DA  U.S. Environmental Protection Agency  Industrial Environmental Research PDA £.C\C\/~7 7fi
C r M  Office of Research and Development   Laboratory
                      Cincinnati. Ohio 45268     December 1976
            ENVIRONMENTAL
            CONSIDERATIONS OF
            SELECTED ENERGY
            CONSERVING MANUFACTURING
            PROCESS OPTIONS:
            Vol. III. Iron and Steel
            Industry Report
            Interagency
            Energy-Environment
            Research and Development
            Program  Report

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                       RESEARCH REPORTING SERIES
Research reports of the Office of Research and Development, U.S.
Environmental Protection Agency, have been grouped into seven series.
These seven broad categories were established to facilitate further
development and application of environmental technology.  Elimination
of traditional grouping was consciously planned to foster technology
transfer and a maximum interface in related fields.  The seven series
are:

     1.  Environmental Health Effects Research
     2.  Environmental Protection Technology
     3.  Ecological Research
     4.  Environmental Monitoring
     5.  Socioeconomic Environmental Studies
     6.  Scientific and Technical Assessment Reports (STAR)
     7.  Interagency Energy-Environment Research and Development

This report has been assigned to the INTERAGENCY ENERGY-ENVIRONMENT
RESEARCH AND DEVELOPMENT series.  Reports in this series result from
the effort funded under the 17-agency Federal Energy/Environment
Research and Development Program.  These studies relate to EPA's
mission to protect the public health and welfare from adverse effects
of pollutants associated with energy systems.  The goal of the Program
is to assure the rapid development of domestic energy supplies in an
environmentally—compatible manner by providing the necessary
environmental data and control technology.  Investigations include
analyses of the transport of energy-related pollutants and their health
and ecological effects; assessments of, and development of, control
technologies for energy systems; and integrated assessments of a wide
range of energy-related environmental issues.
This document is available to the public through the National Technical
Information Service, Springfield, Virginia  22161.

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                                                 EPA-600/7-76-034c
                                                 December  1976
        ENVIRONMENTAL CONSIDERATIONS OF  SELECTED
    ENERGY CONSERVING MANUFACTURING PROCESS  OPTIONS
                       Volume III

             IRON AND STEEL INDUSTRY REPORT
               EPA Contract No. 68-03-2198
                     Project Officer

                  Herbert S. Skovronek
         Industrial Pollution Control Division
Industrial Environmental Research Laboratory - Cincinnati
                Edison, New Jersey 08817
       INDUSTRIAL ENVIRONMENTAL  RESEARCH LABORATORY
            OFFICE OF RESEARCH AND DEVELOPMENT
            U.S.  ENVIRONMENTAL PROTECTION AGENCY
                  CINCINNATI, OHIO 45268
For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 30402

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                                 DISCLAIMER
     This report has been reviewed by the Industrial Environmental Research
Laboratory, U.S. Environmental Protection Agency, and approved for publica-
tion.  Approval does not signify that the contents necessarily reflect the
views and policies of the U.S. Environmental Protection Agency, nor does
mention of trade names or commercial products constitute endorsement or
recommendation for use.
                                      ii

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                                 FOREWORD
     When energy and material resources are extracted, processed, converted,
and used, the related pollutional impacts on our environment and even on our
health often require that new and increasingly more efficient pollution con-
trol methods be used.  The Industrial Environmental Research Laboratory -
Cincinnati (lERL-Ci) assists in developing and demonstrating new and im-
proved methodologies that will meet these needs both efficiently and
economically.

     This study, consisting of 15 reports, identifies promising industrial
processes and practices in 13 energy-intensive industries which, if imple-
mented over the coming 10 to 15 years, could result in more effective uti-
lization of energy resources.  The study was carried out to assess the po-
tential environmental/energy impacts of such changes and the adequacy of
existing control technology in order to identify potential conflicts with
environmental regulations and to alert the Agency to areas where its activi-
ties and policies could influence the future choice of alternatives.  The
results will be used by the EPA's Office of Research and Development to de-
fine those areas where existing pollution control technology suffices, where
current and anticipated programs adequately address the areas identified by
the contractor, and where selected program reorientation seems necessary.
Specific data will also be of considerable value to individual researchers
as industry background and in decision-making concerning project selection
and direction.  The Power Technology and Conservation Branch of the Energy
Systems-Environmental Control Division should be contacted for additional
information on the program.
                                           David G. Stephan
                                               Director
                             .Industrial Environmental Research Laboratory
                                              Cincinnati
                                     iii

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                             EXECUTIVE SUMMARY
     In 1973, the energy consumption in the iron and steel industry accounted
for 6% of the national total and 17% of the total industrial sector.  The total
capacity of the industry is expected to grow at about 2.5% a year during the
next 15 years.

     It is in the manufacture of liquid steel that one finds the main areas
where tradeoffs can be considered between energy conservation and pollution
abatement.  We selected four process options for study:

     •    Recovery of carbon monoxide from BOP (Basic Oxygen Process for
          steelmaking) vessels;

     •    External desulfurization of blast furnace hot metal;

     •    Conversion from the wet to the dry process for quenching of coke; and

     •    Direct reduction of iron ore.

     The recovery of carbon monoxide from the BOP vessels provides the steel-
maker with a new fuel source that can supplement other gaseous fuels through-
out the steel plant.  The value of the fuel can make this option economically
attractive.   Moreover better efficiency in gas cleaning also tends to favor
this route.   The industry is expected to adopt it widely in new facilities dur-
ing the next 15 years.

     External desulfurization provides the steelmaker with a way to use higher
sulfur coke in the blast furnace or alternatively to reduce the coke rate and
limestone consumption in the blast furnace.  Fugitive, air and water pollution
streams are created which are, however, similar in nature to others found in
steelmaking.  They will add only a small amount to the overall pollution load
and can be easily controlled with existing technology.  A preliminary economic
analysis shows this option to be economically attractive when sulfur levels
in the coke exceed about 1.2%.  Some steelmakers are expected to build external
desulfurization stations as a hedge against fluctuating prices and availability
of low sulfur metallurgical coal.  The iron and steel industry is expected to
adopt this new option during the next 15 years although there appears to be
question on the availability of desulfurizing reagents.

     Dry quenching of coke is essentially an energy-saving option.  It may be
less polluting than wet quenching, although more research is needed for an
accurate assessment.  Prohibitively high capital investments do not make this
option economically attractive when the recovered energy is credited on an oil
                                      iv

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equivalent basis.  Only large integrated plants are expected to consider this
option in the future in the face of changing economic conditions such as higher
energy costs or newer technology reducing dry quenching investment requirements.

     The subject of direct reduction of iron ore is a very complex one.  The
most proven commercial processes use gaseous reductants and are based on
reformed natural gas or other petroleum derivatives.  Gasified coal can also
be used but so far this has not proved to be economically viable.  The last
major remaining alternative is the direct use of coal in a rotary kiln which
was investigated in this study.  The rotary kiln-electric furnace route is more
energy consuming than the conventional coke oven-blast furnace-BOP route, but
the former allows for the potential use of lower valued coals rather than pre-
mium metallurgical coals or gaseous fuels.  It also eliminates the need for a
major pollution source:  the coke oven.  However, it is not yet technically
proven and is not expected to be widely practiced during the next 15 years in
the United States.

     This report was submitted in partial fulfillment of contract 68-03-2198
by Arthur D. Little, Inc. under sponsorship of the U.S. Environmental
Protection Agency.  This report covers a period from June 9, 1975 to January
30, 1976.

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                             TABLE OF CONTENTS
FOREWORD                                                                  ill
EXECUTIVE SUMMARY                                                          iv
List of Figures                                                            ix
List of Tables                                                              x
Acknowledgments                                                           xiii
Conversion Table                                                            xv

I.    INTRODUCTION                                                          1

      A.   BACKGROUND                                                       1
      B.   CRITERIA FOR INDUSTRY SELECTION                                  1
      C.   CRITERIA FOR PROCESS SELECTION                                   3
      D.   SELECTION OF IRON AND STEEL INDUSTRY PROCESS OPTIONS             3

II.   FINDINGS AND CONCLUSIONS                                              5

      A.   RECOVERY OF CARBON MONOXIDE FROM BOP VESSELS                     5
      B.   EXTERNAL DESULFURIZATION OF HOT METAL                            7
      C.   DRY COKE QUENCHING                                               8
      D.   DIRECT REDUCTION (DR)                                            9
      E.   RESEARCH AREAS                                                  11

III.  INDUSTRY OVERVIEW                                                    12

      A.   INDUSTRY OPERATIONS                                             12
      B.   ENERGY UTILIZATION PATTERN                                      14

IV.   EVALUATION OF PROCESS OPTIONS                                        16

      A.   BACKGROUND                                                      16
      B.   RECOVERY OF CARBON MONOXIDE FROM BOP VESSELS                    18

           1.   Base Line Description                                      18
           2.   BOP Off-Gas Recovery                                       19
           3.   Pollutant Emissions and Necessary Abatement                22
           4.   Current Adoption Status                                    26
           5.   Economics of Non-Combustion and Combustion Systems         26
                                      vii

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                         TABLE OF CONTENTS (Cont.)
      C.   EXTERNAL DESULFURIZATION OF BLAST FURNACE HOT METAL             29

           1.   Sulfur Problem and Base Line Technology                    29
           2.   Methods of External Desulfurization                        31

      D.   DRY QUENCHING OF COKE                                           48

           1.   Description of the Base Line                               48
           2.   Description of the Dry Quenching Process                   48
           3.   Pollutant Emissions and Necessary Abatement                50
           4.   Technological Factors                                      51
           5.   Energy Considerations                                      51
           6.   Economics of Dry Coke Quenching                            52
           7.   Current Adoption Status                                    53

      E.   DIRECT REDUCTION                                                54

           1.   The Direct Reduction Route                                 59
           2.   Pollutant Emissions and Abatement Technology               64
           3.   Energy Usage                                               78
           4.   Investments and Operating Costs                            80
           5.   Adoption Status                                            81

REFERENCES                                                                 88
                                    viii

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                              LIST OF FIGURES


Number

III-l    Geographical Distribution of the U.S. Iron and Steel Industry    13

IV-1     Schematic Layout of Complete Combustion BOP Gas-Cleaning System  20

IV-2     Schematic Layout of the Non-Combustion BOP Off-Gas Recovery
         System (OG Process)                                              20

IV-3     BOP Off-Gas Recovery without Combustion (IRSID-CAFL Process)     22

IV-4     Combination of Hot Metal Mixing and External Desulfurization     32

IV-5     Schematic Representation of the ATH Injection Process for
         External Desulfurization in the Torpedo Car                      33

IV-6     Flow Diagram for External Desulfurization in the Torpedo Car     34

IV-7     Relationship between Cost of Ironmaking and Sulfur in Iron       43

IV-8     Schematic View of the Soviet Dry Quenching System                49

IV-9     Block Diagram of Dry Quenching Indicating Potential for
         Pollutants                                                       51

IV-10    Production and Processing of Metallized Product, July 1974       56

IV-11    Schematic Flow Diagram of the Base Line Process for Steelmaking  57

IV-12    Schematic Flow Diagram of the Direct Reduction Route             58

IV-13    The Reduction Zone of the SL/RN Process                          60

IV-14    Example of Continuous Charging System                            61

IV-15    Decrease of Coke Consumption by Charging Prereduced Burden
         into the Blast Furnace                                           63

IV-16    Increase of Blast Furnace Production by Charging Prereduced
         Burden                                                           63
                                     ix

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                              LIST OF TABLES


Number                                                                   Page

1-1     Summary of Energy Purchased in Selected Industry Sectors, 1971      2

II-l    Summary of Costs/Energy/Environmental Aspects of Process
        Options in the Iron and Steel Industry                              6

III-l   Major Corporate Steel Producers (1973)                             14

III-2   Relative Consumptions of Energy in the United States (1973)         15

IV-1    Particle-Size Distribution of Basic Oxygen Furnace Dust            24

IV-2    Particle-Size Distribution of OG Process Dust                      24

IV-3    Effect of OG Process on Composition of Basic Oxygen Furnace
        Dust                                                               25

IV-4    Comparison of Energy Usage in Non-Combustion and Total
        Combustion Systems                                                 26

IV-5    Cost Structure in New Non-Combustion System                        27

IV-6    Cost Structure in New Total Combustion System                      28

IV-7    Definition of the Base Line and of the External Desulfurization
        Option                                                             30

IV-8    Air Pollution Control Costs for the External Desulfurization
        Station                                                            36

IV-9    Expected Composition of Treated Scrubber Water from
        Desulfurization                                                    37

IV-10   Comparison of Treated Effluent Wastewater Load                     37

IV-11   Blast Furnace Wastewater Treatment Costs                           39

IV-12   External Desulfurization Incremental Wastewater Treatment Costs    39

IV-13   External Desulfurization Solid Waste Disposal Costs                40

IV-14   Summary of the Pollution Costs With and Without External
        Desulfurization                                                    40

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                          LIST OF TABLES (Cont.)


Number                                                                   Page

IV-15   Comparison of Energy Consumption With and Without External
        Desulfurization                                                    41

IV-16   Cost Comparison Between the Two Routes                             43

IV-17   Cost Structure in New Blast Furnace                                44

IV-18   Cost Structure in New Blast Furnace (Reduced Coke Rate)            45

IV-19   Cost Structure in New External Desulfurization                     46

IV-20   Incremental Costs Incurred by a New Dry Coke Quenching Unit        52

IV-21   Classification of Direct-Reduction Processes                       55

IV-22   Definition of the Base Line and Process Option Considered for
        Direct Reduction                                                   59

IV-23   Air Pollution Control for Base Case                                65

IV-24   Air Pollution Costs for Three Direct Reduction Kilns               66

IV-25   Air Pollution Control Costs for an Electric Arc Furnace Shop       66

IV-26   Total Air Pollution Cost for the Direct Reduction Route            67

IV-27   Base Case Treated Effluent Waste Load                              69

IV-28   Direct Reduction Treated Wastewater Load                           70

IV-29   Direct Reduction Comparison of Treated Wastewater Loads            71

IV-30   Base Case Wastewater Treatment Costs                               73

IV-31   Direct Reduction Kiln .Scrubber Wastewater Treatment Costs          74

IV-32   Direct Reduction vs Base Case Comparison of Wastewater
        Treatment Costs                                                    75

IV-33   Summary of Pollution Control Costs                                 78

IV-34   Energy Requirements of the Conventional and Direct Reduction
        Steelmaking Routes                                                 79

IV-35   Capital Costs                                                      80
                                      xi

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                          LIST OF TABLES (Cont.)






Number                                                                   Page




IV-36   Cost Structure in New Coke-Making Facilities                       82




IV-37   Cost Structure in New Blast Furnace Facilities                     83




IV-38   Cost Structure in New Basic Oxygen Process                         84




IV-39   Cost Structure in New Sponge Iron (93% Metallized) Facilities      85




IV-40   Cost Structure in New Electric Furnace Shop                        86




IV-41   Operating Costs                                                    87
                                     xii

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                             ACKNOWLEDGMENTS


     This study could not have been accomplished without the support of a
great number of people in government agencies, industry, trade associations
and universities.  Although it would be impossible to mention each individual
by name, we would like to take this opportunity to acknowledge the particular
support of a few such people.

     Dr. Herbert S. Skovronek, Project Officer, was a valuable resource to us
throughout the study.  He not only supplied us with information on work
presently being done in other branches of EPA and other government agencies,
but served as an indefatigable guide and critic as the study progressed.  His
advisors within EPA, FEA, DOC, and NBS also provided us with insights and
perspectives valuable for the shaping of the study.

     During the course of the study we also had occasion to contact many
individuals within industry and trade associations.  Where appropriate we
have made reference to these contacts within the various reports.  Frequently,
however, because of the study's emphasis on future developments with compara-
tive assessments of new technology, information given to us was of a confiden-
tial nature or was supplied to us with the understanding that it was not to be
credited.  Therefore, we extend a general thanks to all those whose comments
were valuable to us for their interest in and contribution to this study.

     Finally, because of the broad range of industries covered in this study,
we are indebted to many people within Arthur D. Little, Inc. for their parti-
cipation.  Responsible for the guidance and completion of the overall study were
Mr. Henry E. Haley, Project Manager; Dr. Charles L. Kusik, Technical Director;
Mr. James I. Stevens, Environmental Coordinator; and "Ms. Anne B. Littlefield,
Administrative Coordinator.

     Members of the environmental team were Dr. Indrakumar L. Jashnani,
Mr. Edmund H. Dohnert and Dr. Richard Stephens (consultant).

     Within the individual industry studies we would like to acknowledge the
contributions of the following people.

Iron and Steel;           Dr. Michel R. Mounier, Principal Investigator
                          Dr. Krishna Parameswaran

Petroleum Refining:       Mr. R. Peter Stickles, Principal Investigator
                          Mr. Edward Interess
                          Mr. Stephen A. Reber
                          Dr. James Kittrell (consultant)
                          Dr. Leigh Short (consultant)


                                    xiii

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Pulp and Paper;
Olefins:
Ammonia:
Aluminum:
Textiles:
Cement:
Glass:
Chlor-Alkali:
Phosphorus/
Phosphoric Acid:
Primary Copper;
Fertilizers:
Mr. Fred D. lannazzi, Principal Investigator
Mr. Donald B. Sparrow
Mr. Edward Myskowski (consultant)
Mr. Karl P. Pagans
Mr. G. E. Wong

Mr. Stanley E. Dale, Principal Investigator
Mr. R. Peter Stickles
Mr. J. Kevin O'Neill
Mr. George B. Hegeman

Mr. John L. Sherff, Principal Investigator
Ms. Nancy J. Cunningham
Mr. Harry W. Lambe

Mr. Richard W. Hyde, Principal Investigator
Ms. Anne B. Littlefield
Dr. Charles L. Kusik
Mr* Edward L. Pepper
Mr, Edwin-L, Field
Mr* John W* Rafferty

Dr. Douglas Shooter, Principal Investigator
Mr* Robert M. Green (consultant)
Mr* Edward S, Shanley
Dr* John Willard (consultant)
Dr.. Richard F. Heitmiller

Dr. Paul A. Huska, Principal Investigator
Ms. Anne B. Littlefield
Mr* J.. Kevin O'Neill

Dr. D. William Lee, Principal Investigator
Mr* Michael Rossetti
Mr* R. Peter Stickles
Mr.. Edward Interess
Dr* Ravindra M. Nadkarni

Mr. Roger E. Shamel, Principal Investigator
Mr. Harry W. Lambe
Mr*. Richard P. Schneider

Mr. William V. Keary, Principal Investigator
Mr. Harry W. Lambe
Mr. George C. Sweeney
Dr., Krishna Parameswaran

Dr. Ravindra M. Nadkarni, Principal Investigator
Dr, Michel R. Mounier
Dr, Krishna Parameswaran

Mr. John L. Sherff, Principal Investigator
Mr. Roger Shamel
Dr. Indrakumar L. Jashnani
                                     xiv

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                   ENGLISH-METRIC  (SI) CONVERSION FACTORS
To Convert From
To
Metre2
Pascal
Metre3
t Joule
Pascal-second
Degree Celsius
Degree Kelvin
Metre
3
Metre /sec
3
Metre
Metre2
Metre/sec
2
Metre /sec
I) Metre3
•Ibf/sec) Watt
.c) Watt
Watt
Metre
Joule
Metre3
Metre
Metre
Metre
Pascal-second
Newton
Kilogram
Kilogram
Kilogram
Kilogram
Kilogram
Kilogram
Multiply By
4,046
101,325
0.1589
1,055
0.001
t"c = (t° -32)/1.8
0.3048
0.0004719
0.02831
0.09290
0.3048
0.00002580
0.003785
745.7
746.0
735.5
0.02540
3.60 x 106
1.000 x 10~3
1.000 x 10~6
0.00002540
1,609
0.1000
4.448
0.4536
0.02916
1,016
1,000
907.1
1,000
Acre
Atmosphere (normal)
Barrel (42 gal)
British Thermal Unit
Centipoise
Degree Fahrenheit
Degree Rankine
Foot
    3
Foot /minute
Foot
    2
Foot
Foot/sec
    2
Foot /hr
Gallon (U.S. liquid)
Horsepower (550 ft-1
Horsepower (electric)
Horsepower (metric)
Inch
Kilowatt-hour
Litre
Micron
Mil
Mile (U.S. statute)
Poise
Pound force  (avdp)
Pound mass (avdp')
Ton (assay)
Ton (long)
Ton (metric)
Ton (short)
Tonne

Source:  American National  Standards  Institute,  '^Standard Metric Practice
         Guide," March 15,  1973.  (ANS72101-1973)  (ASTM Designation E380-72)
                                      xv

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                              I.  INTRODUCTION


A.   BACKGROUND

     Industry in the United States purchases about 27 quads* per year, approxi-
mately 40% of the total national energy usage.**  This energy is used for chem-
ical processing, raising steam, drying, space cooling and heating, process
stream heating, and miscellaneous other purposes.

