HYL Solutions For Quality DRI Production In India - Tenova

HYL Solutions For Quality
DRI Production in India
Steel & Metallurgy 3rd International
Conference on Raw Materials &
Technology
Bhubaneswar, Orissa, India
July 2007

About Our New Name and Logo
HYL Technologies became part of Techint
Technologies in 2005
Techint Technologies is now called
Tenova
HYL is now Tenova HYL

Ironmaking Needs For India
Indian DRI production is chiefly coal-based
•Small plant sizes
•Environmentally problematic
•But low in capital requirements
Gas pipelines will soon make natural gas
available
Coal is still more abundant, so a cleaner
solution is needed for future growth
Iron ore is abundant; value-added product
is needed to increase revenues
The merchant DR market is very large but
HBI production requires added cost and
higher volumes
… what are the best options for India??

DRI vs. HBI
Two different forms of the same
product:
• DRI is the traditional form, in
either pellet or lump ore form
• HBI is compressed DRI
Two different uses (theoretically) :
• DRI is for onsite production and
use in EAF meltshops
• HBI is for commercial shipment
to customers worldwide, usually
by sea
HBI is the form adopted for
merchant sale of reduced iron, since
it is deemed safer for shipping and
handling

The Reality: World DR Shipments
Shipments of product historically
includes both DRI and HBI
• Shipments tend to average 50%
for either product form
• Shipments by land or sea are
also usually 50% for each
If DRI can safely be shipped, then
the cost of producing HBI has to be
justified.
Cost of producing HBI is $6-15 per
ton higher than for DRI.

Market Scenario
World HBI/DRI shipments for 2006
14.56 M tons
HBI
46%
DRI
54%
Based on experience from HYL and
other producers, DRI shipments are
mainly characterized by the
following target markets:
• For internal use in mills with own
DR plants.
• For regional export - land
transport.
• Particular shipments from own
plants with own harbors to other
own plants with own harbors.
• As merchant product from some
plants.

Metallics for the EAF
Onsite DRI production can solve or minimize reliance on fluctuating market
conditions.
Metallics have to be bought on the local and/or foreign market if not produced
onsite.
Until recently, gas-based DRI production was only available from 0.5 million
tpy and higher capacity modules.
• Advantage of higher quality DRI products
• Disadvantage in capital cost compared to coal-based plants (in India)

A Technology Solution
The HYL Process has always had independent reforming and reduction
sections
By eliminating the external reformer – the reforming, reduction and
carburization occurs within the shaft furnace
This concept, called the ZR Process, has operated succesfully since 1998

Smaller, More Efficient Plant & Process
The HYL ZR Process plant is much smaller than a conventional DR plant
• High pressure operation requires smaller equipment
• No reformer means significant savings
• Efficiencies in fabrication and construction further reduce plant investment
cost
• Equipment and structure redesign made possible the HYL Micro-Module

HYL Micro-Module DR Plant
200,000 mtpy plant size
• Advanced HYL ZR technology
• Low investment cost
• High quality, high carbon DRI

Why a Micro-Module?
For steel mills, a DRI integrated facility presents the following advantages:
• DRI would be available on site
• Liquid Steel quality is improved by using DRI
• DRI production rate can be tailored to meet the requirements of the
Minimill
For merchant suppliers:
• High carbon DRI can be produced at lower capex and operating expense
than for HBI
• High carbon DRI can be safely transported to steel mills
• Small plants can more easily satisfy local markets

Why a Micro-Module?
Simple and compact plant:
• Low maintenance cost
• Minimum manpower
requirements
Easy operation
Low operating cost:
• Flexibility in processing
wide range of cheaper
iron ores (pellets/lumps)
Uniform and flexible high DRI
quality adjusted to meet any steel
specification:
≥ 93% metallization & 2-5%
Carbon
The total absence of residual
elements makes it ideal for the
EAF:
To dilute the residuals found in
scrap.
For up to 100% of the furnace
charge.
It is also a metallic charge for
blast furnaces and foundries.

