied billets divided into each billet size.- Having data of the weight per a billet of each billet size by direct mesuaring or bycalculating using billet size and dencity.- Calculating "Sbillet, ref" from the number of the supplied billets and the weight per abillet of each billet size

Consumption of coal at the coal gasificationplant during the reference period

Monitored data.- Reading the delivery amount of the coal described in the invoice

Consumption of electricity at the coalgasification plant during the reference period

Monitored data.- Measuring the Watt-hour meter equipped to the coal gasification plant

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Figure 4.3-2 Calculation process sheet

JCM_VN_F_PMS_ver01.0

1. Calculations for emission reductions Fuel type Value Units Parameter

Emission reductions during the period of year y 727 tCO2/y DPRy

2. Selected default values, etc.

CO2 emission factor for the natural gas ----- 2.014 t-CO2/km3N EFng

CO2 emission factor for the heavy oil ----- 2.907 t-CO2/m3 EFoil

CO2 emission factor for the Viet Nam grid system ----- 0.564 t-CO2/MWh EFelec

CO2 emission factor for the coal ----- 2.461 t-CO2/t EFcoal

3. Calculations for reference emissions

Reference emissions during the period of year y 8,678 tCO2/y REy

Supply of billets to the RHF during the reference period ----- 50,000 t-billet WRSbillet

Consumption of natural gas at the RHF during the reference peri Fossil Fuel 0 km3N QRng

Consumption of heavy oil at the RHF during the reference period Fossil Fuel 500 m3 QRoil

Consumption of electricity at the RHF during the reference perio Electricity 500 MWh ERrhf

Consumption of coal at the coal gasification plant during the refe Fossil Fuel 0 t WRc

Consumption of electricity at the coal gasification plant during th Electricity 0 MWh ERcgf

4. Calculations of the project emissions

Project emissions during the period of year y 7,951 tCO2/y PEy

Supply of billets to the RHF per a year ex post ----- 250,000 t-billet/ y WPSbillet, y

Consumption of natural gas at the RHF Fossil Fuel 0 km3N/ y QPng, y

Consumption of heavy oil at the RHF Fossil Fuel 2,250 m3/ y QPoil, y

Consumption of electricity at the RHF Electricity 2,500 MWh/ y EPrhf, y

Consumption of coal at the coal gasification plant Fossil Fuel 0 t/ y WPcoal, y

Consumption of electricity at the coal gasification plant Electricity 0 MWh/ y EPcgf, y

Joint Crediting Mechanism Proposed Methodology Spreadsheet Form (Calculation Process Sheet)

[Attachment to Proposed Methodology Form]

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5. REPORTING OF ENERGY SAVING TECHNOLOGIES TO

VIETNAM

Seminar in Hanoi was held in January 2015, in order to widely dissement JCM scheme and to report

the study results of this project, to government officials related to JCM and concerned personnel in

steel industry in Vietnam.

At the same time, during 1st or 2nd visit to Vietnam, we visited government departments related to

JCM and explained JCM scheme and activities of this project

This chapter shows the meeting with government departments, and Seminar in Hanoi.

5.1 PRIOR EXPLANATION TO THE GOVERNMENT OFFICIALS

During 1st or 2nd visit to Vietnam, JFE group visited government officials related to JCM, and

explained JCM scheme and activities of this project. The followings show the departments which JFE

group visited, and attendance at the meeting

(1) MOIT(Ministry Of Industry and Trade)General Directorate of Energy

Date: Sep. 15th ,2014

Attendance:

Mr. Pham Thanh Tung: Director of International Cooperation Department

Mr. Nguyen Van Long: Deputy Director General Science Technology and Energy Efficiency

Department

Visitors:Sogo:JFE Steel Corporation, Sawa, Shimizu: JFE Techno-Research Corporation

(2) MOIT Heavy Industry Department

Date: Sep. 16th ,2014

Attendance:

Mr. Bui Quang Chuyen: Deputy Director General of Heavy Industry Department

Mr. Tran Van Long: Official of Heavy Industry Department

Visitors:Sogo:JFE Steel Corporation, Sawa, Shimizu: JFE Techno-Research Corporation

(3) MOIT Department of Science and Technology

Date: Sep. 16th ,2014

Attendance:

Mr. Le Viet Cuong:

Mr. Pham Truong Son: (Official)

Mr. Do Xuan Dong: (Official)

Visitors:Sogo:JFE Steel Corporation, Sawa, Shimizu: JFE Techno-Research Corporation

(4) MONRE (Ministry Of Natural Resources & Environment) International Cooperation

