In its October 2016 “Nerve of Steel” report, the Carbon Disclosure Project, or CDP, found that steel companies had quite a ways to go in order to meet targets set by the Paris Agreement – the industry as a whole would need to reduce emissions by 70% by 2050. While their report found that most companies were not doing enough to meet these targets, some companies, like POSCO, have been forging ahead with new technologies for more sustainable production.

Why are Reductions in Carbon Emissions Important?

In 2015, nations around the world met at the United Nations Climate Change Conference to negotiate the Paris Agreement. The goals of the Paris Agreement were to keep global warming below 2 degrees Celsius while also calling for zero net GHG emissions in the second half of the 21st century.

A 2-degree increase in global temperature is generally agreed upon by scientists to be the tipping point at which numerous problems arise including droughts, floods, and reductions in crop yields. However, many scientists also believe that if carbon emissions are not curbed quickly, and drastically, temperatures could rise by almost 6 degrees Celsius this century.

Due to the increasing urgency of curbing emissions, governments, businesses, and policymakers around the globe are working to find ways to cut GHG. To help inform this process, CDP transforms environmental performance data from cities, states, and businesses into detailed analysis on critical environmental risks, opportunities and impacts.

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Their “Nerves of Steel” report on the steel industry’s work to cut GHG emissions found few bright spots. The industry as a whole continues to be the main contributor of global carbon emissions with only a few companies, like POSCO, stepping forward to create more sustainable steel production technologies.    

Objectives and Findings of the CDP Report

CDP’s “Nerves of Steel” report found that overall progress in reducing emissions and energy use was limited and uneven across the industry. They found that in the past seven years more companies had increased their emissions intensity and energy intensity than had reduced them. Because of this lack of progress, they found that the steel industry was responsible for between 6-7% of total global emissions. Also, in order to meet Paris Agreement objectives, the industry as a whole would need to reduce emissions by a staggering 70% by 2050.  

Drew Fryer, a Senior Analyst at Investor Research at CDP noted that “The steel industry will have to play a huge part in achieving the 2-degree scenario laid out in the Paris Agreement. However, there has been no progress in reducing its emissions over the past decade. Steelmakers need to prioritize funding of a technology transformation to reduce emissions in order to ensure targets are met.”

Despite the grim outlook on the industry as a whole, CDP did highlight several companies that were working hard toward creating more sustainable steel production technology – among those top performers were POSCO, SSAB, ThyssenKrupp, and Hyundai Steel. See the table below for a full listing of CPD’s rankings.

How POSCO is Leading the Steel Industry in Sustainable Steel Production

CDP ranked POSCO first among all steelmakers for its work to produce steel through more sustainable processes. They noted that POSCO performed strongly across most key areas with below average emissions intensity. Also, unlike several other steelmakers, POSCO demonstrated an ability to reduce its emissions intensity significantly in recent years.

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While the report placed a strong focus on the industry not focusing on targets to limit global warming (six out of the 14 companies did not even publish targets beyond 2016), CDP noted that POSCO’s targets remain consistent with the goal to cut emissions significantly enough to reach the Paris Agreement objectives.

In particular, CDP highlighted POSCO’s FINEX technology that was developed and commercialized to provide incremental emissions reductions from steelmaking by eliminating sintering and coke oven processes. They also noted that the technology has the potential to be combined with carbon capture & storage (CCS) due to high concentrations of CO2 in waste gases, POSCO’s other active projects to separate and capture CO2, and their early stage work on carbon capture & use (CCU) and hydrogen-based steelmaking.

POSCO’s technological advancements in sustainable steel production have helped it reduce emissions while becoming more competitive.

In addition to these developments, POSCO continues its work to make its factories run smarter and more efficiently. AI and IIoT technology are helping to improve product quality for POSCO’s customers while also reducing waste and pollution. In addition, to be recognized by CDP as a leader in the steel industry, POSCO’s efforts have also been recognized by the Corporate Knights’ Global 100 list (#1 in Metals and Mining), and they have also been listed on the Dow Jones Sustainability Index for 12 straight years.