HYL ZR Process Description
The HYL ZR process includes the
following features which, when
combined, eliminate
the need for a reformer:
• Partial combustion of the
reducing gas.
CO 2
• “In situ” reforming in the lower
part of the reactor’s reduction
zone.
• Adjustable composition of the
reducing gas.
Natural
Gas
Humidifier
Fuel
H 2 O
Oxygen
Iron
Ore
DRI

Micro-Module Process Scheme
PG
Compressor
NG
CO 2
H 2 O
Humidifier
Heat
Recuperator
Iron Ore
PG Heater
Fuel
Oxygen
DRI
HYL
Reactor
Quench
Tower
In-situ In situ Reforming
CH4 + H2O CO + 3H2 CH4 + CO2 2CO + 2H2 Reduction
Fe2O3 +3CO 2Fe Fe° + 3CO2 Fe2O3 +3H2 2Fe Fe° + 3H2O 3Fe° + CH 4
Carburization
Fe 3C+ 2H2

Basis of Design
Product: Cold DRI
Metallization: 93%
Carbon: 3.5%
Hourly nominal capacity: 26 t /hr
Annual Capacity 200,000 t /year
Operating hours per year: 7,800

Expected Consumption Figures
Product Type
Cold DRI
Metallization ≥ 93%
Carbon 3.50%
Item unit
Specific
Consumption
Iron ore (t/t) 1.38
Natural gas (Gcal/t) 2.25
Electricity (kWh/t) 90
Oxygen (Nm 3 /t) 60
Water (m 3 /t) 1.0
Nitrogen (Nm 3 /t) 14
Labour (m-m/t) 0.15
Maintenance & supplies ($US/t) 3.0
Others ($US/t) 0.4

Plant Concept & Battery Limits
Utilities
Nat.Gas, Oxygen, Nitrogen,
Electricity, Industrial water,
Potable water
DR Plant Boundary
DR Plant Boundary
Reduction circuit Raw Material Handling
Reactor
Cooling circuit
Iron Ore Pellet Stockyard
Product Handling
Meltshop

HYL Micro-Module: Plant Layout
52 m.
67000
SULPHURIC
ACID ADDITION
SYSTEM
WS 546-U
PCW PUMP
CWS
533-J2
PCW PUMP
C WS 533-J1
RACK
C
SETTLING POND
WS 544-G1/2
PCW HOT WELL
WS 339-G
CLARIFIER
WS 545-G
C
WATER FILTERING
SOFTENING
C
WS 549-U
C SYSTEM
WS 553-U CO 333-E
ECW PUMPS L.P.
WS 535-J
OVERFLOWING
PUMP INSTRUMENT
WS 540-J
AIR DRYER
CUT
453-U1/2
AIR STORAGE TANK
C UT 456-F
AIR COMPRESSOR
C UT 451-J
QUENCHING
COOLING WATER
PUMPS
WS 536-J1/2
ECW PUMPS
SELECTED
SERVICES
WS 546-J1/2
FILTERED WATER
PUMPS
WS 549-U
CHEMICAL ADDING
SYSTEM
WS 522-U
EQUIPMENT/QUENCHING COOLING TOWER
WS 547-U
C
PROCESS GAS
COMPRESSOR
PG 436-J
70 90000 m.
CO 350-J
NATURAL GAS
K.O DRUM
C RG 611-F
INSTRUMENT AIR
K.O. DRUM
C UT 454-F
NITROGEN
C STORAGE TANK
UT 429-F
CO 331-J
CO 318-J
CO 317-F
CO 349-F
CO 336-C
W.C.
SWITCH GEAR
FIRST LEVEL
CO 323-E
PROCESS GAS
CCOMP.
AFTERCOOLER
PG 671-F
TRANSFORMERS
(SECOND LEVEL)
CO 341-F
CONTROL ROOM
CO 320-C
ROOM OF
UPS
CO 322-J
CO 341-C
OFFICE
KITCHEN
C
CO 324-E
CO 338-G
CO 337-G
CO 327-G
HUMIDIFIER
PG 622-E
PROCESS GAS
CQUENCH
TOWER
PG 231-E
CO 336-J
COOLING
C GAS QUENCH
TOWER CG 433-E
CO 316-C
CO 348-B CO 325-F
CO 325-J
CO 313-F CO 315-C
RACK
C
HUMIDIFIER
WATER PUMPS
PG 631-J 1/2
C PROCESS
GAS
HEATER
PG 302-B
REACTOR
C RE 221-D
DRI CONVEYOR