Department

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100

Mr. Nguyen Xuan Bao Tam: (Deputy Director General)

Visitors:Sogo:JFE Steel Corporation, Sawa, Shimizu: JFE Techno-Research Corporation

(5) D MONRE Division of Science, Technology and International Corporation, Department of

Meteorology, Hydrology and Climate Change

Date: Nov.18th ,2014

Attendance:

Mr. LE NGOC TUAN: ( Director)

Visitor:Sogo:JFE Steel Corporation

5.2 SEMINAR IN HANOI

Seminar was held at Hanoi in January with inviting government departments related to JCM and

concerned personnel in steel industry . At the Seminar, the results of this study were presented, which

includeed enegy diagnosis of each company, introduction of Japanese suitable technologies to each

company as a result of this study, and economcal evaluation of these technologies. JCM scheme was

also introduced in this Seminar.

Figure 5.2-1 describes the program of the Seminar.

20 people participated in this seminar. Particpants are 2 offcials from Vietnamese Government, and

18 people of 4 companies from steel industry in Vietnam. After finishing all presentation, there were

some Q & A.

Question-1

Q: What is the accuracy of investment and merit of ladle preheater? Can this technology offer merit

shown in the presentation?

A: Japanese engineering maker visited the site and observed the operation. Investment and merit are

reliable, and merit came from the actual achievement in Japan.

Question -2

Q: Is Regenerative burner applicable to big furnace such as 50 t-steel/h?

A: In Japan Regenerative burners are applied to the furnaces such as 100 to 200 t-steel/h. This

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101

technology is suitable to big furnaces.

Question -3

Q: There is an explanation about slag door and door burner. In this meaning what is the suitable

operation of EAF?

A: Furnace pressure ±0 is ideal operation which aims at no air infiltration and no energy loss toward

outside of the furnace. Slag door helps this operation, and door burner gives more efficient

operation.

Question -4

Q: How much is proper hot metal ratio to EAF? Are there any operations using hot metal in Japan?

A: Proper hot metal ratio depends on the cost of iron sources, so it differs from site to site. And

operation using hot metal is very rare in Japan.

There are all technical questions. After finishing the Seminar, there were still some more technical

questions.

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102

Figure 5.2-1 AGENDA for Seminar

“Future JCM project applying effective Japanese excellent energy

saving technologies to Vietnam Steel Industry”

20 JANUARY 2015

NIKKO HOTEL, HANOI

Agenda

9:00 – 9:10 Introduction Kazumasa Sogo

(JFE Steel Corporation)

9:10 – 9:40 “Technologies Cutomized list”

The introduction of the Customized List

to Iron and Steel Industry in Vietnam

Masuto SHIMIZU

(JFE Techno-Research Corporation)

Reporting the results of energy daiagnosis in Iron and Steel Industry in Vietnam

9:40 – 10:20 “Summary of Result Activity of

A-Company in 2014”

Yoshitaka Sawa

(JFE Techno-Research Corporation)

Coffee Break

10:35– 11:15 “Summary of Result Activity of

B-Company in 2014”

Masuto SHIMIZU

(JFE Techno-Research Corporation)

JCM (The Joint Crediting Mechanism)

11:15 – 11:45 “JCM Scheme”

The introduction of JCM and JCM

Pocedure

Kazumasa Sogo

(JFE Steel Corporation)

11:45 – 12:00 Discussion

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103

6. ECONOMICAL ANALYSIS FOR COMMERCIALIZATION

Production capacity in the Vietnam steel industry is a mixture of facilities in operation for a long

time and newer ones introduced in line with the market opening since 2000. We confirmed through

the study that there is still a room for introduction of Japan’s newest technology because it is not fully

applied to even newer facilities yet.

The spread of the newest technology depends largely on its profitability and, as described in the

sub-sections “economic evaluation”, it may be hardly accomplished without any financial assistance

such as a subsidy at this point. However, we expect that the profitability will be improved as energy

price increases in the future.

Here, we analyzed the economic effectiveness due to the spread of the technology in consideration

of the future increase in energy price.

As described in Chapter 2, it is expected that energy price will increase in Vietnam in the future.

Here, we estimate the profitability on the assumption that electricity price rises by 30% and fuel price

15% in 2020. Furthermore, for a sensitivity analysis, we also estimate another case where electricity

price rises by 50% and fuel price 25%. The results are shown in Figure 6.1-1, 6.1-2 and 6.1-3. The

calculations are performed by assuming that investment amounts are same and without considering

any subsidies. The current economic evaluations as mentioned above are represented in the upper

rows of each of the figures.

