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UK Government Outlines Plans toHelp Cut Energy Bills forBusinesses

Strategic Research Institute
Published on :
22 Sep, 2022, 5:09 am

New support for households, businesses and public sector organizations facing rising energy bills in Great Britain and Northern Ireland has been unveiled by Business Secretary Mr Jacob Rees-Mogg supporting growth, preventing unnecessary insolvencies and protecting jobs. Through a new government Energy Bill Relief Scheme, the government will provide a discount on wholesale gas and electricity prices. It will apply to fixed contracts agreed on or after 1 April 2022, as well as to deemed, variable and flexible tariffs and contracts. It will apply to energy usage from 1 October 2022 to 31 March 2023, running for an initial 6 month period for all non-domestic energy users. The savings will be first seen in October bills, which are typically received in November. To administer support, the government has set a Supported Wholesale Price – expected to be GBP 211 per MWh for electricity and GBP 75 per MWh for gas, less than half the wholesale prices anticipated this winter, which is a discounted price per unit of gas and electricity The level of price reduction for each business will vary depending on their contract type and circumstances. For businesses on flexible purchase contracts, typically some of the largest energy-using businesses, the level of reduction offered will be calculated by suppliers according to the specifics of that company’s contract and will also be subject to the Maximum Discount. A parallel scheme, based on the same criteria and offering comparable support, but recognizing the different market fundamentals, will be established in Northern Ireland. UK Steel’s Director General Mr Gareth Stace said “The Business Secretary’s announcement demonstrates that this new Government understands the sheer scale of the issue and the need to deliver a significant solution swiftly. Setting a price cap for electricity at GBP 211 per MWh for six months gives foundation sectors, such as steel, the chance to get through the winter by giving us a competitive business landscape. The Government has clearly listened to sectors such as steel, estimated the enormity of the challenge that energy intensive sectors face, and today has delivered.” Mr Stace “It is essential that Government is now ‘fleet of foot’ if the situation develops further ensuring that British business is competitive within Europe and across the World. If we have parity on energy prices, then we can make steel competitively and provide well-paid and highly skilled jobs in areas of the UK where governments have more recently looked to level up. The Government must now move to rapidly reform the energy market to ensure longer-term competitive price beyond the current price cap. The steel industry stands ready to work with Government to demonstrate the benefit that the announcement today will have on our foundation sector and to reform the energy market so that we are not in the same position this time next year.” Prior to this intervention, UK Steel analysis showed that UK steel producers faced significantly higher electricity prices than their European competitors, with the price disparity skyrocketing since energy prices increased. The price cap is at 4-5x the historical average, but the critical issue for the steel industry is competitive electricity and gas prices, in line with European and global competitors.
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Researchers Uncover How to 3D-Print Strong Stainless Steels

Strategic Research Institute
Published on :
23 Sep, 2022, 6:06 am

For airliners, cargo ships, nuclear power plants and other critical technologies, strength and durability are essential. This is why many contain a remarkably strong and corrosion-resistant alloy called 17-4 precipitation hardening stainless steel. Now, for the first time ever, 17-4 PH steel can be consistently 3D-printed while retaining its favorable characteristics. A team of researchers from the National Institute of Standards and Technology, the University of Wisconsin-Madison and Argonne National Laboratory has identified particular 17-4 steel compositions that, when printed, match the properties of the conventionally manufactured version. The researchers’ strategy, described in the journal Additive Manufacturing, is based on high-speed data about the printing process they obtained using high-energy X-rays from a particle accelerator. The new findings could help producers of 17-4 PH parts use 3D printing to cut costs and increase their manufacturing flexibility. The approach used to examine the material in this study may also set the table for a better understanding of how to print other types of materials and predict their properties and performance.

Despite its advantages over conventional manufacturing, 3D-printing of some materials can produce results that are too inconsistent for certain applications. Printing metal is particularly complex, in part because of how quickly temperatures shift during the process. NIST physicist Fan Zhang “When you think about additive manufacturing of metals, we are essentially welding millions of tiny, powdered particles into one piece with a high-powered source such as a laser, melting them into a liquid and cooling them into a solid. But the cooling rate is high, sometimes higher than one million degrees Celsius per second, and this extreme nonequilibrium condition creates a set of extraordinary measurement challenges. Because the material heats and cools so hastily, the arrangement, or crystal structure, of the atoms within the material shifts rapidly and is difficult to pin down.”

The authors of the new study aimed to shed light on what happens during the fast temperature changes and find a way to drive the internal structure toward martensite. They found the right tool for the job in synchrotron X-ray diffraction, or XRD. In XRD, X-rays interact with a material and will form a signal that is like a fingerprint corresponding to the material’s specific crystal structure. At the Advanced Photon Source, a powerful light source at the Department of Energy's Argonne National Laboratory, the authors smashed high-energy X-rays into steel samples during printing. The authors mapped out how the crystal structure changed over the course of a print, revealing how certain factors they had control over, such as the composition of the powdered metal, influenced the process throughout.