Reactor Charging & Tower
EL. 4.400
C
Simplified reactor tower arrangement
consisting of single-leg discharge
system and small reactor of 2.5 m ID.
CONVEYOR TO
IRON ORE BIN
11^
EL. 65.890
C
C
M.R.
M.R.
M.R.
M.R.
C
C
B A B A
C REACTOR
TOWER
C
A B
EL. 17.885
C
N.P.T. 0.000

High-C DRI vs. HBI Production Costs
Metallization %
Carbon %
High-Carbon DRI vs. HBI Production Cost Analysis
Total DRI/Saleable ratio 1.054
based on published data
1.016
Price Consump. Cost Consump. Cost
Unit
US$/unit
ENERGIRON-ZR
High-Carbon DRI
94%
4.0%
Unit/t Saleable
DRI
US$/t
Saleable DRI
Unit/t
Saleable HBI
US$/t
Saleable HBI
DR Plant
Iron ore pellets t 80.00 1.45 116.00 1.47 117.87
Lump ore t 0.00 0.00 0.00 0.00 0.00
Natural gas Gcal 3.00 2.44 7.33 2.40 7.19
Electricity kWh 0.035 121 4.24 117 4.09
Oxygen kWh 0.042 included 0.00 12.2 0.51
Water m 3
1.60 1.21 1.94 1.55 2.48
Other consumables US$ 1.14 1.70
Maintenance US$ 3.3 7.1
Labour m-h 8.00 0.12 0.95 0.15 1.20
Capital cost difference US$ 4.20
Total Saleable DRI/HBI cost FOB US$/t 134.87 146.36
Transport-Insurance cost diff. US$/t 3.00
Including transport losses CIF US$/t 2% losses 140.63 0.5% losses 147.09
Note: All Consumption figures are affected by the ratio of Total DRI/Saleable Product
Conventional
HBI Plant
93%
1.5%

High-Carbon DRI
100*Combined Carbon/Total Carbon
Combined Carbon (cementite or iron carbide - Fe3C) in
Energiron High Carbide Iron
100
95
90
85
80
75
70
2 3 4 5 6 7
% Total Carbon in DRI
A DRI with 4% Carbon contains more than 50% of
Fe3C. The high percentage of Fe3C in the DRI of the 4M
plant makes the product very stable.
DRI Analysis – 4M Plant:
Metallisation 94%
Carbon 4%
Fe° 83.0%
Fe Total 88.3%
Fe 3 C 55.1%
Gangue 6.2%
Most of the Carbon in the DRI is present as Fe3C, for a Carbon content of 4% approx. 95% of it is
present as Fe3C. Every 1% of combined Carbon corresponds to
13.5% of Fe3C.

Effect of High Carbon
High carbon content in DRI, especially in chemically combined form (iron
carbide) has significant advantages:
• For steelmaking, it provides a source of chemical energy, reducing
steelmaking costs and improving furnace yields
• As a rule of thumb each 1% C in the DRI reduces power needs by about 30
kWh/t liquid steel and the tap-to-tap time by about 2.5 min./heat.
• It increases product quality
• It is more stable than conventional DRI, making it easier to store and
transport

High Carbide Iron vs. conventional DRI
In general, High Carbide Iron is more stable than conventional DRI. This has
been proven through specific tests.
LTS O2/TON HR
6
5
4
3
2
1
0
REACTIVITY OF DRI IN CONTACT WITH AIR
HYL DRI Characteristics:
DRI -ZR
Mtz. = 94%, C = 4% (> 90% as Fe3C)
DRI -w/Reformer
Mtz. = 94%, C = 2%
0 0.5 1 1.5 2
TIME (DAYS)
HYL ZR HYL III

