钢铁业绿色转型发展报告(英)-安永.pdf

Digital Manufacturing in India State of readiness and adoption of Smart Factory Towards Greener Steel Steering the Transition 2 | Towards Greener Steel - Steering the Transition 3Towards Greener Steel - Steering the Transition | Steel is critical to continued economic development and is the backbone of global sustainable initiatives, including energy transition. It is also one of the world’s most sustainable materials — permanent, forever reusable and the most recycled material on the planet. Therefore, building more sustainable steel products through an environmentally friendly process is a long-term investment that will yield enormous environmental benefits over the full life cycle of steel. Today, the steel industry is one of the world’s most energy intensive and accounts for around 8%-9% of global carbon dioxide emissions. For steelmakers, reducing emissions and specific energy consumption is critical as the global decarbonization agenda speeds up. Steelmakers that move now on a journey to improve the sustainability of operations can get ahead of developing carbon regulations and capitalize on environmental, social and governance (ESG) metrics to gain a competitive edge. There has been a consistent improvement in metrics of sustainability over the last few years for the steel industry. However, the intensity of environmental impact of this industry needs an execution of a compelling and a well thought out action plan. Depending on the region and the existing asset base of steel production, we discuss the Foreword reasons for which such an action plan will be unique for each steel maker. The quantum and timing of investments will depend on the choice of pathway and the urgency of complying with sustainability targets. We also present our point of view on the options available to steelmakers to meet the long-term targets of carbon neutrality. As a first step, a well-planned, stage gated roadmap/pathways will be critical for a successful set up. All such pathways will represent an informed choice of clean technologies while balancing business risk, quality of end product and capital cost while improving sustainability metrics across the steel value chain. Stakeholders like governments, the UN, academia, communities and steel associations are likely to play an important role in supporting the implementation strategies of steelmakers. Other than carbon pricing mechanisms, governments will need to provide support for R facilities are not specific to iron and steel industry only EF Share BF Share BF Share EF Share Other processes only CIS and other Europe Carbon intensity: 1.4t/t Average age of plants: 50 EF: CIS - 29%, Other Europe – 66% Scrap ratio: Russia - 42%, Turkey - 83% CCS facilities: 4 (all in other Europe) EU 28 Carbon intensity: 1.3t/t Average age of plants: 45 EF: 41% Scrap ratio: 55% CCS facilities: 9 We understand that raw material processing technology is extremely important in the research and development towards carbon neutrality. We have a long history working closely together with BHP collaborating to study raw material utilization technology and mine development. It is very significant for us to be able to work together with BHP towards reduction of CO 2 emissions, which is an extremely important agenda for the steel making sector. 10 Yoshihisa Kitano, President and Chief Executive Officer, JFE “ “ 10 BHP press release, https://www.bhp.com/media-and-insights/news-releases/2021/02/bhp-partners-with-jfe-to-address-decarbonisation-in-the-steel- industry/ 9Towards Greener Steel - Steering the Transition | Understandably, some nations and regions, such as the US and the EU, are better positioned to invest in sustainable steelmaking, with other non-BRIC nations also making great strides towards green steel. The US steel sector is now 70% EAF, compared to a global figure of 30%. 11 BF production is still dominant in Japan and South Korea, but both countries are making significant investments in R technology readily available; useful in case of low supply of high quality coal High scrap supply required; energy needs of EAF can add to emissions BF/BOF with biofuel - Commercial20-50% Easier to implement by altering the input mix in blast furnace High quantity of biofuel required; Increased storage and transportation cost; High moisture content of biofuels BF/BOF with hydrogen - ~ 10 years- Potential to reduce emissions both in coke plant (reduced amount of coal required) and blast furnace Difficult to replace reducing agent by hydrogen beyond a point to maintain operations Blue hydrogen DRI (H2-DRI/EAF) +35-55% 10-20 years- Flexibility; scalability of producing blue hydrogen in some areas Production cost of blue hydrogen: ~US$2/kg compared to black hydrogen: ~US$1.7/kg; Does not address emissions from pellets Iron electrolysis Not determined 20-30 years~90% Largest potential in COtwo.inferior reduction Still at an early stage of development, only been tried at a lab scale Smelting