Figure 6.1-1 Economical Evaluation of each technology in A-Company

Electrical Arc Furnace Reheating Furnace

Technology

Direct Suction

Dust Collector

and Installment

of Oxy-fuel

burner system

Electrode

Regulation and

Automation

Control for EAF

Optimization

Regenerative

burner :

Replacement of

all burners

Regenerative

burner :

Replacement of

partial burners

Present condition

Pay Back years 8.1 2.7 8.7 6.1

IRR (%) 4.6 35.5 2.8 10.8

In the case that Electric power price +30%, and fuel price +15%

Pay Back years 6.0 2.0 7.4 5.1

IRR (%) 12.2 48.5 6.3 14.8

In the case that Electric power price +50%, and fuel price +25%

Pay Back years 5.0 1.7 6.7 4.6

IRR (%) 16.9 56.8 8.4 17.2

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104

Figure 6.1-2 Economical Evaluation of each technology to EAF in B-Company

Electrical Arc Furnace

Technology

Installment of

Oxy-fuel

burner

system

with oil as a

fuel

Installment of

Oxy-fuel burner

system

with coal as a

fuel

Electrode

Regulation and

Automation

Control for EAF

Optimization

Electrode

Regulation and

Automation

Control for EAF

Optimization

with hardware

Present condition

Pay Back years No return 9.6 7.2 27.6

IRR (%) - 0.8 7.4 ▲ 17.3

In the case that Electric power price +30%, and fuel price +15%

Pay Back years No return 7.1 5.3 18.6

IRR (%) - 8.0 15.5 ▲ 11.3

In the case that Electric power price +50%, and fuel price +25%

Pay Back years No return 6.0 4.4 15.3

IRR (%) - 12.3 20.4 ▲ 8.0

Figure 6.1-3 Economical Evaluation of heating technologies in B-Company

Heating Technology

Technology

Ladle Preheater

with oxygen/fuel

burner

Regenerative burner :

Replacement of all

burners

Regenerative burner :

Replacement of partial

burners

Present condition

Pay Back (years) 3.0 20.2 13.2

IRR (%) 33.3 Δ12.0 Δ5.0

In the case that Electric power price +30%, and fuel price +15%

Pay Back years 2.6 16.6 11.1

IRR (%) 38.4 ▲ 8.9 ▲ 1.9

In the case that Electric power price +50%, and fuel price +25%

Pay Back years 2.4 14.8 10.0

IRR (%) 41.7 ▲ 7.1 0.0

Because the loan period is generally about six years in Vietnam and the valid payout period is aimed

at not more than six years, the evaluations for each technology are given as follows.

For EAF technology, we evaluate that it is difficult to apply the technologies using auxiliary fuel

with burners newly installed (e.g. Direct Suction Dust Collector and Installment of Oxy-fuel burner

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105

system to A-Company; Installment of Oxy-fuel burner system with oil as a fuel or Installment of

Oxy-fuel burner system with coal as a fuel to B-Company) from the view point of profitability.

There remains the possibility of applying them only if electricity price rise greatly exceeds fuel price

rise, nevertheless we can not expect this at present.

The profitability of the electrode control technology (e.g. Electrode Regulation and Automation

Control for EAF Optimization to both A-Company and B-Company) will be more improved as

electricity price rises because the technology contributes only to reducing power consumption. As

mentioned above, however, there remains some possibility that we can not achieve our purpose. We

should study more in case that the hardware needs revamping simultaneously.

The utilization of the oxygen/fuel burner for preheating ladles (e.g. Ladle Preheater to B-Company)

is sufficiently profitable technology. This is, as mentioned above, successfully applicable at the

moment when a steelworks holds its in-house oxygen plant.

The applicability of regenerative burners to RHFs (e.g. Regenerative burner to both A-Company

and B-Company) depends much on fuel price, and it will be difficult to replace all the existent

burners even if electricity price is raised by 50% and fuel price 25%. If partial replacement of burners

is applied to a RHF with oil or natural gas used, it will become profitable when fuel price rises in the

future. However, if coal is used as a fuel at RHF as in B-Company, partial replacement will be

less profitable because the price of coal is lower than that of oil or natural gas. Therefore it is less

possible in such a case to adopt the technology in terms of energy saving. There will be a chance of

the installation when a new furnace is set up or an existent one is revamped for reinforcement.

According to these points of view and the results of sensitivity analysis, we forecast the reduction of

CO2 emissions in the future by using the predicted values.

