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P2G TECHNOLOGIES IN IRON ORE
PELLETIZING PROCESS
11.1.2016WP3 WORKSHOP
Mariana Carvalho, LUTEsa Vakkilainen, LUT
Rationale• Iron and steel sector is the major
industrial CO2 source
• Fines are significant in mining stage (at least 50%), ~70% of global iron ore demand1
• Uniform ores increase energy efficiency à agglomeration processes
Source: IEA/OECD 2009. Energy Technology Transitions for Industry. Available at
https://www.iea.org/publications/freepublications/publication/industry2009.pdf
1 CRU Group 2012. Available at: http://www.slideshare.net/informaoz/laura-brooks-25739095
Markets• Global iron ore production: 3220 Mt in 20141
– ~20% of the global market for pellets2
– Varies from country e.g. in Brazil ~90% of the production are ore fines, from which 70% sinter feed and the remaining 30% pellet feed3
• Who and where– Top three countries: China, Australia and Brazil – Top three companies: Vale, Rio Tinto and BHP Billiton
• Future outlook: growth follows steel production, expected to grow 1.5 times by 20504
1 USGS 2015. Iron ore statistics and information. Available at: http://minerals.usgs.gov/minerals/pubs/commodity/iron_ore/mcs-2015-feore.pdf
2 Poveromo, JJ 2013. Raw Materials & Ironmaking Global Consulting. Available at: http://www.steeltimesint.com/contentimages/features/iron_ore_joe_web_res.pdf
3 DNPM 2014. Sumário Mineral. Available at: http://www.dnpm.gov.br/dnpm/sumarios/ferro-sumario-mineral-2014
4 World Steel Association 2015. World Steel in Figures. Available at https://www.worldsteel.org/dms/internetDocumentList/bookshop/2015/World-Steel-in-Figures-
2015/document/World%20Steel%20in%20Figures%202015.pdf
Technical Implementation• Traveling grate pelletizing process
Hydrogen from AEC to substitute NG
Flame temperature is the main parameter
Estimated emissions ~55 Mt CO2/year
globally
Technical Implementation
• Sintering process
Estimated emissions >200
Mt CO2/year globally à ~3% of Iron & Steel
industry
General Assumptions• Break even electricity price was calculated as function of operating time for
different scenarios
• FCR markets not considered
• Profit from heat not considered
General Assumptions• Plant production 5 Mt/year, 8000 h/year
• Fixed specific energy consumption:
– Pelletizing: 1.12 GJ/t pellet, 42% NG and 58% solid (coal + coke breeze)
– Sintering: 1.5 GJ/t sinter, 10% gas and 90% solid
• Air from cooling process ~50 Nm3/s per t pellet at 1000 ºC
• Electrolyser efficiency (LHV) 65% at 70 ºC
• Required hydrogen was calculated in order to maintain flame temperature
as for the original fuels
Material and Energy Balances:Pelletizing Kiln
NG AR 4,90Temperature CO2 Emissions
kg/s kmol/s Nm3/s Nm3/min [K] 78,08 kg/GJfuel
Air 321,2 11,20 250,0 15 000 1 273 15,18 kg/sCH4 1,693 0,094 2,094 126 298 87,45 kg/tSolid 3,851 0,443 - - - 437 234 t/yearFlue gas 326,7 11,36 252,3 15 139 1 714TOTAL IN - - 252,1 15 126 1441 oC
194,44 MW
AR 5,18Temperature CO2 Emissions
kg/s kmol/s Nm3/s Nm3/min Vol. Diff. [%] [K] 54,65 kg/GJfuel
Air 321,2 11,20 250,0 15 000 0,00 % 1 273 10,63 kg/s
H2 0,700 0,35 7,80 468 272 % 298 61,21 kg/tSolid 3,851 0,44 - - - - 306 049 t/year -30,0 %Flue gas 325,7 11,43 253,3 15 195 0,37 % 1 714TOTAL IN - - 257,8 15 468 2,26 % 1441 oC
196,79 MW 1,2 % 129 MW
Gas consumption 84,0 MW 2,8 % 1028 GWh/year
PhaseMass Balance
Hydrogen
Electricity demand