     In many industrial sectors energy consumption can he reduced significantly
by better "housekeeping" (i.e., shutting off standby furnaces, better thermo-
stat control, elimination of steam and heat leaks, etc.) and greater emphasis
on optimization of energy usage.  In addition, however, industry can be expected
to introduce new industrial practices or processes either to conserve energy
or to take advantage of a more readily available or less costly fuel.  Such
changes in industrial practices may result in changes in air, water or solid
waste discharges.  The EPA is interested in identifying the pollution loads of
such new energy-conserving industrial practices or processes and in determining
where additional research, development, or demonstration is needed to charac-
terize and control the effluent streams.

B.   CRITERIA FOR INDUSTRY SELECTION

     In the first phase of this study we identified industry sectors that have
a potential for change, emphasizing those changes which have an environmental/
energy impact.  Industries were eliminated from further consideration if the
only process changes that could be envisioned were:

     •    energy conservation as a result of better policing or "housekeeping,"

     •    better waste heat utilization,

     •    fuel switching in steam raising, or

     •    power generation.

After discussions with the EPA Project Officer and his advisors, industry sec-
tors were selected for further consideration and ranked according to:
 *Quad = 1015 Btu.
**Purchased electricity valued at an approximate fossil fuel equivalence of
  10,500 Btu/kWh.

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      •    Quantitative criteria based on  the gross amount of energy  (fossil fuel
           and electric) purchased by industry sectors,  as shown in U.S.  Census
           figures  and from  information provided from industry sources:   the
           iron and steel industry purchased 3.49 quads  of the 12.14  quads
           purchased in 1971 by the 13 industries selected for study,  or  13% of
           the 27 quads purchased by all industry (see Table 1-1) .

      •    Qualitative criteria relating to  probability  and potential for proc-
           ess change, and the  energy and  effluent consequences of such changes.

      In order to allow for  as  broad a coverage of technologies  as  possible, we
then  reviewed the  ranking,  eliminating some industries  in which the  process
changes to be studied were  similar to those in another  industry planned for
study.   We believe the final ranking resulting from these considerations identi-
fies  those industry sectors which show the  greatest possibility of  energy con-
servation via process change.   Further details on this  selection process can  be
found in the Industry Priority Report prepared under  this contract  (Volume II) .

      Among the 13  industrial sectors listed,  the iron an4 steel industry
appeared in first  place.


                                    TABLE 1-1

        SUMMARY OF  ENERGY  PURCHASED IN SELECTED INDUSTRY SECTORS, 1971
1.
2.
3.
4.
5.
A.
7.
8.
9.
10.
11.
12.
13.
Industry Sector
Blast furnaces and steel mills
Petroleum refining
Paper and allied products
Olefins
Ammonia
Aluminum
Textiles
Cement
Glass
Alkalies and chlorine
Phosphorus and phosphoric
acid production
Primary copper
Fertilizers (excluding ammonia)
1015 Btu/Yr.
3.49(1>
2.96<2>
1.59
0.984(3)
0.63<*>
0.59
0.54
0.52
0.31
0.24
0.12(5)
0.081
0.078
SIC Code
In Which
Industry Found
3312
2911
26
2818
287
3334
22
3241
3211, 3221, 3229
2812
2819
3331
287
                 Estimate for 1967 reported by FEA Project Independence Blueprint,
                 p. 6-2, USCPO, November 1974.

                 Includes captive consumption of energy from process byproducts
                 (FEA Project Independence Blueprint)

                 Olefins only, includes energy of feedstocks: ADL estimates

               *4)Amonia feedstock energy included:  ADL estimates

               *5)ADL estimates

               Source: 1972 Census of Manufactures, FEA Project Independence Blueprint,
                     USGPO, November 1974, and ADL estimates.

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C.  CRITERIA FOR PROCESS SELECTION

     In this study, we focused on identifying changes in the primary production
processes which have clearly defined pollution consequences.  In selecting
those to be included in this study, we considered the needs and limitations of
the EPA as discussed more completely in the previously mentioned Industry
Priority Report.  Specifically, energy conservation is broadly defined to
include, in addition to process changes, conservation of energy or energy form
(gas, oil, coal) by a process or feedstock change. Natural gas has been con-
sidered as having the highest form value of energy, followed in descending
order by oil, electric power, and coal.  Thus, a switch from gas to electric
power would be considered energy conservation because electric power could be
generated from coal, whose reserves in the United States, in comparison to
natural gas, are abundant.  Moreover, pollution control methods resulting ,in
energy conservation have been included within the scope of this study. Finally,
emphasis was placed on process changes with near-term rather than long-term
potential within the 15-year span of time of this study.

     In addition to excluding from consideration better waste heat utilization,
"housekeeping," power generation, and fuel switching, as mentioned above, cer-
tain other options were excluded to avoid duplication of work being funded
under other contracts and to focus this study more strictly on "process
changes."  Consequently, the following have also nojt been considered to be
within the scope of work:

     •    Carbon monoxide boilers  (however, unique process vent streams yield-
          ing recoverable energy could be mentioned);

     •    fuel substitution in fired process heaters;

     •    mining and milling, agriculture, and animal husbandry;

     •    substitution of scrap (such as iron, aluminum, glass, reclaimed tex-
          tiles, and paper) for virgin materials;

     •    production of synthetic fuels from coal (low- and high-Btu gas,
          synthetic crude, synthetic fuel oil, etc.); and

     •    all aspects of industry-related transportation (such as transporta-
          tion of raw materials).

D.   SELECTION OF IRON AND STEEL INDUSTRY PROCESS OPTIONS

     Within each industry the magnitude of energy use was an important crite-
rion in judging where the most significant energy savings might be realized,
since reduction of energy use reduces the amount of pollution generated in the
energy production step.  Guided by this consideration, candidate options for
in-depth analysis were identified from the major energy-consuming process steps
with known or potential environmental problems.

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     After developing a list of candidate process options, we assessed sub-
jectively the:

     •    pollution or environmental consequences of the change,

     •    probability or potential for process change, and

     •    energy conservation consequences of the change.

     Even though all of the candidate process options were large energy users,
there was wide variation in energy use and estimated pollution loads between
options at the top and bottom of the list.  A modest process change in a major
energy-consuming process step could have more dramatic consequences than a more
technically significant process change in a process step whose energy consump-
tion is rather modest.  Process options were selected for in-depth analysis
only if a high probability for process change and pollution consequences in the
alternative process steps was perceived.

     Because of time and scope limitations for this study, we have not attempted
to prepare a comprehensive list of process options, or to consider all economic,
technological, institutional, legal, or other factors affecting implementation
of these changes-  Instead, we have relied on our own background experience,
industry contacts, and the guidance of the Project Officer and EPA advisors
to choose 16 reasonably promising process options (with the emphasis on near-
term potential) for analysis.

     After discussion with the EPA Project Officer, his advisors, and industry
representatives, we narrowed the list of candidates to four:

     •    Recovery of carbon monoxide from BOP (basic oxygen process) vessels,

     •    External desulfurization of blast-furnace hot metal,

     •    Conversion from wet to dry coke quenching, and

     •    Direct reduction of iron ore.

     We discarded options, for example, if it appeared that:

     •    the technology seemed to have limited use in terms of the type of
          product produced and the expected production volume, or

     •    the practice of the technology implied a manifestly unattractive
          pattern of energy consumption.

     Recognizing that capital investments and energy costs have escalated
rapidly in the past few years and have greatly distorted the traditional basis
for making cost comparisons, we developed costs representative of the first
half of 1975 using constant 1975 dollars for our comparative analysis of new
and current processes.

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                       II.  FINDINGS AND CONCLUSIONS
     The main characteristics of the four options analyzed in depth are sum-
marized in Table II-l.

A.   RECOVERY OF CARBON MONOXIDE FROM BOP VESSELS

     The basic oxygen process (BOP) off-gases consist largely of carbon mon-
oxide and are thus highly combustible.  In conventional practice, since there
is no provision to prevent air from entering, these hot gases combust spontan-
eously in the gas-collecting hood.

     Non-combustion systems prevent this air infiltration; they cool and clean
the CO-rich gases without burning them and thus make them available as a gaseous
fuel for general purpose.

     Two U.S. firms—American Air Filter in Louisville, Kentucky and Chemico
in New York City—offer engineered collection systems.  The former offers a
system based on a French process (IRSID-CAFL)* and the latter one is based on a
Japanese process (OG).**

     The main findings relating to carbon monoxide collection are:

     •    The recovered gas has a heating value of about 200 to 250 Btu/scf.***
          This represents about 0.4 to 0.5 x 10^ Btu per ton of raw steel.

     •    In recent years more than 100 CO collection installations have been,
          or are being, built largely in the United States, Europe and Japan.
          In the United States the gas recovered from 59 reported non-combustion
          systems (Stone 1976) is temporarily flared rather than utilized.

     •    The dust content in the CO collection system is less oxidized than
          in the conventional combustion system, contains a smaller percentage
          of submicron particles, and is easier to collect.  Treatment of water
          used in scrubbing is facilitated because of the more rapid settling
          characteristics that result.  Solid waste disposal methods are
          unaffected.
  *IRSID-CAFL - Institut de Recherche de la Siderurgie-Compagnie des Atelias
   et Forges de la Loire.
 **OG = oxygen converter gas recovery process.

***scf = standard cubic foot.

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                                                               TABLE II-l

                                             SUMMARY OF COSTS/ENERGY/ENVIRONMENTAL ASPECTS
                                           OF PROCESS OPTIONS IH THE IRON AND STEEL INDUSTRY


                                                                              PROCESS OPTION
Process/
Factor
 Recovery of Carbon Monoxide
 from BOP Vessels
External Desulfurization
of Blast-Furnace Hot-Metal
Conversion of Hot Coke Quenching
from the Wet to the Dry Process
                                                                                                   Direct  Reduction
Environment
 1)  easier particulate collec-    Virtually no change in
    tion                          steel plant overall
 2)  easier treatment of scrubber  emissions.
    water
 3)  solid waste disposal un-
    affected
                              1) Eliminates emissions from the
                                 wet quenching process.
                              2) Additional potential for part-
                                 iculate emission, but control
                                 of such emissions is part of
                                 dry-quench design.
                                                                                                                            Absence of the coke ovens
                                                                                                                            points toward significant
                                                                                                                            reduction in pollutant emissions.
Pollution Control Costs
Fixed Investment
Operating Costs
$ 4.40 vs $ 2.70
$ 0.66 vs $ 1.12
per ton of steel
if 6.32 vs $ 5.65
$ 4.42 vs $ 4.57
per ton of hot metal
U.S.
U.S.
$ 11.57 vs $ 17.41
$ 7.94 vs $ 9.26
per ton of steel
Energy
 Makes available 0.44 x 10
 Btu/ton of steel in the form
 of a combustible gas.   (220
 Btu/Scf.)
Allows shift from low-
sulfur to higher-sulfur
metallurgical coal.
Energy credit from the partial
recovery of the sensible heat
of the incandescent coke.
However, less breeze is made
available for sintering, etc.
Less efficient process,
but permits use of abundant
non-metallurgical coal.
Economics
Process Economics

    Fixed Investment
    Operating Costs
 Necessity of a gas holder
 results in higher capital
 costs.   Operating costs are
 lower because of energy
 credit.
(see pollution control costs)
(see pollution control costs)
Main capital expenditure
is for pollution control
equipment.  Main operating
expenditure is for the de-
sulfurizing agent.  Eco-
nomically favored when the
sulfur content of the coke
is greater than 1.2%
           N.S.
           N.S.
Capital and operating costs
significantly higher than
for wet quenching.
                                                                                                                            Economics would favor DR
                                                                                                                            mini-mills if the technology
                                                                                                                            were reliable enough for the
                                                                                                                            process to operate according
                                                                                                                            to specifications.
$ 9.5 (incremental)
$ 1.18 (incremental)
per ton of coke
$ 151.92 vs $ 135.09
$ 147.83 vs $ 143.40
per ton of steel
Remarks - Fixed investment costs are given in US dollars per annual ton of capacity
        - Operating costs are given in US dollars per ton of product, including 20% pretax ROI.
        - Costs are given as cost of option versus cost of base line, unless otherwise stated
        - N.S. - Non Significative

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     •    Compared with a total combustion system, the CO collection system
          with a gas holder will cost about 60% more in capital, mainly because
          of the need for a separate and independent hood and scrubber for each
          furnace.

     •    If the collected gas can be utilized and credited at $2/million Btu,
          the non-combustion collection system offers lower operating costs
          than the conventional BOP pollution control equipment.

     •    The cyclic pattern of generation, the need for a gas holder of
          several million cubic feet capacity or larger, the land needs asso-
          ciated with the gas holder, and the logistical problems in piping a
          collected gas to end-users combine to make industry regard this
          source of fuel gas as supplemental to its other fuel sources.

     In view of these findings, the iron and steel industry is expected to
implement non-combustion and recovery of the fuel value in BOP off-gases in
the new installations built over the next 15 years.  A large proportion of the
remaining open-hearth capacity will be replaced by BOP, and the total capacity
of the industry will increase at an average rate of about 2.5%/yr.  Thus, by
1990 industry BOP capacity may be expected to increase 80-100 million tons
above the level in 1973.  A significant fraction of such capacity can be
expected to be achieved by "rounding out" (i.e., capacity increases achieved
by going from a two-vessel to a three-vessel BOP shop).  Logistical factors,
such as plant layout and existing facilities, are likely to have a major
influence on the actual number of plants adopting the non-combustion recovery
system.

B.   EXTERNAL DESULFURIZATION OF HOT METAL

     This additional step is an alternative method of controlling the sulfur
content of blast furnace hot metal.  In conventional practice, blast furnace
sulfur content is completely controlled by adding limestone to form a sulfur
bearing slag and by limiting the sulfur content of the metallurgical coke.
External desulfurization is achieved by injecting sulfur retaining reagents
(e.g., calcium or magnesium compounds in an inert gas such as nitrogen) into
high sulfur hot metal from a blast furnace.  These compounds form a sulfide
slag that must be skimmed off prior to charging the hot metal into the BOP. Use
of external desulfurization either permits limestone and coke rates to be
reduced, or alternately allows the sulfur content in the coke to be increased
without increasing the limestone charge to the blast furnace.  An experimenta-
tion period to establish operating conditions specific to each plant seems
appropriate, despite considerable experience with this practice overseas.

     The main findings relating to external desulfurization follow:

     •    Fugitive, air, and water pollution problems are created.  They are,
          however, similar in nature to other pollutants found in steelmaking.
          Moreover, they add only a small increment to the overall steelmaking
          pollution load and can be controlled with existing technologies.

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     •    The sulfur content in finished steels, according to changing specifi-
          cations, are decreasing slowly with time.  Bulk contents ranging from
          0.025-0.030% are common nowadays.  This sulfur level depends on the
          amount of sulfur entering the blast furnace and on the fluxing prac-
          tice adopted in running the blast furnace.  An important decision
          parameter, therefore, is the quality of the coke (or coal) supply
          available to each plant.  When the coke contains more than 1.2 - 1.5%
          sulfur, we believe that external desulfurization becomes economical.

     •    Aside from coke-rate implications, external desulfurization permits
          a better consistency to be obtained in the sulfur level of the hot
          metal charged to the BOP, thereby smoothing the steelmaking operation
          and increasing its yield.

     •    From an energy usage viewpoint, this option allows substitution of
          higher-sulfur metallurgical coal for less plentiful low-sulfur metal-
          lurgical coal, thus expanding the domestic reserves.

     In view of these findings, several external desulfurization installations
can be expected to be built during the next 15 years.  The driving force is a
gradual increase in the sulfur content of available metallurgical coals.

C.,  DRY COKE QUENCHING

     This option is an alternative to wet quenching involving a water quench
to cool the incandescent coke.   In dry coke quenching,  the coke is cooled by
an inert gas stream.  The sensible heat transferred to the inert gas can then
be partially recovered for useful purposes.

     The facilities involved in either method of quenching are physically
separate from the coke ovens in that the incandescent coke is pushed from the
oven and falls into a tracked car in which it is transported to the quenching
area.

     The main findings relating to dry quenching are:

     •    There are no such installations in the United States.  Dry quenching
          of coke is practiced to some extent in the U.S.S.R.  One company, the
          American Waagner Biro Company of Pittsburgh,  designs and offers to
          install dry-quenching facilities through an associated engineering
          firm.   Both the Russian design (offered by Licensintorg) and the
          Austrian design (American Waagner Biro) are based on an old Sulzer
          Bros,  process (Hersche, 1946).

     •    There has been acceptance that when clean water is used in wet quench-
          ing the magnitude of the air emissions is significantly reduced,
          perhaps to the point where these can meet anticipated standards.

     •    According to Linsky (1975), dry quenching is claimed by Russian
          authors to produce a higher-grade coke, thus reducing the coke rate
          in the blast furnace.  However, this claim needs to be demonstrated

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          for U.S. coals.  In addition, less production of coke breeze is
          claimed for dry quenching, thus increasing the coke yield.   A research
          program would be appropriate to verify these claims.  Thus the only
          demonstrated benefit of dry coke quenching to date is the significant
          amount of energy recoverable.

     •    The physical installation is more complex than that for wet quenching,
          and this complexity increases the capital cost significantly.  The
          difference between a dry coke-quenching station with the associated
          tracked vehicle and a wet coke-quenching station is about $7 million
          for an annual production of 1 million tons of coke.  Moreover, it
          appears that a standby coke-quenching station would have to be avail-
          able to ensure reliable operations.  This requirement could add
          another $2.5 million to the capital cost if the less costly wet quench
          unit is chosen as the standby unit.  Only very large plants, using
          several quenching towers, could waive the requirement for a standby
          coke-quenching unit.

     Therefore, the iron and steel industry probably will not adopt dry quench-
ing of coke on any significant scale during the next 15 years.  This situation
could change if the economics of the process can be improved or it can be demon-
strated that dry quenched coke measurably reduces blast furnace coke rates.
Supporting experimental evidence so far is lacking.

D.   DIRECT REDUCTION (DR)

     New iron units (oxide pellets, lump ore, etc.) can be partially reduced
in the solid state by reaction with a reducing gas mixture (CO and H2> at tem-
peratures ranging from 1470 to 2000°F.  These prereduced materials are called
sponge-iron or metallized materials, because up to 95% of their iron content
is in the metallic state.  They can partially or wholly replace purchased scrap
in the steelmaking electric arc furnace.  (The prereduced pellets may also be
charged to the blast furnace to increase its productivity or be used in the
oxygen steelmaking shop in lieu of scrap and as a cooling agent.)  Many firms
will design, engineer, and construct direct reduction plants; and interest in
making steel by this route is intense worldwide.

     The main findings related to direct reduction are:

     •    The most advanced direct reduction technology is based on the use of
          natural gas or a petroleum-based hydrocarbon as the energy source.
          Technology based on coal, employing the rotary kiln, is also avail-
          able (SL/RN*, Krupp, etc.), but demonstration on an industrial scale
          for acceptance in the United States is still at least several years
          away.  A successful large demonstration is vital for widespread
          application of this technology in the United States.
*SL/RN = Stelco-Lurgi/Republic Steel, National Lead.

                                      9

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     •    The alternative use of coal for direct reduction purposes would be
          a gas-oriented process utilizing a coal gasification step to produce
          the necessary high-temperature reducing gases.  Although the tech-
          nological approaches are clear and research and development are
          active, commercial demonstration of this alternative lies further in
          the future because it has not proven economically attractive.

     •    The direct-reduction electric-furnace steelmaking route eliminates
          dependence on metallurgical coal, but consumes a larger quantity of
          energy per ton of steel than the blast furnace-coke oven-basic oxygen
          furnace route.  Its energy conservation potential is one of form
          rather than quantity.

     •    Pollution control problems with the direct-reduction electric-furnace
          route are generally less severe than with the blast-furnace route.
          A major factor in this respect is the elimination of the need for
          coke ovens.

     •    The two routes (conventional coke oven-blast furnace-BOP vs. direct
          reduction-electric furnace) are about equally costly, in terms of
          both capital and operating expenses.   Transportation costs and other
          site-specific economic conditions, together with reliability expecta-
          tion differences, presently favor the traditional approach for the
          bulk of the steel industry.  Because these total cost estimates are
          relatively small differences between large numbers, it will be worth-
          while to re-examine this judgment periodically.