reduction - Commercial4-20% Lower operating cost; Possible elimination of sinter/pellet and coke plants High calorific value export gas generated; Lower economic scale of operations BF/BOF with carbon capture +30-50% 5-10 years 30% Can easily be integrated to BF-BOF; Advantage from R Difficult to capture all COtwo.inferior emissions Natural gas DRI (NG-DRI/EAF) - Commercial 40% High energy and emissions savings Adequate and afford- able supply of natural gas critical to determine profitability Green hydrogen DRI (H2-DRI/EAF) +60-90% 10-20 years 80-95% Increased flexibility as hydrogen and HBI can be stored High green hydrogen costs: ~US$5/kg compared to black hydrogen costs of ~US$1.7/kg 16 | Towards Greener Steel - Steering the Transition In the medium to long term, replacing coal or natural gas with hydrogen can substantially reduce GHG emissions. Based on the most recent research, use of green hydrogen (generated by renewables) with DRI/EAF is likely to be the cleanest alternative for steelmakers in the future. 21 Residual emissions may still arise in EAFs due to the consumption of graphite electrodes and use of lime and natural gas, but tackling these is likely to be far easier than the challenge of lowering the emissions of BFs run on coking coal. However, it will be some time before hydrogen is economically feasible and scalable. Other commercialized smelting reduction processes, such as COREX, FINEX and HIsarna can offer better emission control, compared with integrated plants. However, the economic viability of these processes depends on the effective utilization of export gases and overall power consumption. The low rate of adoption thus far of these designs also undermines their emission benefits, and we see only limited use of these processes in certain regions. As companies and industries face more pressure to measure, report and reduce scope 3 emissions, demand for low carbon supplies, including steel, is growing. The push to decarbonize the automotive sector, which accounts for 12% of the world’s total steel use, is prompting automakers to seek cleaner inputs. 22 Government incentives are stoking demand further; the US support for carbon- neutral construction materials and electric vehicle (EV) infrastructure is likely to further increase the appeal of greener steel. 23 For steelmakers, meeting demand requires altering their product mix to ensure a greater share of green products. We already see some dominant players, such as ArcelorMittal, offering certified green steel products with more set to follow. New Zealand grew by 34% to reach about US$31t, with Europe and the US accounting for 85% of this total. 24 At the same time, many governments are enforcing carbon abatement strategies, including carbon tax regimes and the Emission Trading Systems (ETS) seen in the EU and in countries including Canada and Mexico. Improving ESG metrics will reap benefits for steelmakers beyond compliance with regulations and stakeholder expectations. Companies with a better ESG performance will secure project financing at a lower cost, enhance how they manage resources, reduce operational risk and be more resilient against economic shocks and any changes to a government’s environmental regulations. We see some steelmakers taking a proactive approach to the ESG agenda, for example including the impact of carbon emissions in assessing the profitability of capital investments - JSW Steel has adopted a shadow internal carbon price of US$20/t CO 2 , while Tata Steel has marked US$15/t CO 2 . 25 This helps firms to identify sustainability inefficiencies that may be increasing overall costs and the potential impact of a low carbon economy on costs. Internal carbon pricing also encourages firms to earmark funds for future low-carbon efforts. For steelmakers yet to integrate non-financial frameworks into investment decisions, four steps can help guide the process: 1. Assess current ESG maturity against the key metrics of the Taskforce for Climate-related Financial Disclosures (TCFD), including those of business governance and people. 2. Build a specific short- to medium-term roadmap for the organization to improve performance around key metrics including decarbonization, climate change, land use/ecological sensitivity and water usage. 