The Asia-Pacific Partnership on Clean Development and Climate

4th Steel Task Force WorkShop 0

The
The FINEX
FINEX®®
Innovative
Innovative Ironmaking
Ironmaking Process
Process

April 16, 2008

Overview 1

■ What is FINEX ®?

■ How does FINEX ® perform?

■ Why FINEX ®?
Blast Furnace vs. FINEX 2

Blast Furnace FINEX

Fine Ore Coking Coal Non-Coking Coal Fine Ore

Sinter Plant Coke Oven

Sinter Coke
Fluidized-Bed
Reactors
Coal Briquetter HCI (Hot Compacted Iron)

Blast Melter-
Furnace Gasifier
Hot Metal Hot Metal
FINEX Process Development 3

150 T/D Pilot Plant 0.6 MT/Y Demo Plant 1.5 MT/Y Plant

< 1999 ~ > < 2003 ~ > < 2007 ~ >

FINEX Process Flow 4

Fine Ore Non-Coking Coal

Hot DRI Coal

R4 Compactor Briquetter
R3
R2
CO2
Fluidized-bed R1 Power Plant
Removal
Reactors

PCI
Melter
Gasifier
O2
Oxygen Plant
Overview 5

■ What is FINEX ®?

■ How does FINEX ® perform?

■ Why FINEX ®?
FINEX Demo Plant • 600,000 T/Y 6

Operation Start : June, 2003

FINEX Demo Plant Operational Performance 7

2003 2004 2005 2006 2007

7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 12 1 2 3 4
Coal CO2 PCI
3000 Briquette Removal 1250

2500 1150

Coal Rate (kg/t)

(T/D)

2000 1,800 T/D (0.6MT) 1050

Production

1500 950

1000 850

500 750

*Pohang 1BF (1.0 mt/y): 750 kg/thm (PCI 130 kg/thm) FINEX COREX
FINEX Plant • 1.5 MT/Y 8

Operation Start : April, 2007

 1.5 M FINEX Plant Operational Performance 9

4400 900
4300 t/d (1.5M t/y)

4100 Coal 850

COAL RATE (k g/THM)

PRODUCTION (T/D)

3800 800

3500 750

3200 700

’07/5/1 6/1 7/1 8/1 9/1 10/1 11/1 12/1 ’08/1/1 2/1 3/1 4/1
1.5M FINEX Plant Operational Performance 10

Indices Target Actual

as of Mar. 2008

t/y ≥ 1.5 M 1.45 M

Production
t/d ≥ 4,300 4,250

Availability % ≥ 95 94

Coal Rate kg/thm ≤ 750 732

PCI kg/thm ≥ 250 150

[S] % ≤ 0.03 0.03

Hot Metal
[Si] % ≤ 0.5 0.65
FINEX Process Reliability 11

Days of Continuous
FBR Operation
Fine Ore
350
300
R4 300
R3 250 200
R2 Stick-
Stick-and
and 200
Clog-Free
Clog-Free 150
Cyclone
FBR
FBROperation
Operation 100 70 83
Stand
R1
Pipe 37
50

1 st 2 nd 1 st 2 nd
Distributor
2005 2006 2007~2008
Gas
Demo Plant 1.5M Plant

Plant availability is now on par with blast furnaces

FINEX Hot Metal Quality 12

Mar. 2008

Pohang FINEX
BF4 1.5M
Coal
Daily Production 8,851 4,250
HCI HCI
Daily Tapping Times 9.0 8.4
Temp (°C) 1,514 1,520
Hot [C] (%) 4.5 4.5
Metal [Si] (%) 0.53 0.65
[S] (%) 0.027 0.034
O2+ PCI
Basicity 1.21 1.20
Slag (Al2 O 3 ) (%) 15.62 18.03 Hot Metal

Volume (kg/thm) 298 290

FINEX Coal Rate 13

CO 2 Higher
Higher Gas
Gas
Removal Utilization
Utilization by
by
Off-Gas
Off-Gas Recycling
Recycling
Recycled with
with CO
CO22 Removal
Removal
Gas 30%
Lower
Lower Coal
Coal
Coal Gas 70%
Consumption
Consumption
Coal 65% <700
<700kg/thm
kg/thm

Better
Better Heat
Heat
Exchange
Exchange inin Bed
Bed
by
by Coal
Coal Injection
Injection
through
through Tuyeres
Tuyeres
PCI 35%

