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THE HYBRIT PROJECT SSAB, LKAB AND VATTENFALL COOPERATION TOWARDS FOSSIL FREE STEEL Dec 5 th 2017/Mikael Nordlander

THE HYBRIT PROJECT - Microsoft · INDUSTRY AND TRANSPORT – THE MAJORITY OF SWEDISH GHG EMISSIONS 33% 27% 12% 13% 15% Total GHG emissions 2015 Domestic transports Industry Power

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Page 1: THE HYBRIT PROJECT - Microsoft · INDUSTRY AND TRANSPORT – THE MAJORITY OF SWEDISH GHG EMISSIONS 33% 27% 12% 13% 15% Total GHG emissions 2015 Domestic transports Industry Power

THE HYBRIT PROJECT

SSAB, LKAB AND VATTENFALL COOPERATION TOWARDS FOSSIL FREE STEEL

Dec 5th 2017/Mikael Nordlander

Page 2: THE HYBRIT PROJECT - Microsoft · INDUSTRY AND TRANSPORT – THE MAJORITY OF SWEDISH GHG EMISSIONS 33% 27% 12% 13% 15% Total GHG emissions 2015 Domestic transports Industry Power

INDUSTRY AND TRANSPORT –THE MAJORITY OF SWEDISH GHG EMISSIONS

33%

27%

12%

13%

15%

Total GHG emissions 2015

Domestic transports

Industry

Power and heat

Agriculture

Other

26%

22%20%

9%

6%

5%

3% 9%

Industrial GHG emissions 2014

Iron- and steel

Minerals (cement)

Refineries

Chemistry

Pulp and paper

Other metals

Food

Other

Source: Swedish Environmental Protection Agency

53.7 Mton 14.7 Mton

Page 3: THE HYBRIT PROJECT - Microsoft · INDUSTRY AND TRANSPORT – THE MAJORITY OF SWEDISH GHG EMISSIONS 33% 27% 12% 13% 15% Total GHG emissions 2015 Domestic transports Industry Power

CLEAN, AFFORDABLE AND ABUNDANT ELECTRICITY- A NORDIC COMPARATIVE ADVANTAGE

1 525

823728

617601

580575

531515514

438430420

408324318

237237

190178176

634842

16

982

CanadaFrance

SwedenSwitzerland

Norway

SloveniaPortugal

Slovak RepublicFinland

BelgiumAustria

Czech RepublicIsrael

GreeceTurkeyJapan

Germany

EstoniaPoland

CO2 from electricity [gCO2/kWh]

MexicoNetherlands

USAUnited Kingdom

ChileIreland

Denmark

162145

143132

131127

122115

112110109

107105

9898

91908888

8684

8276

6959

35

EstoniaCzech Republic

IsraelPoland

NetherlandsSlovenia

DenmarkFinlandMexicoCanada

USASwedenNorway

United Kingdom

Greece

France

Slovak RepublicIreland

PortugalSwitzerland

ChileTurkey

GermanyJapan

Electricity price for industry [USD/MWh]

AustriaBelgium

Source: IEA (KWES 2016, CO2 emissions from combustion)

Page 4: THE HYBRIT PROJECT - Microsoft · INDUSTRY AND TRANSPORT – THE MAJORITY OF SWEDISH GHG EMISSIONS 33% 27% 12% 13% 15% Total GHG emissions 2015 Domestic transports Industry Power

OUTLOOK: COST OF RENEWABLES ARE GOING DOWN - ELECTRIFICATION LIKELY TO BE A SAFE BET

Source: IRENA (2016)

24.2 $/MWh30.0 $/MWh

Auction records

Page 5: THE HYBRIT PROJECT - Microsoft · INDUSTRY AND TRANSPORT – THE MAJORITY OF SWEDISH GHG EMISSIONS 33% 27% 12% 13% 15% Total GHG emissions 2015 Domestic transports Industry Power

WHY WIND AND SOLAR – THE MOST AREA EFFICIENT WAY TO HARVEST RENEWABLE ENERGY

Page 6: THE HYBRIT PROJECT - Microsoft · INDUSTRY AND TRANSPORT – THE MAJORITY OF SWEDISH GHG EMISSIONS 33% 27% 12% 13% 15% Total GHG emissions 2015 Domestic transports Industry Power