High Carbide Iron vs. conventional DRI
DRI samples from Ternium Hylsa 3M5 plant before and after conversion to ZR
Scheme for high carbon DRI. Note samples before were 2% - what others
consider to be “high carbon”.
LTS O2/TON HR
60
50
40
30
20
10
0
REACTIVITY OF DRI IN CONTACT WITH AIR+WATER
HYL DRI Characteristics:
DRI -ZR
Mtz. = 94%, C = 4% (> 90% as Fe3C)
DRI -w/Reformer
Mtz. = 94%, C = 2%
0 0.5 1 1.5 2
TIME (DAYS)
HYL ZR HYL III

High Carbide Iron vs. conventional DRI
These test results with salty water are of relevance due to the low risks for
High Carbide DRI overseas transportation.
Lts O2/Ton-Hr
70
60
50
40
30
20
10
0
REACTIVITY OF DRI IN CONTACT WITH
SALTY WATER + AIR
HYL ZR Salty
Water+Air
HYL III
w/Reformer
Salty
Water+Air
0 2 4 6 8 10 12
Time (Hrs)

HYL Micro-Module Supply
Electrotherm India Ltd is the exclusive supplier of the HYL Micro-Module
• Joint development of redesigned engineering
• Markets and supplies the Micro-Modules, in a capacity range of 200,000 –
400,000 mtpy
• As EPC Contractor, completes the projects on turnkey basis

Additional Electrotherm Synergy
ET also supplies electric arc and induction furnaces and other steel plant
equipment like Metal Refining Konverters (MRK), DC Plasma Ladle Refining
Furnaces, etc.
Can design and install complete “mini” integrated plants based on DRI and
electric furnaces (MF Induction Furnaces, Channel Induction Furnaces,
Electric Arc Furnaces).
Over 12 million tonnes of steel is produced on ET-supplied Induction
Furnaces.

First Efforts
The first Micro-Module has been contracted for Al Nasser Industrial
Enterprises of Abu Dhabi, UAE
• 200,000 tonnes/year
• Basic Engineering completed, Detailed Engineering in progress
• Site Mobilisation started
• Startup during 2008

HYL ZR Process
Alternative Configurations

HYL ZR Plants: Module Sizes
HYL currently offers the following standard single-reactor modules:
• Micro-Module: 200,000 tpy
• Mini-Module: 500,000 tpy
• Midi-Module: 800,000 tpy
• Mega-Module: 1,200,000 tpy
• Macro-Module: 1,600,000 tpy

Flexibility for Other Reducing Gases
Conventional reformed gas
Coke oven gas
Gases from coal gasification processes
Gases from hydrocarbon gasification
Gases from smelter gasifiers
Hydrogen
Others…

Use of Syngas from Coal Gasification
Coal Oxygen Iron Ore
Coal Gasifier
CxHy + O 2 = CO 2 + H 2O O +
H2 + CO
HYL DR Plant
Fe 2O3 + 3H2 = 2Fe + 3H2O Fe2O3 + 3CO = 2Fe + 3CO 2
DRI

HYL Process Scheme for Syngas
Coal
Gasifier
WHB &
Cooling
Gas
Conditioning
Cooler
CO 2
Removal
Gas conditioning
Sulphur
removal Plant
P. Gas
Compressor
CO 2
Expander or
compressor
H 2O
Humidifier
Fuel
HYL Module
PG Heater
Oxygen
Iron
Ore
DRI
DR
Reactor

Plant configuration with Syngas from coal gasification
Lurgi Coal
Gasifier
WHB &
Cooling
Gas
Conditioning
(Shifter)
Cooler
Stream 1 2 3 4
Concept Syngas Decarbonated
Syngas
Sulphur
removal Plant
1 2
CO 2
Absorber
Syngas
to DR
P. Gas
Compressor
CO 2
Absorber
Expander
Decarbonated
Recycling Gas
Flow-Nm 3 /t 849 632 632 1,126
Temp.-°C 40 42 15 42
Press.-kg/cm 2 g 27.5 27.0 8.5 7.7
Energy-GCal/t 2.21 2.21 2.21 ---
H 2 55 55 49
CO 25 25 16
CO 2 2 2 12
CH 4 16 16 17
N 2 1 1 5
H 2O 1 1 1
3
4
H 2O
Humidifier
Fuel
PG Heater
Iron Ore
DRI
DR
Reactor

