CII – EXIM BANK CONCLAVE ON INDIA – AFRICA

PROJECT PARTNERSHIP

ENERGY EFFICIENT TECHNOLOGIES IN MANUFACTURING UNITS

“Role of Energy Efficiency in small

scale steel industrial units in India”

A.C.R. DAS
Industrial Advisor , Ministry of Steel
Government of India
UNDP/GEF- Project (Steel) 1
  World steel production in 2011 was 1,527 million tonne and
India produced 72 mt. 4th from the top of the list (China,
Japan, USA)
 Decadal growth rate in India varies in the range of 8-10%
 India will reach to 2nd position ie; next to China in steel
production in the terminal year of 12th plan and expected to
produce 200 mt by 2020.
 Production (finished steel) from private sector is 80% in 2010-
2011. Out of which, the SME sector contributes 46%
 The above indicates a tremendous growth potential of steel
sector in India.
 With the increase in production. energy consumptions and
GHG emissions will also increase correspondingly. As per
available information, global carbon emission at present is
around 25.2 billion tonne /year, out of which Indias
contribution is around 1.0 billion tonnes / year (4%). The steel
sector contributes 150 million tonnes / year (15%), out of
which SRRM sector contributes 16 million tonnes / year (11%).
UNDP/GEF- Project (Steel) 2
 Direct Reduction Iron Units (DRI) – 420 Units
 Induction Furnace – 1174 Units
 Electric Arc Furnace (EAF) – 48 Units
 Re-rolling Mills- 1794 Units
 The Energy Efficiency of Indian Steel Industry is
improving with adoption of energy efficient
technologies and practices.
 Ministry of Steel in collaboration with UNDP/GEF took
up an initiative to implement Energy Efficiency
Improvement Project in the Steel Re-rolling Mill Sector
by intervention of Energy Efficient Technology and
removal of barriers in 2004

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  The global objective is to reduce GHG emissions by
improving end-use energy efficiency levels in SRRM
sector. The immediate objective is to accelerate
penetration of environmentally sustainable energy
efficient technologies.
 Remove key-barriers to energy efficiency measures in
the sector.
 Enabling environment for the industry to adopt energy
efficient, economically viable & environmentally sound
technologies.
 Setting up Model units and implement technology
packages in major geographic clusters of SRRM.
 Emphasis on Technical Assistance for sustaining “Best
Practices”
 Success of Model units along with removal of barriers is
expected to promote large scale replication of
technology package in SRRM sector and induce policy
UNDP/GEF- Project (Steel)
changes. 4
 Energy Efficient Technologies for
Steel Re-Rolling Mill Sector

High-end Technologies -Energy Saving: Low-end Technologies - Energy Saving : 20-

30-40% 25%

Regenerative burner system High Efficiency Recuperator with improved

furnace design

Hot charging of Continuous Cast Billet Change of lump coal to coal producer gas as fuel

Top-and-Bottom firing system in reheating Technology for use of pulverized coal as fuel
furnace

Oxy-fuel combustion system in reheating Use of Bio-mass gas as fuel

furnace

Walking hearth/Beam furnace Coal Bed Methane

UNDP/GEF- Project (Steel) 5

 Benefits to Model Units
Technical Benefits .

Implementation of 5
Identification of existing Electrical Energy
S-Lean Manufacturing
problems Audit

Development of Performance
SOP & SMP Improvement Training
UNIT
Implementation of ISO
9001 and ISO 14001 Evaluation of Roll
Pass Design
Electrics
Reimbursement of the Capital Subsidy of
cost of consultancy upto a 25% investment
maximum of Rs. 5,00,000 subject to max of
30.0 /75.0 lakhs
Financial Benefits

UNDP/GEF- Project (Steel) 6

 PROJECT TARGETS
Consumption of energy Unit Status in Target /
& other important the Expected
performance parameters beginning Outcome
of re-rolling mills (Model of the after project
Units) Project completion

Oil consumption in the Lit/T 42-45 <30

reheating furnace
Coal consumption Kg/T 80-120 45-65
(Pulverized)
Gas consumption Nm3/T 48 30
Productivity of furnace Kg/m2/h 120-220 300-350
Scale Loss % 2.5-3.5 <1
Power consumption kWh/T 90-120 60-80
Yield % 89-93 94-95
Utilization of mill % 65-70 80-85
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1. Almost 50 Model units have been selected in all over the country out
of which 25 units have been commissioned with Energy Efficient
Technology & Design Suggested by our project team.

2. With the Post-Commissioning data available, following reduction has

been achieving
 Furnace Oil : 20-25%
 Pulverized Coal : 15-45%
 CO2 emission : 4000 – 10,000 t/annum. in each unit.

3. 68,000 Training Manuals were prepared in association with SAIL(MTI)

and all these manuals have been distributed to 1000, SRRM units in
the country.

4. Class Room training program were held in various clusters, in which

more than 2500 people were trained.

5. On-job training programs have been conducted in 22 Model units

covering all clusters, almost 20 persons in each program participated.
6. Awareness CD has been prepared on 1o Technology Packages & 19
Eco-tech options for Rolling mills. 1200 copies were made and
distributed. 8
UNDP/GEF- Project (Steel)
 8. 25 National Awareness Workshops are held so far, in
different parts of the country.

9. 5S lean manufacturing system in 10 Model units have been

implemented and 10 more units will be taken up this year.
This activity is a part of Best Practice Programme.

10. SOP & SMP Base documents were prepared and

implemented in 5 Model Units. 1000 CD has been sent to
SRRM units.

11. Electrical Energy audit was conducted in 20 Model Units and

the reports submitted by the consultant.

12. Feasibility Study was carried out in 20 Pipeline units and

reports submitted by the consultant.

13. The M/s Pulkit Steel, Pondichery a Model unit is the first
steel Rolling mill in India who installed a gasifier based on
Biomass and has successfully commissioned on 9th July,
2009. It is noted that about 8,000t CO2 emissions will be
reduced annually from his unit. Subsequently, several SRRM
units are replicating this technology.
UNDP/GEF- Project (Steel) 9
 CONCLUSION

UNDP/GEF- Project (Steel) 10

THANK YOU

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