The Vietnamese government has set numerical targets for steel and iron production as of 2025 as

follows.12

・ Expand the total steel production to 38 – 39 million tons,

・ Expand the pig iron production to 20 million tons by 2025.

The Vietnam’s demand for steel is expected to grow in future as the economy is likely developing

and construction of blast furnaces is currently progressing. Based on the numerical targets above, we

assumed that EAF will produce 18.5 million tons per year of crude steel and reheat furnaces will treat

38.5 million tons of semi-finished steel in Vietnam as of 2025. We assume each of the adoption rates

for the technologies as follows.

・ Oxy-fuel burner system for EAF: this technology will be unlikely spread widely because its

profitability is based on the premise of the price difference between electricity and fuel, while

12 Feasibility Study project for the BOCM (FY2012) “Study for applying effective Japanese excellent

energy saving and CO2 Reduction technologies to newly planned Integrated Steel Works in Viet Nam (Policy

proposal and project development Study)” ReportMarch,15th,2013 JFE Steel Corporation JFE

Techno-Research Corporation

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106

energy prices are expected to rise in future. Moreover, this does not necessarily reduce CO2

emissions. Therefore we exclude this from the applicable technologies.

・ Electrode Control Technology for EAF: this technology is expected to spread in accordance

with development in the operational skills, while there are still old-fashioned facilities in

Vietnam and the operational skills are immature yet. Moreover, this will improve the

profitability as electricity price rises. Therefore, this is expected to spread in future and we

assume that its adoption rate will be about 50% as of 2025.

・ Oxygen/fuel Burner for Ladle Preheating: this technology is most probable to spread at present,

and we need to make the technology more known to the steelmakers. As described above, the

profitability changes depending on whether a steelwork holds its in-house oxygen plant. We

expect that many steelworks will hold their own oxygen plants in future because it is

economically advantageous for them to do so. Therefore, we assume that 50% of all the

steelworks will hold their in-house oxygen plants and that 50% of them (i.e. 25% of all the

steelworks) will adopt this technology as of 2025. Furthermore, we have the utilization of

regenerative burner for ladle preheating as an applicable technology for a steelworks without its

in-house oxygen plant, and we can also expect the combined spread of these technologies.

・ Regenerative Burner Technology for RHF: this technology is still insufficient in its profitability

when it is applied by revamping the existent facility, even if fuel price rises. Higher rise in fuel

price could give profitability to partial application of this technology, nevertheless full

application would be difficult in such a case. However, we are expecting that there will be new

installment, improvement and reinforcement of steel facilities by 2025, and the application of

regenerative burner can have sufficient profitability at this timing. Therefore, we assume that the

adoption rate will be 50%.

Based on the premises and the assumptions described above, the reduction of CO2 emissions as of

2025 is summarized in Fig. 6.1-4.

Figure 6.1-4 Forecast of dissemination of technologies and CO2 reduction rate at 2025

Technology

Electrode Regulation

and Automation Control

for EAF Optimization

Ladle Preheater

with oxygen/fuel

burner

Reheating Furnace

Regenerative burner

Disementation

Ratio in Vietnam

(mil t-steel/y)

18.5 mil t-steel/y

x 50%

=9.25

18.5 mil t-steel/y

x 50% x 50%

=4.63

38.5 mil t-steel/y

x 50%

=19.25

CO2 Reduction

ratio

(kg-CO2/t-steel)

5.64

(10kwh/ t-steel)

4.9

*1)

10.5

*2)

CO2 Reduction

(t-CO2/y) 52,170 22,600 202,120

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107

*1) Adopt half of the value of B-Company with replacement of all burners (the value is approximately

double in case of use of coal gasification gas)

*2) Adopt the value of A-Company (he value is approximately double in case of use of coal

gasification gas)

As explained above, we can expect much reduction of CO2 emissions by introducing these

technologies from now on.

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7. SUMMERY

Energy saving technologies study about contrastive 2 companies was executed this fiscal year. One

has a long history of steel making, and another started its operation after 2000. Although they are

contrastive, the followings are recognized

1. Steel making technologies of both companies are still immature,.

2. There is much room to introduce new technologies. At the same time, it is hard to find the base

and capability which brings up technical knowledge and skills.

3. There are still not many concerns about Japanese technologies, and in many places, technologies

from China have been adopted because of economical priority.

At the same time, from this study, there are few chances for Japanese technoloties to be introduced

to Vietnam steel Indsustry from the economical point of view, because Japanese technologies costs

pretty high and the energy costs in Vietnam are low. These situations lead to the followings

propossals.