     •    The installation of a direct-reduction-electric furnace steelmaking
          sequence in the iron and steel plant may add flexibility in meeting
          changes in demand and decrease dependency on fluctuations in scrap
          prices.

     •    Certain locations in the world have the potential for low-cost manu-
          facture of semi-finished products via direct reduction and electric
          furnace steelmaking,  e.g.,  Venezuela with iron ore and surplus
          natural gas resources and the Middle East with surplus natural gas
          resources.  Long-distance movement of metallized pellets, or even of
          semi-finished products in international trade, could become of major
          importance in facilities planning within the next 15 years.

     •    The use of partially metallized pellets in the electric furnace would
          produce a net increase in electricity consumption per ton of produc-
          tion as compared to all-scrap practice, because of the need to melt
          the oxide content of the pellet and to add lime to flux the gangue.
          The saving in energy consumption permitted by continuous charging of
          the pellets does not entirely compensate for this.

     In view of these findings, the industry should be expected to treat the
subject of direct reduction and the production of metallized iron units
cautiously.   It may be more realistic to expect that the U.S. industry within
the next 15 years will import increasing quantities of metallized or partially
reduced pellets. While a few plants may be built, the prospects for large-scale,
direct-reduction processing in the United States within the next decade do not
look optimistic.
                                      10

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E.   RESEARCH AREAS

     Five specific areas have been identified in this study where additional
research is needed:

     1.   The possibility of cyanide formation under the following circum-
          stances should be investigated:

          •    injection of nitrogen during external desulfurization of hot
               metal, and

          •    continuous recirculation of a CO-N2 mixture over incandescent
               coke during dry quenching.

     2.   Quantitative measurements of fugitive and source emissions of carbon
          monoxide with non-combustion BOP gas collection systems should prove
          the acceptability of these hoods, including those taken during the
          transition periods at the beginning and the end of the blow, when
          the off-gases are not collected as a fuel.

     3.   A comparison of available equipment (lances, bells, etc.) for exter-
          nal desulfurization should be made to determine the economics and
          exact nature of the gaseous effluents as a function of the desulfur-
          izing reagent used.  The availability of desulfurizing agents (calcium
          carbide, magnesium, etc.) and the pollution/energy implications for
          industries supplying these products should not be neglected.

     4.   An increase in the quality of coke due to dry rather than wet quench-
          ing has been reported in the Russian literature.  Should this be the
          case, a more efficient operation of the blast furnace would result
          and allow substantial savings, both in terms of coke rate and furnace
          productivity.  A demonstration program is needed to substantiate this
          claim using U.S. coals.

     5.   The chemistry of the rotary kiln (e.g., SL/RN) is still not well-known.
          The pollution implications mentioned in this study are "best engi-
          neering judgment" and lack actual proof.  The composition of the
          off-gases and the leaching properties of the coal, ash, and fine
          metallic discarded particles should receive the attention of research
          organizations.
                                      11

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                          III.  INDUSTRY OVERVIEW
A.   INDUSTRY OPERATIONS

     Although its share of world production has decreased, the United States
has consistently ranked first or second among the world producers of steel.
In 1950, the United States produced almost 50% of the world steel supply, but
by 1973 its share had shrunk to barely 20%.  During that same period, however,
production increased from 90-100 million tons to about 150 million tons of raw
steel.

     The United States lost its self-sufficiency in iron ore production about
the end of World War II, and imports have risen since to recent levels equiva-
lent to almost 50% of domestic production, i.e., almost a third of domestic
consumption of iron ore.  The nation, however, is self-sufficient in the pro-
duction of metallurgical coals needed for coke production and, in fact, is a
major exporter of metallurgical coals to foreign steelmaking centers.  The
major fluxes for slagging the nonmetallic content, limestone, and dolomite are
in adequate supply.

     The industry comprises some 400 steel production and fabrication plants
employing more than 500,000 people in 37 states.  About 130 of these plants
produced 146 million short tons of raw steel in 1974.  The remainder are steel
rerolling, finishing, fabrication plants. These figures exclude the mining
operations for the raw materials and transportation and warehousing operations
associated with the consumption of finished products.  Figure III-l shows the
geographical distribution of the U.S. iron and steel industry.  The major
concentration of the industry operations occurs in the Ohio River Valley and
states bordering the Great Lakes.

     Ten major corporations accounted for about 80% of U.S. steel production
in 1973.  The largest of them, U.S. Steel Corporation, accounted for 23.2% of
the national total, while the smallest in this group accounted for 2.1%.  The
details are shown in Table III-l.  About half of the production in the "all
others" category may be attributed to 19 smaller companies.

     Two technological approaches are employed in the manufacture of raw steel,
one using iron ore and one using scrap.  In the iron ore-based technology, the
blast furnace burns coke to produce iron in molten form as a high-carbon con-
tent hot metal which is further refined to steel by the selective oxidation 6f
its impurities in a steelmaking furnace and by alloying additions.  The molten
steel is then cast as desired for rolling.  Fluxes are added in the blast
furnace to combine with the nonmetallic content of the iron ore to produce a
molten slag.  In 1974, about 80% of the raw steel was produced with this
technology.
                                      12

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U)
                                                                                                                     Legend:
                                                                                                                       • RAW STEEL - Producing Centers
                                                                                                                       " IRON ORE - Deposits Currentiv or Recently
                                                                                                                         Minod or Presently Being Developed
                                                                                                                         COKING COAL - Coked at Present Time ot
                                                                                                                         Has Been Coked in the Past
                                                 SOURCE: Arthur D. Little and American Iron and Steel Institute, "Geography of Iron and Steel in the United States."
                      Figure  III-l.   Geographical  Distribution of  the U.S.  Iron and  Steel  Industry

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                                   TABLE  III-l


                        MAJOR CORPORATE  STEEL PRODUCERS
                                       (1973)


                                            Raw Steel        Total National
               Company                        Production       Production	
                                           (million tons)         CQ

               United States Steel Corporation        34.97            23.2

               Bethlehem Steel Corporation           23.70            15.8

               National Steel Corporation            11.32             7.5

               Republic Steel Corporation            11.29             7.5

               Armco Steel Corporation               9.46             6.3

               Inland Steel Company                 8.16             5.4

               Jones and Laughlin Steel Corp.          7.99             5.3

               Youngstown Sheet and Tube Co.           5.85             3.9

               Wheeling Pittsburgh Steel Corp.         4.41             2.9

               Kaiser Steel Corporation              3.17             2.1

               All others                       30.10            20.1
               Total U.S. Production               150.42            100.0
               Source:  Steel Industry Financial Analysis for 1973, Iron Age


      The scrap-based technology accounts  for  about 20%  of the steel  made in
the  United States.   It uses  selected iron and steel scrap in electric arc
furnaces.  In addition, a newer technological development involves directly
reducing lump ore  or pellets to provide a synthetic scrap for electric furnaces.

B.    ENERGY UTILIZATION PATTERN

      The U.S. steel industry uses about 6%  o'f all the energy consumed in the
nation,  or 17% of  the total industrial energy requirements (see Table III-2).
About 24 x 10  Btu are consumed in the production of a  net ton of raw steel.
Thus,  the total energy consumption required to produce  150 million tons of raw
steel in 1973 was  3.6 x 1015 Btu (3.6 quads).

      Coal is the major fuel consumed in the U.S. steel  industry; specifically,
coals suited to the preparation of coke for the blast furnace.  In 1974, about
90 million tons of coal were consumed by  the  industry.   As energy byproducts
the  production of  coke yields  a gaseous fuel  (coke-oven gas), plus liquid tars
and  pitches.

      In addition to coal, the  industry purchases natural gas, fuel oil, and
electricity.  About 17% of -the energy consumption in 1973 was natural gas, 5%
purchased electricity, and 1.5% fuel oil.   Coal and coal-derived fuels accounted
for  the balance.   The recent changes in fuel  prices and availability are gen-
erating pressures  to use more  coal wherever this is technically feasible.
                                         14

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                                  TABLE  III-2


          RELATIVE  CONSUMPTIONS OF ENERGY IN THE UNITED  STATES (1973)
                                                     Percentage
                                   10   Btu
                                  	(quads)       of Nation   of Industrial

           Total Nation                75.560         100.0

           Total Industrial             21.357          28.2        100.0

           Steel Slabs from Ore          3.072*          4.1        14.4

           Aluminum Ingots              1.120           1.5         5.3

           Portland Cement              0.646           0.9         3.0

           Gray Iron Castings           0.365           0.5         1.7

           Copper Cathodes and Shapes     0.271           0.4         1.3

           Glass Containers             0.217           0.3         1.0

           Magnesium Metal              0.042           0.1         0.2
           *The 3.072 x 10!5 figure is based on an average energy consumption of 24 x 106
            Btu and 1973 production of 128 million tons. The tonnage discrepancy may be
            accounted for in the definition of crude steel and slabs from ore.

Source:  Arthur D. Little,  Inc., estimates.
     The major consumption bf energy occurs in the reduction of  the iron ore to
remove  its oxygen content.   This process  step in the blast furnace sequence
accounts for about 75% of  the energy consumption per ton of raw  steel.  If the
iron ore is directly reduced rather than  smelted in the blast  furnace, and the
product is then smelted  in an electric  furnace to produce crude  steel, the
energy  consumption increases substantially as discussed in Chapter IV.  On the
other hand, selected lower valued steam coals may be the basis for direct-
reduction/electric-furnace steelmaking, whereas high valued metallurgical coals
are a prerequisite for the blast-furnace  method.  Thus, fuel form, price, and
availability may characterize energy conservation rather than  actual consump-
tion as energy units.

     The two major sources of recycled  fuel gas within the steel manufacturing
complex are:  coke-oven  gas, a sulfur-containing, medium-Btu fuel gas pro-
duced in the manufacture of coke; and blast-furnace gas, a low-sulfur, low-Btu
value fuel.  A portion of  the coke-oven gas is often utilized  to provide the
heat input to the ovens  in which the coking reactions occur.   A  large portion
of the  blast furnace off-gas is employed  to preheat the blast  air in the regen-
erative stoves and fire  the coke ovens. Gas streams not used in  these processes
may provide fuel for reheating and soaking furnaces or for the boiler house. Tar
and pitch  produced as byproducts from coke-making operations can be either sold
or used as a fuel (e.g., by injection in  the blast furnace).
                                        15

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                     IV.  EVALUATION OF PROCESS OPTIONS
A.  BACKGROUND

     The major process steps in iron and steelmaking are: agglomeration of
iron ore, cokemaking, blast furnace production of hot metal (molten pig iron),
refining of the hot metal in a steelmaking furnace, and casting.  The solidi-
fied product is then heated, rolled, heat-treated and, at times, coated to
form a wide variety of end-products, such as steel plate, heavy structurals,
rails, wire and wire products, cold finished bars, seamless pipe and tube,
welded pipe, hot rolled sheet and strip, galvanized products, tin plate, and
other plated products.

     Although energy-conservation measures will prompt process changes in the
steel-forming step, the major pollution consequences arising from process
changes will be felt in the raw steelmaking sequence.

     In addition to the integrated steel industry, which manufactures semi-
finished and finished products from virgin raw materials supplemented by
scrap, there is a semi-integrated industry based upon the electric furnace,
which uses scrap as a raw material and manufactures the same type of prod-
ucts.  The major pollution problems of this industry are associated with
the electric furnace.  These problems are discussed in connection with the
melting of synthetic scrap made by the direct reduction process.

     Of the many processes considered in the iron and steelmaking industry,
the following four were chosen for analysis:

     •    Recovery of carbon monoxide from the basic oxygen process (BOP)
          vessel for its fuel value,

     •    Dry quenching of coke,

     •    Direct.,reduction of iron ore, and

     •    External desulfurization ofxblast furnace hot metal.

     To compare the pollution characteristics, energy consumption, and
economic attractiveness of these newer technological options, we developed
a base line technology for each process option.  Recognizing that there may
be differences of opinion about the proper selection of a base line tech-
nology, we chose to define the smallest process sequence that would be a
clear-cut design alternative, starting with similar raw materials and
finishing with similar products.  Thus, for the four process options selected,
the base line technologies were defined as follows:
                                      16

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     Recovery of Carbon Monoxide from BOP Vessels.  We chose the conventional
     practice of burning the gas issuing from the BOP vessels in the collecting
     hood and then scrubbing the burned gases to remove particulates.  The
     fuel value of the BOP off-gas is, therefore, lost in the base line.  In
     the alternative process investigated, the CO—containing gases are pre-
     vented from burning, cleaned, and collected for their fuel value.

     Dry Quenching of Coke (starting with hot coke as it is pushed from the
     coke oven).  The base line technology chosen was the conventional wet
     quenching of coke.  In both cases the coke is cooled to close to ambient
     temperature.

     Direct Reduction.  We chose the conventional coke oven-blast furnace-BOP
     vessel route for the base line.  The direct reduction route includes the
     direct reduction units and electric furnaces.  We started with iron ore
     pellets and finished with molten steel in both cases, with the same
     amount of scrap being reciirculated to the steelmaking furnaces.  We
     might have considered a direct reduction-blast furnace-BOP route.

     External Desulfurization of Blast Furnace Hot Metal.  Because of a
     growing demand for low-sulfur metallurgical coal, there has been con-
     siderable pressure to use higher-sulfur metallurgical coals for making
     coke.  The most meaningful way of evaluating the desulfurization process
     would include:

          •    Establishing a base line technology whereby the blast furnace
               uses low sulfur coke (say, 0.8% S) and produces 2.6 million
               tons of hot metal annually, while meeting sulfur specifications
               (0.025% S in hot metal).

          •    Considering as an alternative technology the same blast furnace
               using a higher sulfur coke (say, 1.2% S) and producing also
               2.6 million tons of hot metal per year.  All other things being
               equal, the sulfur content of the hot metal would be higher
               (0.050%).  To reduce this sulfur content, an external desulfuri-
               zation station would be considered.

     Because of the unprecedented recent demand for low-sulfur coal, it has
become a premium-priced commodity compared to other coals being sold on the
market.  Premiums that are being paid for such low-sulfur coal depend upon the
geographical considerations within the United States, demand for such low-
sulfur coal in the industrial and utility sectors, the need of a steel company
to get maximum productivity out of existing blast furnaces which, in turn,
depends upon the demand for steel in a given year, and the like.  Thus,
setting a long-term value on coal depending upon sulfur content is a rather
difficult exercise.  Prices and price differences existing today would have
probably little significance in the long term.  Thus, to demonstrate that
external desulfurization is an economically viable process to be considered
when sulfur levels in the coke rise to 1.2% or higher, we chose an alterna-
tive way to indicate the competitive nature and economics of external
desulfurization.
                                      17

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     For purposes of this study, we assumed that a blast furnace designer
would have two methods of coping with the higher-sulfur coals:  (a) design
a blast furnace for a given production of hot metal to accommodate a suffi-
cient limestone fraction in the burden so the sulfur specifications would be
met in the blast-furnace hot metal as tapped (0.025% sulfur), or (b) design
a slightly smaller furnace with smaller limestone and coke rates and desul-
furize the hot metal partially in the blast furnace (0.050% sulfur as tapped)
and partially outside of the blast furnace, bringing the sulfur content to
the 0.025% specification.  Such a process is known as external desulfurization.
While such an approach has its deficiencies, it provides a clear and con-
sistent basis for comparing the economics of both options while using the
same type coal for both base line and alternative process.

     Each of these four process options was then evaluated on the basis of
its energy conservation potential and the impact on pollution control that
its implementation would generate.  Capital and operating costs were developed
and compared with the base line for both production and pollution equipment.

     In each of the above comparisons, the focus was on new installations,
even though many of the applications might be in old facilities (retrofitting).
In older facilities the economic attractiveness depends upon the specific
plant situation, location of the facilities within the plant, the amount of
available land, logistical problems, and the like.  Hence, it is difficult
to generalize about the applicability of such processes to older facilities
without doing a plant-by-plant analysis for each steel mill in the United
States.

B.  RECOVERY OF CARBON MONOXIDE FROM BOP VESSELS

1.  Base Line Description

     Our base line is a complete combustion system.  The gases issuing from
the mouth of the furnace are collected in a hood with a considerable infil-
tration of air, burned in the hood,  and cooled and cleaned of particulates
before being released to the atmosphere.  The hood is steam- or water-cooled.

     The hot gases leaving the basic oxygen furnace have a calorific value of
approximately 350 Btu/scf and after  collection and cooling will have a value
of about 200-250 Btu/scf.  In the United States, however, steelmakers have
had little incentive to recover this heat, because they have had an adequate
supply of inexpensive fuel.  Thus, until 1961, most BOP installations used
panel-type hoods that cool hot gases, but have no provision to recover the
waste heat for reuse.  More recently, a significant proportion of newer
installations have utilized pressurized hood systems with membrane tube con-
struction.  These lend themselves to increased cooling water temperatures,
or the generation of steam.  However, waste heat recovery in the form of
steam from these gases is difficult because the gas flow from the basic
oxygen process is intermittent.
                                     18

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     Although either electrostatic precipitators or wet scrubbers can be used
for cleaning combustion products, fire and explosion hazards make the electro-
static precipitator system unsuitable for the collection of the carbon monoxide
off-gas.  Therefore, to ensure consistency in analysis, both base line and
alternative technology include a wet scrubber system.

     With conventional membrane hoods, the gases from the basic oxygen fur-
nace are cooled to 1850°F and quenched in a venturi scrubber where they are
further cooled to approximately 170°F.  The quenched gases immediately enter a
separating elbow where most of the liquid is separated from the gas stream.
They are then led through a refractory-lined duct to the venturi scrubber.
The scrubber is equipped with restricted throats which maintain a pressure
drop in the range of 40 to 65 inches of water.  The cleaned gas contains less
than 0.05 grain of dust per cubic foot (0.11 gm/m^).  The cleaned gases leaving
the scrubbers pass through an extraction fan and stack to the atmosphere.

     The water treatment circuit consists of a thickener, a cooling tower,
and a filter.  The dust entrained in the water settles out as a sludge.
Normally the cleaned water will contain less than 5 grains per gallon (100 mg/
liter) of suspended solids.  (Some steel companies claim less than 1 grain/
gallon in the cleaned water.)

     The schematic layout of such a plant is shown in Figure IV-1.

2.  BOP Off-Gas Recovery

     The BOP off-gas recovery systems collect and recover CO gas without com-
bustion.  The two prominent systems are the OG process and the IRSID-CAFL
process.

a.  The OG System

     Figure IV-2 presents a schematic layout of an OG system.  The gap between
the vessel mouth and the collecting hood is minimized by a movable skirt.  In
the initial OG design, any space remaining between the skirt and the mouth of
the furnace was closed off by a nitrogen seal.  In recent installations, no
nitrogen curtain seal is used.  The space between the skirt and the vessel's
mouth is closed as much as possible by lowering the skirt into the furnace
nose section.  During the oxygen blow, a slight negative pressure is main-
tained inside the hood.

     In the process described ,by Rowe (1970), the skirt is attached to the
lower section of the hood which subsequently leads the gases into the cooler.
The upper section, which is equipped with the flux chute hole and the oxygen
lance entry hole, is mounted on a carriage and may be moved away from its
operating position to facilitate entry of the brick relining elevator.  The
necessary process fluxes are added to the BOP during the oxygen-blowing
period through a system of gas seals.
                                      19

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                           I HIST ELIMINATOR I
                               I


                              (FAN }
  Figure IV-1.   Schematic Layout  of Complete Combustion
                  BOP Gas-Cleaning  System
                             IVENTURI
                             SCRUBBER

                               T
                           I SLBOWSSPAHAT
                             /INDUCED*
                             I OBAFT
                              .FAN ,
                      TO GAS HOLDER '   ^ TO STACK
Figure IV-2.   Schematic Layout of  the Non-Combustion  BOP
                Off-Gas Recovery System (OG Process)
                              20

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     The gases pass through the upper section of the hood at a temperature
of 2300°F and are cooled to approximately 1850°F in the hot gas cooler before
entering the gas cooling plant.  The gas-cooling section consists of a series
of nested tubes supported in a mild steel, circular outer jacket.  The wet
scrubber used to clean the gas from the OG system is similar to that used in
a plant with complete combustion.

     The gases leaving the radiant section of the hood pass into a venturi
quencher where they are cooled to an outlet temperature of about 170°F.  At
the same time, some 85% of the dust entrained in the gases is removed.  The
cooled gases leaving the venturi quencher pass through an elbow separator into
a variable-throat venturi scrubber.