*Pohang 4BF (3.0 mt/y): 720 kg/thm

CO2 Removal Operation 14

Off-Gas
Power
Plant

Tail Gas
(CO2 : 66%)
CO
CO22
Removal
Removal
Excess
Gas
Product Gas
(CO2 : 3%)

Reducing Gas
(CO2 : 7%)
M/G Gas
(CO2 : 9%)

Coal Consumption reduced & Overall Energy Efficiency enhanced

CO2 Removal Equipment 15

FINEX Off Gas Typical Performance

( 0.7~1.0 bar.g )
Power Composition (%)
Plant Gas
Demister CO CO2 H2 N2
Tar Filter
Off-Gas 36 33 15 11

Product Gas 53 3 25 18
Recycle
Compressor Tail Gas 17 66 4 3
Tail Gas
(0.15 bar.g)
Maintenance
Tar Filter
Item Period

Tar Cleaning (Filter, Cooler) 3 Month

PSA Unit
Compressor Overhaul 3 year

Product Gas PSA Absorbant Change 3 year

to FB Reactors
( 6 bar.g)
Energy Gain by CO2 Removal 16

Off-Gas
710 Mcal/t-HM
Energy Balance

Unit: Mcal/tHM
Electric Energy
for Gas Compressing
Energy Use for 170 Mcal/t-HM Product Gas 1,190
Reduction
480 Mcal/t-HM
Recovery Off Gas 710

Recovery 480
Product Gas
1190 Mcal/t-HM
Consumption Electricity 170

Gain 310

Net Energy Gain by CO 2 Removal : 310 Mcal/t-HM

Overview 17

■ What is FINEX ®?

■ How does FINEX ® perform?

■ Why FINEX ®?
Advantages of FINEX Technology 18

Flexibility in Raw Materials

Elimination of sintering & coke-making processes
No blending of ore & coal
Use of Low-grade ore & low-ranked coal

Easy & Flexible Operation

Independent control of reduction & melting processes
Easy & hassle-free operational control

Environmental Friendliness
Far less emission of SOx, NOx & dust
Applicability to the CO2 sequestration

Cost Competitiveness
Lower cost in both capital investment & operation vs. BF
Environmental Friendliness 19

Process Emission
Fine Ore [S] SOx NOx Dust
Flux
100
BF
Desulfurization
Desulfurization
Sinter
in
in Fluidized-Bed
Fluidized-Bed 50 28%
Reactors
Reactors
Coke
3% 1%
CaS 0
into Flux BF FINEX BF FINEX BF FINEX
No
No Atmospheric
Atmospheric
Combustion
Combustion like
like Applying environmental B.A.T. for BF
Reduction Sinter
Sinter and Hot Stove
and Hot Stove
Coal [S] Gas SOx NOx Dust
100
BF
H2 S 52%
in Gas Ironmaking
Ironmaking without
without
Sinter and Coke
Sinter and Coke 50 Sinter
Making
Making Processes
Processes 19%
10%
Oxygen Coke
0
BF FINEX BF FINEX BF FINEX
B.A.T. : Best Available Technology
CO2 Mitigation 20

Power Plant

CO2 Sequestration
at Supercritical Sate
CO
CO22 Tail Gas CO
CO22 Purification
Purification
Removal
Removal (( CO
CO22 >> 95%
95%))

Geologic CO2 Storage

(e.g. Natural Gas Well, etc.)

CO 2 Emission
96%
100 April, 2008

50
100 94 56

0
BF FINEX FINEX
World Target after
Average Sequestration
Comparison of Energy Balance – BF vs. FINEX 21

BF (Green Field 3.0MT) FINEX (Green Field 1.5MT×2)

Coal Coal
(720 kg/t-p) (720 kg/t-p)

Cokes / Sinter / BF FINEX

48MWh BFG/COG FOG

92 MWh 95MWh

CCPP ( η : 40% ) 38MWh

CCPP ( η : 45% )
180Mwh ASU
297Mwh

TRT TRT
CDQ 94MWh ASU / HRSG 110 MWh
17MWh Hot Stove 15MWh

Electric Power Electric Power

(113 MWh) (125Mwh)
Cost Effectiveness 22

Production Basis: 3.0 mt/y (Oxygen and power plants are included in comparison)

100
100

80 85

50

0
Blast Furnace FINEX FINEX
Route Capital Cost Operating Cost
 23

T hank Y ou