7.1 POLICY RECCOMENDATION ON JCM IN VIETNAM

At present in Vietnam steel industry, recognition of Japanese technologies is low, and almost no

concern about JCM. Considering these situation, the following measures are effective for

implementation of Japanese technologies.

1.To bring up recognition of Japanese technologies

Even the technologies which are very popular and concerned in Japan have little recognition. Only

the explanation of Japanese technologies cannot lead to the businesses even though the technologies

are superior and excellent. This is partly because Japanese technologies costs relatively high, and at

the same time, the technologies in steel industry in Vietnam are not enough matured.

In this situation,

① To provide effective and feasible technologies through the observation and study of the

targeted companies.

② To evaluate and estimate the actual effect of new technologies with using actual data

③ To be understood the effectiveness of technologies through these evaluation

④ To make an opportunity to come in contact with the Japanese superior technology. Visit to

Japan by key technology officer is one choice.

Technologies’ proposals including site survey will be required to promote introduction of Japanese

technologies and at the same time the explanation together with recommendation of operation

improvement may show superiority of Japanese technologies.

2.To embody the Japanese technologies in Vietnam with using JCM

Economical performance is one of the big factors to hamper the introduction of Japanese

technologies. There are some cases that same kinds of technologies are imported other than Japan.

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109

However, Japanese technologies are better than those from other countries, and it can offer higher

effect. It is very important to break economical barrier for Japanese technologies, and effective use of

JCM scheme can support to show superiority. Track record of Japanese technologies is important,

and application of feasible technologies should be taken first priority even though it has small

investment and small effect.

In the future, energy prices in Vietnam are expected to increase, and for that moment, Japan must

prepare for such situation.

3.Future Development of Understanding and practical use of JCM

It is not exaggeration that steel industry in Vietnam has no information about JCM. At the same

time, some government officials have opinions that it is hard to understand JCM because Ministry of

Economy Trade, and Industry and Ministry of the Environment have different JCM scheme.

Therefore more simple explanation is desirable.

Another big issue in the steel industry in Vietnam is that enough data collection systems are not

established. This leads to the concern whether appropriate MRV system is plausible or not, in order

to promote JCM. System of Management cycle, that is cycle of Plan-Do-Check-Action, is not

popular in Vietnam, and Introduction of Management cycle is also recommended to promote JCM.

4.Barriers to promote Energy Saving Action

Some barriers to introduce energy saving action rise from study and discussion with 2 companies,

from meeting with government officials, and from the situation mentioned above. Based on these

understandings, barriers are wrapped up in the following table.

It is a pleasure to consider these barriers at intergovernmental meeting on JCM consultation.

Items Barrier Synopsis

Budget,

Human resource ● Lack of budget, Lack of Engineering ability

Inside the

company Lack of information

and knowledge

● Lack of knowledge for Energy Saving Technology

● Lack of examination and management capacity of introducing

technologies because in Vietnam EPC (Engineering,

Procurement and Construction) is generally all executed by

foreign engineering makers

● Lack of data, data reduction, and examination. Lack of system

for accepting the introduction of new technologies

Domestic

situation

Uncertainty of the

steel demand

● Uncertainty of the steel demand in the future because of

domestic declining demand and pressure of imported steel from

abroad (at the same time expectation of demand growth in the

future )

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110

Lack of information

● Insufficient System sharing technical information between steel

companies which is popular in Japan.

● Insufficient information about EPC which is all ordered to

foreign companies because of lack of ability of the domestic

facilities maker and construction supplier

Competition

environment among

companies

● The competition about quality and the energy saving (energy

intensity) is not common

High interest rate ● A high interest rate on the occasion of financing under the

influence of inflation

Common

items in

rising

nations

High facility cost

● many equipments from overseas from the performance and

quality point of view, because of insufficient ability of the

domestic facilities maker

● Higher estimate for the equipment because of a currency risk

and the credit risk of the individual company

Handling of JCM

● Even some government-affiliated cannot understand JCM

because of different support scheme in Ministry of Economy,

Trade and Industry, and Ministry of the Environment

Energy saving policy

● Not much aid package to the energy saving, and insufficient

understanding for the need of energy saving target and the

regulation

● Little policy about the spread of so-called management cycle

such as Plan-Do-Check-Action

Government

Uncertainty of energy

prices

● Hard environment of enhancing energy saving because of low

energy price (The present price of power is kept in a low level

not directly to reflect its cost)

● These lead to a high business-related energy consumption and

low energy saving investment

7.2 SUMMERY, SUGGESTION AND PROPOSAL FOR THE ACTIVITY FOR NEXT

FISCAL YEAR

This study indicates much room to introduce Japanese superior technologies to steel industry in

Vietnam. However, environment does not reach to the stage to introduce Japanese technologies from

the economical point of view. In this situation, JCM scheme may support to make some technologies

economical and feasible. Whether these technologies are applied or not, highly depends on the

judgment of targeted company.

