HIsarna – Developing a Sustainable Steel Production Process
| Case Code: OPER144 Case Length: 15 Pages Period: 2011-2017 Pub Date: 2020 Teaching Note: Available |
Price: Rs.400 Organization: Tata Steel Industry: Metals & Mining Countries: India, Germany, The Netherlands, France, Germany, UK Themes: Project Management, Production Management, Sustainable Production, Production Technology |
Abstract Case Intro 1 Case Intro 2 Excerpts
Introduction
Steel, the most recycled industrial material in the world, is produced through highly energy intensive methods. Though the amount of energy used to produce steel has been coming down since the 1960s, it consumes 6% of all the power generated in the world, and accounts for 6.7% of all the CO 2 emissions. The European Union’s target is to cut its emissions to 80 – 95% of the 1990 levels by 2050 through the adoption of the circular economy and it is looking at closing the loop of product lifecycles through recycling and reuse.
As far as the steel industry is concerned, it has been looking at increasing the efficiency of production, and redesign processes to reduce CO2 emissions. In this direction, in 2004, eight steel makers in Europe along with 48 universities and research organizations in the continent formed a consortium called Ultra-Low Carbon Dioxide Steelmaking (ULCOS). The main objective of ULCOS was to identify technologies and processes to help reduce carbon emissions, ensure energy efficiency, and achieve flexibility in the selection of raw materials in the steel industry. The consortium decided to bring improvements in the steel making process and looked at several ways to introduce changes in the way steel was manufactured to ensure it was done in an economically and environmentally viable manner.
In this direction, the European unit of India-based steel major Tata Steel was chosen to execute the € 75 million project to develop a new technology. This resulted in the HIsarna steelmaking process, which consisted of two different processes, one from metal and mining company Rio Tinto and the other from Tata Steel. The process was developed and tested at Tata Steel's IJmuiden plant in the Netherlands. After several years of experiments and trial runs, HIsarna was successful in reducing the carbon footprint in steel production by 20%. By capturing the pure CO2 that was generated during the process, the carbon footprint could be 80% smaller...
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