Syngas requirements for DRI Production
Comparative Reduction Gas Analysis
Item (%
volume)
Syngas
Make-up
Syngas to
Reactor
Reduc. gas in
HYL ZR Scheme
using natural
gas with 100% insitu
reforming
H 2 39 54 50
CO 24 20 15
CH 4 + C nH m 10 18 25
CO 2 26 2 3
H 2O 0.3 4 4
(H 2+CO)/
(CO 2+H 2O) 13.3 9.3
N 2 0.2 4 3
Similarity of reducing gases at reactor inlet.
There are no technological risks because of
this similarity.
Syngas
Process
+ Fuel
9.5 GJ/t
Pellets/Lump ore
1,38 t
DR - Plant
DRI
1,0 t
Tail Gas
0 GJ/t

Consumption Figures
Syngas from coal gasification – Lurgi gasifier
Item ENERGIRON
Unit Scheme
DRI Quality
- Metallization ≥ 93%
- Carbon ≥ 2.5%
Gas quality H 2/CO
Consumption Figures
2.21
- Syngas make-up Nm 3 /t DRI 632
equivalent to: Gcal/t DRI 2.2
- Iron ore t/t DRI 1.4
- Electricity incl. Syngas expander kWh/t DRI 67
- Electricity excl. Syngas expander kWh/t DRI 88
- Oxygen (only for Lurgi-type gasifier,
which presents CH 4)
Nm 3 /t DRI 5
- Water m 3 /t DRI 1.3
- Nitrogen Nm 3 - Total Steam to integrated gasifier-
/t DRI 12
DR CO 2 removal plant (wich can be
partly produced in the gasifier system)
kg/t DRI 1000

Use of Syngas
Synergy with coal gasification technologies
Depending on particular applications, optional schemes, which can be
incorporated, are:
1. In plant electrical generation
For high-pressure gasifiers, it is possible to install a turbo expander in the
treated syngas stream before being fed to the DR module. This allow
potential power savings of about 20-40 kWh/tonne of DRI (depending on
gasifier technology), taking advantage of the gasifier high operating
pressure.
2. Carbon dioxide (CO 2 ) recovery
For sale as by-product or selective disposal/conversion.

Most Suitable Technology for Using Syngas
Comparing the basic HYL Process scheme to the one required for syngas
from coal gasification, the following main aspects related to the HYL Process
application can be easily noticed:
General process scheme
No major changes and innovations are required in the basic process
scheme. The reduction section is incorporated as it is in typical HYL ZR
plants.
Synergy with the coal gasification unit, sharing common CO 2 removal plant
components, by taking advantages of the HYL high operating pressure,
chemical absorption and low CO 2 concentration to the DR plant.
H 2 -rich gases use in DR plants
Syngas is conditioned through shifting and/or CO 2 removal to properly adjust
the H 2 /CO in the reducing gases to the HYL Process.
Optimisation of Process syngas consumption
Recycling of reducing gases, through CO 2 removal, minimizes syngas makeup.

Plant Tests
Plant experience with Syngas
HYL R & D has
simulated, in the
demonstration plant, the
gas composition of typical
Syngas, and a process
scheme for using this gas
has been developed.
The reduction process is
feasible for producing DRI
with 93-94% metallization
and ~ 1.5% carbon.
The reducing gas
temperature at the reactor
inlet about 950°C and the
treated Syngas
consumption (make–up)
for PROCESS only is
estimated to be about 625-
650 Nm 3 /ton DRI.

Conclusions
The HYL Micro-Module is a low cost, high quality option for small steel
producers or merchant suppliers to produce high quality, High Carbide Iron.
The independent operation of the HYL ZR Process has enabled this dramatic
reduction in DR plant size, while maintaining quality and reliability.
Through Electrotherm India Ltd., HYL can supply complete Micro-Module
packages.
HYL also offers ZR Plants with other reducing gas sources, depending on the
specific market.
For the Indian Subcontinent, a number of these options such as using Syngas
are viable in addition to the Micro-Module.