On the other hand, in the case that the projects are accepted by these companies, they require more

precise study like check of data and its reliability, estimation of volume of site work, check of data

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about MRV.

Inexpensive equipment, uptake of various merits etc must be studied in order to improve

economical situation.

At the same time, management cycle, that is Plan-Do-Check-Action, must be radicated for

achieving the embodiment of technologies.

During this study, we were able to visit 2 steel companies and many government officials to study

energy saving technologies. We would like to express our sincere greatness for those who welcomed

us during this study for their great help and kindness at the end.

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ANNEX1 COMMENTARY ON TECHNOLOGIES POSITIVE LIST

Hot Conveyor Transport of Hot DRI/HBI to EAF Hot Conveyor Transport of Hot DRI/HBI to EAF Figure Annex1-1 No.1: Hot DRI/HBI Charging to the EAF

(From SOACT)

Figure Annex1-2 No.2: Scrap Preheating (ex. Ecological and Economical Arc Furnace)

(From http:/www.steelplantech.co.jp)

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Figure Annex1-3 No.4: Aluminum Alloy Conductor Arm for Supporting Electrode

(From NIKKO Industry CO.,LTD)

<DC furnace>Graphite hearth

electrode

Hearth Electrode

Electric room

DC reactor(DCL)

trans

VCBThyristor

Transformerstation

High-frequencyfilter

<DC furnace>Graphite hearth

electrode

Hearth Electrode

Electric room

DC reactor(DCL)

trans

VCBThyristor

Transformerstation

High-frequencyfilter

Figure Annex1-4 No.5: DC Electro Arc Furnace

(From NEDO Handbook)

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114

Figure Annex1-5 No.6: Oxy-fuel Burners/Lancing (or Super Sonic Burner )

(From NIKKO Industry CO.,LTD)

HeatExchanger

Cooling waterCirculation

pump Boiling feedWater pump

Deaerator

Condensatepomp

From applicationsystemWHRB steam drum

Accumulator

To applicationsystem

Steam drum

Super heater

BoilerCirculation

pump

Make-upwater

HeatExchanger

Cooling waterCirculation

pump Boiling feedWater pump

Deaerator

Condensatepomp

From applicationsystemWHRB steam drum

Accumulator

To applicationsystem

Steam drum

Super heater

BoilerCirculation

pump

Make-upwater

Figure Annex1-6 No.8: Waste Heat Recovery from EAF

(From JASE-World)

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115

Horizontal Type Vertical Type

Waste gas 170deg.CWaste gas

COG920 Mcal/h

Air 20deg.C

1000deg.C

Waste gas 4-way selector Valve

Heat Storage material(ceramic honeycomb)

Air

1000deg.CCOG

600 Mcal/h

Regenerative burnerConventional burnerFig Non heat recovery type burner ladle

Drying deviceRegenerative burner-type ladle

Drying device

from brochure of Chugai Ro

Making it possible to preheat a number of ladles in a single installation.Furthermore, the high-temperature heating of the ladles is possible with the ladles attached closely together. The preheating of a number of ladles in a single installation is enabled by sliding movement. Furthermore, opening and closing movement back and forth enables the high temperature heating of the ladles with lids attached closely together.

Horizontal Type Vertical Type

Waste gas 170deg.CWaste gas

COG920 Mcal/h

Air 20deg.C

1000deg.C

Waste gas 4-way selector Valve

Heat Storage material(ceramic honeycomb)

Air

1000deg.CCOG

600 Mcal/h

Regenerative burnerConventional burnerFig Non heat recovery type burner ladle

Drying deviceRegenerative burner-type ladle

Drying device

from brochure of Chugai Ro

Making it possible to preheat a number of ladles in a single installation.Furthermore, the high-temperature heating of the ladles is possible with the ladles attached closely together. The preheating of a number of ladles in a single installation is enabled by sliding movement. Furthermore, opening and closing movement back and forth enables the high temperature heating of the ladles with lids attached closely together.