While iron is the primary component of 17-4 PH steel, the composition of the alloy can contain differing amounts of up to a dozen different chemical elements. The authors, now equipped with a clear picture of the structural dynamics during printing as a guide, were able to fine-tune the makeup of the steel to find a set of compositions including just iron, nickel, copper, niobium and chromium that did the trick. Mechanical testing showed that the 3D-printed steel, with its martensite structure and strength-inducing nanoparticles, matched the strength of steel produced through conventional means.

The new study could make a splash beyond 17-4 PH steel as well. Not only could the XRD-based approach be used to optimize other alloys for 3D printing, but the information it reveals could be useful for building and testing computer models meant to predict the quality of printed parts.
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Mechel’s BMK Produces 5 Millionth Tonne of Wire Products

Strategic Research Institute
Published on :
23 Sep, 2022, 6:09 am

Russian steel maker Mechel’s Beloretsk Iron & Steel Works high-strength wire workshop is celebrating its 60th anniversary. Over the years, 5 million tonnes of steel products have been manufactured. In the 50-60s of the 20th century, it became necessary to master new building technologies and materials. Reinforced concrete became the basis of all construction at that time. Then a new type of hardware was needed, high-strength wire, from which a steel frame for reinforced concrete structures is made. No construction is complete without reinforced slabs and blocks, and reinforcement is also used in sleepers and supports.

And at BMK they began to build a new high-strength wire workshop TsVP No 16, which was put into operation in 1962. For the first time in the country, high-strength wire of round and periodic profile for reinforced concrete products was manufactured in it. A year later, a batch of strands of high-strength wire was twisted in the rope department of TsVP No 16. In 1965, the workshop reached its design capacity of 50 thousand tons of products per year.

Today, the high-strength wire workshop produces products for reinforced concrete structures and sleepers, spring wire for machine builders and ordinary quality wire for the construction industry. Currently, the shop employs more than 200 people. In 2021, about 100,000 tonnes of finished products are produced

In 2018, two state-of-the-art descaling lines and a new wastewater treatment plant were installed here. This year, four new high-performance drawing mills were launched. This allowed the workshop to reach a new quality level of product output, as well as significantly reduce the volume of wastewater.
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Beltrame Establishes Renewability Project

Strategic Research Institute
Published on :
23 Sep, 2022, 6:15 am

Italian steel maker Beltrame announced that renewability, the first community of #energyrenewable consumers, has been established. The project involves the aggregation of companies in a consortium company, whose objective is to invest in the construction of renewable generation plants and supply the electricity produced by the plants themselves to each member.

Beltrame Group Energy Manager Gianmaria Zanni said “This initiative is an important part of our Group’s #Decarbonisation plan. In the current energy crisis context, it also allows us to stabilise our energy costs in the long term, freeing us from prices and market volatility.”
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SMS to Digitalize Siderúrgica Huachipato Improve Energy Efficiency

Strategic Research Institute
Published on :
23 Sep, 2022, 6:17 am

World’s leading technology supplier SMS Group Center of Excellence SMS digital has signed an agreement to implement a package of advanced digital services for the Siderúrgica Huachipato steel mill at the Talcahuano site in Chile. The Chilean steel mill, part of the integrated mining and steel group CAP, is undergoing a transformation process with improvements expected mainly to its operations, equipment, and energy sources. Seeking to optimize efficiencies, reduce costs, and reduce operational risks, Huachipato and SMS enter a cooperation intending to provide the agreed-upon workflows within a 36-month subscription-based model.

SMS will implement four applications, BFXpert, Viridis Dispatch, Viridis Carbon and Viridis Performance, leading to more efficient production processes and a reduced carbon footprint. The applications enable Huachipato to optimize the gas flows throughout the plant and reducing natural gas consumption by providing real-time AI tracking of energy across thousands of consumptions points. Carbon and other emissions can be tracked and certificates for each product unit can be issued.

The digital services, which are provided on a subscription model, help reduce operational expenditure by constantly monitoring processes and automatically adjusting them as required to keep them optimized. Huachipato additionally benefits from increased worker safety, more stable operations, early detection of anomalies, and increased plant availability and product quality.

The whole package of digital services is scheduled to go live alongside the commissioning and blow-in of the BLT in March 2023. The improvements to the facility will be immediate, as will the boost in product quality. Energy consumption will fall, and the plant’s working life will be extended as a result of the integration of this technology.

In addition to the digital applications, SMS provides a range of services to support Huachipato with the continuous improvement of their operations and expected transitions, also containing the further digitalization of energy and utilities. The steel mill, part of CAP's group, will benefit from simulations of future energy and utilities scenarios, including the addition of hydrogen to the energy matrix and its consequences in the distribution of energy flows, providing quantitative feedback on many of the envisioned operational changes.
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Metalloinvest’s OEMK to Improve SBQ Quality

Strategic Research Institute
Published on :
23 Sep, 2022, 6:19 am

Russian steel maker Metalloinvest’s Oskol Electrometallurgical Plant is installation equipment for monitoring internal and surface defects and straightening hot-rolled round and square steel began in section rolling shop No 1 with investments of more than RUB 1.5 billion. Straightening lines will ensure the straightness of rolled products with an accuracy of 1mm per linear meter, which is a mandatory requirement on the part of customers for high quality Special Bar Quality.