     The adjustable throat acts both as a highly efficient dust-collecting
unit and as a means of controlling the pressure in the waste gas hood.  This
system maintains a constant hood pressure during the oxygen blow by opening
and closing the movable throat inside the venturi.  The dust particles remaining
in the waste gases after leaving the quencher are removed in the venturi scrub-
ber.  Finally, the cleaned gases pass through a second elbow separator and
through a mist eliminator before being piped away as a clean fuel.

b.  The IRSID-CAFL Process

     The IRSID-CAFL process, described by Manbon (1973), is quite similar in
concept to the OG process in that gas combustion is prevented by regulating
the draft precisely.  The gas collection equipment is comprised of a hood with
a movable skirt.  The pressure inside the hood is regulated so that the pres-
sure differential between the flowing gases and the atmosphere is about
0.04-0.08 inch of water.  The pressure in the system is regulated by a butter-
fly valve located upstream of the fan or by an adjustable venturi.  The gases
leave the hood and enter a spark box where entrained pieces of slag, refractory,
ore, and such, drop out by gravity.  The hoods and solids traps are water-
jacketed, the heat being removed as low-pressure steam.  The gas is then
sprayed with water in a horizontal duct and vertical risers.  Dust is removed
in a venturi scrubber.  The water treatment circuit consists of a thickener
and cooling towers.  The thickened material is dewatered in centrifuges or
filters.

     If the gas is collected in a gas holder, the system is purged at the
beginning and end of each blow by controlling the position of the movable
skirt.  The skirt is in its raised position during charging and during the
first two or three minutes of the blow.  The raised skirt permits enough air
to enter to ensure the complete combustion of relatively small amounts of gas
coining from the converter.  The skirt is then lowered and gas collection pro-
ceeds without combustion.  At the end of the gas blow, as the flow of gas
begins to decline, the skirt is again raised and the blowing is finished
with complete combustion.  This method of purging ensures process safety by
preventing the accumulation of explosive gas mixtures.
                                     21

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3.  Pollutant Emissions  and  Necessary Abatement

     A generalized  flowsheet illustrating the potential for pollutant emissions
is shown in Figure  IV-3.

a.  Air Pollution Control

     The non-combustion  system is  an alternative method for air pollution con-
trol.  In the conventional system,  along with the BOP off-gas, there is a
considerable amount of air infiltration that results in combustion in the
hood.  A major advantage of  a non-combustion system is that the volume of
gases to be treated is reduced as much as 80%, since air infiltration is
reduced.  Because both gas volume and thermal load to the gas cooling system
are reduced as combustion is eliminated, the gas-handling equipment can be
considerably smaller than that of the combustion systems.  This is also true
during the start-up and finishing phases:   although the gases are burned
during these phases, they are generated at a much smaller rate than during
the recovery phase.

     Basic oxygen furnace dust, as  it issues from the vessel, is black and is
composed primarily of iron in varying stages of oxidation.  It also includes
small amounts of tramp elements, such as zinc, that come from the scrap
charged to the furnace.
BOP OFF-GAS
1
COOUNO Y
WMBkH . V-| SKIRT |
o.5x iii8 u mi 	
1 	 HOOD
1
CAS COOLER
I
JCT LOADING; 1



,.6GRAtNS/Kl LOW-VELOCITY
FIRST OUST VENTURI
COLLECTOR AND ELBOW
SEPARATOR
t
SSST «°-™
COLLECTOR SEPA|,ATOB
*
SLURRY
0
SLURRY





1
i (*}
/NDUCEn
1 DRAFT 1
V"FAN_/ *
DUST LOAOINQ P*"; \Y
O.MI ORAIN/ ul 1 1 »
t_ TOOA5MOLOER __




WATER
ii.u x io> oni
CLEAN WATER
1 COOLING TOWER


VACUUt

OVERFLOW
(ENER
THICK SLURRY
,f|LTER| IF PRODUCT ISL
«HLT[R| FOR SINTER
-n.
                                                  CAKE TO SINTER PLANT
                             GO AIR POLLUTION

                             @ WATIR POLLUTION

                             [T] ULIDWAITIOimiAL
 Figure IV-3.  BOP Off-Gas Recovery without Combustion (IRSID-CAFL Process)
                                      22

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     About 55 pounds of dust are produced per ton of steel in the BOP.  When
the carbon monoxide is burned with entrained air in the fume hood, the CO/C02
ratio becomes very low and the dust particle surfaces are subjected to high
oxygen potentials causing oxidation and giving the dust a red color.   Since
the particles are swept and quenched before being oxidized completely, the
dust has an outer surface of hematite surrounding a core of magnetite.

     In the non-combustion processes the dust is composed mainly of FeO,
magnetite, and small amounts of metallic iron.  Because FeO and magnetite
agglomerate more easily than hematite, the dust particles are larger than
those obtained in conventional practice.

     Tables IV-1 and IV-2 show the particle-size distribution for basic oxygen
furnace dust with complete combustion and with non-combustion (OG) gas-
cleaning systems.  Although variations may be the result of operating practice,
and analytical techniques, it is notable that OG dust contains only about
9% material below 5 microns compared with more than 25% below 1 micron in a
combustion system.

     Table IV-3 compares the dust composition in systems with and without
combustion.  Notable is the change in degree of oxidation represented by
increased amounts of FeO and metallic iron in the OG dust.  The metallic
particulate material is cooled as it contacts the hood and stack walls and
falls back into the converter.  Yawata (1964) reports higher yields of metal
for non-combustion systems in Japanese practice.  One can speculate that this
higher yield can be attributed to the lower gas volume in the non-combustion
system, which results in more particles falling back into the converter.  In
the combustion systems, with their larger volumes of air infiltration, these
particles would be carried away with the gases.  However, some U.S. users of
non-combustion systems state that these systems do not improve yields.

     In both non-combustion and combustion systems, the dust collection equip-
ment, consisting of high-energy scrubbers, gives a similar outlet concentra-
tion of dust.  However, because the gas volumes are much reduced in the
non-combustion case, the emission rate to the environment will be lower.

b.  Water Pollution Control

     Water pollution in BOP operations arises from the removal of air pollu-
tants.  The principal pollutant parameters are pH, suspended solids,  and
fluorides.

     The water treatment circuits for both non-combustion and combustion gas
treatment options are quite similar.  Because of the lesser amount of fines
in the non-combustion case - 9% material below 5 microns compared with more
than 25% in a combustion system - settling characteristics are likely to be
better,  furthermore, the water usage is lower in the non-combustion process.
We have not seen any data that would indicate a substantial difference in
the weight of dust generated in the combustion and non-combustion processes,
so the size of solids/water separation equipment is not likely to change
significantly.
                                      23

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                            TABLE IV-1

      PARTICLE-SIZE DISTRIBUTION OF BASIC OXYGEN FURNACE DUST

     Particle Diameter                          Weight Percent
       (microns)
          <1                                         25

         1-65                                        15
        65-90                                        20
        90-110                                       15
                                                     25
Source:  Skelly (1966)
                               TABLE IV-2

              PARTICLE-SIZE DISTRIBUTION OF OG PROCESS DUST



    Particle Size                               Weight Percent
       (microns)
          <5                                         8.7
         5-10                                        9.0

        10-20                                       39.5

        20-30                                       28.8

          >3°                                       14.0

    Source:  Yawata (1964)
                                 24

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                                 TABLE IV-3

      EFFECT OF OG PROCESS ON COMPOSITION OF BASIC OXYGEN FURNACE DUST
                              (weight percent)


 Component                        Normal Practice                OG Process
 Fe  total                              59                             75

 Fe  metal                              —                             10

 Fe  as FeO                            1.6                           62

 Fe  as Fe304,  Fe203(a)                57.4                           3

 CaO                                  2                             2

 SiO«                                  1                             1
(a) Calculated by difference.

Source:  Cavaghan (1970)


c.  Solid Waste Disposal

     Solid wastes from  this  air pollution control equipment consist of wet
scrubber sludges.  The  composition of the dust is influenced by the nature
of the scrap  charged to the  BOP.  If clean uncoated home scrap is used, the
dust consists primarily of iron oxides and can be recycled to the sinter
strand.  If purchased scrap  is used, it may not be possible to control the
composition closely; as a result, the dust and resultant sludge can contain
Pb, Zn, Sn and so forth.  Suitable care has to be taken in the disposal of
this sludge to prevent  leaching of hydroxide precipitates by groundwater.
Despite the change in the oxidation state of non-combustion dust, there are
no data to suggest significant changes in treatment and handling of the
wastewaters and resultant sludges.  The sludges are expected to be alkaline
and should be amenable  to disposal into appropriately designed and operated
landfills.

     Because  of the high metal content, special attention should be given to
preventing acidic leaching conditions from occurring, and appropriate efforts
should be taken to mitigate  percolation and run-off from the disposal site.

d.  Energy Aspects

     The non-combustion collection system, as a result of the lower gas volumes
handled, generally consumes  less electrical energy than the combustion system,
as shown in Table IV-4.
                                       25

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                                 TABLE IV-4

                COMPARISON OF ENERGY USAGE IN NON-COMBUSTION
                        AND TOTAL COMBUSTION SYSTEMS
                                                             Total
                                      Non-Combustion       Combustion
          Electricity, kWh/ton steel         8                 14

          Energy recoverable as gas,
           10  Btu/ton steel                 0.44             none

           Source:   Rowe  (1970)

     The main advantage of the non-combustion process is that it permits about
half of the off-gases to be recovered.  This represents 2000 cu ft/ton steel
of a fuel gas with a calorific value of about 220 Btu/cu ft and a low-sulfur
content.  Such a gas, with proper burner design, may be used in a variety of
steel mill applications - e.g., soaking pits and power generation.

4.  Current Adoption 'Status

     More than 100 units using non-combustion systems are either operating or
being built in Japan, France, the United States, the United Kingdom, Belgium,
and the U.S.S.R.  At almost all of the U.S. installations the collected gas
is presently flared but increasingly consideration is being given to collec-
tion, storage, and use of this low-Btu gas.

5.  Economics of Non-Combustion and Combustion Systems

     We have compared the capital and operating costs for the two systems for
a three-vessel BOP shop with an annual raw steel capacity of 5.25 million tons.
Both systems use high-energy wet scrubbers.  Current designs call for a separate
gas-cleaning facility for each converter for safety reasons.  The total com-
bustion system needs two gas-cleaning facilities for three converters.

     The costs for the two systems are presented in Tables IV-5 and IV-6.
Capital investment for the non-combustion system is high ($4.4 vs. $2.7/annual
ton of capacity).   With the recovered gas used as a fuel and priced at
$2/million Btu, the total operating costs of the non-combustion system are
lower than those of the combustion system ($0.66 vs. $1.12/ton of steel,
respectively).
                                     26

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                    TABLE  IV-5

COST STRUCTURE IN  NEW  NON-COMBUSTION SYSTEM

       Annual Design Capacity; 5.25 x 106 tone	
       Capital Investment:  $23 x Id6 (S4.4/annual ton)
       Location:  Great Lakes	

VARIABLE COSTS
Energy [Details on Table IV-4]:
Electric Power Purchased
Energy Credits: Gas
Direct Operating Labor (Wages)
Direct Supervisory Wages L
Maintenance Labor +
Maintenance Supervision S
Maintenance Materials and Supplies
Labor Overhead
FIXED COSTS
Plant Overhead
Local Taxes and Insurance
Depreciation 18 years
TOTAL PRODUCTION COSTS
Return on Investment (pretax)
TOTAL (Rounded)
Units Used in
Costing or
Annual Cost
Basis


kUh
105 Btu
Man-hr
Man-hr
Man-hr
Man-hr
(2% of Investment)
(35X L + S)
-
(65X L + S)
(2% Investment)


(20X)

$/Unit


0.016
2.00
7.00
7.00
7.00
7.00









Units Consumed
per Ton of
Product


8
-0.44 x 106
0.005
0.001
0.002
~









S/Ton of
Product


O.L28
-0.880
O.M5
0.007
0.014
—
0.088
0.020

0.036
0.088
0.244
-0.22
0.88
0.66
                           27

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                    TABLE IV-6

COST STRUCTURE IN NEW TOTAL COMBUSTION SYSTEM
      Annual Design Capacity:  5.25 x 10  tons	
      Capital Investment:   $1A x 10  (?2.7/annual ton)
      Location:  Great Lakes              	

VARIABLE COSTS
Energy [Details on Table IV-4):
Electric Power Purchased
Direct Operating Labor (Wages)
Direct Supervisory Wages L
Maintenance Labor S
Maintenance Supervision
Maintenance Materials and Supplies
Labor Overhead
FIXED COSTS
Plant Overhead
Local Taxes and Insurance
Depreciation
TOTAL PRODUCTION COSTS
Return on Investment (pretax)
TOTAL (Rounded)
Units Used In
Costing or
Annual Cost
Basis


kWh
Man-hr
Man-hr
Han-hr
Man-hr
(21 Investment)
35Z (L + S)

65Z (L + S)
(2Z Investment)
5.55Z Investment

(20Z)

$/Unlt


0.016
7.00
7.00
7.00
7.0









Units Consumed
per Ton of
Product


14
0.005
0.001
0.002
—









S/Ton of
Produc t


0.224
0.035
0.007
0.014
—
0.053
0.020

0.036
0.053
O.U8
0.59
0.533
1.12
                        28

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C.  EXTERNAL DESULFURIZATION OF BLAST FURNACE HOT METAL

1.  Sulfur Problem and Base Line Technology

     Coke, containing some of the sulfur found in the coal used, is the major
contributor to the total amount of sulfur entering the blast furnace.  Other
sources of sulfur in the blast furnace include fuel injections, the scrap
mixed with the burden, and the minerals themselves (ore, limestone).

     Only a negligible portion of the sulfur is found in the off-gases; most
of the sulfur leaving the blast furnace appears in the liquid slag and hot
metal.  The capacity of the slag to retain sulfur is governed by its basicity.
Detailed thermodynamic studies of this subject can be found in the literature
(e.g., Ward, 1962); generally an increase in the basicity of the slag by
adding more limestone increases the sulfur retaining capacity of the slag.
The sulfur enters the slag as calcium sulfide.  Since such limestone addi-
tions must be brought to temperature and calcined in the blast furnace, they
increase the coke consumption, which in turn introduces more sulfur.  Clearly,
then, there is a limit to the amount to which this "internal" desulfurization
process is viable.  It may be advantageous to tap a hot metal containing more
sulfur than specified, and to add to the process sequence a new step:  the
injection of desulfurization agents into the molten iron during its transfer
from the blast furnace to the steelmaking furnace.  These agents react with
the dissolved sulfur and form a sulfide slag that can be disposed of.  This
new step is called external desulfurization.

     There are other steps in the iron and steelmaking sequence where sulfur
can be controlled to some extent.  In the BOP or open-hearth shop, sophisti-
cated slagging techniques can be used.  However, they are expensive as they
interfere with other chemistry adjustments and considerably decrease the
productivity of the shop.  Prior to casting, one may still make sulfur-
controlling additions.  However, such reagents are expensive, the yield
decreases again, and the chemistry of the steel can easily be shifted beyond
the final specifications.

     Except for some special grades of free-machining steel in which a high
sulfur content (0.1 - 0.33 wt%) is specified for ease of cutting, sulfur is
largely a deleterious element that should be kept at a minimum.  It causes
(Ward, 1962) red shortness* and susceptibility to overheating in wrought steels
and ingot cracking and low ductility in cast steels.  It also tends to form
solid inclusions with oxides andj alloying elements.  It has strong interaction
coefficients with other alloying elements and, therefore, displaces the entire
physical chemistry of the steel.  Most steel specifications call for a sulfur
content of 0.020 - 0.030 wt%, and there has been a tendency to reduce this
range, as customers require better and better qualities of steel.  Therefore,
the most favorable condition occurs when the sulfur in the hot metal already
is in the proper range (0.020-0.030 wt%).
*The expression "red shortness" refers to poor formability at red temperature.
                                     29

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      Unfortunately,  some operators find it more  and  more difficult  to  obtain
 low-sulfur  metallurgical coal.   Unless  they own  mines  of such coal,, they  find
 themselves  many times  using coal containing over 1.5%  sulfur.   The  resulting
 coke typically contains  1.2% sulfur and the hot  metal  which  they  tap may  con-
 tain 0.050  wt% sulfur  and more.   At this point,  the  cost of  adding  an  external
 desulfurization step must be balanced against  greater  productivity  of  the
 blast furnace  and  savings in fuel and limestone.

      Table  IV-7 shows  the basis  for our comparison as  explained at  the
 beginning of this  chapter:   in both bases,  we  produce  2.6 million tons of hot
 metal per year,  using  coke containing 1.2%  sulfur.   In both  bases,  the hot
 metal brought  to the BOP contains 0.025% dissolved sulfur.   In the  base case,
 this specification is  achieved in the blast burnace.   With external desulfur-
 ization, the hot metal contains  0.050%  sulfur  when it  is tapped.  It is further
 reduced to  0.025%  sulfur on its  way to  the  BOP at the  desulfurization  station.

      Both blast furnaces call on exactly the same technology.   As stated
 earlier, we considered new plants  in both cases  for purposes of consistency
 in our comparison.   The  greater  productivity gained with external desulfuriza-
 tion implies an economy  of scale in the design of a blast furnace of same
 capacity; coke and limestone costs are  reduced,  as well  as BF gas credits.

      Customarily,  the  gas-cleaning system of the blast furnace does not
 appear as a pollution-abatement  device,  as  it  is, in fact, a step in the
 production of  a low-Btu  fuel gas.   The  only air-cleaning technology of con-
 cern will therefore  be associated with  the  external desulfurization station.

                                 TABLE IV-7

  DEFINITION OF THE  BASE LINE AND OF THE EXTERNAL DESULFURIZATION OPTION


                                                Base Case        Option


Blast Furnace Capacity (million annual tons)       2.6             2.6

Coke Rate (Ib/ton of hot metal)                   1,060           1,030

Limestone Rate  (Ib/ton of hot metal)               665               450

Sulfur content of the coke  (%)                     1.2             1.2
Sulfur content of the hot metal, as tapped (%)    0.025           0.050

Desulfurizing agent per ton hot metal              _0-          1.4 Ib of Mg

Sulfur content of the hot metalt delivered        0.025           0.025
       to BOP (%)
                                     30

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     The scrubbing water of both the blast furnace and the external desul-
furization station can be treated in the same plant.*  Therefore, the
wastewater treatment plant of the sequence blast furnace and external
desulfurization station will be designed as one unit.  The same base line
technology is assumed as for the blast furnace described in this chapter under
Section E  (Direct Reduction).

2.  Methods of External Desulfurization

a.  Reagents

     A number of solid reactants have been proposed and used, with calcium-
and magnesium-based compounds being those most seriously considered.

     Calcium has been used in various forms - in the metallic state (it boils
at 2432°F), and as CaO, CaC2 and Ca(CN)2 - to desulfurize pig iron.  Powdered
lime reacts with sulfur in the presence of carbon and silicon to give CaS,
CO and some form of lime-silica compound.  Calcium carbide is the most
effective.  However, it has to be ground to less than 150 mesh, which is
difficult and expensive.  The powder must be kept dry, because it reacts
readily when brought into contact with water.  Finally, it generates con-
siderable quantities of black fumes during this reaction.

     Magnesium metal has been used in England in wire form with nitrogen as a
carrier.  This metal causes tremendous turbulence in the bath, essentially
because it boils at quite a low temperature, 1157°F.  However, the most com-
mon application of magnesium is through the Mag-Coke process.  In the Mag-Coke
process, the desulfurizer is prepared by preheating coke and immersing it in
molten magnesium.  Lumps weighing 2-5 Ib and containing 45% Mg are produced,
and these are stored in sealed drums to prevent hydration.  The Mag-Coke is
added under a graphite plunging bell to keep it at the bottom of the bath as
long as possible.  Magnesium sulfide floats to the surface and tends to
thicken the slag.

     Finally, magnesium aluminum alloys injected through nitrogen lances have
proven to be effective desulfurizers, with considerably less fuming than
carbon-bearing products.

b.  Implementation and Technological Factors

     Practical methods are continuously being sought by which this new opera-
tion can be integrated into the overall handling procedure of the hot metal
between tapping and pouring into the BOP vessel.  Agarwal (1971) proposed to
combine hot metal mixing and external desulfurization in the arrangement shown
in Figure IV-4.  This idea certainly is interesting, but no current engineering
*This is our choice of a base line.  Depending on the layout of the plant, the
 scrubbing water of the external desulfurization operation may actually be
 treated together with the BOP's scrubber water.


