resource efficiency efforts in mhi group · 1/31/2018 · • since 2015, mhi has partnered with...

© 2019 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved.

Plenary Session 3

“Measuring our Progress on Using Materials Smarter, Less and Longer”

MHI Technical Senior Fellow

Dr. Eisaku Ito

Resource efficiency efforts in MHI group

World Materials Forum 2019

13 June 2019 Nancy, France

© 2019 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 2

Current list of 9 KPIs

The scope of KPIs:

Decoupling materials efficiency from economic growth while creating value for all

stakeholders involved.

KPIs Description

Use

Less

Buy-to-use Material value in the product / material value used in production

% of recycled materials Weight of recycled / total weight of materials in new product

End-of-life recycling Weight of materials effectively recycled / total weight of materials

Energy Total energy consumption to produce the product

Use

Longer

Product lifetime Total lifetime of the product, from completion to waste

Resale price Resale price after Y years / initial price(Y is industry specific)

Use

Smarter

% of innovative materials Weight of new of innovative materials / total weight of materials

Product performance vs. weight Performance measurement of the product key functions vs. weight

Overall product usage % of the time the product is used relatively to its full capacity

Source: WMF & Arthur D Little analysis


MHI contribution to WMF

• Since 2015, MHI has partnered with WMF and KPIs were set in 2017.

• Since 2018, MHI has introduced activities related to KPIs.

• From 2019, MHI focuses on megatrends & CO2 KPI.

Problem

Definition KPIs definition KPIs in MHI plants

2015 2016 2017 2018 2019

Megatrendsin Steel Industry

&

CO2 KPI

KPIs in detail


Some megatrends and their impact on the steel industry

Mass urbanization

Mobility (and electric vehicles)

Global climate action

(Paris 2015)

Fourth Industrial Revolution

(4IR)

A megatrend represents a long-term transformation process with a broad scope and significant

impact in reshaping the world we live in. By understanding, analyzing, and predicting megatrends,

companies can stay competitive by gaining insights into emerging growth areas in their respective

industries.

In addition, the following are also ongoing

megatrends which will continue to

influence the steel industry:

• Industrialization (of EMDEs1)

• Globalization (global trade and supply

chains) 1) EMDEs: Emerging Market and Developing Economies

Source: Posco Research Institute

ON

GO

ING

EM

ER

GIN

G

Urbanization Rate

Motorization Rate

https://www.pwc.co.uk/issues/megatrends.html#tab_5-0https://www.pwc.co.uk/issues/megatrends.html#tab_5-1


Life-cycle of steel

Coal Iron Ore

Blast Furnace

Steel processing (casting,

rolling, annealing etc.)

Mass urbanization

mobility

EAFScrap recycling

CO/CO2

Fossil fuel

Less CO2

(Dragon steel Taiwan)

EAF: Electric Arc Furnace

(Usiminas; Cubatao; Brazil)

(Colakoglu; Turkey)

(Source; Alliance steel)

(Source; Bharat steels)

(Source;

Mining Journal)

(Source;

world coal association)

1,670 Million tons of steel were produced and 440 Million tons of scrap were recycled in 2017.

1,670M tons

440M tons

Hot metal

Steelmaking

Direct reduced iron

1,230M tons

Global climate action

(Dragon steel Taiwan)

https://www.pwc.co.uk/issues/megatrends.html#tab_5-0https://www.pwc.co.uk/issues/megatrends.html#tab_5-1


Steel industry responses to megatrends

Megatrends

Steel Market

MobilityMass urbanization Global climate action

Solutions

(A)Digitalization (B)H2 DRI (C)High Efficiency EAF (D)Bio Carbon converting

Less CO2 emission

By MHI Group

Digitalization

Source: https://www.conservationinstitute.org

Source: Lanzatech

MHI group offers solutions to the steel industry related to megatrends.

4IR

Steel for Motor

Source: Mitsubishi Motors websiteSource: Volvo website

Mass production of AHSS1) & Electrical Steel 2)

1) Advanced High Strength Steel (light and strong steel) 2) Electrical steel (used for motor coil)

Light & strong steel

EAF: Electric Arc Furnace

https://www.pwc.co.uk/issues/megatrends.html#tab_5-1


(A)Digitalization

Real-time analysis and control

• Digitalization allows steel plants to produce AHSS & Electrical Steel with greater efficiency.

• The reduction of steel weight in car will be ca.500kg CO2/car.

(Usiminas; Cubatao; Brazil)

Car weight

reduction(221kg steel/car)

(508kgCO2/car)

Digitalization

2300kg CO2/t crude steel 1) x 0.221ton = 508kg CO2

1) Nishino , ISIJ Ferrum vol.3(1998)No.1,

Material Economics, 2018, The Circular Economy


(B) Direct Reduced Iron by Hydrogen

Source: K1-Met, Seminar: Steel Industry: The Wind of Change, Brussels, January 31, 2018

• Hydrogen can be used in existing Direct Reduction (DR) shafts without major modifications.

• H2 DRI will reduce ca.1000kg CO2/t crude steel compared with BF/BOF steelmaking.

1000kg CO2 /t crude steel reduced

1250

250


Quantum EAF

• High efficiency EAF increasing with scrap availability and improving recycling rates

• Quantum EAF reuses exhaust heat from molten metal to preheat scrap.

• 30% energy saving in Quantum EAF is equivalent to ca.50kg CO2/t crude steel.

Preheating system

Preheating

Scrap

Molten metal

Preheated

Scrap

Electrodes

Exhausted

hot gas

Drop

(C) High Efficiency EAF

Ele

ctr

icity c

on

su

mptio

n(k

Wh/t

)

Conventional

EAF

Quantum EAF(New Method)

-50kgCO2(30% Energy

Reduction)

Overview of Quantum EAF

EAF (Recycle)

Now

BF

DRI

Source; World steel September 5th 2008 Japan

180kg

CO2 *)

130kg

CO2

*) kg /t crude steel

430

300


(D) Bio Carbon Converting

Source: CCU-Now: fuels and chemicals from Waste Lanzatech 2018

Source: Virgin Atlantic

Source: Lanzatech

GHG: Green house gas

i.e. ArcelorMittal Belgium: Steelanol Project

80.000.000 l/y bio-fuel from 90.000 Nm³/h BF gas

* Base on life-cycle GHG calculation by Ecofys for the Gent plant

87%* GHG Reduction

vs. Petroleum based fuel

• CO generated in steel plant can be converted to ethanol (Bio fuel) by Bio Gas Fermentation.

• Bio fuel save ca.100kg CO2/1000km (car), 87% reduction from Petroleum base fuel.

Bio Gas Fermentation Process

Ethanol

Fleet emissions Europe avg. ~120 g CO2/km


(A)Digitalization (B)H2 DRI (C)High Efficiency EAF (D) Bio Carbon converting

➢ 4 solutions satisfy “Use less, longer, smarter” KPIs.

➢ Reducing CO2 will remain a major KPI in steel industry.

Conclusion

✔ Bio-fuel

✔ Recycle

✔ Hydrogen use ✔ Pre-heating ✔Carbon converting

✔ Smart operation

✔ AHSS

Digitalization

CO2 KPI (ca.) - 500 kg/car - 1000 kg/t crude steel - 50 kg/t crude steel - 100 kg/1000km

resource efficiency efforts in mhi group · 1/31/2018 · • since 2015, mhi has partnered with...

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