The control unit detects internal defects from 1mm in size and surface defects with a depth of 0.2mm and a length of 10mm. Control accuracy more than doubles. Detected surface defects are removed on an abrasive machine.

SBQ is used in the automotive industry, mechanical engineering, shipbuilding. Connecting rods, camshafts and crankshafts of internal combustion engines, gear wheels, shafts and gear shafts of gearboxes, steering parts, thrust, struts and springs of shock absorbers and other critical parts are made from it.
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Vallourec Qualifies Materials Wide Range of Hydrogen Applications

Strategic Research Institute
Published on :
23 Sep, 2022, 6:21 am

Hydrogen has a strong detrimental impact on the mechanical properties of steel which is known as hydrogen embrittlement. This can manifest in a decrease in ductility and fracture toughness and increases a steel’s susceptibility to fatigue causing cracks from which hydrogen can leak into the environment. Global leader in seamless pipes Vallourec has successfully carried out a first series of tests qualifying the fracture toughness resistance of a selection of steel grades for OCTG pipes, line pipes and pressure vessels in the presence of pure H2 gas.

The first selection of standard and Vallourec proprietary grades tested in the presence of pure H2 gas were

Grade X65 for line pipes including the qualification of girth welds done by Serimax

Grade VM55W (55 ksi proprietary grade) for weldable OCTG pipes

Grade K55 for seamless OCTG pipes

Grade VM80S (80 ksi proprietary grade/L80) for seamless OCTG pipes

Grade 34CrMo4 for pressure vessels

For the qualification process of these materials, Vallourec followed the recommendations and requirements provided by the American Society of Mechanical Engineers (ASME) B31.12 option B standard for hydrogen piping and pipelines which requires all materials tested to present a hydrogen stress intensity factor threshold KIH of a minimum of 55 MPavm. The fracture toughness evaluations performed involved exposing fatigue pre-cracked bolt-load specimens to 100 bar hydrogen gas during 1,000?hours at room temperature. K1 applied in the range of 134-176 MPa/m was used during the testing.

The results of these evaluations demonstrated that all selected materials present a hydrogen stress intensity factor threshold KIH greater than 67 to 87 MPavm, largely above the 55 MPa/m minimum required by ASME B31.12.

These results prove that all tested materials are suitable for hydrogen service under 100 bar H2 gas. Furthermore, it can be argued that these materials are also suitable for higher pressures of hydrogen considering the quite limited impact of this environmental parameter beyond approximately 50 bar based on the thorough literature review performed by SANDIA laboratories2.

In addition to the fracture toughness tests, Vallourec is also currently carrying out fatigue crack growth rate tests in order to provide customers with a complete understanding of the steels’ fatigue behavior to hydrogen. Other Line Pipe and OCTG grades are also currently being tested and will be progressively added to the growing portfolio of qualified Vallourec materials for hydrogen applications.

These qualification results are in line with those obtained by the HystorIES project of which Vallourec is part of. Vallourec’s L80 and K55 grades were successfully tested using different methodologies in a more demanding corrosive environment in porous media. Read HystorIES’s material qualification reports here. The tests also fall within Vallourec's commitment to collaborate in establishing the guidelines for the transport of hydrogen gas in pipelines as part of DNV’s H2Pipe JIP.

With the hydrogen qualification of OCTG, Line Pipe and Mechanical grades as well as of its VAM® connections, Vallourec is already able to offer a strong portfolio of solutions for a large section of the hydrogen supply chain including transport and storage in small, mid and large quantities.
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SAIL BSP Establishes Rail Link with Rowghat Iron Ore Mine

Strategic Research Institute
Published on :
23 Sep, 2022, 6:23 am

Indian steel giant Steel Authority of India Limited has been successful in establishing a rail transport linkage between its Rowghat captive iron ore mine and Bhilai Steel Plant in Chhattisgarh. The first freight rake comprising 24 wagons successfully conducted a trial run between Rowghat mine and BSP last week, enabling the mill to receive its first consignment of raw material through the railway link.

Once the railway link stabilizes, BSP will be able to receive 300,000 tonne of iron ore from Rowghat per year and such a large volume will not be viable through current road networks.

Iron ore deposits in Rowghat were discovered in 1899 and in 1949 Geological Survey of India investigated the area. The Rowghat mine-Deposit-F has estimated reserves of 476.45 million tonnes and is sufficient to feed raw material to BSP for the next 20 years.
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AMI Upgrades Ladle Furnace of Beltrame’s Stahl Gerlafingen

Strategic Research Institute
Published on :
23 Sep, 2022, 6:25 am

Italy headquartered steel maker Beltrame’s Swiss unit Stahl Gerlafingen has upgraded their Electrode Regulation System for secondary steelmaking process. Leading automation technology provider AMI has supplied the DigitARC PX3 ERS for Ladle Furnace which was delivered in May 2022, with all onsite commissioning work finished in middle 2022. Startup was carried out within the shortest possible time to minimize production downtime.