Figure Annex1-7 No.9.1: Regenerative Burner Total System for Ladle Preheating

(From NEDO Handbook、Photo. from CHUGAI RO CO.,LTD)

Figure Annex1-8 No.9.2: Oxygen Burner Total System for Ladle Preheating

(From CHUGAI RO CO.,LTD)

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116

EAF Process Optimization by Off-gas Analysis

Power Input Control

・Off Gas Analysis

・Temp, O2, CO, CO2, H2, N2 H2O

Carbon & Oxygen Injection

Natural Gas & Lime Injection

EAF Process Optimization by Off-gas Analysis

Power Input Control

・Off Gas Analysis

・Temp, O2, CO, CO2, H2, N2 H2O

Carbon & Oxygen Injection

Natural Gas & Lime Injection

Figure Annex1-9 No.11.2: Control and Automation for EAF Optimization

(From SOACT)

EAF

Voltage inverter

Control Panel

Scrap data presetting

Automatic Scrap Meltdown Timing Judgment System by Acoustic Spectrum Analysis for AC EAF

Meltdown signal

Data collection

Current transformer

Signals from EAF

Touch panel

Sound signal

Current

Microphone

EAF

Voltage inverter

Control Panel

Scrap data presetting

Automatic Scrap Meltdown Timing Judgment System by Acoustic Spectrum Analysis for AC EAF

Meltdown signal

Data collection

Current transformer

Signals from EAF

Touch panel

Sound signal

Current

Microphone

Figure Annex1-10 No.11.3: Control and Automation for EAF Optimization

(From Home page of DAIDO STEEL)

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117

molten steel

② O2 Covering Frame

① Focused O2 Frame   (Mach = 2)

Carbon Electrode HYBRIDJet Burner

Carbon injectionlance1500 kg/h

Cooling copper box with fins

D: Temperature homogenizationby bath stirring on tapping

UHP longARC

Promotion ofsteel bath stirring

C: Heat Conductionfrom steel particleto steel bath

Slagline

Metalline

Injected carbon

CO+C→CO2 gas

CO gas

B: Heat Conductionfrom slag to steel particle

molten steel particle

primary O2

 A: Reaction of slag by convection

Foamy slag

Heat transfer cycle;A → B → C → D

Figure Annex1-11 No.12: Carbon and Oxygen Injection System for foamy slag practice

(From NIKKO Industry CO.,LTD)

base condition

High temperature heat exchanger

Regenerative burner

Δ30%

Δ45%

Application of Regenerative burner can achieve (45%) energy saving (45%-20%=25% better than conventional Recuperator).Further information is required for accurate estimation.

Fuel: By-product gasFurnace Temperature: 1350 deg.C

No heat Recovery

Pre-heating Air Temperature (deg.C)

Fu

el u

sage

qua

nti

ty (

%)

Δ20%

Conventional Recuperator

base condition

High temperature heat exchanger

Regenerative burner

Δ30%

Δ45%

Application of Regenerative burner can achieve (45%) energy saving (45%-20%=25% better than conventional Recuperator).Further information is required for accurate estimation.

Fuel: By-product gasFurnace Temperature: 1350 deg.C

No heat Recovery

Pre-heating Air Temperature (deg.C)

Fu

el u

sage

qua

nti

ty (

%)

Δ20%

Conventional Recuperator

Figure Annex1-12 No.13: Comparison of fuel usage quantities versus pre-heating air

temperature

(From SOACT)

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118

Preheating temperature >1000℃ by Regenerative Burner Total System

FuelFuel

Burner ABurner B

CeramicRegenerator B Ceramic

Regenerator A

Exhaust gas 200 deg.C Switch valve

Air

Regenerative burners, using temperature resistant ceramic heat media, can recover approximately 85% of waste heat from high temperature exhaust gas from reheating furnaces or ladle preheating by directly introducing high temperature exhaust gas into heat media and alternate switching between heat storage and preheating of combustion air. This high performance burner technology achieves superior fuel gas saving and compact reheating furnace equipment. It is desirable to install this system when new furnace is introduced, because the cost will be saved compared to modification of furnaces.

Preheating temperature >1000℃ by Regenerative Burner Total System

FuelFuel

Burner ABurner B

CeramicRegenerator B Ceramic

Regenerator A

Exhaust gas 200 deg.C Switch valve

Air

Regenerative burners, using temperature resistant ceramic heat media, can recover approximately 85% of waste heat from high temperature exhaust gas from reheating furnaces or ladle preheating by directly introducing high temperature exhaust gas into heat media and alternate switching between heat storage and preheating of combustion air. This high performance burner technology achieves superior fuel gas saving and compact reheating furnace equipment. It is desirable to install this system when new furnace is introduced, because the cost will be saved compared to modification of furnaces.

