CII EXIM BANK CONCLAVE ON INDIA AFRICA PROJECT PARTNERSHIP

ENERGY EFFICIENT TECHNOLOGIES IN MANUFACTURING UNITS

Role of Energy Efficiency in small scale steel industrial units in India

A.C.R. DAS Industrial Advisor , Ministry of Steel Government of India
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UNDP/GEF- Project (Steel)

INTRODUCTION

World steel production in 2011 was 1,527 million tonne and India produced 72 mt. 4th from the top of the list (China, Japan, USA) Decadal growth rate in India varies in the range of 8-10% India will reach to 2nd position ie; next to China in steel production in the terminal year of 12th plan and expected to produce 200 mt by 2020. Production (finished steel) from private sector is 80% in 2010-2011. Out of which, the SME sector contributes 46% The above indicates a tremendous growth potential of steel sector in India. With the increase in production. energy consumptions and GHG emissions will also increase correspondingly. As per available information, global carbon emission at present is around 25.2 billion tonne /year, out of which Indias contribution is around 1.0 billion tonnes / year (4%). The steel sector contributes 150 million tonnes / year (15%), out of which SRRM sector contributes 16 million tonnes / year (11%).
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UNDP/GEF- Project (Steel)

SME STEEL SECTOR IN INDIA

Direct Reduction Iron Units (DRI) 420 Units Induction Furnace 1174 Units Electric Arc Furnace (EAF) 48 Units Re-rolling Mills- 1794 Units The Energy Efficiency of Indian Steel Industry is improving with adoption of energy efficient technologies and practices. Ministry of Steel in collaboration with UNDP/GEF took up an initiative to implement Energy Efficiency Improvement Project in the Steel Re-rolling Mill Sector by intervention of Energy Efficient Technology and removal of barriers in 2004

PROJECT GOALS & OBJECTIVES

The global objective is to reduce GHG emissions by improving end-use energy efficiency levels in SRRM sector. The immediate objective is to accelerate penetration of environmentally sustainable energy efficient technologies. Remove key-barriers to energy efficiency measures in the sector. Enabling environment for the industry to adopt energy efficient, economically viable & environmentally sound technologies. Setting up Model units and implement technology packages in major geographic clusters of SRRM. Emphasis on Technical Assistance for sustaining Best Practices Success of Model units along with removal of barriers is expected to promote large scale replication of technology package in SRRM sector and induce policy changes.

UNDP/GEF- Project (Steel)

Energy Efficient Technologies for Steel Re-Rolling Mill Sector

High-end Technologies -Energy Saving: 30-40% Low-end Technologies - Energy Saving : 2025%

Regenerative burner system

High Efficiency Recuperator with improved furnace design Change of lump coal to coal producer gas as fuel

Hot charging of Continuous Cast Billet

Top-and-Bottom firing system in reheating furnace Oxy-fuel combustion system in reheating furnace Walking hearth/Beam furnace

Technology for use of pulverized coal as fuel

Use of Bio-mass gas as fuel

Coal Bed Methane

UNDP/GEF- Project (Steel)

Benefits to Model Units

Technical Benefits
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Identification of existing problems Development of SOP & SMP Implementation of ISO 9001 and ISO 14001
Electrics

Electrical Energy Audit

Implementation of 5 S-Lean Manufacturing Performance Improvement Training

UNIT

Evaluation of Roll Pass Design

Capital Subsidy of 25% investment subject to max of 30.0 /75.0 lakhs
Financial Benefits

Reimbursement of the cost of consultancy upto a maximum of Rs. 5,00,000

UNDP/GEF- Project (Steel)

PROJECT TARGETS
Consumption of energy & other important performance parameters of re-rolling mills (Model Units) Unit Status in the beginning of the Project Target / Expected Outcome after project completion <30

Oil consumption in the reheating furnace

Lit/T

42-45

Coal consumption (Pulverized)

Gas consumption

Kg/T
Nm3/T

80-120
48

45-65
30

Productivity of furnace
Scale Loss Power consumption Yield Utilization of mill

Kg/m2/h
% kWh/T % %

120-220
2.5-3.5 90-120 89-93 65-70

300-350
<1 60-80 94-95 80-85
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MAJOR ACHIEVEMENTS
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Almost 50 Model units have been selected in all over the country out of which 25 units have been commissioned with Energy Efficient Technology & Design Suggested by our project team.

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With the Post-Commissioning data available, following reduction has been achieving Furnace Oil : 20-25% Pulverized Coal : 15-45% CO2 emission : 4000 10,000 t/annum. in each unit.
68,000 Training Manuals were prepared in association with SAIL(MTI) and all these manuals have been distributed to 1000, SRRM units in the country. Class Room training program were held in various clusters, in which more than 2500 people were trained. On-job training programs have been conducted in 22 Model units covering all clusters, almost 20 persons in each program participated. Awareness CD has been prepared on 1o Technology Packages & 19 Eco-tech options for Rolling mills. 1200 copies were made and distributed.
UNDP/GEF- Project (Steel)
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25 National Awareness Workshops are held so far, in different parts of the country.
5S lean manufacturing system in 10 Model units have been implemented and 10 more units will be taken up this year. This activity is a part of Best Practice Programme. SOP & SMP Base documents were prepared and implemented in 5 Model Units. 1000 CD has been sent to SRRM units. Electrical Energy audit was conducted in 20 Model Units and the reports submitted by the consultant. Feasibility Study was carried out in 20 Pipeline units and reports submitted by the consultant. The M/s Pulkit Steel, Pondichery a Model unit is the first steel Rolling mill in India who installed a gasifier based on Biomass and has successfully commissioned on 9th July, 2009. It is noted that about 8,000t CO2 emissions will be reduced annually from his unit. Subsequently, several SRRM units are replicating this technology.

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UNDP/GEF- Project (Steel)

CONCLUSION
BASED ON THE DATA AVAILABLE, IT IS FOUND THAT THE PROJECT IS MOVING IN THE RIGHT DIRECTION AND WILL ACHIEVE THE TARGET OF CO2 REDUCTION AS ENVISAGED IN THE PROJECT DOCUMENT AMOUNTING TO ABOUT 36 MILLION TONNES OVER THE PROJECT LIFE CYCLE OF 20 YEARS WITH 40% REPLICATION

UNDP/GEF- Project (Steel)

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THANK YOU

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