                                     31

-------
                                                                TO
                                                             THICKENER
                                                         BALLING DRUM
                                                                   WATER
                                                                   SPRAYS
                                                          SLAG DISPOSAL
                SOURCE: Agarwal (1971).

Figure IV-4.  Combination of Hot Metal Mixing and External Desulfurization

design of such arrangement exists.  The reason probably is that simpler schemes
are more appealing in an industry where productivity and reliability are key
words.  A few such schemes are discussed below:

     Desulfurization in the ladle has the advantage of:

          •    A large contact area between the  hot metal and  the slag, which
               accelerates the rate of sulfur removal; and

          •    A favorable location for operation,  the point where the torpedo
               car is poured  into the ladle, because  some air  pollution con-
               trol equipment is already  likely  to  be in place there.

      Some problems can arise  for  the following reasons:

          •   The ladles and crane? would be  tied up longer,  so larger capital
               expenditures  for  cranes  and ladles would be  necessary;

          •   It  is more difficult to  prevent the dilution of the gaseous
               effluents,  so air pollution controls may have to be signifi-
               cantly larger, depending on the practice followed.
                                      32

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     August Thyssen Hutte, among others, proposed to build a station over the
railroad and to inject the desulfurizer through the narrow mouth of the
torpedo car.  Whenever practical, a lance is used to inject the reagent with
nitrogen as a carrier.  Such a design is shown in Figure IV-5.  One major
advantage is that a hood can be tightly fitted to the opening of the torpedo,
so that gaseous emissions are easily collected.  Drawbacks include the short
life of the lances in the violently agitated metal bath, and the difficulty
of using plunging graphite bells.  Also, the slag formed may be difficult to
remove as it tends to solidify or at least to be very viscous.

     As graphite bells are not very convenient - they break and are difficult
to operate through the opening of a torpedo car - the more likely injection
system to be accepted is lancing with a nitrogen carrier a few feet from the
bottom of the vessel.  The nitrogen flow provides a beneficial stirring
action.  The lining of the vessel, however, has to be repaired more frequently
because of the increased turbulence and larger exposure to hot metal.  Never-
theless injection in the torpedo car seems to have gained a large audience,
and we have used it as our external desulfurization option.
                                                       STORAGE
                                                         SITE
                                                            DISPENSER
              WORKING PLATFORM
                             SOURCE:  Meichsner(1974).
   Figure IV-5.
Schematic Representation of the ATM Injection Process
for External Desulfurization in the Torpedo Car
                                     33

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c.  Materials  Balance

     While variations can be expected,  typically 2 to 5 Ib  of  desulfurizer are
required per ton of hot metal.  The  products and emissions  include:

     •    The  desulfurized steel, with  a slightly lower silica content, on
          the  order of 230 tons of hot  metal for a torpedo  car.

     •    A very viscous or solid slag.   This slag amounts  to  1 to 3% of the
          hot  metal by volume.  To reduce viscosity some thought has been
          given  to  additions of fluorspar, but it is not considered  here as
          part of the process.

     •    Black  smoke emissions and  solid carbon in the slag when carbide
          is used.

     •    Possibly  some cyanides when nitrogen is used as a carrier  in the
          presence  of carbon saturation.   This is a potential  area open to
          research, as no data has been brought to our attention on  this
          subj ect.

     •    Various amounts of particulate emissions to the air  because of
          turbulence and incomplete  reactions.

     Figure IV-6 shows a tentative flow chart of the process.

                             DESULFURIZATION
                                                              ATM.
          LEGEND:   f A > POLLUTED GAS STREAM

                 f W 1 POLLUTED WATER STREAM


                 I S I SOLID WASTE

                 CfJ FUGITIVE

Figure IV-6.  Flow Diagram for External Desulfurization  in the Torpedo Car


                                      34
                                 NOTE 1:
                                  The water treatment It Incremental to the blut furnace icrubber wanawater trtatrgent.

-------
d.  Pollution Control

(1)  Air Pollution Control

     The gaseous emissions from desulfurization are essentially a nitrogen
exhaust that contains particulates such as iron oxides, unreacted desulfurizer,
and product slag.  Since lancing with nitrogen is not a combustion process, the
particulates which are produced should be more the result of entrainment than
of metal condensations.  Hence, the mean median diameter of the particulates
is expected to be larger than that of BOP or blast furnace particulates, for
example.  This larger size should make the particulates easier to remove from
the gas stream.  Since nitrogen lancing generates an inert gas rather than a
combustible gas, as found in blast furnace or BOP exhausts, problems of
designing and maintaining a collection hood for the system should be greatly
reduced and should result in a high degree of collection before the air pol-
lution control equipment.

     Finally, cyanide or traces of other nitrogen compounds might be present
in the exhaust gas as they are in blast furnace gases.  However, since nitrogen
is relatively inert at the desulfurizing temperatures, we believe these com-
pounds are not likely to be present in the exhaust of external desulfurization
processes.*  Therefore, an adequate control system should consist of a
refractory-lined hood over the torpedo car opening, connected with a high-
energy venturi scrubber to remove the particulates.

     The design bases for such a system are taken as 26,500 actual cu ft/min
(ACFM) for 50% of the total operating time and no flow the remaining time.
With an estimated dust loading of 0.0025 Ib/scf, this system should be capable
of meeting present process weight-based emissions limitations.  The capital
and operating costs of such a system are shown in Table IV-8.

(2)  Water Pollution Control

     The wet scrubber chosen to control exhaust gas emissions from the desul-
furization step will generate a wastewater stream.  Based on the previous
estimates (0.0025 Ib of dust per cubic foot of gas, and an actual gas flow
rate through the scrubber of approximately 26,500 cu ft/min for 50% of total
operating time), the untreated scrubber water will be as follows:

     flow rate        - 381,600 gpd (instantaneous)
                      - 190,800 gpd (actual 24-hour flow)

     suspended solids - 29,900 mg/liter (47,700 Ib/day).
*In the absence of specific data, we are unable to confirm this hypothesis,
 and this may well be an open area for research.


                                     35

-------
                                  TABLE IV-8

    AIR POLLUTION CONTROL  COSTS FOR THE EXTERNAL DESULFURIZATION STATION
                 (Basis:   2.6 million tons of hot metal/yr)

                CAPITAL INVESTMENT (CI)                       $1,.241,000
                ANNUAL OPERATING COST
                 Variable Coses
                 Labor, (incld Supr + Overhead)                    3 ^QQ
                  (Total)
                 Maintenance  @ 5% of CI                        62,100
                 Utilities
                    Electric Power 220 kWh/10 scf 200
                $/Ton of Steel                                 0.17

     For purposes  of this study  it  has  been assumed that  gravity settling for
removal of  suspended solids  in a mechanical clarifier will be adequate to meet
effluent limitations.  (Furthermore,  it is assumed that water from the clari-
fier will be recycled to the  scrubber.)  Although there might be some sulfides
in  the  scrubber water (expected  to  be in the form of  relatively insoluble
compounds rather than free ions)  and  it is uncertain  if cyanides would be
present, the estimated capital and  operating costs for  wastewater treatment
do  not  include processes for  filtration or cyanide or sulfide removal.

     Because virtually no hydrogen  is present in the  desulfurization process,
phenol  and  ammonia will not be present  in the scrubber  water and no fluorides
are expected.  The expected  condition of the treated  desulfurization scrubber
water is shown on  Table IV-9.

     To properly assess the water pollution control implications of an external
desulfurization operation, it  is necessary to compare the  treated wastewater
effluent from the  base line blast furnace with the treated effluent from a
blast furnace, plus an external  desulfurization unit.   A  comparison of treated
effluents is shown in Table  IV-10.   In  this comparison  the blast furnace
scrubber water is  subjected  to the  "Best Available Technology Economically
Achievable  (BATEA)," the 1983  treatment level recommended  in the EPA Develop-
ment Document.  This basis was chosen because it is anticipated that any
installations would not be completed  before either the  effective date of the
1983 standards, or that new  source  performance standards would be equally as
stringent.   This treatment level consists of clarification with a high degree
                                        36

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                                         TABLE  IV-9


EXPECTED COMPOSITION  OF TREATED SCRUBBER WATER FROM DESULFURIZATION


               Flow Rate                              76,300 gpd (instantaneous)
               (20Z blowdovn from recycled
               scrubber water)                        38,150 gpd (actual 24-hr flow)



                  Parameter                        Waste Load
                                                    (Ib/day)


               Suspended Solids                      16

               Cyanide                              Small amounts may be present

               Phenol                               Not present

               Ammonia                              Not present

               Fluoride                             Not present

               Sulfides                             May be present as insoluble compounds



                  An estimation  of the incremental  costs  of treating the desulfurization

               scrubber water is  shown in Table IV-12.  The wastewater treatment system

               consists of clarification plus sludge dewaterlng via vacuum filtration.

               Eighty percent of  the treated water is recycled to the scrubber.



                                         TABLE  IV-10


               COMPARISON OF  TREATED  EFFLUENT WASTEWATER LOAD
Paraneter
Suspended Solids
Cyanlde(5)
Phenol
Annonla (as NH.)
Sulfide
•Fluoride
Flow Rate
Blast Furnace (D
(Base Case)
(Ib/day)
74
1.9
3.7
74
2,2
143
890,000 g
(mg/1)
10
0.25
0.5
10
0.3
20
pd
Blast Furnace (L)
plus
External DesulfurizationC2)
(Ib/day)
90
>1.9<3)
3.7
74
>2.2
148
928,000
(ms/l)
11.6
>0.24
0.48
9.6
>0.29
19.2
gpd
                 Notes:  1.  Blase furnace scrubber water la both cases is subjected to "Best
                           Available Technology Economically Achievable" (1933).

                       2.  External desulfurizatlon scrubber water is subjected only to
                           clarification for suspended solids removal.

                       3.  Cyanide nay be present in external desulfurization scrubber water, but
                           has been assumed absent or  inconsequential.

                       4.  Low-solubility sulflde conpounds may be present in external
                           desulfurization water.

                       5.  Cyanide amenable to alkaline chlorination.
                                                37

-------
 of  treated  effluent  recycle  (97%).   The blowdown  stream  from  the scrubber
 water recycle  loop is  then subjected to alkaline  chlorination for the
 removal of  cyanide followed  by neutralization,  filtration, and carbon
 adsorption.  The overall purpose of  the treatment is  to  remove cyanide,
 phenol, ammonia, fluorides,  and sulfides.  As can be  seen from Table IV-10,
 the additional waste load imposed by the incorporation of external desul-
 furization  is a very small increment of the base line blast furnace.

     An estimation of  the wastewater treatment  costs  of  the base line furnace
 is shown in Table IV-11, and the external desulfurization incremental waste-
 water treatment costs  are presented  in Table IV-12.   The wastewater treatment
 system for external  desulfurization  consists of clarification plus sludge
 dewatering via vacuum  filtration with eight percent of the treated water
 recycled to the scrubber.

 (3)  Solid Waste

     There are two sources of solid waste from  the external desulfurization
 process:  slag and sludge from the wastewater treatment.  With the same sulfur
 content in the coke, incorporation of external  desulfurization in the steel-
making sequence permits a lower limestone usage rate  in  the blast furnace.
 Lower limestone usage  results in less slag generation.   It is estimated that
 a blast furnace, coupled with external desulfurization,  will produce 120 Ib
 less slag/ton than a blast furnace without external desulfurization.  Since
 the external desulfurization process  itself produces  an  estimated 9 Ib/ton of
 slag, net reduction  in slag  generation is about 111 Ib/ton.   Thus, an opera-
 tion of 2.6 million  ton/yr capacity  employing external desulfurization will
 reduce overall slag  generation by approximately 144,300  ton/yr.

     The wastewater treatment system will produce a dewatered sludge estimated
 to contain 35% solids.  It is estimated that 24,000 tons of sludge will be
 generated annually.  If cyanide is present in the scrubber water, it will also
be present in the liquid fraction of  the sludge, because the common practice
 is to effect solids removal prior to  cyanide destruction.  Although the
 chemical form of the cyanides is not known, care should be taken to dispose
of the sludge in a manner that will avoid groundwater contamination.

     Solid waste disposal costs for the external desulfurization are given in
Table IV-13.  Use of the external desulfurization process will reduce overall
solid waste generation by 120,300 ton/yr, which in turn will reduce solid
waste disposal cost by $0.23/ton of steel, based on an estimated cost/ton of
sludge and slag disposal of  $5.

     Total pollution control costs at the external desulfurizing station are
 $0.36/ton of hot metal.  About half of these costs are attributable to air
pollution control costs.  Table IV-14 compares the total pollution control
costs of both alternatives.
                                     38

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                                TABLE IV-11
              BLAST  FURNACE WASTEWATER
             (Basis:  2.6 million tons
          Capital Investment:
Annual  Operating Costs;
Direct  Operating S Maintenance
 Labor  (L) @ $7 man-hr.
Supervision (S)  15*(L)
Maintenance @ 4% of CI
Chenicals Include:
• Sulfuric Acid
Electric Power
Labor Overhead (L+S) 35 Z
TOTAL VARIABLE COSTS
FIXED COSTS
Plant Overhead (L+S) 65*
Taxes S Insurance
(@ « of CI)
Depreciation (18 years)
TOTAL FIXED COST
TOTAL ANNUAL COST
RETURN ON INVESTMENT
(Pretax) (? 20Z of CI)
Cost/Unit Quantity/Ton
Quantity of Product

$ 7.00/ 0.00292/
man-hr man-hr
—
--

551. 30/ ton 0.11 Ib
$0.01cVkWh 0.138 kUh
—
..

—
—
__
—
.-
S/Ton of
hot metal
0.0205
0.0030
0.0099

0.0028
0.0022
0.0082

0.0466

0.0153
0.0039
0.0109
0.0301
0.0767
0.0392
             TOTAL
                                                     0.1159
                                      39

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                                TABLE IV-13

            EXTERNAL DESULFURIZATION SOLID WASTE DISPOSAL COSTS
                (Basis:  2.6 million tons of hot metal/yr)
Material
Wastewater Treatment
Sludge (35% Solids)
External Desulfuriza-
tion Slag
Annual
Quantity
(ton )
24,900
11,700
Disposal
Cost
($/ton)
5.00
5.00
Quantity/
Ton of Product
0.0096
0.0045
$/Ton
of Product
0.048
0.022
TOTAL SOLID WASTE
36,600
                                       5.00
       0.0141
                                       0.070
                               TABLE IV-14

SUMMARY OF THE POLLUTION COSTS WITH AND WITHOUT EXTERNAL DESULFURIZATION
               (Basis:   2.6 million tons of hot metal/yr)
                                    BASE CASE
 Mr Pollution Control

      Blast Furnace *
      Desulfurizing Station

 Wastewater Treatment

      Blast Furnace
      Desulfurizing Station

 Solid Waste Disposal

      Blast Furnace
      Desulfurizing Station
                               Capital
                                 Cost
                                   ($)
               Operating
                  Cost
                S/ton
       -0-
       -0-
-0-
-0-
     14,700,000   2.91
       -0-        -0-
       -0-
       -0-
1.66
-0-
                                OPTION
        Capital
          Cost
            ($)
          Operating
            Cost
           $/ton
 -0-        -0-
1,241,000   0.17
         14,700,000
            510,000
 -0-
 -0-
            2.91
            0.12
1.15
0.07
      TOTAL                     14,700,000   4.57      16,451,000   4.42


 *No air production control cost is shown here for the blast furnace
  because the gas cleaning devices are considered productive equipment
  in the generation of a low-Btu fuel gas.  (See text.)
                                     40

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e.  Energy  Considerations

     The hot metal that has been  externally desulfurized  is  only slightly
cooler  (15-30°F)  than when it was tapped,  because the heat of  desulfurization
partly  compensates for the heat losses from the time delay.  Its silicon and
possibly its manganese content are lower,  but the extent  of  this depletion
does not significantly affect the ability of the BOP to melt scrap.  Thus,
except  for  the energy going into  the preparation of the desulfurizing agent
and into the preparation of nitrogen, the desulfurization station cannot be
considered  an  energy-consuming unit.

     Consequently, the energy implications of the process lie  entirely with
the blast furnace operation.  The amount of limestone charged  to the blast
furnace is  basically a function of the gangue and sulfur  coming with the iron
oxides  and  coke as well as the desired sulfur and silica  level required in
the hot metal.  Increasing the limestone flux to control  increased amounts
of sulfur requires additional coke to meet the corresponding heat require-
ment.   Since calcium sulfide has  a limited solubility in  slag, it may even
be necessary to add silica.  The  additional coke, in turn, brings more sulfur
that must be controlled.  This is quantified in an example shown in Table IV-15.
If the  coke contains 1.2% sulfur, then the hot metal can  be  produced with
0.050%  sulfur  and externally desulfurized to 0.025% sulfur.  To obtain the
same sulfur level in the blast furnace would require an estimated additional
30 pounds of coke.  External desulfurization, therefore,  allows high-sulfur
metallurgical  coal to be used without any penalty on a Btu basis.

                                 TABLE IV-15

COMPARISON  OF  ENERGY CONSUMPTION  WITH AND WITHOUT EXTERNAL DESULFURIZATION
                                     Base Case        Option
                                     106 Btu          106 Btu
            Blast  Furnace:
                 Coke1     ,           13.25           12.87
                 Electricity            0.26           0.25
                 BF Gas Credit          (3.80)           (3.69)

                   Total Production:       9.71           9.43

            Pollution Controls
                Wastewater Treatment:
                   Fuel      2          0.07           0.07        (3)
                   Electricity           0.22           0.22        (3)

                Air Pollution Control:
                   Electricity2           —            0.004

                 Total Pollution         0.29           0.294

                    Total:            10.00           9.724
            Notes:  1. i ton of coke   25 * 106 Btu
                   2. 1 kWh = 10,500 Btu at the power source.
                   3. The energy required to treat scrubbing water from the
                     desulfurizing station is negligible.
                                        41

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 f.  Cost Factors

     As mentioned earlier, external desulfurization is linked to blast furnace
 practice.  An economic evaluation of  this  option was made recently by Ward
 (1975) for a particular plant of the  British Steel Corporation  (Appleby-
 Frodingham).  His results are summarized in Figure IV-7.  They  show that
 meeting common sulfur specifications  (0.020-0.030) in the blast furnace is
 increasingly difficult and expensive  when  the sulfur content of the coke
 reaches 1-1.2 wt%.  Similar conditions were chosen for this study, and indeed
 they appear to represent the point of indifference where either technology
 seems to be equally attractive.  We expect that less favorable  conditions
 regarding the price and quality of the blast furnace feedstock  (coke and
 limestone) or more stringent hot metal specifications would favor external
 desulfurization, whereas more lenient conditions would favor the traditional
 practice.

 (1)  Capital Costs

     The blast furnace of the base line was estimated at $156 million.  As
 the alternative practice increases the productivity of a blast  furnace of this
 category by 3.6%, a slightly smaller  blast furnace was associated with the
 external desulfurization station to produce the same quantity (2.6 x 10  ton/yr)
 of hot metal.  Its investment cost is estimated to be about $152 million.

     The capital cost estimates of the desulfurizing station include $900,000
 for the station itself, and $1,240,000 for the air pollution abatement equip-
ment (wet scrubber).  These costs do  not include investments for intra-
 structure such as additional railway  track for a desulfurizing station.  The
wastewater treatment plant is common  to the blast furnace and the desulfur-
 izing station.  The latter incurs an  incremental capital investment of
 $510,000 to a base case of $14,700,000.  The difference between the two routes
 is summarized in Table IV-16 and is not significant.

 (2)  Operating Costs

     The operating costs of the base  line blast furnace, the alternative opera-
 tion with a smaller blast furnace and external desulfurizing station are
 detailed in Tables IV-17, IV-18 and IV-19, respectively.

