Thursday, September 18, 2008

European steelmakers and Rio Tinto join forces in combating climate change

ULCOS, a consortium of the major European steelmakers, and Rio Tinto, one of the world's
leading mining and exploration companies, announce that they have agreed to collaborate on the
Isarna project, which aims to develop a new environmentally-friendly ironmaking process.
ULCOS (Ultra Low CO2 Steelmaking) is the world’s most ambitious R&D initiative to reduce
carbon dioxide emissions from steel production by developing new breakthrough technologies(www.ulcos.org).


Isarna (an old Celtic word for iron) is a new technology under development by ULCOS. It is a
highly energy efficient ironmaking process based on direct smelting of iron ore fines using a
smelt cyclone in combination with a coal-based smelter. All process steps are directly hotcoupled,avoiding energy losses from intermediate treatment of materials and process gases.
The smelt cyclone technology was conceived by Corus (an ULCOS participant) and has been
under development for many years. In the 1990s a series of large-scale pilot plant trialssuccessfully demonstrated its operation.


Rio Tinto’s participation is through the licensing of its HIsmelt® direct smelting technology
(www.hismelt.com), which it has been developing since the 1980s. The first commercial
HIsmelt® plant in Kwinana, Western Australia, is currently undergoing ramp-up. In its present
commercial form, the HIsmelt smelter uses coal and oxygen-enriched air in combination with a
fluidised bed iron ore preheater to produce liquid iron.

The new project aims to develop a new process by combining the Isarna smelt cyclone with the

HIsmelt smelter, and operating the combination on pure oxygen. The project will be renamed“HIsarna” to reflect this merging of concepts.


The resulting process is compact and highly efficient. It will result in lower CO2 emissions
compared to other coal-based processes, while the use of pure oxygen facilitates CO2 capture
and storage. In addition it will enjoy several other attractive features, including compactness, low
capital cost and an ability to use iron ore fines directly, as well as less expensive nonmetallurgical
coals.

A pilot plant rated at 65,000 tonnes per year will be built at Saarstahl (an ULCOS participant) inVölklingen, Germany. This unit is due to start operations in early 2010, and a three-year pilottesting phase is anticipated. Scale-up to commercial size and subsequent proliferation through the global steel industry will follow in due course.

Rio Tinto’s Iron Ore chief executive Sam Walsh welcomed the development. “Rio Tinto
understands the need for technology development to address climate change. This project
represents a logical extension of HIsmelt technology, which is aimed at achieving high levels of
CO2 reduction. This is yet another application of that technology, and highlights its broadercommercial potential.”

Jean-Pierre Birat, the coordinator of the ULCOS programme, commented: “We at ULCOS, whichis itself by nature a collaborative programme, consider that cooperation is key in the industry’sefforts to develop breakthrough steelmaking technologies to help tackle climate change. We arelooking forward to the results of this very promising HIsarna project.”

About ULCOS


ULCOS stands for Ultra–Low Carbon dioxide (CO2) Steelmaking. It is a consortium of 48
European companies and organisations from 15 European countries that have launched a
cooperative research & development initiative to enable drastic reduction in Carbon dioxide
(CO2) emissions from steel production. The consortium consists of all major EU steel
companies, of energy and engineering partners, research institutes and universities and is
supported by the European commission. The aim of the ULCOS programme is to reduce the
carbon dioxide (CO2) emissions of today’s best routes by at least 50 percent.



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