Their 80 tonne 11 MVA Ladle Furnace was updated with the objective to reduce electrode consumption, increase the heating rate and decrease ladle refractory wear. Technically, a transition from Z to l-Z regulation control took place as part of the improvements done in the regulation system looking for better arc stability and reducing electrode consumption by giving the right amount of energy to the steel at the same.

The interface includes a set of powerful diagnostic tools and configurable screens to control almost every aspect of the furnace, this allows customers to standardize the operation process.

Stahl Gerlafingen, as a part of the Beltrame Group specializes in the supply of high-quality products for construction, automotive, energy and heavy industry.
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German Industry Association BDI Sticks to Climate Targets

Strategic Research Institute
Published on :
23 Sep, 2022, 6:27 am

Federation of German Industries BDI said that Germany's industry will not sacrifice the country's ambitious climate targets for 2030 and 2045 over the energy crisis. BDI President Mr Siegfried Russwurm at the association's climate congress said “Even though the energy crisis is so serious that nothing less is at stake in the coming weeks than ensuring the survival of industries in Germany and Europe, climate protection must remain a high priority. What is needed now is a dual strategy of measures to deal with the energy crisis and intensified investment in climate protection The economy and energy supply must be made crisis-proof and more resilient.”

Mr Russwurm said “Germany seeks to reduce its greenhouse gas emissions by 65% by 2030 from 1990 levels and to be completely climate-neutral by 2045. Already, companies have successfully set out on a path to help Germany to become a climate-neutral industrialized country.”

According to the BDI “Boosting renewable energy production, upgrading the electricity grids and jump-starting the hydrogen economy are at the heart of the German climate strategy. But the roll-out of costly climate-neutral solutions will need government support.”

A study the BDI published last year put the cost of achieving climate neutrality in Germany at EUR 860 billion. Inflation fueled by the current energy crisis is expected to push this figure higher

The Bundesverband der Deutschen Industrie, Federation of German Industries is the leading organization of German industry and industry-related service providers. It represents 39 industry associations and more than 100,000 companies with around 8 million employees.
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JSW Steel Appeals against Odisha GST Department over Tax Dispute

Strategic Research Institute
Published on :
23 Sep, 2022, 6:29 am

Business Line reported that Indian steel leader JSW Steel has moved the Appellate authority within GST department of Odisha against the demand notice of INR 2,678 crore towards tax, penalty and interest on JSW mining company in the State. JSW Steel’s Joint Managing Director Mr Seshagiri Rao told BusinessLine that the case was due to the anomaly in GST rate whereby the tax on input was higher that of the output goods and this was corrected subsequently about six months back. He said “In the case of JSW Steel, the iron ore mining subsidiary company paid 18% GST on premium on mining and when iron ore was sold to the parent companies the GST rate was 5%. This led to accumulation of GST credit of about INR 1,510 crore at the mining company level. As per GST regulation, when the output tax is lower than the input tax, companies can claim refund when goods are involved but not in the case of service Since iron ore mining was a service to the parent company, the mining subsidiary could neither claim refund nor utilize it due to inverted duty structure. Moreover, GST regulations does not allow set-off of accumulated GST credit in one state to another state.”

Mr Rao said “There is provision in GST to claim credit at the head-office level in case of accumulation of credit. JSW Steel utilized this and distributed it to manufacturing plants in Vijayanagar and Dolvi since the Odisha mining company was selling iron ore to these plants. However, the GST department believes that the accumulated GST credit cannot be distributed to other states.”

In March, the GST wing of Odisha had raised objection claiming revenue loss and issued demand notice of INR 2,678 crore including interest and penalty on JSW Steel, Barbil and pay the same within one month of issue of the order. JSW Steel had moved the Odisha High Court and subsequently Supreme Court seeking interim relief, but was directed to move the GST department without offering any relief.

The company had started mining operation at Nuagoan, Jajang, Koira and Ganua mines, for which lease was granted by the State government, by paying applicable bid premium, royalty and other statutory fees in addition to INR 1,510 crore towards GST on Reverse Charge Mechanism basis. As per the provisions of GST law, JSW Steel was eligible to avail ITC of INR 1,510 crore towards payment of output tax liability. The company utilized INR 271 crore for discharging output tax liability on actual supply of iron ore. The remaining unutilized ITC of INR 1,239 crore was transferred to parent company in Mumbai for support service and subsequently distributed it to other units of JSW Steel located in different states for their utilization.
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Tata Steel UK Commits to Responsible Steel & SBTi

Strategic Research Institute
Published on :
23 Sep, 2022, 6:32 am

UK’s largest steel producer Tata Steel has announced to commit its Port Talbot site in South Wales to become accredited to ResponsibleSteel. The company is also to formally adopt Science Based Targets with respect to its programme of emission reductions and net zero aspirations. Tata Steel’s Chief Commercial Officer Mr Anil Jhanji, announced the decision during his keynote speech to industry peers last week at UK Metal Expo exhibition at Birmingham’s NEC. He said: “We are on a journey to decarbonize, to make a better world for the future. These commitments to ResponsibleSteel and SBTi are a clear statement to the world and to our customers that we mean business. This will include decarbonizing every aspect of our business from our procurement of raw materials and energy, to our iron and steelmaking at Port Talbot and through our downstream coating, tube-making and further processing operations, and logistics.”

