"How will employment and labor markets develop in the context

of a transition towards a low-carbon economy?", Brussels, 1 March 2011 1

Update on the ULCOS program

Jean-Pierre Birat, ArcelorMittal, European Coordinator

of the ULCOS program

Ultra Low CO2 Steelmaking

www.ulcos.org

"How will employment and labor markets develop in the context

of a transition towards a low-carbon economy?", Brussels, 1 March 2011 2

Outline

• timeline and perspective

• the ULCOS process solutions

• ULCOS-BF

• HIsarna

• ULCORED

• ULCOwin & ULCOlysis

• conclusions

"How will employment and labor markets develop in the context

of a transition towards a low-carbon economy?", Brussels, 1 March 2011 3

Outline

• timeline and perspective

• the ULCOS process solutions

• ULCOS-BF

• HIsarna

• ULCORED

• ULCOwin & ULCOlysis

• conclusions

"How will employment and labor markets develop in the context

of a transition towards a low-carbon economy?", Brussels, 1 March 2011 4

Timeline

Rio

Kyoto

ETS in EU

2013

2020

2050

1st papers

from Steel

IISI

working groups

ULCOS II

ULCOS II pilotsULCOS II deployment

ULCOS

worldsteel CO2 BP

ULCOS II demonstrators

"How will employment and labor markets develop in the context

of a transition towards a low-carbon economy?", Brussels, 1 March 2011 5

Outline

• timeline and perspective

• the ULCOS process solutions

• ULCOS-BF

• HIsarna

• ULCORED

• ULCOwin & ULCOlysis

• conclusions

"How will employment and labor markets develop in the context

of a transition towards a low-carbon economy?", Brussels, 1 March 2011 6

ULCOS process solutions…

Coal & sustainable biomass Natural gas Electricity

Revamped BF Greenfield Revamped DR Greenfield

ULCOS-BF HIsarna ULCORED ULCOWIN

ULCOLYSIS

Pilot tests (1.5 t/h)

Demonstration

under way

Pilot plant (8 t/h)

start-up 2010

Pilot plant (1 t/h)

to be erected in

2011 ?

Laboratory

"How will employment and labor markets develop in the context

of a transition towards a low-carbon economy?", Brussels, 1 March 2011 7

ULCOS-BF with >> 50% reduction

0,00

0,10

0,20

0,30

0,40

0,50

0,60

0,70

0,80

0,90

1,00

1,10

ULCOS-

BF

sinter

plant

reheating

furnace

steel

plant

hot

stoves

lime kiln coke

ovens

compared to ULCOS-BF Mill

emissions

compared to emissions of the

benchmark Mill

Rate of CO2 capture (each bar means

adding one more plant to the Steel Mill)Cumulated

capture rate100%

capture

"How will employment and labor markets develop in the context

of a transition towards a low-carbon economy?", Brussels, 1 March 2011 8

Virgin & recycling routes…

0

500

1000

1500

2000

2500

3000

2010 2050 trend 2050 LC

Steel production (Mt/yr)

CO2 generation (Mt/yr)

today

2050

BAU trendMt/yr 2050

low-carbon

economy

socio-economic projections

"How will employment and labor markets develop in the context

of a transition towards a low-carbon economy?", Brussels, 1 March 2011 9

Energy (GJ/tHRC)

0,0

5,0

10,0

15,0

20,0

25,0

BBF

BBF+C

CS(P

P)

TGR-B

F V4

HIS

ARNA

HIS

ARNA+C

CS

HIS

ARNA+E

AF

HIS

ARNA+C

CS+E

AF

MID

REX

MID

REX+C

CS

ULC

ORED

ULC

OW

IN

ULC

OLY

SIS

GJ/t

HR

C

Coals, oil and other C-rich sources Natural gas and biomass gas Electricity and energy vectors (steam, H2)

"How will employment and labor markets develop in the context

of a transition towards a low-carbon economy?", Brussels, 1 March 2011 10

CO2 reduction (tCO2/tHRC)

-2,0

-1,5

-1,0

-0,5

0,0

0,5

1,0

1,5

2,0

BBF

BBF+C

CS(P

P)

TGR-B

F V4

HIS

ARNA

HIS

ARNA+C

CS

HIS

ARNA+E

AF

HIS

ARNA+C

CS+E

AF

MID

REX

MID

REX+C

CS

ULC

ORED

ULC

OW

IN

ULC

OLY

SIS

t C

O2/t

HR

C

Scope 1 Scope 2 CO2 captured

"How will employment and labor markets develop in the context

of a transition towards a low-carbon economy?", Brussels, 1 March 2011 11

Operating costs (index)

0

20

40

60

80

100

120

140

BB

F

BB

F+

CC

S(P

P)

TG

RB

F V

4

HIS

AR

NA

HIS

AR

NA

+E

AF

HIS

AR

NA

+C

CS

HIS

AR

NA

+C

CS

+E

AF

ULC

OR

ED

MID

RE

X

MID

RE

X +

CC

S

ULC

OW

IN

ULC

OLY

SIS

CO2 release

Raw material and energy

Fix

"How will employment and labor markets develop in the context

of a transition towards a low-carbon economy?", Brussels, 1 March 2011 12

Cost of avoided CO2

0,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

90,0

100,0

BB

F

BB

F+

CC

S(P

P)