3. Commit the necessary resources i.e., budgets, people, technology/digital and external partnerships, to execute the roadmap at speed, and with the right data-driven 4. Real-time coordination of compliance (measure, monitor, disclose), value creation (strategize, goal setting, execution) and compliance for perpetuity. In many ways, steelmakers are already leaders in the use of digital solutions, with many using technology to improve defect recognition, process safety and quality Many investors are seeking more sustainable portfolios, demanding greater ESG compliance and performance from potential investment targets. Between 2016-18, the value of assets in sustainable investment portfolios in the major markets of Europe, the US, Japan, Canada, Australia and Hydrogen Alternative smelting reduction processes Increase production of sustainable steel to capitalize on growing demand 2 Improve ESG performance to meet stakeholder expectations 3 Digitalization to unlock value4 21 BNP Paribas 22 Statista 23 https://corporate.arcelormittal.com/sustainability/xcarb/xcarb-green-steel-certificates 24 Global Sustainable Investment Review 2018, Global Sustainable Investment Alliance 25 https://www.jsw.in/groups/sustainability-framework-measuring-success-climate-change; https://www.tatasteel.com/tata-steel-brochure/ sustainability.html 17Towards Greener Steel - Steering the Transition | assurance. We see some organizations exploring integrated architectures of technologies including IoT, big data analytics, cloud computing and AI at various points in the value chain, including e.g., digital twins and variable process prediction. But there’s potential to make greater use of digitalization to improve sustainability metrics and unlock greater long-term value. Data can help steelmakers quantify, monitor, record and assess processes to enhance performance and ensure reporting requirements are met. Digitalization can also help in improving productivity of operations by optimizing energy consumption, minimizing waste generation and controlling emissions. For example, digital solutions can support enthalpy and the carbon balancing of gas networks of varying composition and calorific value generated at various flow stages of steel manufacturing. Real-time dynamic routing and allocation of gases used in heating stoves, power plants, sinter, pellet, coke oven plants and rolling mills can help minimize flare burning in Integrated Steel Plants (ISP) and, where relevant, even be used in DRI-based EAFs. Digital solutions can optimize the logistics for inbound and outbound materials flows to maximize material throughput in a multi- modal transport world and ensure the least fuel burnt per ton of material moved. Blockchain can verify the sustainability quotient of steel value chains, giving end users reliable data to assess their net carbon impact. It also helps create more agile supply chains, with cloud computing allows for central command and control centers to oversee geographically dispersed mine to metal value-chains. As steelmakers further their sustainability agenda, the adoption of more digital solutions will be a critical step, to ensure organizations can collect and monitor the high-quality, timely data required for actionable insights. Decisions made around sustainability initiatives cannot be based purely on financial costs to the business. Instead, steelmakers must act with all stakeholders in mind, and be prepared to make a balanced trade-off between industry, end consumers and the environment. Aligning stakeholders around the changes that must be made will be critical to quicken the pace of the structural shift required. Collaboration is needed to co-develop feasible solutions to complex sustainability challenges. In the EU, we see many examples of partnerships between steelmakers, raw material providers, OEMs and renewable energy providers that have accelerated the development of sustainable alternatives to traditional methods. These efforts are not just advancing the sustainability agenda – they are creating a competitive advantage for the region’s steelmakers and their ecosystem of partners. As newer methods mature towards implementation readiness, steelmakers may need to integrate their use with more established methods to maintain profitability. This will require working in tandem with supply chain partners. Collaborating with communities can ensure that the impact of new technologies on local land use and other resources is minimized to ensure sustained production in regions. Regulatory bodies and governments can act as catalysts to incentivize both production and demand for greener steel. Aligning policies with steelmakers’ initiatives requires efforts from both sides. Organizations will need to ensure that actions taken are relevant to their region of operation, to better advance their sustainability agenda. Collaborate with all stakeholders5 People ► Employees ► Neighboring communities ► Government ► Academia ► Industry bodies ► Global governing bodies Profit ► Supply chain partners ► End consumers ► Channel partners ► Eco system enablers ► Other competitors ► Investors Planet ► Global GHG emissions and energy reduction ► Water resources ► Land use minimization Key stakeholders Source: EY Analysis 18 | Towards Greener Steel - Steering the Transition 19Towards Greener Steel - Steering the Transition | Building the future of green steel The steel industry’s transition to greener steel will not be uniform across regions. Steel producers in western regions and those countries already investing in improving sustainability are likely to see a more rapid adoption of newer low carbon technologies compared with steel producers