He said “We have always valued collaborations with our customers, suppliers and academic experts, as well as independent bodies and groups such as ResponsibleSteel and the Science Based Targets initiative.”

He added “It is important that we not only continue on our journey to reduce our emissions and reach net-zero carbon by 2045, but also to do so in a validated way, measuring our progress according to robust and agreed measurement processes. We firmly believe signing up to such partnerships will help us achieve those goals.”

The Science Based Targets initiative is driving ambitious climate action in the private sector by enabling companies to set science-based emissions reduction targets. Science-based targets show companies how much and how quickly businesses need to reduce their greenhouse gas emissions to prevent the worst impacts of climate change, leading them on a clear path towards Decarbonisation. By guiding companies in science-based target setting, SBTi enables them to tackle climate change while seizing the benefits and boosting their competitiveness in the transition to a net-zero economy.

Not-for-profit organization ResponsibleSteel is the industry’s first global multi-stakeholder standard and certification programme.
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Vallourec Signs 10 Year OCTG Supply Pact with Saudi Aramco

Strategic Research Institute
Published on :
23 Sep, 2022, 6:34 am

World leader in premium tubular solutions Vallourec has signed a 10-year agreement with Saudi Aramco for the supply of Premium Casing and Services. The associated orders will be manufactured and delivered by Vallourec’s plant in Saudi Arabia. This agreement will cover part of Saudi Aramco’s needs for Premium Oil Country Tubular Goods solutions for its drilling operations. It includes the supply of Premium Casing as well as Inventory Management services.

As part of the iktva (In-Kingdom Total Value Add) program launched by Saudi Aramco, Vallourec has submitted a comprehensive plan that makes a significant contribution to the development of local production in Saudi Arabia over the long term.

This contract is on a call-off basis, placed every quarter during the term of the agreement. The first two on-call orders have already been received, with delivery scheduled for early 2023.

This agreement represents a key achievement for Vallourec in Saudi Arabia. It paves the way for a joint roadmap focused on innovation, services, and energy transition. It provides Vallourec Saudi Arabia with solid outlook for its presence in the region.
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Tata Steel to Amalgamate 7 Subsidiaries

Strategic Research Institute
Published on :
23 Sep, 2022, 6:36 am

Tata Steel announced that its Board of Directors has approved seven Schemes of Amalgamation of with their parent company, Tata Steel

1. Tata Steel Long Products

2. The Tinplate Company of India

3. Tata Metaliks

4. TRF Limited

5. The Indian Steel & Wire Products

6. Tata Steel Mining

7. S & T Mining Company

Each Scheme is subject to the receipt of approval from the requisite majority of the shareholders of the respective Transferor Companies and Transferee Company; Competent Authority, SEBI & NSE and other approvals, permissions and sanctions of regulatory and other statutory or governmental authorities & quasi-judicial authorities, as may be necessary as per applicable laws.

Tata Steel Long Products was incorporated on 31 July 1982 with registered office at Joda in Keonjhar in Odisha. It is primarily engaged in the business of production and marketing of sponge iron, which is a steel making and a single grade product. It has also one of the largest specialty steel plants in India in the SBQ (special bar quality) segment with an annual capacity of 1 million tonnes per annum and the merchant DRI segments with a strong presence in the wire rod market.

The Tinplate Company of India was incorporated on 20 January 1920 with registered office in Kolkata. It is primarily engaged in manufacturing of tinplate, tin free steel and other related products having its plant located in Jamshedpur, Jharkhand.

Tata Metaliks was incorporated on 10 October 1990 with registered office at Tata Centre in Kolkata. It is primarily engaged in the business of manufacture and sale of pig iron and ductile iron pipes and allied accessories. It has its manufacturing unit at Kharagpur in West Bengal.

TRF Limited was incorporated on 20 November 1962 with registered office at Burmamines in Jamshedpur.TRF is engaged in the business of undertaking turnkey projects of material handling for the infrastructure sector and also in production of such material handling equipment’s.

The Indian Steel & Wire Products was incorporated on 2 December 1935 with registered office in Kolkata. ISWP is primarily engaged in the business of manufacture of wire rods, TMT rebars, wires and wire products as an external processing agent of the Transferee Company and manufacturing and direct marketing of welding products, nails, rolls and castings.

Tata Steel Mining was incorporated on 29 March 2004 with registered office in Bhubaneswar. It has its presence in the manufacture of ferrochrome and has its primary facility situated at Anantapur, Athagarh, District Cuttack. Further, through its successful acquisition of Rohit Ferro Tech Limited under Insolvency and Bankruptcy Code, 2016, it has its manufacturing facility in Jajpur, Odisha and Bishnupur, West Bengal. Along with manufacturing of Ferro Chrome, TSML has also pursued the commercial mining of Chrome ore and iron ore and have executed mining leases for three Chromite blocks viz. Sukinda, Saruabil and Kamarda in Jajpur District, Odisha and is awaiting execution of mining lease for an iron ore block located at Gandhalpada in Keonjhar District, Odisha.

