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August 20 th , 2015 MYTHS AND REALITIES OF CHARGING DRI/HBI IN ELECTRIC ARC FURNACES Sara Hornby Global Strategic Solutions, Inc. Jorge Madias - metallon Francisco Torre formerly Acindar (ArcelorMittal Group)

Myths and realities of charging DRI / HBI in electric arc furnaces

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Page 1: Myths and realities of charging DRI / HBI in electric arc furnaces

August 20th, 2015

MYTHS AND REALITIES OF CHARGING

DRI/HBI IN ELECTRIC ARC FURNACES

Sara Hornby – Global Strategic Solutions, Inc.

Jorge Madias - metallon

Francisco Torre – formerly Acindar (ArcelorMittal Group)

Page 2: Myths and realities of charging DRI / HBI in electric arc furnaces

MYTHS AND REALITIES OF CHARGING DRI/HBI IN EAFS

DRI/HBI production has grown exponentially

Captive plants

Mexico, Argentina, Trinidad, Venezuela

Merchant plants

Venezuela

Russia

Middle East

Venezuelan tonnage curtailment plus

NG (Shale Gas) availability & price evolution

Spurring interest in USA DRI production

• Myth – DRI use significantly increases steel cost

• Reality – Not if mills optimize operations

Page 3: Myths and realities of charging DRI / HBI in electric arc furnaces

• Presentation reviews briefly DRI production & use – Iron quality

– Stockpiling

– Transportation

– Charge Influencers

– Influence on • Operations

• Energy balance

• Performance

• Paper expands on concepts

MYTHS AND REALITIES OF CHARGING DRI/HBI IN EAFS

• Myth – DRI use significantly increases steel cost

• Reality – Not if mills optimize operations

Page 4: Myths and realities of charging DRI / HBI in electric arc furnaces

• Myth – Iron ore quality is constant

• Reality – It is diminishing

EVOLUTION OF IRON ORE QUALITY

Page 5: Myths and realities of charging DRI / HBI in electric arc furnaces

Despite auto-ignition risks:

8.6MTe DRI vs. 5.7MTe HBI shipped in 2013

Venezuelan issues - US shipments dropped: 1.8M to 0.5MTe

DRI is usually shipped shorter distances than HBI

Acindar and Nucor do import DRI from Trinidad

Merchant DRI and HBI production world map - IIMA 2008 LISCO 0.65MTe HBI, 1.1MTe DRI

LGOK 2.3MTe HBI

Jindal Shadeed 1.5MTe DRI/HBI

India 0.9MTe DRI/HBI + 20MTe kiln

Venezuela 6.9MTe HBI but 2013 2.8 MTe

Trinidad 3.6MTe DRI

Qatar 1.5MTe DRI/HBI

Asia 2.44MTe DRI/HBI

RISK OF SELF-COMBUSTION

Myth – DRI cannot be shipped distances Reality – More DRI than HBI is shipped today

Page 6: Myths and realities of charging DRI / HBI in electric arc furnaces

RISK OF SELF-COMBUSTION

• Myth – DRI cannot be shipped distances

• Reality – More DRI than HBI is shipped today

Page 7: Myths and realities of charging DRI / HBI in electric arc furnaces

CHARGING – OPTIMUM CHARGE DESIGN

• Myth – DRI use increases liquid steel cost

• Reality – Not if mills use VIU to define charge mixes

Page 8: Myths and realities of charging DRI / HBI in electric arc furnaces

CHARGING – OPTIMUM CHARGE DESIGN

• Myth – DRI use increases liquid steel cost

• Reality – Not if mills use VIU to define charge mixes

%DRI 100% Scrap 25% 30% 35% 40% 45% 50%

kWh/ton 421 375 377 380 393 399 408

TTT (mins) 61 52 53 54 55 57 59

Page 9: Myths and realities of charging DRI / HBI in electric arc furnaces

CHARGING – OPTIMUM CHARGE DESIGN

• Myth – DRI use increases liquid steel cost

• Reality – Not if mills use VIU to define charge mixes

Page 10: Myths and realities of charging DRI / HBI in electric arc furnaces

CHARGING – CHARGING METHODOLOGY

• Myth – DRI use increases liquid steel cost

• Reality – Not if mills use VIU to define charge mixes

DRI Charging Method kWh/t TTT

(mins)