     The new option reduces the cost  of hot metal as tapped from the blast
 furnace from $105.99 to $103.28 per ton.  The cost of operating the desul-
 furizing station is $2.07 and the associated pollution control  cost is
 $0.36/ton of hot metal, so that the cost of a ton of hot metal delivered to
 the BOP shop is $105.71 with the new  route.  The difference between the two
 routes is $0.28/ton of hot metal.  This is well within the accuracy of these
 calculations, but does suggest that cost would not be an obstacle to imple-
mentation under the assumptions made  in this analysis.
                                      42

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                            0.01   0.02   0.03   004   0.05   0.06   007
                                  SULPHUR CONTENT. <%)
Figure IV-7.
       NOTE: Mtx S2.03

      SOURCE: Waid (19751.
Relationship between Cost of Ironmaking and  Sulfur in Iron


                  TABLE IV-16

   COST COMPARISON BETWEEN THE TWO ROUTES
 (with and without external desulfurization)
      Capital Cost   ($)

           Blast Furnace
           Desulfurization  Station
           Pollution Control

              Total
                           Base  Line



                           156,000,000

                             14,700,000

                           170,700,000
      Operating Costs2 ($/ton of hot metal)  $105.99
                                                              Option
152,000,000
    900,000
 16.451.000

169,351,000
                                                 $105.71
      (1) Basis:  2.6 x 10  ton/yr of hot metal
      (2) Includes 20%  ROI and pollution control costs
                                      43

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                TABLE IV-17

COST  STRUCTURE  IN NEW  BLAST FURNACE

  Annual Design Capacity:  2.6 x 10  tons hot metal
  Capital Investment (CI):  $156 million	
  Location:  Great Lakes

VARIABLE COSTS
Raw Materials: Pellets
Limestone
Energy: Purchased Coke
Electrical Power Purchased
Energy Credits: Blast Furnace Gas
Water; Process (Consumption)
Cooling (circulating Rate)
Direct Operating Labor (Wages) L
Direct Supervisory Wages +
Maintenance Labor and Mat'l. S
Labor Overhead
Misc. Variable Costs/Credits:
slag sampling
scrap credit
TOTAL VARIABLE COSTS
FIXED COSTS
Plant Overhead
Local Taxes and Insurance
Depreciation
TOTAL PRODUCTION COSTS
Return on Investment (pretax)
POLLUTION CONTROL
TOTAL
* long ton unit - 22.4 Ib of coal con
Units Used in
Costing or
Annual Cost
Basis

ltu(a>
ton
ton
kWh
106 Btu
o
103 gal
Man-hr
15% Labor
5Z Inv.
35% L + S


ton


65% L + S
2Z Inv.
5.55%

20% CI


tained Fe.
5/Unit

0.45
5.00
90.0
0.016
2.0

0.05
7.00





80.00










Units Consumed
per Ton of
Product

84.7
0.332
0.53
25.
3.8

11
0.10





0.01










$/Ton of
Product

38.11
1.66
47.70
0.40
(7.60)

0.55
0.70
0.11
3.00
0.28

0.25
(0.80)
84.36

0.53
1.20
3.33
89.42
12.00
4.57
105.99

                      44

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               TABLE IV-18
COST STRUCTURE  IN NEW BLAST  FURNACE
          (Reduced Coke Rate)
     Annual Design Capacity; 2.6 x 10  tons hot metal
     Capital Investment (CD:  $152 million
     Location:  Great Lakes	

VARIABLE COSTS
Raw Materials: Pellets
Limestone
Energy: Purchased Coke
Electric Power Purchased
Energy Credits: Blast Furnace Gas
Water: Coollr.g (Circulating Rate)
Direct Operating Labor (Wages) L
Direct Supervisory Wages +
Maintenance Labor S
Maintenance Materials and Supplies
Labor Overhead
Misc. Variable Costs/Credits 
-------
                      TABLE IV-19

COST STRUCTURE  IN NEW EXTERNAL DESULFURIZATION

           Annual Design Capacity:  2.6 x 10 tons hot metal
           Capital Investment (CD:  $900.000	
           Location:  Great Lakes	

VARIABLE COSTS
Raw Materials: Desulfurizer
Nitrogen
Hot Metal (S-0.0483)
Direct Operating Labor (Wages) L
Direct Supervisory Mages (S)
Maintenance Materials and Supplies
Labor Overhead
TOTAL VARIABLE COSTS
FIXED COSTS
Plant Overhead
Local Taxes and Insurance
Depreciation
TOTAL PRODUCTION COSTS
Return on Investment (pretax)
POLLUTION CONTROL
TOTAL
Units Used in
Costing or
Annual Cost
Basis

Ib
1,000 scf
ton
Man-hr
L
CI
L + S


L + S
CI
CI




$/Unit

0.67
0.16

7.00












Units Consumed
per Ton of
Product

2
0.870

0.0066
15ZL
4X CI
35* (L + S)


65X (L + S)
2% CI
5.6% CI




$/Ton of
Product

1.71
0.14
103.28
0.047
0.007
0.014
0.02
105.22

0.035
0.007
0.02
105.22
0.07
0.36
105.71
                              46

-------
g.  Current Adoption Status and Future Outlook

     The average sulfur content of the hot metal has been continuously
increasing and can be expected to reach 0.060 - 0.070 wt% in the next 15 years.
External desulfurization is most likely to be used, therefore, to bring
sulfur from 0.050% or more down to 0.020-0.030% for production of ordinary
steels.

     Various forms of external desulfurization have been practiced in Europe
for many years.  Soda ash was used at first; erratic results, pollution
problems, wear of refractory lining and difficulty in deslagging prompted
a switch to calcium-and magnesium-based processes.  The process studied in
some detail in this study might be the one with the. widest conceptual accept-
ance:  a reagent (magnesium alloy, calcium compound) is injected in the
torpedo car through a nitrogen lance.

     The concept of external desulfurization is not new to American steel-
makers.  However, they have started partial and temporary pilot tests and
operations only recently.  The general feeling is that the industry will
adopt this practice more widely in the 15 years to come because:

     •    low-sulfur metallurgical coal may well be at a premium;

     •    it is not a very capital-intensive investment; and

     •    it has the potential to be retrofitted to existing facilities.

Where space is available and it is logistically feasible to set up a desul-
furizing station, older blast furnaces can easily accommodate external
desulfurization.  This can be an interesting option for a steel company faced
with the prospects of using higher-sulfur coal.  In this way, productivity
can be maintained at a relatively small capital investment.  However, in
order to assess more accurately how many steel mills will use higher-sulfur
metallurgical coals and which of these mills can retrofit external desulfurizing
stations into the present plant layout a detailed economic assessment on a
plant-by-plant basis would be required.
                                      47

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D.   DRY QUENCHING OF COKE

1.   Description of the Base Line

     Current technology involves wet quenching of coke and forms the base
line for this analysis.  In wet quenching, hot coke (at 1900-2000°F) is
delivered in a coke car to a tower where the coke is quenched with water,
thereby producing large quantities of steam that are vented to the atmosphere.
The coke car is designed to allow the excess water to drain.  This water is
often recirculated.  Wet quenching results in coke with an average moisture
content of 2.5%.

     Wet quenching of coke creates air pollution if the quenching water con-
tains contaminants, e.g., flushing liquor from the coke byproduct recovery
plant.  In such cases, pollutants are vaporized and carried off in the "cloud"
or "plume."  The use of clean water minimizes the emission of objectionable
organic vapors, and the installation of baffles in the quench tower is claimed
to remove solid particulates satisfactorily (A.D. Little, Inc., 1975)

2.   Description of the Dry Quenching Process

     In dry quenching of coke, the hot coke pushed from the ovens is cooled in
a closed system.  Dry quenching uses "inert" gases to extract heat from incan-
descent coke by direct contact.  The heat is then recovered in waste heat
boilers or by other techniques.  The inert gases can be generated from an ini-
tial intake of air which reacts with the hot coke to form a quenching gas of
the following composition:  14.5% OL, 0.4% 02, 10.6% CO, 2% H£ and 72.5% N£
(Linsky, 1975).

     Except for the periodic introduction of hot coke with entrained gases, dry
quenching is a closed-cycle operation on the gas side.  Because oxygen is
largely absent, the danger of explosion is minimized.  Nevertheless, explosion
precautions must be taken and the composition of circulating gases must be
monitored and controlled by the addition of nitrogen.

     Quenching plants in the U.S.S.R. are comprised of independent "tower
boiler" blocks.  Each block includes a cooling tower, a waste-heat boiler, dust
collectors, and a gas-blower.  The following process description is based on
an article by Linsky (1975) with the flow diagram shown in Figure IV-8.  The
incandescent coke, which is between 1900°F and 2000°F, is initially pushed
from the coke oven into a special car bucket designed to receive coke from only
one oven at a time.  An electric locomotive transports the bucket^to the cooling
tower, and a vertical hoist lifts the bucket from the locomotive to the tower's
cl urging hole  (near the top of the tower).  As the hoist approaches the charg-
ii  hole, it automatically opens and a coke guide hopper is placed over the
pi  hamber so the bucket and the charging hole are sealed.  Automatic gates
oj    <.n the bottom of the bucket and the red hot coke enters the prechamber.
D\     this time, the pressure at the charging hole is between 0.02 and 0.03
ir    /ater gauge.  After the prechamber is charged, the coke guide hopper is
r     ed, the charging hole closes automatically, and the bucket is returned to
t     lectric locomotive.  After 40-50 minutes, according to Linsky, the coke
                                       48

-------
                                            CLEANED COOLER CAS
                                                   FINE DUST CYCLONE
                                                         SUPER-HEATED
                                                          STEAM 820" F
                                                           590 PM
                     \V*S)W,\\\\\\\\\
                    /     «j
                    ,/TRANSPORT *J
                                                SOURCE: L,mk»(l975)
      Figure  IV-8.   Schematic View of the Soviet Dry Quenching System

drops through the prechamber and begins to fall into the cooling zone.  As the
coke falls  through  the cooling zone, circulating gases cool the coke to between
400°F and 500°F.

     Periodically,  a discharge gate, which can be adjusted according to the
required capacity of the cooling chamber, allows batches of coke to fall from
the bottom  of the cooling zone onto conveyors running under the quenching unit
described above.  Between 2 and 2-1/2 hours are required for the coke to pass
through the quench  unit and onto the conveyors.

     The discharge  gate, which is a double gas-tight structure, operates auto-
matically and interlocks mechanically to ensure proper opening sequences.
Approximately 100 seconds separate consecutive discharges of 1-1/2 to 2 tons.
The maximum number  of discharges possible per hour, as stated in the Linsky
article, is 35  (average throughput 60 ton/hr).   The Soviet system uses a blower
to circulate  the quenching gases through the "tower-boiler" system.  To reach
the cooling chamber,  quenching gases are initially forced into distribution
ducts, where  they pass through peripheral slots and a central divider into the
cooling chamber.

     As the gases rise in the cooling chamber,  heat is transferred from the
hot coke to the circulating gases.  After the gases are heated to between
1380°F and  1470°F,  they pass from the cooling chamber into dust dropout chambers.
                                      49

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     In the dust dropout chambers, coarse particulates are removed so that
the boiler elements will be protected from erosion.  Once the coarse partic-
ulates have been removed (200-400 Ib/hr collected), the gases pass from the
dust dropout chamber into the waste-heat boiler where they are cooled to
between 350°F and 390°F and high-pressure steam is raised.

     After cooling in the waste-heat boiler, the gases pass through two dust
recovery cyclones.  In the cyclones, finer particulates are removed so that
the gas blower, which forces the gases through the dry quenching system, will
be protected from erosion.   (Particulates are collected here at a rate of 400-
600 Ib/hr.)  Dusts removed from the circulating gases are periodically removed
by pneumatic transport.  They are mainly carbon dusts that can be burned as a
solid fuel.

     After the finer particulates are removed, nitrogen may be added to the
gases so that their composition will meet operational safety regulations.
Finally, the gases are sent to the blower to repeat the gas cycle. Instruments
control the operations of cooling towers, charging and discharging coke, and
monitor the temperature of the cooled coke,  pressure and rate of circulating
gas, and so forth.

3.   Pollutant Emissions and Necessary Abatement

     Figure IV-9 is a block diagram of the process showing potential pollutant
emissions.  Coke dust could be discharged to the ambient air since potential
dust emission sources are located at points where the quenched coke is dis-
charged onto the conveyor from the dry quenching unit, and also where coke dust
is discharged from the dust dropout chamber and cyclone dust separators on to
the conveyor belts that carry the dust to storage.  The designs of dry quench-
ing units considered in this study have provisions for hooding at coke/coke
dust discharge points.  Air collected at such points is being exhausted through
a bag house, and the dust,  mainly coke breeze, is collected in a dust hopper.
It is likely £o be used as a fuel on the plant site.

     There is some potential for dust emission during coke transfer and coke
charging to the dry quenching unit.  However, according to discussions with
American Waagner Biro, the transfer car and charging side of the unit can be
designed so as to minimize such emissions.

     There have been references in the literature (Linsky, 1975) concerning the
addition of nitrogen to control the gas composition and to prevent the forma-
tion of an explosive CO-rich mixture.  This would imply as well a bleed stream
containing carbon monoxide and particulates.

     The emissions during pushing operations are another matter.  While we
recognize that current design concepts claim a relationship between pushing
emissions control and the type of track vehicle used to transport the incandes-
cent coke, we believe that pushing emissions can be equally controlled in wet
or dry quenching.
                                      50

-------
    COKE OVEN/
  BYPRODUCT PLANT
     HOODED
      COKE
      GUIDE
                                    [Al  AIR EMISSIONS
HOT
COKE
BUCKET

G)


DRY COKE
QUENCHING
UNIT
1 _
	 ^
DUST DROP
OUT CHAMBER

* flG^ V^f
COKE
DUST
                                                                 -]
                                                                   50-55X I03scfm
                      DRY COKE
                                                            WASTE HEAT
                                                              BOILER
                                                                          - WATER
                                                                STEAM
                                             COKE DUST
Figure IV-9.   Block Diagram of Dry Quenching Indicating Potential for Pollutants


4.   Technological  Factors

     Dry quenching  is reported (Kemmetmueller, 1973) to yield a better quality
of coke .in comparison with wet quenching because of even cooling which results
in more uniformly sized  coke.   Two percent increase in usable coke output per
ton of coal charged has  been reported,  reflected by a similar reduction in coke
breeze.  Better mechanical strength, dryness of product, uniform distribution
of volatile constituents,  and less adhering breeze are said to contribute to
smoother blast furnace operation with dry quenched coke.  Moreover, in the
Russian literature  there are reports of decreases in coke rates of 2-3% in
Soviet blast  furnace trials with dry quenched coke.  We have yet to come across
any published data  that  will substantiate such claims for dry quenched coke
using U.S. coking coals.

5.   Energy Considerations      <

     In wet quenching the sensible heat in the hot coke is lost to the water
used in quenching.   When the hot coke is cooled to 400°F in a dry quenching
unit, about 1.1 x 10^ Btu/ton of coke are recoverable.

     Conceptually,  the recovered energy can be put to a variety of uses.  For
instance, the 1.1 x 106  Btu/ton that dry quenching is capable of recovering is
equivalent to about 940  Ib of superheated steam.  Under the right economic and
                                       51

-------
logistical circumstances,  the  recovered energy can be used to produce electricity
or mechanical power,  or  to preheat coal,  combustion air, and/or feed water sup-
plies to fuel-fired boilers.   As an example,  this recoverable energy is suffi-
cient to cover the needs of the byproduct plant.

6.   Economics of Dry Coke Quenching

     We compare the costs  of wet and dry quenching starting from the point coke
is pushed out of the  ovens.  Capital requirements for a system with a capacity
of 2750 tons of coke  per day (1.0 x 10° tons  coke annually) is estimated at
$9.5 million.*  The projected  savings in operating costs arise from the signifi-
cant amount of byproduct energy recovery possible.  Current plant designs in
the U.S.S.R. recover  the byproduct energy as  high-pressure steam.  The attrac-
tiveness of the process  depends on the value  attributed to the recoverable
energy.  As it may be used to  generate power,  preheat gases, or raise steam,
it was credited in this  study  with a dollar value set by competitive low-sulfur
fuels at $2/106 Btu.  Table IV-20 shows the costs on an incremental basis,
viewing dry quenching as a mechanism to recover heat.
     At present, this energy credit alone does not seem to justify the substan-
tial capital investment  involved.   If,  however,  it can be demonstrated in U.S.
blast furnace practice that dry quenching yields  a better quality of coke so
that the coke rate in the  blast furnace is reduced, then there is likely to be
a greater driving force  for the adoption  of the process. Further research is
needed to establish this point.

                                 TABLE IV-20

         INCREMENTAL COSTS INCURRED BY A NEW DRY COKE QUENCHING UNIT
                           Annual Design Capacity: 1.0 x 10 tons 	
                           Capital Investment: JJ9.5 jin annual ton)
                           Location: Creac Lakes

VARIABLE COSTS
• Electric Pouer Purchased
Energy Credits
•
Direct Operating and Maintenance
Labor (Wages)
Direct Supervisory Wages
Maintenance Materials and Supplies
Labor Overhead
FIXED COST
Plant Overhead
Local Taxes and Insurance
Depreciation
TOTAL PRODUCTION COSTS
RETUTUJ ON INVESTMENT (PRETAX)
TOTAL
Units Used in
Costing or
Annual Cost
Basis

XWh
106 Btu
L Han-hr
*S Man-hr
5Z Investment
(35Z L6S)

(65X L&S)
(2Z Investment)



$/Unit

0.016
2.00
7.00
7.00







Units Consumed
per Ton of
Product

8.4
-1.1 x 106 Btu
0.008
0.003







S/Ton of
Product

0.134
-2.20
0.056
0.021
0.68
0.027

0.050
0.19
0.530
0.712
1.900
1.188
*Estimates supplied  to  us by AISI (1976)  late in this study indicate these
 investments are probably low.  This would have the effect of making dry quench-
 ing even a less favorable  economic alternative than indicated in this study.
                                      52

-------
7.   Current Adoption Status

     Dry quenching was developed by the Sulzer Brothers shortly after World
War I.  Over 70 coke plants in gas works and some steel mills were equipped
with dry coke quenching units up to 1950, but most of these gas-works installa-
tions were closed as low-cost natural gas became readily available.  Only two
of these are still in operation:  one is in England at the Ford Dagenham plant;
the other one is located at Wendel-Sidelor, Homecourt, France.

     Linsky (1975) observed that, in 1960, the Soviet Union commissioned its
first dry quenching pilot plant at Cherepovets Integrated Iron and Steel Works,
north of Moscow.  Because of its success in a relatively cold climate where
wet quenching may be difficult, more than 40 dry quenching towers have been
built in the Soviet Union which quenched approximately 15 million tons of coke
in 1973.  Apparently dry quenching facilities are mandatory in the U.S.S.R. for
all new coke oven batteries as well as for rebuilt batteries if space permits.

     We understand that in the U.S.S.R., with centralized planning, many of the
steel facilities are quite large and produce more than 5 million tons of steel
annually.  Several dry quenching systems can be installed in an integrated
facility.  The reliability question is, therefore, not a critical issue. Barker
(1976) reports that one Russian-designed installation is now operating in Japan
at Nippon's Steel Tobata Works.  Nippon Steel has reportedly filed 16 patent
applications on modifications of the Russian design.  Completion of another
dry-quenching installation based on the Russian design is expected in 1977 at
the Chiba Works of Kawatetsu Chemical Industry in Japan.

     Two designs, both of which are based on the old Sulzer patent, are
presently offered to U.S. steelmakers.  One is offered by Licenzintorg (U.S.S.R.)
and the other one is offered by Waagner Biro, an Austrian firm which acquired
the patent from Sulzer in 1971.

     There is probably little future for dry quenching with coke ovens that
produce in the order of 1,000,000 tons a year.  For such facilities only one
dry quenching station is needed, and the reliability issue then becomes critical.
Our discussions with steelmakers that have seen dry quench facilities in the
Soviet Union indicate that they would have real concerns about installing such
a facility without a backup to quench the coke.  Without such a backup and with
the failure of a fairly complex system, such as a dry quenching facility is
reported to be, the complete steel facility would be in danger of closing for
lack of coke.  It would then take several weeks, even months, to bring produc-
tion back into line.  Thus prudent business practice would call for a backup
quench facility, and the lowest cost backup that is currently available and
that would meet current environmental regulations would be a wet quench tower.
Thus the U.S. steelmakers look upon dry quenching for many of their applications
as equipment that has to be installed in addition to their wet quench system.
For this reason, we have figured the costs on an incremental basis and looked
upon the dry quenching system as a mechanism to recover heat.
                                     53

-------
     For larger steel facilities, those producing 5,000,000 or more tons of
steel a year where multiple dry quenching towers would be needed, one could,
of course, eliminate the wet quench backup system.  In such an instance, one
might be able to save about 10% of the estimated cost of $25 to $30 million
for three dry quench systems.  Therefore, the applications for dry quenching
seem to be in large steel plants which will be undoubtedly re-examining on a
periodic basis the dry quenching option in the face of changing economic con-
ditions such as energy costs and dry quench facility investments.

E.   DIRECT REDUCTION

     The blast furnace is now - and will remain for decades to come - the
primary way of reducing iron ores, if only because most existing units are far
from the end of their useful lives.  However, oxygen has been successfully
removed from solid iron oxides by gaseous reduction in a number of instances.