Figure Annex1-13 No.13.1: Combustion Air Preheating for reheating furnace

(From SOACT)

En

ergy

con

serv

atio

n r

atio

(%

)

Reheating Furnace(continuous)Reheating Furnace(batch)LadleHeat treatment furnace(continuous)Heat treatment furnace(batch)Gas treatment furnaceMelting furnace

Treatment Temperature (deg.C)

Actual results shows approximately 30% reduction of fuelIn case of Reheating furnace, the average is 10-20% reduction compared to the furnace with conventional Recuperator.(These results are mainly from Japanese industries, and the energy saving effectFor Reheating furnace depends on the range of revamping)

In case of ReheatingFurnace

10 -20% Reduction

Field test project167 furnaces

En

ergy

con

serv

atio

n r

atio

(%

)

Reheating Furnace(continuous)Reheating Furnace(batch)LadleHeat treatment furnace(continuous)Heat treatment furnace(batch)Gas treatment furnaceMelting furnace

Treatment Temperature (deg.C)

Actual results shows approximately 30% reduction of fuelIn case of Reheating furnace, the average is 10-20% reduction compared to the furnace with conventional Recuperator.(These results are mainly from Japanese industries, and the energy saving effectFor Reheating furnace depends on the range of revamping)

In case of ReheatingFurnace

10 -20% Reduction

Field test project167 furnaces

Figure Annex1-14 No.13.1: Actual Results of application of Regenerative burner

(From SOACT)

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119

Temperature and pressure Control in furnace, ,O2 Control in Fuel gas and Change to ceramic fiber inner wall

O2 meter Furnace manometer

(Heating Furnace) Preheating Area Heating Area SoakingArea To Rolling Line

Billet

CombustionAir Fan

Flue gas

Damper

Cooling water

High efficiency recuperator

Combustion control system (DCS)

Fuel

FurnacethermometerNo.14 Thermal insulation by

Ceramic Fiber on inner wall

High-performance combustion control system- Furnace temperature control- Flue gas O2 control- Furnace pressure control

Temperature and pressure Control in furnace, ,O2 Control in Fuel gas and Change to ceramic fiber inner wall

O2 meter Furnace manometer

(Heating Furnace) Preheating Area Heating Area SoakingArea To Rolling Line

Billet

CombustionAir Fan

Flue gas

Damper

Cooling water

High efficiency recuperator

Combustion control system (DCS)

Fuel

FurnacethermometerNo.14 Thermal insulation by

Ceramic Fiber on inner wall

High-performance combustion control system- Furnace temperature control- Flue gas O2 control- Furnace pressure control

Figure Annex1-15 No.15: Process Control for Reheating Furnace + No.14 Thermal

insulation by Ceramic Fiber on inner wall

(From NEDO Handbook)

Figure Annex1-16 No.16: Air Conditioning by Hot Water Absorption Chiller utilizing Waste

Heat

(From revised figure supplied by EBARA Refri. Equip. & Systems Co., Ltd.)

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120

(1) Delivery side damper control

Intake side damper control

Ideal control

(2) Inverter control

Variable control of transmitted power(eddy current coupling with fluid gear box)

Source: electrical Installation TechnologyP27. February 2001

Airflow (%)

Req

uire

d el

ectr

ic p

ower

(%

)

(1) Delivery side damper control

Intake side damper control

Ideal control

(2) Inverter control

Variable control of transmitted power(eddy current coupling with fluid gear box)

Source: electrical Installation TechnologyP27. February 2001

Airflow (%)

Req

uire

d el

ectr

ic p

ower

(%

)

Figure Annex1-17 No.17: Inverter (VVVF; Variable Voltage Variable Frequency) Drive for

Motors

(From NEDO Handbook)

Data Acquisition & Monitoring System

Management System

Electric Arc Furnace&

Ladle furnace

Reheating furnace&

Rolling Mill

Production Scheduling

Power, Carbon, Oxygen, etc. Fuel, Temperature , etc.

Do

Check

Action

Plan

Data Acquisition & Monitoring System

Management System

Electric Arc Furnace&

Ladle furnace

Reheating furnace&

Rolling Mill

Production Scheduling

Power, Carbon, Oxygen, etc. Fuel, Temperature , etc.

Do

Check

Action

Plan

Figure Annex1-18 No.18: Energy Monitoring and Management Systems for Steel Plant with

EAF