TG

R-B

F V

4

HIS

AR

NA

HIS

AR

NA

+C

CS

HIS

AR

NA

+EA

F

HIS

+C

CS+

EA

F

MID

REX

MID

REX+

CC

S

ULC

OR

ED

ULC

OW

IN

ULC

OLYSIS

2010

index

"How will employment and labor markets develop in the context

of a transition towards a low-carbon economy?", Brussels, 1 March 2011 13

Productivity

• all ULCOS solutions expected to operate

at higher productivity than the

conventional process they substitute for,

e.g. 30% for ULCOS-BF

"How will employment and labor markets develop in the context

of a transition towards a low-carbon economy?", Brussels, 1 March 2011 14

ULCOS II consortium

MoU stage

"How will employment and labor markets develop in the context

of a transition towards a low-carbon economy?", Brussels, 1 March 2011 15

Outline

• timeline and perspective

• the ULCOS process solutions

• ULCOS-BF

• HIsarna

• ULCORED

• ULCOwin & ULCOlysis

• conclusions

"How will employment and labor markets develop in the context

of a transition towards a low-carbon economy?", Brussels, 1 March 2011 16

ULCOS-BF

CO2

COO2

Underground

storage of CO2

0.8 t/tsteel

-100 kg coke/tsteel

CO2 emissions of the steel plant: - 60%

"How will employment and labor markets develop in the context

of a transition towards a low-carbon economy?", Brussels, 1 March 2011 17

ULCOS-BF project

CO2 storage

ULCOS I3 projets RFCS + 1 FP

Eisenhüttenstadt-EHS

Florange

"How will employment and labor markets develop in the context

of a transition towards a low-carbon economy?", Brussels, 1 March 2011 18

CO2 storage

Storage in a deep saline aquifer, with pipe

transport of dense CO2 from capture site.

"How will employment and labor markets develop in the context

of a transition towards a low-carbon economy?", Brussels, 1 March 2011 19

ULCOS-BF: key figuresTimeline:

• Eisenhüttenstadt project approved December 2010

• NER-300 proposal filed in Paris on 9 February 2011, to cover the Florange demonstrator

• Consortium Agreement under final stage of negotiation among members

• start up 2013 in Germany and 2014 (BF) - 2015 (Storage) in France. 10 years of operation in France planned for 2016-2025

• permitting process launched for storage; FEED studies for the BF

Important milestones

• exploration permit approved

• start of site geophysical

exploration

• FEED studies for BF & pipeline

• filing of NER-300 in Brussels

• answer from the EU, etc.

Targets (demonstrator):

• 700,000 t/yr stored for 10 years

• 94% capture rate

Budgets:

• still a regret solution…

"How will employment and labor markets develop in the context

of a transition towards a low-carbon economy?", Brussels, 1 March 2011 20

Outline

• timeline and perspective

• the ULCOS process solutions

• ULCOS-BF

• HIsarna (pilot: 2011-2014)

• ULCORED

• ULCOwin & ULCOlysis

• conclusions

"How will employment and labor markets develop in the context

of a transition towards a low-carbon economy?", Brussels, 1 March 2011 21

iron

Iron ore

Coal

Oxygen

Oxygen

CCF cyclone

(CORUS)

Smelter

(HIsmelt)

HIsarnaCCS

"How will employment and labor markets develop in the context

of a transition towards a low-carbon economy?", Brussels, 1 March 2011 22

HIsarna

"How will employment and labor markets develop in the context

of a transition towards a low-carbon economy?", Brussels, 1 March 2011 23

Outline

• timeline and perspective

• the ULCOS process solutions

• ULCOS-BF

• HIsarna

• ULCORED

• ULCOwin & ULCOlysis

• conclusions

"How will employment and labor markets develop in the context

of a transition towards a low-carbon economy?", Brussels, 1 March 2011 24

ULCORED

• EDRP* planned by LKAB in Luleå

(1 t/hr)

• ULCORED features implemented

within an RFCS project to be

proposed in 2012 at the earliest

* Experimental Direct Reduction Pilot

"How will employment and labor markets develop in the context

of a transition towards a low-carbon economy?", Brussels, 1 March 2011 25

Outline

• timeline and perspective

• the ULCOS process solutions

• ULCOS-BF

• HIsarna

• ULCORED

• ULCOwin & ULCOlysis

• conclusions

"How will employment and labor markets develop in the context

of a transition towards a low-carbon economy?", Brussels, 1 March 2011 26

ULCOwin

electrowinning cell • 4 kg samples

• pure Fe + O2 evolution

• 110 °C (=room temperature

electroreduction)

• water alkaline electrolyte

"How will employment and labor markets develop in the context

of a transition towards a low-carbon economy?", Brussels, 1 March 2011 27

ULCOlysis

• 1 g samples

• pure Fe + O2 evolution

• 1550 °C = pyroelectrolysis

• slag electrolyte

"How will employment and labor markets develop in the context

of a transition towards a low-carbon economy?", Brussels, 1 March 2011 28

Outline

• timeline and perspective

• the ULCOS process solutions

• ULCOS-BF

• HIsarna

• ULCORED

• ULCOwin & ULCOlysis

• conclusions

"How will employment and labor markets develop in the context

of a transition towards a low-carbon economy?", Brussels, 1 March 2011 29

Conclusion: innovation & risks

• if the demonstrators are successful…

• …and if the economic conditions for implementing the ULCOS routes are right…

• … then deployment should follow up for most of the Steel Mills in Europe, and, eventually in the world, for the Steel Industry to meet its post-Kyoto targets

• however, ULCOS was a research initiative, has turned into a demonstration initiative but it IS NOT a plan for reducing the emissions of the Steel sector!

"How will employment and labor markets develop in the context

of a transition towards a low-carbon economy?", Brussels, 1 March 2011 30

Thank you!