KOBELCO Group’s CO2 Reduction Solution – Innovative technology to reduce CO2 emissions from blast furnace operations successfully verified

Kobe Steel, Ltd. announces that it has successfully demonstrated the technology that can reduce a significant amount of CO₂ emissions from blast furnace operations, combining the technologies of Midrex^*1) in the engineering business and the blast furnace operation technology in the iron and steel business. This achievement is a result of the integrated efforts of the Kobe Steel Group (also known as the KOBELCO Group) leveraging its diverse businesses. The demonstration test was conducted for a month at a large blast furnace (4,844 m³) of the Kakogawa Works in Hyogo Prefecture, Japan in October 2020.

The quantity of CO₂ emissions from the blast furnace is determined by the reducing agent rate (RAR)^*2) or the quantity of carbon fuel used in blast furnace ironmaking. In the demonstration test, it was verified that RAR could be stably reduced from 518 kg/tHM (ton hot metal) to 415 kg/tHM by charging a large amount of hot briquetted iron (HBI)^*3) produced by the MIDREX^® Process^*4). The results indicate that this technology can reduce CO₂ emissions by approximately 20% compared to a conventional method^*5).

In addition, the world’s lowest level of coke rate (239 kg/tHM) has been achieved in the demonstration test of this technology. The company sees it as a promising solution that could become readily available in the near future at a lower additional cost compared to other CO₂ reduction measures. The KOBELCO Group is considering licensing the technology worldwide.

CO₂ reduction cost using this technology is calculated as follows:

              (a) – (b) – (c) 

———————————————        +     equipment costs + other costs 

The quantity of CO2 reduced (d)   

where (a) is (the quantity of HBI charged × HBI unit price), (b) is (the quantity of iron ore reduced × iron ore unit price), and (c) is (the quantity of reductant reduced × reductant unit price).

Note: The value of (c) equals (the quantity of coke reduced × coke unit price) + (the quantity of pulverized coal reduced × pulverized coal unit price). The quantity of CO₂ reduced (d) equals (the quantity of reductant reduced × CO₂ emission factor).
Typical raw material unit prices are: HBI > coke > iron ore > pulverized coal.

The key technologies utilized for this achievement are:

(1) Technologies of Midrex for HBI manufacturing in the engineering business

(2) Blast furnace operation technology in the iron and steel business (e.g. advanced pellet production technology, HBI charging technology for blast furnaces, and blast furnace operation technology utilizing AI)

All of these technologies are developed by the KOBELCO Group as generic solution technologies applicable to various blast furnaces.

We will keep improving this CO₂ reduction solution technology while further reducing CO₂ emissions and achieving lower costs for CO₂ reduction. Beyond our own efforts to reduce emissions from our facilities, we will strive to contribute to the acceleration of CO₂ reduction through introducing this solution to blast furnaces around the world.

In addition, we believe that the success of the demonstration test on an actual blast furnace has made a significant step forward in providing low CO₂ steel products to customers. As moving forward with our environmental efforts on the scale of the whole supply chain, we will establish production and sales systems and define the terms and conditions for sales so that we can provide customers with low CO₂ steel products that offer new added value.

The mission of the KOBELCO Group is to develop and establish technologies that can reduce CO₂ emissions as quickly as possible and at the lowest possible cost in order to proceed with the initiatives to create a green society toward the goal of achieving carbon neutrality in 2050 as declared by the Japanese government.

The KOBELCO Group has always strived to and will continue to provide solutions to the needs of society by making the best use of the talents of our employees and our technologies with a view to realizing a world in which people, now and in the future, can fulfill their hopes and dreams while enjoying safe, secure, and prosperous lives.

*1) Midrex Technologies, Inc. is a Kobe Steel’s wholly owned subsidiary in the U.S.

*2) Reducing agent rate (RAR) = coke rate (determined by the quantity of coke used in blast furnace) + pulverized coal rate (determined by the quantity of pulverized coal injected into blast furnace). Coke is carbon fuel made from coal.

*3) Hot briquetted iron (HBI) is direct reduced iron (DRI) in a briquetted form. Since hot DRI is not suitable for long-distance transportation, it is pressed into a compact solid (briquette) upon being discharged from the reduction furnace.

*4) The MIDREX^® Process is the leading direct reduced iron (DRI) making process, which produces approximately 80% of the world’s direct reduced iron with natural gas (approximately 60% of the world’s direct reduced iron at large). The MIDREX^® Process uses natural gas as the reductant and pellets made of iron ore as the source of iron to make DRI through the reduction process in the shaft furnace. In comparison to the blast furnace method, the MIDREX^® Process can reduce CO₂ emissions by 20 to 40%. There are over 90 MIDREX modules worldwide.

*5) The results are compared with fiscal 2013, which is the base year of the CO₂ reduction targets set by the government and the KOBELCO Group.