As the world works toward hitting emission reduction targets, governments, policymakers, and industry leaders must step forward to lead. POSCO’s work to limit emissions has proven that more sustainable production can also be more competitive.

*Cover image courtesy of the World Steel Association

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What is the Circular Economy?

The circular economy concept gained momentum in the 1970s as academics, businesses, and thought leaders realized that there needed to be a change in the way products were manufactured and disposed of. The general goals of a circular economy involved eliminating waste, using renewable energy to manufacture goods, and to be more respectful of the natural environment.

In a circular economy, resources need to be allocated efficiently while making products that earn a return for the businesses without being too costly to consumers. Products should be durable, recyclable, and easily repaired. Simply put, manufacturers and consumers need to extend the life of their products before they are thrown away.

A well functioning circular economy ensures that products retain value even at the end of their use stage. Ideally, products would be-be 100% recyclable, and even before reaching that stage, they should be durable enough for reuse or remanufacturing. Steel represents a critical piece of this concept as it can be reused, repurposed, and remanufactured after use and then still remains infinitely recyclable. Beyond that, advances in steel production technology have created more energy efficient and green processes for steelmakers.

Steel in the Circular Economy

Steel is used to manufacture and ship almost every product on the globe. Its ubiquity makes it a central piece of the concept of a circular economy and more sustainable production. It can be reused, remanufactured, and recycled without losing any of its properties. Also, due to technological advancements in recent decades, steel has become both lighter and stronger making everything from cars to ships more energy efficient.

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In addition to lightweighting, one must look at steel’s life cycle assessment in order to measure its effect on the circular economy, Last month on The Steel Wire, Dr. Roland Geyer from the University of California at Santa Barbara took an in-depth look at the life cycle assessment of steel. His research aims to show that steel’s benefit to the automotive industry lies not only in its lightweight properties but also in its ability to be recycled and used over and over again – making it the most optimal material for automakers in a circular economy.

POSCO Innovates in Sustainable Steel Production

For its part in the circular economy, POSCO has been pursuing advancements in sustainable steel production from multiple angles. To reduce greenhouse gas emissions, POSCO helped develop the FINEX® process. It is based on the direct use of iron ore fines and non-coking coal while eliminating the coke-making and sintering processes, which are most critical to the conventional blast furnace process. Combining these two decisive advantages led to lower production costs and a reduction of environmental emissions in comparison with the conventional blast furnace route.

For automakers, the steel used to manufacture vehicles is critical to the circular economy in both its production and use. POSCO has been at work developing new automotive steel solutions that are lighter, stronger, and more affordable. They have also begun utilizing advanced AI and IIoT (internet of things) solutions in its automotive steel plants to reduce waste.

Because POSCO GIGA STEEL is lightweight, strong, and affordable, it is the ideal material option for automakers looking to build more sustainable vehicles.

For its manganese steel production, POSCO developed new technology that cut production time in half while increasing efficiency by 10%. Now, instead of melting the iron, lowering the temperature, and then melting it again, POSCO can store the molten iron at its new PosLM facility helping to reduce energy costs and shorten production time.

In order to move toward a circular economy, businesses and industries must make fundamental changes to how their products are manufactured and used. Steel remains a critical piece of this concept as it can be reused, remanufactured, and recycled. However, more needs to be done, and companies like POSCO are taking the lead to develop more sustainable production processes.

*Graphs courtesy of the World Steel Association

The FINEX® Process

The FINEX® Process was jointly developed by POSCO in Korea and Primetals Technologies in Austria. FINEX® (along with COREX® – another smelting process developed by Primetals) is the only commercial proven alternative steelmaking process to the blast furnace (BF) route.

FINEX® is based on the direct use of iron ore fines and non-coking coal while eliminating the coke-making and sintering processes, which are most critical to the conventional blast furnace process. Combining these two decisive advantages leads to lower production costs and the reduction of environmental emissions in comparison with the conventional blast furnace route.

The FINEX® Process combines cooking plant, sinter plant, and blast furnace into a single iron making unit.