BASIC INDUSTRY AND VATTENFALL COOPERATE TO DRASTICALLY REDUCE CO2 EMISSIONS – WITH ELECTRICITY

Natural resources

Renewable energy

Raw materials

Processing

Renewable electricity (hydrogen)

High performingsteel

Renewable liquiddrop-in fuels

Iron ore

Limestone

Biomass

Wind

Hydro

Solar

High performingcement

Productswith close to no carbon footprint

Target: 70% of Sweden’sindustrial CO2 emissions

Page 7: THE HYBRIT PROJECT - Microsoft · INDUSTRY AND TRANSPORT – THE MAJORITY OF SWEDISH GHG EMISSIONS 33% 27% 12% 13% 15% Total GHG emissions 2015 Domestic transports Industry Power

TWO MAIN WAYS TO PRODUCE STEEL TODAY

96% 4%

Page 8: THE HYBRIT PROJECT - Microsoft · INDUSTRY AND TRANSPORT – THE MAJORITY OF SWEDISH GHG EMISSIONS 33% 27% 12% 13% 15% Total GHG emissions 2015 Domestic transports Industry Power

HYBRIT– HYDROGEN BREAKTHOUGH IRONMAKING TECHNOLOGY

Iron ore pellets Hydrogen Iron Water

Electricity

Page 9: THE HYBRIT PROJECT - Microsoft · INDUSTRY AND TRANSPORT – THE MAJORITY OF SWEDISH GHG EMISSIONS 33% 27% 12% 13% 15% Total GHG emissions 2015 Domestic transports Industry Power

HYBRIT: A JOINT UNDERTAKING

▪ SSAB, LKAB and Vattenfall in cooperationsince april 2016

▪ Joint venture company established summer 2017

▪ Vattenfall’s responsibility:

▪ H2 supply (generation-storage-distribution)

▪ Power system analysis

▪ Up to 15-20 TWh/yr if fully converted

Page 10: THE HYBRIT PROJECT - Microsoft · INDUSTRY AND TRANSPORT – THE MAJORITY OF SWEDISH GHG EMISSIONS 33% 27% 12% 13% 15% Total GHG emissions 2015 Domestic transports Industry Power

PROJECT PHASES OF HYBRIT

= we are here

Pre-feasibility study

2016-2017

Pilot tests

2018-2024

Demonstration

2025-2035

Page 11: THE HYBRIT PROJECT - Microsoft · INDUSTRY AND TRANSPORT – THE MAJORITY OF SWEDISH GHG EMISSIONS 33% 27% 12% 13% 15% Total GHG emissions 2015 Domestic transports Industry Power

HYDROGEN STORAGE– A POSSIBLE GAME CHANGER IN DEMAND RESPONSE

50 Hz

Power generation

Power grid

Power Consumption

H2

ConversionElHydrogen(Electrolysis)

Hydrogen storage

Hydrogen consumption

in industry

+

-

Page 12: THE HYBRIT PROJECT - Microsoft · INDUSTRY AND TRANSPORT – THE MAJORITY OF SWEDISH GHG EMISSIONS 33% 27% 12% 13% 15% Total GHG emissions 2015 Domestic transports Industry Power

Pre-refining

VATTENFALL/PREEM STRATEGIC COOPERATION -CRUCIAL FOR DECARBONISED TRANSPORTS BY 2030

Pulp millsRefining

Diesel/HVO (Drop-in)

Electricity

Wood LigninLignin

oil

10-20 pulp mill sites 1-2 refinery sites

Hydrogen production Hydrogen production

Electricity

3 Million m3/yr

(30 TWh/yr)

?

Page 13: THE HYBRIT PROJECT - Microsoft · INDUSTRY AND TRANSPORT – THE MAJORITY OF SWEDISH GHG EMISSIONS 33% 27% 12% 13% 15% Total GHG emissions 2015 Domestic transports Industry Power

CEMZERO - CEMENT PROCESS DECARBONISATIONPROJECT WITH CEMENTA (HEIDELBERG CEMENT)

CO2

CaO (Clinker)

Electrical heater

CaCO3 (Limestone)

Lime kilnPure CO2 stream(100%

concentration)

Carbon-based (renewable) fuel

Oxygen

ASU

Electricity

Air

Lime kiln

(Alternatively, ship oxygen from hydrogen production)

CO2

Pure CO2 stream(100%

concentration)

CaCO3 (Limestone)

CaO (Clinker)