PhaseMass Balance
Material and Energy Balances:Sintering Kiln
NG AR 5.15Temperature CO2 Emissions
kg/s kmol/s Nm3/s Nm3/min [K] 90.38 kg/GJfuel
Air 449.6 15.68 350.0 21 000 1 273 23.54 kg/sCH4 0.540 0.030 0.668 40 298 135.57 kg/tSolid 8.003 0.921 - - - 677 864 t/yearFlue gas 458.2 15.84 352.5 21 150 1 700TOTAL IN - - 350.7 21 040 1427 oC
260.42 MW
AR 5.21Temperature CO2 Emissions
kg/s kmol/s Nm3/s Nm3/min Vol. Diff. [%] [K] 84.80 kg/GJfuel
Air 449.6 15.68 350.0 21 000 0.00 % 1 273 22.08 kg/s
H2 0.223 0.11 2.48 149 272 % 298 127.21 kg/tSolid 8.003 0.92 - - - - 636 032 t/year -6.2 %Flue gas 457.9 15.86 352.8 21 168 0.08 % 1 700TOTAL IN - - 352.5 21 149 0.52 % 1427 oC
261.13 MW 0.3 % 41 MW
Gas consumption 26.8 MW 2.7 % 327 GWh/year
RESULTS SUMMARY
PhaseMass Balance
Hydrogen
Electricity demand
PhaseMass Balance
CAPEX, OPEX and Incomes • 20 years lifetime
• Total O&M 2.4%, water 0.4 €/m3
• Different scenarios were considered varying:
– WACC: 8 – 12%
– Electrolyzer investment cost: 621 – 1165 €/kWe
– Oxygen selling price: 0, 20 – 70 €/t
– Natural gas purchase price: 35 – 50 €/MWh
– CO2: 0 – 10 €/t
Profitability 1/3
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Electrolyser operating hours [h/year]
Investment Cost
IC -20% Base IC +20% IC +50%
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Oxygen Price
O2 70 Base O2 20 O2 0
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Natural Gas
NG 50 Base NG 35
Base Case:IC = 717.12 €/KWeO2 = 50 €/tNG = 40 €/MWhWACC = 10% aCO2 = 5 €/t
Profitability 2/3
Base Case:IC = 717.12 €/KWeO2 = 50 €/tNG = 40 €/MWhWACC = 10% aCO2 = 5 €/t
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WACC
WACC 8% Base WACC 12%
CO2 and WACC does not seem to have much
impact
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CO2
CO2 10 Base CO2 0
Profitability 3/3
Optimistic:IC = 621.36 €/KWeO2 = 70 €/tNG = 50 €/MWhWACC = 8% aCO2 = 10 €/t
Base Case:IC = 717.12 €/KWeO2 = 50 €/tNG = 40 €/MWhWACC = 10% aCO2 = 5 €/t
Pessimistic:IC = 1165.05 €/KWeO2 = 0 €/tNG = 35 €/MWhWACC = 12% aCO2 = 0 €/t
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Scenarios
Optimistic Base Pessimistic 2010 Prices Cumulative average price
Environmental Effects
• 30% CO2 emission reduction expected for pellet kilns
• But only 6% expected for sintering
• Evaluate possibility to increase gas share in sintering kilns
Summary and Conclusions
• Agglomeration process are relevant for the Iron & Steel industry
• Use of hydrogen can be feasible:
– Investment costs is the main parameter
– Followed by electricity price
– NG price also play a important role
• Expected large CO2 emission reduction
WP3: NCE REPORTING
P2G technologies in iron ore pelletizing(Mariana Carvalho)
Rationale:• Iron ore agglomeration process are relevant for the Iron & Steel sector• Pelletizing uses natural gas and solid fossil fuels (e.g. coal and coke breeze)• NG could be replaced by hydrogen
Content:• Material and energy balances were developed, based on a fixed flame temperature• Break even electricity price was calculated as function of operating time for different scenarios• Variations in the investment costs, oxygen selling price and NG purchase price were
consideredSchedule, reporting, deliverables:
• Report or conference paper by March 2016• Deeper analysis? Sintering case?
Co-operation aspects:• UFMG Brazil • Mining companies (Vale, Samarco) have been contacted