33%DRI – 2 bucket charge 426 58

33%DRI – continuous charge 380 54

43%; 33% cont., 10% charge 390 55

43%DRI - continuous 392 58

Page 11: Myths and realities of charging DRI / HBI in electric arc furnaces

CHARGING – CHARGING METHODOLOGY

• Myth – DRI use increases liquid steel cost

• Reality – Not if mills use VIU to define charge mixes

% Carbon in DRI (Te = metric

Tonne) 2.08%

AM MX -

3.10%

Projected

3.10% HDRI

Charge %DRI/Scrap (TeDRI/Tescrap) 94.4 / 5.6 (252 / 15)

DRI Temperature (oC) 25 700

Scrap Temperature (oC) 25

% Metallization 95

% Yield 90

Power on Time (minutes) 66 57 38.9

Tap to Tap Time (minutes) 80 71 53.9

Total Energy (kWh/Tels) 585.9 527 (-58.9) 419.1 (-166.8)

Productivity (Te/hour) 163 177 (+14) 222 (+59)

Savings @ $0.035/kWh

@ $0.050/kWh

4.64

5.53

9.27

12.14

Value of

Temperature

& %C

Page 12: Myths and realities of charging DRI / HBI in electric arc furnaces

CHARGING – CHARGING METHODOLOGY

• Myth – DRI use increases liquid steel cost

• Reality – Not if mills use VIU to define charge mixes

Page 13: Myths and realities of charging DRI / HBI in electric arc furnaces

CARBON, METALLIZATION, SILICA

Myth – DRI is detrimental to EAF operations Reality – Not if Standard Operating Procedures (SOPs) are optimized

Page 14: Myths and realities of charging DRI / HBI in electric arc furnaces

Myth – DRI is detrimental to EAF operations Reality – Not if SOPs are optimized

CARBON, METALLIZATION, SILICA

Page 15: Myths and realities of charging DRI / HBI in electric arc furnaces

CARBON, METALLIZATION, SILICA

Myth – DRI is detrimental to EAF operations Reality – Not if SOPs are optimized

DRI %C %FeO 92.5% Met 95% Met

1.8% 0.30% CE 0.75% CE

2.4% 0.95% CE 1.45% CE

2.0% 20% 0.90% CE 1.45% CE

2.0% 35% 1.25% CE 1.75% CE

Page 16: Myths and realities of charging DRI / HBI in electric arc furnaces

CARBON, METALLIZATION, SILICA

Myth – DRI is detrimental to EAF operations Reality – Not if SOPs are optimized

Cost in US$/Tonne HBI Added to the EAF

Gangue + Fluxes + Additions Yield Loss Slag Cost Total

SiO2 / 0.1% 0.156 0.062 0.135 0.015 0.368

Al2O3 / 0.1% 0.114 0.062 0.135 0.015 0.326

CaO / 0.1% (0.075) 0.030 0.135 0.001 0.091

MgO / 0.1% (0.071) 0.028 0.135 0.001 0.093

AM Mexico Total Fe %FeO %C %Gangue

DRI 90.80 6.77 2.08 4.47

Ave. Scrap 93.85 1.80 0.47 4.25

Page 17: Myths and realities of charging DRI / HBI in electric arc furnaces

CARBON, METALLIZATION, SILICA

Myth – DRI is detrimental to EAF operations Reality – Not if SOPs are optimized

Benefits Category General Acindar Ternium

Guerrero

KWh/Tonne liquid steel (kWh/Tels) 10 to 25 25 12

Refractory savings/Tels 0.425kg $0.70

Electrode savings/Tels 0.0375kg 0.15kg

Yield Increase 0.3% to 2% 1% 0.4%

Carbon savings/Tels 0 to 4kg 5.8kg

Productivity Increase Up to 5% Up to 5%

Cost Reduction (VIU)/Tels $0.68 to $2.96 $6.00 to $8.09 $5.00

Increase in Metallization 92% to 93% 93.5% to 94.5%

Page 18: Myths and realities of charging DRI / HBI in electric arc furnaces

• Myth – DRI does not add chemical energy to the EAF

• Reality - DRI’s in-situ C is a more efficient energy source

CHEMICAL ENERGY APPLIED TO DRI/HBI CHARGES

Page 19: Myths and realities of charging DRI / HBI in electric arc furnaces

CHEMICAL ENERGY APPLIED TO DRI/HBI CHARGES

• Myth – DRI does not add chemical energy to the EAF

• Reality - DRI’s in-situ C is a more efficient energy source

Page 20: Myths and realities of charging DRI / HBI in electric arc furnaces

CONCLUSIONS – DRI/HBI is here to stay!

• Myth – DRI is used only where scrap quality is bad, availability low or high quality steel predicates

• Reality – Metallics’ VIU, optimization of charges and SOPs, lower cost DRI production, promotes increased use