S & T Mining was incorporated on 18 September 2008 with registered office at Tata Centre in Kolkata. S & T Mining was engaged, inter alia, in the business of acquiring coal blocks, carrying out exploration, developments of mine, extraction and mining of coal from the identified blocks. However, S & T Mining has been non-operational since FY 2018-19.
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ArcelorMittal Poland Obtains ResponsibleSteel Certification

Strategic Research Institute
Published on :
23 Sep, 2022, 6:37 am

ArcelorMittal Poland has received ResponsibleSteel certification, following a successful audit carried out by DNV Poland which confirmed that the business fulfills the criteria required to earn certification against the ResponsibleSteel Standard. ArcelorMittal Poland is the first cluster of sites to be certified in Eastern Europe by ResponsibleSteel, the industry’s first global multi-stakeholder standard and certification initiative.

The audits are designed to verify that a steel site’s activities meet a set of rigorously defined requirements, which auditors validate not only on the basis of received documents but also via a number of interviews with internal and external stakeholders. They take into account a broad range of social and environmental criteria split into 12 principles. Social aspects include: business integrity, relations with employees and communities, human rights and labour rights. Environmental criteria cover climate change and greenhouse gas emissions, water management, waste and noise emissions and biodiversity.

In May 2022, the company’s sites in its Asturias Cluster in Spain, and ArcelorMittal Méditerranée in France achieved ResponsibleSteel certification. In June, France Nord also gained certification, covering its sites in Dunkerque, Mardyck, Desvres, Montataire, Florange, Mouzon and Basse-Indre.
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HYBRIT’s Pilot Facility for Hydrogen Storage Operational

Strategic Research Institute
Published on :
23 Sep, 2022, 6:39 am

Swedish steel maker SSAB, iron ore miner LKAB and European renewable leader Vattenfall's HYBRIT pilot facility for the storage of fossil-free hydrogen gas is now in operation in Luleå in Sweden. The rock cavern storage facility is the first of its kind in the world for storing fossil-free hydrogen gas. The two-year test period will now start and continue until 2024, which means that HYBRIT has taken another important step in developing the overall value chain for fossil-free iron and steel production.

After the inauguration of the pilot facility in June, initial pressure tests were conducted with water, which confirmed the facility’s mechanical stability, tightness and pressure capacity. The storage facility was then filled with hydrogen gas and even reached the maximum operating pressure of 250 bar. The commissioning of the pilot facility in Svartöberget has shown that the storage facility works according to its design and meets all safety requirements. The technology for the storage of gas in an underground lined rock cavern involves the cavern walls being lined with a sealing layer. LRCs have been thoroughly tested with natural gas, but the pilot facility in Luleå is the first in the world to test the technology with repeated filling and emptying of hydrogen gas.

The pilot facility's size is 100 cubic meters, and at a later stage it may be necessary to keep 100,000 to 120,000 cubic meters of pressurized hydrogen gas in full scale storage. This means that we can store up to 100 GWh of electricity in the form of hydrogen gas, which is enough to supply a full-size sponge iron factory for about three to four days.

The HYBRIT initiative was launched in 2016 by the three owners; SSAB, LKAB and Vattenfall. The hydrogen storage facility will play a very important role in the overall value chain for fossil-free iron and steel production. By producing fossil-free hydrogen gas when there is a lot of electricity, for example when it is very windy, and using stored hydrogen gas when the electricity system is under strain, will ensure production of sponge iron, the raw material behind fossil-free steel.
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Rio Tinto & Shougang Sign MoU for Steel Decarbonisation

Strategic Research Institute
Published on :
23 Sep, 2022, 6:41 am

Rio Tinto and Shougang have signed a Memorandum of Understanding to promote research, design and implementation of low-carbon solutions for the steel value chain. The MoU’s focus areas include low-carbon sintering technology, blast furnace and basic oxygen furnace optimization, and carbon capture and utilization. This partnership with Shougang underlines Rio Tinto’s strategic commitment to partner with customers on steel Decarbonisation pathways and to invest in technologies that could deliver reductions in steelmaking carbon intensity.

Initial efforts will be focused on, but not limited to, BF slag heat recovery, BOF slag utilization, CCU and low-carbon sintering technology.

The MoU builds on the nearly 30-year relationship between Rio Tinto and Shougang as trade and technical partners. The two companies will work together, leveraging their respective strengths in research and development, technologies, processes, equipment, logistics and industry coordination to support their shared objectives of limiting the impacts of global climate change and reducing carbon emissions.