     Traditionally, direct reduction units have been considered only where
special conditions have made them appear economically attractive as an alterna-
tive to the blast furnace (small production, unavailability of coke, special
incentives, etc.).  The economic situation of industrialized countries is such
that the treatment of metallized ores in electric furnaces or in blast furnaces
may become an alternative to the conventional blast furnace practice.

     Several processes, as shown in Table IV-21, have been proposed.  Although
most of them have not been commercialized, a few are presently receiving con-
siderable attention in North America and in other parts of the world.  For
example:

     •    fluidized-bed direct reduction (FIOR process),

     •    static bed process (HyL process),

     •    shaft furnace (moving bed) processes (MIDREX, Armco), and

     •    kiln-type processes (SL/RN*, Krupp, Kawasaki).

     The first three processes require a gaseous reductant, while the kiln
processes generally operate with a solid fuel (coal) supplemented by liquid or
gaseous fuel injection.  For the gaseous reduction processes, the reducing gas
normally has been generated from natural gas and occasionally from naphtha.
The shortages of these types of feedstocks cast some doubt about whether such
a gas-based process can be built in the United States.

     Alternatively, heavier petroleum feedstocks or coal could be gasified
and the resultant gases, if of the proper quality, can be used in direct
reduction.  Unfortunately, with such feedstocks, a considerable amount of sul-
fur usually enters into the reducing gas stream, normally as I^S or COS.  To
utilize these gases in direct reduction, the sulfur-containing species would
*SL/RN comes from the name of the companies who developed this process;
 Stelco-Lurgi/Republic Steel, National Lead.

                                      54

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                                 TABLE IV-21

                 CLASSIFICATION OF DIRECT-REDUCTION PROCESSES
 1.   PROCESSES  USING SOLID REDUCTANTS

     Kiln Processes
     Krupp-Renn
     R-N, SL-RN
     Bassett
     Sturzelberg
     Domnarfvet
     Hornsey-Wills

     Retort Processes
     Hoganas
     Chenot
     Larkins
     DuPuy
     Lang

     Electric-Furnace Smelting Processes
     Tysland-Hole
     Lubatti
     Elektrometall
     D.  L. M. (Dwight-Lloyd-McWane)
     S trategic-Udy
     Edwin-Elektrokemisk

     Low-Shaft Blast-Furnace Processes
     Ougree-Liege
     Demag-HumboIdt
     Weber

     Miscellaneous Solid-Reductant
      Process
     RudoIph-Landin
     Leckie
     Gerhardt
PROCESSES USING GASEOUS REDUCTANTS

Kiln Processes
Maier-Mococo
Azincourt
Scortecci

Shaft-Furnace Processes
Wiberg-Soderfors
Norsk-Staal
U. S. Bureau of Mines
Skinner Multiple-Hearth
Cape-Brassert
United Verde
Norwegian H-Iron
Galluser
Purofer
Armco Steel
Midland-Ross

Fluidized-Bed Processes
Nu-Iron
H-Iron
A. D. L.  (Esso Research-Little)
Stalling
Bubble-Hearth
Novalfer-Ouia

Retort Processes
Madaras-Mexican
Hyl

Jet-Smelting Process
0. R. F.  (Ontario Research Foundation)

DIRECT-STEEL PROCESSES

0. R. F.  Direct-Steel  (Cavanagh)
Flame-Smelting  (Cyclosteel)
Twyman
Source:  Making, Shaping and Treating of Steel, U.S. Steel Corp., Pittsburgh,  Pa.,
         1971
                                       55

-------
have to be scrubbed out.  At present, there are no economical high-temperature
(1500-2000°F), sulfur-removal processes.  If the gases have to be cooled in
order to scrub out the sulfur-containing species and then reheated, energy
costs and capital investments make such an alternative economically unattrac-
tive. For this reason we have focused here on the last alternative, namely,
the coal-based kiln processes, most of which use limestone, if necessary, for
sulfur control.

     Since large plants have been - and are being - built using the SL/RN
process, we have used this particular process as the basis for out analysis.
Because 90 percent of the metallized products from direct reduction units is
charged to electric furnaces, as shown in Figure IV-10, we have chosen the use
of direct reduced material in electric arc furnaces (EAF) rather than using
direct reduced product in a blast furnace followed by the BOP for steelmaking.
As stated earlier, we have retained, for the base line technology, the conven-
tional coke oven-blast furnace-basic oxygen process.  A schematic flowchart
of the base line is shown on Figure IV-11 with the alternative direct reduction-
electric arc furnace route shown on Figure IV-12.  Examination of Figures IV-11
and IV-12 for the base line and alternative processes shows both using oxide
pellets to produce an equivalent end-product, namely 1,710,000 tons of molten
steel per year, as shown in Table IV-22.
SHAFT FURNACES
28%




STATIC BED
59%





FLUIDIZEDBED
4%


ROTARY KILNS
9%
1 1

          PRODUCTION TO JULY, 1974
11.0 MILLION TONS OF METALLIZED PRODUCT

I
9%
BLAST
FURNACES



I

90%
ELECTRIC-ARC
FURNACES



I
0.6%
OPEN HEARTH
FURNACE, BOF



BALANCE
OTHERS
(CUPOLA, ETC.)
 Source:  Rollinger, B.,  "Steel via Direct  Reduction,"  Electric Furnace
         Proceedings, Vol.  32., p. 5, Pittsburgh,  1974
 Figure IV-10.   Production and Processing of Metallized Product, July 1974
                                     56

-------
                                                             OXIDE PELLETS
            METALLURIGCAL
                COAL
Ul

COK
GAS
COKE OVEN
1
GAS
BYPRODUCT
PLANT
EOVEN
(FUEL)
COKE



(CLEANED BATEA)
(F
                              OTHER BYPRODUCTS (SOLID)



                         LEGEND:   (A)  AIR POLLUTION

                                  (w)  WASTE WATER

                                  0  SOLID WASTE

                                  0  FUGITIVE EMISSIONS

                                   *   OPTIONAL

t '•
LIMESTONE
(FUEL)*
'iL
BLAST
FURNACE
^ l
1
BOP SHOP
\
ST

s)
MAKE-UP WATER
WET
SCRUBBER
1
WATER
TREATMENT


1
^0 SLUDGE
1 MAKE-UP WATER
I


i
T0
SLAG
(LANDFILL)
= EL
WET
SCRUBBER
i i
l •
WATER
TREATMENT


                                                                                                       CLEAN BF GAS (FUEL)
                                                                                                        (LANDFILL)
                                                                     CLEAN BOP GAS (FUEL!
Figure IV-11.
                                                                                            ,S)  SLUDGE
                                                                                                       (LANDFILL)
                                                   Schematic Flow Diagram  of the Base Line
                                                   Process for Steelmaking

-------
                 ©
         FLARED
Ui
00
                                                 OXIDE PELLETS

                                                        COAL
                           MAKE-UP WATER
        WET
      SCRUBBER
                               WATER
                             TREATMENT
                               SLUDGE
                              (LANDFILL)
                                              ©
                LEGEND:
(A)   AIR POLLUTION

@   WASTEWATER

(s)   SOLID WASTE

(?)   FUGITIVE EMISSIONS

     OPTIONAL
                                                               RETURN COAL
                                                                LIMESTONE
                                                                    ((FUEL)"   _.
                                                                       1     ©
                                                          3 KILNS
                                                             ASH. FINES, USED LIMESTONE
                                                       PREREDUCED
                                                       PELLETS
                                                               SEPARATION
                                                                  UNITS
                                                                  SCRAP
                                                                            ©
                                                         ELECTRIC AIR
                                                          FURNACES
                                                                                  LANDFILL
                                                                             ASH
                                                                         BURNED LIME
                                                                          BLEED COAL
                                                                 FILTERS
                                                                                                             ©
                                                                                        ATMOSPHERE
                                                                            SLAG
                                                                          (LANDFILL)
                                                                            DUST
                                                                          (LANDFILL)
                                                           STEEL
                         Figure TV-12.   Schematic Flow  Diagram of the  Direct  Reduction Route

-------
                                TABLE  IV-22

                        DEFINITION OF  THE BASE LINE
             AND PROCESS OPTION CONSIDERED FOR DIRECT REDUCTION
Base Line
Process
Step
'oke Oven
Jlast Furnace
SOP Shop (2)
Product
Coke
Hot Metal
Steel
Capacity
(annual tons
product)
660*000
1,200,000
1,710,000
Process Option
Process
Step
DR Plant ^

(2)
EAF Shopv '
Product
Reduced
Pellets
Steel
Capacity
(annual tons
product)
1,200,000

1,710,000
     EAF = Electric Arc Furnace

   NOTE 1:  The  coke consumption of the blast furnace is 1,100 Ib/ton of
           hot  metal.

   NOTE 2:  Both routes use 30% scrap in their steelmaking vessels.

   NOTE 3:  The  direct  reduction plant consists of three SL/RN units having
           an annual capacity of 400,000 tons each.


     The following pages  on direct reduction are broken down into four main
sections:

     1.   Description of  the direct reduction route to steelmaking.

     2.   Pollutant  emissions, abatement technology, and costs.

     3.   Energy  use of the two process routes to steelmaking.

     4.   Investments and operating costs.

1.   The Direct Reduction Route

a.   Description  of  the SL/RN Process

     Each existing plant  is unique in its design and application; however,
Figure IV-12 shows a typical flow sheet for the treatment of high-grade pellets
or lump ore and solid reductants with a low content of volatile matter.  Iron
oxides, coal,  and lime for desulfurizing are mixed and charged into a rotary
kiln.  Coal provides the  reducing gas (CO) and the sensible heat for the reduc-
tion of iron oxides.   Air is admitted at the lower end of the kiln and, through
several blowers,  is  distributed along the length of the kiln.  Supplementary
fuel can be supplied by oil burners.  The temperature, measured by thermocouples,
is regulated to around 1922°F by the air and fuel rates.  The spent gases
exit at the charging end  of the kiln at about 1200°F.  It is therefore a
countercurrent process, although other units have been designed as concurrent
reactors.
                                       59

-------
     Theoretically, a wide variety of charge characteristics is acceptable;
 lump ore, green balls,  indurated pellets, and even wet concentrates have been
 considered.  The acid gangue content, however, should be less than 2-4% so
 that the product will be acceptable as feedstock for a blast furnace or
 electric arc furnace.   Also, any reductant is acceptable as long as the ash
 does not fuse or form low-melting compounds with other species present, such
 as  the desulfurizing agent and the gangue coming with the iron oxides.  The
 softening point of the  coal should be at least 210°F above the maximum temper-
 ature in the kiln.  Thus, the type of coal has an important bearing on the
 successful operation of the kiln.

     Figure IV-13 shows a section of the kiln in the reducing zone.  The
 rotary movement facilitates the heat and mass transfers.  The product is highly
 metallized; that is, 93-95% of the total iron is present as metal.
                                   CO-FLAME


                INTERMEDIATE LAYER OF    \^^^>,   OXIDIZING
                 THE OXIDES OF CARBON     fj\       ^C^  FURNACE
                   APPEARING ON THE  —    /OV        ^     GAS
                    CHARGE SURFACE

                   REDUCTION OF THE IRON
                   OXIDES IN THE INTERIOR
                      OF THE CHARGE

           Source:  Johannsen, quoted in L.v. Bogdandy and
                    H.J. Engell,  "The Reduction of Iron Ore,"
                    Springer Verlag, Berlin,  1971.

           Figure IV-13.  The Reduction Zone of the SL/RN Process


     After the reduction has taken place, the products pass into a cooling drum
where they are cooled to below 210°F to prevent reoxidation.  The cooler
discharge, consisting of coarse-  and fine-grain sponge-iron excess coal, coal
ash and desulfurizing agents, is  split into the individual components by screen-
ing and magnetic separation.  They may also be separated by electrostatic sepa-
ration, flotation, and air jig.   At times,  difficulty has been experienced in
separating the coal from the ash; extreme care and skill must be used to avoid
either excessive coal usage or excessive ash buildup.  The unburned or excess
coal is largely recycled.

     If pellets are fed the metallized products are produced in the form of
pellets along with some fines.  The pellets are not pyrophoric and they do not
reoxidize, so long as they are not brought into contact with condensed water.
Moreover, any excessive air draft through a pile of prereduced pellets should
be avoided.  If a steelmaking plant is adjacent to the kiln, the fines and
pellets can be charged continuously.  If the product has to be shipped, the
fines must be briquetted or otherwise agglomerated, which increases their cost.
                                      60

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b.   Uses for Prereduced Materials in Iron and Steelmaking

     Prereduced materials are an intermediate product since they cannot be
thought of as either an ore or a metal in the common sense.  They are being
considered today as a feedstock to both blast furnaces and electric furnaces.

(1)  Use in Electric Arc Furnaces

     Ninety percent of the prereduced materials produced in the world is fed to
electric arc furnaces (EAF).  Although the operating conditions vary signifi-
cantly from plant to plant (composition of the feedstock, capacity, power,
charging method, end-product), one may characterize the process as follows.

     The EAF usually melts scrap  (home and/or purchased) together with  the
prereduced materials.  Whereas the roof must be open in order  to charge scrap,
the prereduced materials are more often charged continuously  (Figure IV-14).
With direct reduced materials, coke  is often used and three pounds of limestone
are added for each pound of silica contained in the prereduced materials to
operate the EAF under normal basic conditions.
     The utilization of prereduced materials has a good potential for minor
element control. Elements that tend  to build up in steel because of scrap
recirculation (Cu, Ni, Cr, Sn) undergo some dilution.  The phosphorus content
depends largely on the ore quality,  because direct reduction processes  are not
likely to remove it in significant proportions. The sulfur content depends on
the ore quality and the reduction practice. Should the sponge  iron be suffi-
ciently low in sulfur and phosphorus, either lower grades of  scrap could be
used in conjunction with prereduced  materials or the refining  period could be
shortened.

     In conclusion, EAF's of traditional design can accommodate prereduced
materials with no limitation on the  grade of steel produced.
                                        SCATTER BOX
                                             THREE
                                           RETRACTABLE
                                             TUBES
                   SOURCE: Lurgi Publication No. 166.
            Figure IV-14.  Example of Continuous Charging  System
                                      61

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 (2)  Use in Blast Furnaces

     Ten percent of the prereduced iron units produced in the world is
 charged to blast furnaces.

     As shown in Figures IV-15 and IV-16, coke consumption decreases by 0.5%
 and the production increases by 0.7% with each percent of burden metallization.
 The production of a blast furnace plant with an annual capacity of 2 million
 tons of pig iron, for example, can be raised by 25% to 2.5 million tons by
 premetallizing the burden to approximately 35%.  A sponge-iron plant with an
 annual capacity of about 1 million tons would be needed to achieve the same
 increase with equal ores.

     Should prereduced materials become available on the U.S. market, some
 flexibility in blast furnace productivity could be gained.  However, they would
 probably introduce no new pollution control problems around the blast furnace.
 Thus, for purposes of this study, we focused on the direct reduction/electric
 furnace route to steelmaking and compared it to the conventional coke oven-
 blast furnace-basic oxygen process.

 c.   Technological Problems

 (1)  The SL/RN Process.

     Although it may seem a relatively simple device, a rotary kiln is very
 difficult to operate.  Some attrition of the charge is bound to occur.  Further-
more, the dust particles tend to overheat and sinter in "dam rings" against the
 shell of the furnace.  These rings slowly build up to the point of completely
obstructing the furnace, forcing a complete shutdown of the operations.

     The control of the temperature profile in the kiln is complex and critical.
Without going into a detailed discussion of the heat and mass transfers
 involved, one must emphasize this point as the one on which extensive R&D is
 still proceeding.  The reaction zone is actually very narrow and non-uniform,
 so that the formation of pasty or liquid products that eventually solidify on
 colder regions and force a shutdown of the kiln is difficult to avoid.

 (2)  Electric Arc Furnaces

     These process units are usually similar to the traditional scrap melting
units.  However, refractory consumption is a problem in electric arc furnace
operations in which metallized products are used.  Generally, it is 20 to 60%
higher than that for all-scrap practice.  This increased refractory consumption
results principally from continuous charging of prereduced material with full
power; the furnace walls are unshielded by scrap and the radiation of the arc
damages the walls, especially in the areas of the hot spots.  A second factor
 is the increased slag volume, which has a corrosive effect on the walls.  The
decrease in the roof-lining life can be attributed to the fines generated
during handling and charging of the sponge iron.  These fines penetrate the
refractories and form low-melting eutectics.  These problems are partially
controlled by —
                                      62

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                  100
                   90
               g
               z
               2  80
               I
               8
70


60



50


40
                         10
_L
                                   J	L
_L
_L
_L
                              20    30    40   50   60   70    80    90
                                         J	L
                                                                    100
                                            -^- METALLIZATION OF BURDEN (%)
                0,A
  U.S. BUREAU OF MINES DATA
  STEEL COMPANY OF CANADA LTD. DATA.
               SOURCE: USBM and Lurgi, Publication No. 166

Figure IV-15.  Decrease of Coke Consumption by Charging Prereduced
                 Burden into the  Blast Furnace
               180 -
                      10
    20   30   40   50   60   70    80    90   100
           	^- METALLIZATION OF BURDEN (%)
0,4
                                U.S. BUREAU OF MINES DATA
                                STEEL COMPANY OF CANADA LTD. DATA.
                SOURCE:  USBM and Lurgl, Publication No. 166
         Figure IV-16.  Increase  of Blast  Furnace Production by
                          Charging  Frereduced Burden
                                       63

-------
      •    shielding the walls with unmelted scrap as much as possible;

      •    utilizing special refractory material in the area of the hot spots,
           with the corresponding cost differential; and

      •    cooling the walls with water—with corresponding increase in energy
           consumption.

      Electric energy consumption is higher than with an all-scrap practice as
a result of the:

      •    energy required to reduce the residual oxygen content of the metal-
           lized product; and

      •    heating and melting requirements for the additional slag generated
           by the gangue from the product.

      If the metallized material requires significantly more lime, the total
slag volume increases, and therefore more electric energy is used.  Additional
heat losses in the fumes leaving the furnace also must be compensated for.

2.  Pollutant Emissions and Abatement Technology

      The sizes and types of process units used for this evaluation are those
previously mentioned (Table IV-22).  We anticipate no pollutional difference
due to the pellets between the two alternative technologies being considered
here.  In both cases, we anticipate that there will be fugitive emissions and
dusting from the pellets being unloaded and stored on the steel mill grounds.
Similarly, the amount of coal that is used in the two technologies is about the
same.  One uses metallurgical coal and the other steam coal, but we have come
across no data to indicate a significant difference in the dusting problems
and water run-off from the coal piles from these two types of coals.  The prob-
lems associated with coal storage are thus not addressed within the iron and
steel sector of this study.*

a.  Air Pollution

      The air pollution costs of the base line (BATEA** technology) are shown
in Table IV-23.  They amount to $2.62 per ton of steel.

      The direct reduction route generates air pollution of the following types:

      •    Point sources:  exhausts of the kilns and electric furnaces; and

      •    Fugitive sources:  from magnetic separators and transfer operations.
 *This is discussed in the "Ammonia" report also prepared under this contract
 (Chapter IV, "Ammonia Production" based on Coal Gasification).
**BATEA = Best Available Technology Economically Achievable.

                                     64

-------
                                 TABLE IV-23
                     AIR POLLUTION CONTROL FOR BASE  CASE
                       (Basis:  1.2 million ton/yr Iron)
            Capital Cost, $
             Blast Furnace
             Coke Oven
             Basic Oxygen Furnace
            Total

            Operating Cost, $/ton
             Variable Costs
               Labor   (total)
               Maintenance @  5% of Capital
               Utilities
                 Electric Power @ $0.016/kWh
                 Water  @ $0.20/103 gal
               Total

            Fixed Costs, $/ton
             Depreciation, 18 years
             Insurance  & Taxes @ 2%, Capital
             Total

            Total Production Cost, $/ton
            Return on Investments (pre-tax) @ 20%

            Total Unit Cost, $/ton
      -0-
  6,411,000
  4,669.000
 11,080,000
      0.07
      0.46

      0.53
      0.13
      1.19
      0.51
      0.18
      0.70
      1.89
      1.85

$     3.74/ ton hot metal or
$     2.62/ton steel
     The  gas  flow rate from each kiln is  estimated to be 57,000 scfm at
1200°? with a composition of 64% N2,  2% C02,  and 34% CO.  In addition, S02, in
a very low concentration, will be present in  the gases arising from the fuel's
sulfur content and from the ore.  The estimated particulate loading will be
0.95 Ib/ton of product.  The chemical nature  of the particles is Fe, ^304, C,
Si02, ash, CaO,  and tramp elements.   The  large particulates in the exhaust will
be removed in the cyclone and recycled.   The  smaller particulates including
some submicron particulates will be removed using a high-energy venturi scrub-
ber.  The exhaust from the scrubber is a  clean gas which can be flared.  Lurgi
(Dec., 1975)  has claimed that the off-gases have a supplemental fuel value of
70 Btu/scf, but this depends on operating practice and cannot be generalized.
It may be even lower.