Advantages of the FINEX® Process

There are several key advantages to and differences in using the FINEX Process:

• Non-coking coal can be used directly as a reducing agent and energy source
• 100% fine ore can be directly charged to the process; no sintering or pelletising is required
• Pure oxygen can be used instead of nitrogen-rich hot blast

In addition, the FINEX® Process offers several key advantages over alternative BF methods.

• Economic benefits – low investment and operational costs due to the elimination of coking and sinter plants
• Ecological benefits – lowest process-related emission rates
• Product quality – hot metal quality suitable for ecological steel applications
• CO2 mitigation potential – pure oxygen is used
• Resource preserving – directly uses a wide range of iron ores and non-coking coals
• Beneficial by-products – generation of highly valuable export gas for various purposes (electric power generation, DRI production, or natural gas substitution)
• The FINEX® Process combines coking plant, sinter plant and blast furnace into a single iron making unit.

Creating The FINEX® Process

Starting in December 1992, POSCO and Primetals Technologies signed a cooperation agreement for the joint development of the FINEX® Process. Following initial laboratory, bench scale and pilot plant tests, the FINEX® F-0.6M Demonstration Plant, with a nominal capacity of 2,000 tons per day, was built in Pohang, Korea, and started up in May 2003. On the basis of successful results and optimization of equipment and process parameters over the past few years, POSCO developed their own independently designed program in February 2017. Designed to carry out overseas FINEX projects without relying on Primetals Technologies or other external resources, the program can be used to calculate core equipment specifications and raw material conditions. In particular, the development of the FINEX Process Design Program, one of the subprograms, has made it possible for the “heat & mass balance” to be automatically calculated when raw & fuel material conditions change.

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Efficiencies of the FINEX® Process

The FINEX® smelting reduction process is one of the most exciting iron making technologies on the market. It is distinguished by the production of high-quality liquid hot metal, on the basis of directly charged iron ore fines, and coal as the reductant and energy source. A key feature of the FINEX® Process is that iron production is carried out in two separate process steps. In a series of fluidized-bed reactors, the fine iron ore is reduced to direct reduced iron, compacted (HCI), and then transported to a melter-gasifier. Coal and coal briquettes charged to the melter-gasifier are gasified, providing the necessary energy for melting in addition to the reduction gas.

The FINEX® Process is Environmentally Friendly

The FINEX® Process and the blast furnace route are coal-based processes reducing iron ore to iron, which is subsequently melted into hot metal. In both processes, the same product is generated out of almost the same raw material. A question that arises – and not only from an economic point of view – is “how do these production routes deal with unwanted impurities?”

A certain amount of environmentally harmful substances is inevitable based on the raw material mix. Hence, the objective of a sustainable steelmaking process is to discharge these substances in an environmentally compatible condition or destroy them during the process itself. Since the FINEX® Process captures most of the pollutants in an inert state in the slag, and the released hydrocarbons are destroyed in the dome of the melter gasifier, no additional investment or operational costs are incurred for a complex gas or disproportional waste water conditioning plant.

Comparing the traditional blast furnace with the FINEX Process shows the improvements that POSCO was able to achieve to be more
environmentally friendly.

Future-Proof Emissions Figures

To bring blast furnaces in line with current and expected environmental standards, plants require significant investment. This can already be seen in the case of blast furnace dust emissions that are efficient, but costly filter systems must be installed in the sinter and coking plant. The FINEX® Process values are already far better than expected future standards. Moreover, the full development potential of the FINEX® Process has not yet been realized with respect to a further reduction of emissions.

Moving Forward with Greater Potential

Because the FINEX® Process is still being optimized, additional economic and technological benefits are anticipated. Major developments are continuously being carried out to increase efficiency. The latest achievements include breakthroughs in the field of heat recovery, dry dedusting, and outstanding performance improvements. Based on the well-proven plant concept, new process features, the highly competitive production costs, and environmental features, Primetals Technologies and POSCO are confident that the FINEX® Process will account for an increasing share of future investments in iron making facilities.

*Cover image courtesy of the World Steel Association

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