Founded in 1919, Shougang Group is one of China’s oldest industrial enterprises. In China’s 14th Five-Year Plan period (2021-2025), Shougang has committed to accelerating the adoption of innovative solutions to contributing to China’s duo carbon goals. The company has identified four areas of focus, including process optimization and energy efficiency improvement, clean energy and CCUS technology development, recycling and green product development, and low-carbon cross-sector partnership development.
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Challenges in Steel’s USD 1.4 Trillion Shot at Decarbonisation

Strategic Research Institute
Published on :
23 Sep, 2022, 6:41 am

Wood Mackenzie in a recent report “Pedal to the metal: Iron and steel’s USD 1.4 trillion shot at decarbonisation” said that “The steel industry faces a huge challenge in achieving net zero emissions by 2050. Under our 1.5 degree Celsius Accelerated Energy Transition Scenario (AET-1.5), which is broadly aligned with the most ambitious goal of the Paris Climate Agreement, the decarbonisation of the iron and steel sectors will require around USD 1.4 trillion of investment.”

Wood Mackenzie added “The iron and steel industry will also require support from global carbon policy. To date, most national carbon markets are nascent and concentrated in mature economies. As more than 60% of steel production comes from China, Beijing must implement aggressive carbon pricing and taxation if steel’s high carbon footprint is to be addressed. The European Union’s carbon border adjustment mechanism and the potential for similar moves by other major economies could support faster change in producing countries such as China and India. But even with the successful global roll-out of wider carbon border taxes, the upside impact may be limited, only 20% of global steel consumption is traded. The willingness of consumers to pay a premium for green steel will be another challenge. While investor pressures on large multinational consumers (such as automakers and heavy machinery manufacturers) are having some impact, the construction industry is still largely unreceptive to green price hikes.”

It said “But the scale of the challenge offers enormous opportunities, too. Decarbonising steel production will require a revolution at every stage of the industrial value chain, from mining to consumption. To achieve net zero by 2050, three-quarters of steel production will have to use low-carbon technologies. Sectors including renewable power, low-carbon hydrogen and carbon capture utilisation and storage will be major beneficiaries of the industry’s move towards net zero emissions.”

Wood Mackenzie’s base-case energy transition outlook foresees an average global warming outcome of between 2.2 degree Celsius and 2.4 degree Celsius by mid-century. Under our AET-1.5 scenario, we assume that the iron and steel industry successfully decarbonises to achieve global net zero emissions by 2050. This 1.5 degree Celsius pathway requires 2050 steel emissions to fall by more than 90% from current levels. It said “This is a staggeringly big ask, given that our base-case steel emissions scenario assumes a decline of just one-third from current levels by 2050. There is an urgent need to act now to decarbonise the iron and steel industry, and business as usual is no longer sustainable. In this edition of Horizons, we analyse the what, when and how of getting to a 2050 net zero pathway.”

Wood Mackenzie also said “The largest factor in achieving net zero for steel will be switching to electric arc furnaces from the blast furnaces that dominate current production and emit up to four times more carbon. To reduce emissions to the degree required, EAFs will need to be powered by renewable energy, demonstrate greater energy efficiency and elevate the quality of metallics. Ultimately, the industry must pursue a complete switchover from predominantly hydrocarbon-based energy to renewable power along the value chain, from mining to steelmaking. In parallel, the industry needs to increase its use of less carbon-emissive feedstock, such as green hydrogen and scrap, in steelmaking. The availability of competitively priced green hydrogen at scale is a must in delivering decarbonisation goals. Commercialising new technologies, such as hydrogen-based direct reduced iron and molten oxide electrolysis running on renewable energy, could reduce emissions to zero.”

Wood Mackenzie concluded that achieving net zero will entail a fundamental transformation of steel and its value chain and is, therefore, fraught with risks. These include

1. Fragmented geographical implementation, which could disrupt trade patterns and lead to the underutilisation of younger furnace fleets in emerging economies

2. Sectoral vulnerability to energy price fluctuations, such as those seen in the last few months, this could become more frequent under faster energy transition scenarios and impact the costs of steelmaking

3. Green premiums and the ensuing cost inflation could hurt steel demand from price-sensitive consumers

4. Greenwashing by iron and steelmakers under the guise of ESG compliance

Wood Mackenzie said “Thus, the transition calls for collaborative action globally and a unified approach across the value chain to turn risks into opportunities. Iron and steel’s low-carbon diet will create rich opportunities and inclusive growth for parallel industries, including

Steel equipment technology providers as the world will need 470 million tonnes of new DRI and 1,100 million tonnes of new EAF furnace installation under AET-1.5 over the next three decades)

Players across the hydrogen ecosystem, which will need to produce a dedicated 52 million tonnes for the steel industry including electrolysers, hydrogen storage, transport

Green energy producers and solar & wind equipment manufacturers to provide 2,000 GW of dedicated renewable capacity by 2050 for the steel sector under AET-1.5

Electric vehicles and hydrogen-run haulage trucks at plant and mine sites for transportation

Other technical support services

There is no precast solution to the net zero puzzle, but individual and collective approaches by companies, governments, policy institutions and citizens will help determine green action.

Zie voor meer:

www.woodmac.com/horizons/pedal-to-the...
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Global Crude Steel Production in August Down 3% YoY

Strategic Research Institute
Published on :
23 Sep, 2022, 6:42 am

World Steel Association announced that global crude steel production for the 64 countries reporting to worldsteel was 150.6 million tonnes in August 2022, 3.0% decrease compared to August 2021. During January-August 2022, global crude steel production totaled 1.102 billion tonnes down 5.4% YoY, with China producing 693.2 million tonne down 5.7% YoY & India 83.5 million tonne up 7.1% YoY

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August 2022

1. China – 83.9 million tonne, up 0.5% YoY

2. India - 10.2 million tonne, up 1.2% YoY

3. Japan - 7.3 million tonne, down 7.4% YoY

4. United States – 7.0 million tonne, down 7.1% YoY

5. Russia - 5.9 million tonne, down 5.5% YoY

6. South Korea – 6.1 million tonne, down 0.4% YoY

7. Germany -2.9 million tonne, down 2.3% YoY

8. Turkey - 2.8 million tonne, down 21.0% YoY

9. Brazil - 2.8 million tonne, down 11.3% YoY

10. Iran – 2.1 million tonne, up 64.7% YoY

-----------------------

January-August 2022

1. China – 693.2 million tonne, down 5.7% YoY

2. India – 83.5 million tonne, up 7.1% YoY

3. Japan – 60.7 million tonne, down 5.2% YoY

4. United States – 54.9 million tonne, down 3.7% YoY

5. Russia – 48.9 million tonne, down 5.8% YoY

6. South Korea – 46.0 million tonne, down 3.0% YoY

7. Germany -25.4 million tonne, down 4.8% YoY

8. Turkey – 24.4 million tonne, down 8.8% YoY

9. Brazil – 23.1 million tonne, down 4.5% YoY

10. Iran – 19.5 million tonne, up 7.8% YoY
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Steel Decarbonization Not on Track - IEA

Strategic Research Institute
Published on :
23 Sep, 2022, 6:44 am

IEA in a latest report opined that current pipeline of projects to decarbonize steel industry clearly fall short of what is required to meet the Net Zero Scenario. IEAS said “The direct CO2 intensity of crude steel production has decreased slightly in the past few years, but efforts need to be accelerated to get on track with the pathway in the Net Zero Emissions by 2050 Scenario. In contrast to the minor annual improvements in the last decade, the CO2 intensity in the Net Zero Scenario falls by around 3% annually on average between 2020 and 2030. Since the emissions reduction potential of energy efficiency improvements and fuel shifting using conventional process technology is limited, innovation in the current decade will be crucial to commercialize new near zero-emission steel production processes including those that integrate carbon capture, utilization and storage and hydrogen, to achieve deeper cuts in emissions.”

IEA said “Technological progress supported by high fossil fuel prices supported momentum for near zero steel production and particularly direct reduction of hydrogen. After the Hybrit project in Sweden successfully piloted the first fossil-free steel delivery to a customer in August 2021, many new projects and related funding have been announced tripling the global number of projects and leading roughly to a five-fold increase of expected hydrogen capacity. Recently announced projects include for example SALCOS in Germany, Liberty Steel DRI plant in France, Iberdrola H2 Green Steel in Iberian Peninsula, or Green Steel H2V CAP in Chile.”

IEA said “The current pipeline of projects clearly nonetheless falls short of what is required to meet the Net Zero Scenario. Governments can help by providing RD&D funding, creating a market for near zero-emission steel, adopting policies for mandatory CO2 emission reductions, expanding international co-operation and developing supporting infrastructure. With electricity, hydrogen and CCUS as three main pillars to achieve substantial emission reductions in the iron and steel sector, suitable infrastructure needs to be developed to support the deployment of these innovative technologies. “

China, responsible for producing well over half of the world’s steel in 2020, has announced it will be putting a price on steel emissions, possibly as soon as 2023. They further announced as part of the 14th?Five-Year-Plan (2021-2025) that it will be prioritizing the creation of a circular economy, seeking to increase the use of scrap steel to 320?million?tonnes by 2025, an increase of around 30% relative to estimates for 2020. This follows India, the world's second largest steel producer in 2020, releasing their own Steel Scrap Recycling Policy, aiming to promote a circular economy in the steel sector by facilitating steel recycling across the product life cycle. The European Union is in the process of developing a carbon border adjustment mechanism for steel, while the United States has announced that it is considering the same. These policies would apply tariffs on imported emissions-intensive goods from jurisdictions with weak or absent emissions policy in an effort to limit carbon leakage, and incentivize stronger emissions measures overseas. France and Japan recently released roadmaps for decarbonizing the iron and steel sector, setting out specific targets and laying out concrete steps for their steel sectors, with the French plan calling for emission reductions of 31% by 2030

Last year, Germany announced it was earmarking EUR?7?billion for green hydrogen, including EUR?55?million for hydrogen-based steel production.

Key projects currently under development that could contribute to closing this gap are as follows:

The HYBRIT project in Sweden

H2 Green Steel in Sweden

Demonstration plant being designed in Hamburg in Germany

The 3D Carbon Capture pilot in Dunkirk in France

Tata Steel's pilot plant in Ijmuiden in Netherlands

On the demand side, the First Movers Coalition and the SteelZero Initiative are working to create a market for net zero steel, bringing together steel consumers that commit to procuring a defined amount of their steel from low-carbon sources.
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