     The  electric arc furnace exhausts are not significantly different from
those of  conventional units, except that  their dust load may be 10 - 20%
higher.   Electrostatic precipitators  will be  installed and should suffice.

     Table IV-24 summarizes the air pollution costs of the direct reduction
plant and Table IV-25 for the electric furnaces.  For a fair compairson of the
two routes, it must be remembered that the gas-cleaning devices of the blast
furnace are considered process equipment, because they continuously deliver
blast furnace gas (80-90 Btu/scf) to  the  stoves and other facilities.  There-
fore, they do not appear as a pollution control device.
                                       65

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                                 TABLE  IV-24

      AIR POLLUTION COSTS  FOR THREE  DIRECT  REDUCTION  KILNS
                       (Basis:   1,200,000  ton/yr)
          Capital Cost:
  $ 5,658,000
          Operating Costs:
              Variable Costs:                        $
              Electric Power @ $0.016/kWh                 95,400
              Water         
-------
     Table IV-26 shows that the cost of air pollution control in the direct
reduction route is $3.21/ton of steel.

                                TABLE IV-26

          TOTAL AIR POLLUTION COST FOR THE DIRECT REDUCTION ROUTE

                                                $/ton Steel

            DR Kiln Air Control:              $1.12(1)
            EAF Air Control:                   2.09

                  Total                       $3.21/ton steel

b.  Effluent Wastewater

(1)  The Base Case

     As previously discussed, the base case consists of a byproduct coke oven,
a blast furnace, and a basic oxygen  furnace shop, all of which generate waste-
water streams.  Wastewaters from byproduct coke operations contain high con-
centrations of ammonia, oil and grease, and phenol  (all three of which exert a
biochemical oxygen demand), plus cyanide, sulfide,  and suspended solids.  Waste-
water characteristics of blast furnace scrubber water have been described in the
discussion of the direct-reduction alternative.  The basic oxygen furnace gener-
ates a wastewater containing suspended solids and fluorides.  The three treat-
ment systems chosen in the EPA Development Document (1974) for the attainment
of the BATEA treatment levels have been used in estimating the capabilities
and costs of treatment. These treatment systems are:

     •    Byproduct Coke

          1)    Distillation (with ammonia recovery) of waste ammonia liquor,

          2)    Alkaline ammonia stripping,

          3)    Neutralization,

          4)    Settling,

          5)    Air flotation,

          6)    Two-stage chlorination,

          7)    Clarification (with vacuum filtration of sludge),

          8)    Filtration, and

          9)    Carbon adsorption:
(1)
   The feed to the EAF is a mix of sponge iron and scrap.
                                      67

-------
     •    Blast Furnace

          (See direct reduction discussion); and

     •    Basic Oxygen Furnace

          1)   Clarification (97% recycle of effluent),

          2)   Neutralization,

          3)   Lime precipitation,

          4)   Clarification (with vacuum filtration of sludge), and

          5)   Final neutralization.

     An estimate of the treated effluent characteristics is presented in
Table IV-27.  Column D of Table IV-27 lists the total treated effluent waste
load for the entire base case.

(2)  Direct Reduction Alternative

     There is one significant wastewater stream from the direct reduction
process:  the kiln exhaust gas scrubber water.  (The direct reduction process
requires non-contact cooling water at the rate of about 4,000 gal/ton of iron,
but this water is comparable in volume and composition to that of the blast
furnace it replaces, and thus will not be included in the comparison.)

     The exact composition of the kiln exhaust gas is not known.  In view of
the chemistry of this process, the exhaust gas and its associated scrubber
water should be similar to that of a conventional blast furnace.  The composi-
tion of blast furnace scrubber water has been established reasonably well.  The
major pollutants of concern in blast furnace scrubber water are:

     •    suspended solids,          •    ammonia,

     •    cyanide,                   •    sulfide, and

     •    phenol,                    •    fluoride.

     Due to the reducing atmosphere in the solid bed in the reduction kiln and
the abundance of carbon, nitrogen, and sulfur in the coal, it is reasonable to
expect that the exhaust gas scrubber water will contain cyanide, phenol, ammonia,
and sulfide.  Since no fluorspar fluxing agent is used in the direct reduction
process, there would not normally be any fluoride in the exhaust gas scrubber
water.   This is an important environmental advantage of the direct reduction
process over the base case.*
*If fluorspar appears in the raw materials (limestone or coal), fluorides can
 be expected in the exhaust gases and the scrubber water is treated accordingly.
                                       68

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                                                TABLE IV-27
                                  BASE CASE TREATED EFFLUENT WASTE LOAD

                                          Basis:    Coke Oven          -   660,000  ton/yr
                                                    Blast Furnace       -1,200,000  ton/yr
                                                    Basic Oxygen Furnace-1,710,000  ton/yr
Parameters
Suspended Solids
BOD5
Oil & Grease
Cyanide (2)
Phenol
Ammonia (as NH.)
Sulfide
Fluoride
Flow Rate
Treated Byproduct
Coke Oven Effluent
(Ib/dav
15.1
30.2
15.1
0.38
0.75
15.1
0.45
-
(mg/1)
10
20
10
0.25
0.5
10
0.3
-
180,800 gpd
Treated Blast
Furnace Effluent
(Ib/dav)
34.3
-
0.86
1.72
34.3
1.0
68.6
(mg/1)
10
NIL
NIL
0.25
0.5
10
0.3
20
411,000 gpd
Treated Basic
Oxygen Furnace Effluent
Mh/Hav)
48.8
-
0
-
-
39.1
(mg/1)
25
-
0
-
:
20
234,000 gpd
Total Treated Effluent
Waste Load
(Ib/dav)
98.2
30.2
15.1
1.24
2.47
49.4
1.45
107.7
825,800 gpd
Notes:  1)  All effluents are subjected  to  "Best Available Technology Economically Achievable1' (1983).
        2)  Cyanide is amenable to alkaline chlorination.

-------
      Since the wastewater from the direct reduction process is expected  to be
similar to blast furnace wastewater,  it  is reasonable to  expect that the direct
reduction scrubber water will have to be subjected to the same treatment as
blast furnace scrubber water.  The BATEA (Best Available  Technology Economically
Achievable) treatment level, to be implemented by 1983, is envisioned to require
the  following treatment  steps:

      •    Clarification  of the once-through scrubber water with vacuum filtra-
           tion of the solids;

      •    Cooling and recycling (upwards of 97%) of the clarifier effluent;  and

      •    Treatment of the recycle loop  blowdown by

           1)   alkaline chlorination,
           2)   neutralization,
           3)   clarification,
           4)   filtration,  and
           5)   carbon adsorption.


      Each direct-reduction kiln, with an  estimated exhaust  gas flow rate of
57,000 scfm,  is equivalent (in terms of gas  volume)  to a blast furnace having
a capacity of 1,296 ton/day.   Application of the BATEA treatment level is expected
to result in  a treated effluent wastewater discharge of 125  gal/ton, or  162,000
gpd.   Based on the expected effluent concentrations  set forth  in the EPA Iron
and  Steel Development Document, (1974), Table IV-28  presents an estimation of
the  treated effluent wastewater load from the direct reduction process.  Table
IV-29  summarizes the comparison of the two routes.

                                 TABLE IV-28

                 DIRECT REDUCTION TREATED WASTEWATER LOAD
                         (Basis:  1,200,000 ton/yr)
Parameter

Suspended Solids
BODj
Oil & Grease
Cyanide
Phenol
Ammonia
Sulfide
Fluoride
Treated Effluent
Concentration
(mg/1)
10
MIL
NIL
0.25
0.50
10
0.3
Treated Effluent
Waste Load
( Ib/ton)
58.5


1.02
2.04
57.15
1.23
Not Present
                Flow Rate
                 Remarks :
                                             486,000 gpd
                  1) Direct reduction-treated effluent Is expected to be very nearly
                    the same as the treated effluent from a blast furnace.
                  2) Direct reduction kiln scrubber water is subjected to "Beat Avail-
                    able Technology Economically Achievable" (1983) specified for
                    blast furnace scrubber water.
                  3) Cyanide amenable for alkaline chlorination.
                                        70

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                                              TABLE IV-29

                       DIRECT. REDUCTION COMPARISON OF TREATED WASTEWATER1 LOADS

Parameter
rf
Suspended Solids
BOD5
Oil & Grease
Cyanide
Phenol
Ammonia
Sulfide
Fluoride
Flow Rate
Total Base Case Treated
Effluent (Based on:
1,200,000-ton/day
Blast Furnace Capacity)
(Ib/day)
98.2
30.2
15.1
1.24
2.47
49.4
1.45
107.1
825,800 gpd

Direct Reduction
Treated Effluent
(Based on 1,200,000-ton/day [3 kilns] capac
(Ib/day)
98.2
nil
nil
1.24
2.04
58.5
1.45
NIL
486,000 gpd
NOTES:  1)  All treated effluents are subjected to the "Best Available Technology
            Economically Achievable" (1983).

        2)  Cyanide amenable to alkaline chlorination.

-------
(3)  Wastewater Treatment Costs

     Wastewater treatment cost estimates for attaining the BATEA treatment level
have been developed for both the base case and the direct-reduction alternative.
The base case cost estimates are presented in Table IV-30, the direct-reduction
cost estimates in Table IV-31, and the comparison of the two in Table IV-32.

     As can be seen from the comparison presented in Table IV-32, the direct-
redoetion alternative has a unit treatment cost that is approximately 54% of
the base case.  Most of the reduction in cost is due to the absence of the
wasfewater-generating coke oven and BOP alternative.

c.  jtolid Waste Disposal

(1)  Base Case

     Each of the production units within the base case produces large volumes of
solid waste, which are:

     •    Byproduct Coke - Solid wastes include coke dust and wastewater treat-
          ment sludge;

     •    Blast Furnace - Solid wastes include furnace slag and wastewater treat-
          ment sludge; and

     •    Basic Oxygen Furnace - Solid wastes include furnace slag and wastewater
          treatment sludge.

     Estimated quantities and disposal costs are presented below:

                            Yearly        Total Yearly             Unit     ,^
     Parameter            Quantity      Disposal Cost^^      Disposal Cost
                           (ton/yr)          ($/yr)              ($/ton output)

Byproduct Coke              13,200           66,000                0.04

BlastTFurnace              240,000        1,200,000                0.70

Basic-ftxygen Furnace       256,500        1,282,500                0-75

TOTAL SOLID WASTE          509,700       $2,548,500                $1.49/ton steel
(1) ^Disposal cost @ $5.00 per actual^ton.
(2) ^Based on 1,710,000 ton of steel/year.
                                       72

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                                 TABLE  IV-30

                  BASE CASE WASTEWATER TREATMENT COSTS
                 (Basis:  1,200,000  ton of  Hot Metal/yr)
CAPITAL INVESTMENT - $18,700,000

VARIABLE COSTS
Operating Labor (L)
Supervision (S)
Labor Overhead
Maintenance
(Labor + Materials)
Chemicals
includes :
• lime
• chloride
• acid
• activated carbon
Electrical Power
Fuel
TOTAL VARIABLE COST
FIXED COST
Plant Overhead
Taxes & Insurance

Depreciation (@ 5.6%)
TOTAL FIXED COST
TOTAL ANNUAL COST
Annual
Quantity

84,000 hr
15% (L)
35Z (L+S)
-
_





Cost per
Unit Quantity

$ 7.00/man-hr
—
-





12,700,000 kWh $0.016/kWh
435,600 x 1C
65Z (L+S)
-
2% CI
18 years

RETURN ON INVESTMENT 20Z CI
6Btu $2.00A06Bti

—



Quantity per
Ton of Product

0.07
-
_





10.62
0.363

-



$ per Ton
of Hot Metal

0.49
0,07
0.20
0.77
0.26





0.17
0.73
2.68
0.36
0.31

0.87
1.54
.4.22
3.12
TOTAL
                                                                  $7.34/ton hot metal
                                                                           or
                                                                  $5.IS/ton steel
NOTES:  1)   Base Case includes byproduct coke, blast furnace, and basic oxygen
            furnace.
        2)   Cost estimates are for the ground-up implementation of the "Best
            Available Technology Economically Achievable" treatment level (1983).
        3)   Cost does not include wastewater treatment sludge disposal.
            However, this cost is included in the discussion of solid  waste
            disposal.
                                        73

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                                     TABLE IV-31

            DIRECT  REDUCTION KILN SCRUBBER WASTEWATER TREATMENT COSTS
                     (Basis:   1,200,000 ton of sponge  iron/yr)
CAPITAL INVESTMENT- $8,535,360  (CI)

VARIABLE COSTS
Operating Labor (L)
Supervision (S)
Labor Overhead
Maintenance
(Labor & Materials)
Chemicals includes:
• lime
• chlorine
• acid
• activated carbon
Electrical Power
Fuel
TOTAL VARIABLE COST
FIXED COST
Plant Overhead
Taxes & Insurance
Depreciation 18 yrs
TOTAL FIXED COST
TOTAL ANNUAL COST
Annual
Quantity

48,000 man-hr
15% (L)
35% (L+S)

10,500,000 kWh
320,000 106 Btu


65% (L+S)
2% CI
r-
Cost per
Unit Quantity

$ 7. 00 /man-hr

$ 0.016/kWh
$ 2.00/106Btu


_
;
Quantity per
Ton of Product

0.03

8.77
0.266


-
-
$ per Ton
of Product

0.28
0.04
0.11
0.41
0.28
0.14
0.53
1.79

0.21
0.14
0.40
0.75
2.54
RETURN ON INVESTMENT

TOTAL
20% CI
 1.42
$3.96/ton  sponge
       lro:a or
$2.77/ton  steel
NOTES:   1)  Cost estimates  are for the ground-up  implementation of the "Best Available
           Technology Economically Achievable" treatment level (1983).
        2)  Cost does not include wastewater treatment sludge disposal.
                                           74

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                                   TABLE IV-32

                   DIRECT REDUCTION VS BASE CASE COMPARISON OF
                           WASTEWATER TREATMENT COSTS
                                ($/ton of Product)


VARIABLE COSTS
Operating Labor (L)
Supervision (S)
Labor Overhead
Maintenance
(Labor & Materials)
Chemicals includes :
• lime
• chlorine
• acid
• activated carbon
Electrical Power
Fuel 	 ;
TOTAL VARIABLE COST
FIXED COST;
Taxes & Insurance
Depreciation
TOTAL FIXED COST
TOTAL ANNUAL COST
RETURN ON INVESTMENT
BASE CASE


0.49
0.07
0.20
0.71
0.26



0.17
0.72
2.68

0.31
0.87
1.54
4.22
3.12
DIRECT REDUCTION


0'.-28
0.04
0.11
0.41
0.28



0.14
0.53
1.79

0.14
0.40
0.75
2.54
1.42
TOTAL
                         $7.34/ton hot  metal $3.96/ton sponge iron or
                         $5.15/ton steel     $2.77/ton steel
NOTES:  1)  Cost estimates are for the ground-up implementation of the "Best
            Available Technology Economically Achievable" treatment level  (1983) .
        2)  Costs do not include wastewater treatment sludge disposal.
        3)  Both routes use about 30% scrap in the steelmaking step.
                                       75

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      (2)  Direct Reduction

      The direct-reduction process produces four sources of solid waste:

      •    Direct reduction kiln waste,

      •    Wastewater treatment sludge,

      •    Electric furnace slag, and

      •    Electric furnace air pollution control dust.

      The direct reduction kiln waste consists of the following components:

      •    lime            - 140 Ib/ton of output

      •    coal ash        - 125 Ib/ton of output

      •    discarded coal* - 100 Ib/ton of output

          Total solid waste = 365 Ib/ton of output

      This is equivalent to 219,600 ton/yr from a 1,200,000-ton/yr direct-
reduction facility.

      Wastewater treatment sludge is estimated to be generated at a rate of
187,000 ton/yr of dewatered sludge (@ 35% solids).  The wastewater treatment
sludge should be similar to blast furnace scrubber water sludge in that the
liquid fraction of the sludge will probably contain cyanide, ammonia, phenol,
and sulfide.  However, there should not be any fluoride present in the waste-
water treatment sludge from the direct-reduction alternative.  As in the case
of the blast furnace wastewater treatment sludge, care must be taken in its
disposal to avoid groundwater contamination.

      Electric furnace slag is estimated to be generated at the rate of 239,400
ton/yr, and electric furnace air pollution control dust is estimated at 8,600
ton/yr.  In a qualitative sense, the environmental problems associated with
the disposal of solid waste from the direct-reduction process are very nearly
the same as those associated with the conventional base case operations.  An
estimation of the total yearly solid waste disposal cost for the direct reduc-
tion  process is:
*A major part of the larger sized coal particles can be separated from the ash
 and recycled. Coal fines that cannot be screened from the ash are discarded.


                                       76

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                              Yearly        Total Yearly            Unit
     Waste Stream            Quantity     Disposal Cost^)      Disposal Cost
                             (ton/yr)          ($/yr)         ($/ton of steel)

Kiln Waste                    219,600         1,098,000             0.64

Wastewater Treatment          187,800           939,000             0.55
Sludge

Electric Furnace Slag         252,000         1,260,000             0.74
                     (2)
Electric Furnace Dustv '        9,000            45.000             0.03

TOTAL SOLID WASTE             668,400         3,342,000            $1.96/ton steel
(1)  Disposal cost @ $5.00 per actual ton
(2)  The air pollution control for the arc furnace is a bag house.

     While it is not considered in detail here, we understand that fines may be
generated by abrasion of the iron oxide pellets in the direct-reduction units
leading to iron losses.  If a direct-reduction unit were in an integrated steel
plant having a sinter strand, such fines could be fed to this unit.  Alterna-
tively, a limited amount of fines could be fed into the electric arc furnaces.
However, if a significant quantity of fines were generated in a non-integrated
plant, it may cause a pollution problem, either of dusting to the atmosphere,
or the fines being entrained in rain water run-off.  Further research is needed
to define the magnitude of this problem.

     From these estimates it appears that the direct-reduction process has a
slightly higher solid waste disposal cost.  The quantities of solid wastes from
the various operations included in this comparison can vary considerably from
plant to plant.  It is conceivable that in certain instances the direct-reduction
process could generate the same or even less solid waste than the base case.  On
the whole, the solid waste disposal problems and cost for the two alternatives
are very nearly the same and certainly not different enough in quantity, cost,
or impact to serve as a deciding factor.

d.  Summary of the Pollution Control Comparison

     In conclusion to the preceding paragraphs:

     •    The direct-reduction route creates less severe pollution problems,
          as the coke plant weighs heavily in the total amount of pollutants
          generated in the base case.

     •    Consequently, pollution control costs are significantly lower with
          the direct-reduction route.  Capital costs are reduced by one-third
          ($20 million versus $30 million) and operating costs are 15% lower
          ($7.94 versus $9.26 per ton of steel); see Table IV-33.
                                       77

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                                 TABLE IV-33

                     SUMMARY OF POLLUTION CONTROL COSTS



                                 Base Line         Direct Reduction Route


        Capital Costs:

            Air                 $11,080,000             11,258,000

            Water                $18,700,000             8,535,360

            Solid
               Total            $29,780,000             $19,793,360
        Operating Costs ($/ton of steel)

            Air                    2.62

            Water                   5.15

            Solid                   1.49

               Total              $9.26
3.  Energy Usage

     Table IV-34 summarizes  the energy usage of the conventional and  direct-
reduction routes for making  steel.   Clearly the direct-reduction route  uses  more
energy  (18.45 Btu/ton)  than  the conventional route (11.84 Btu/ton).*  The base line
has the advantage that  the blast furnace is a remarkably efficient device
against which several smaller direct-reduction vessels have a net thermal dis-
advantage. This is aggravated by the fact that the pellets must: be substan-
tially  (if not completely) cooled before being transferred to the electric
furnace.

     As noted earlier the exhaust gases from the kiln may represent a heating
value of 70 Btu/scf.  This,  however, can vary with time and is subject  to vari-
ous operating parameters. Since the gases have a low heating value we believe it
would be difficult to use them economically and thus no energy credit is  taken
in this analysis.  The  energy advantage of the direct reduction is its  ability
to use non-coking coal, a resource  that is much more plentiful and cheaper than
metallurgical coal.
*These numbers do.not include the power consumption of ancillary  equipment such
 as handling, etc.
                                        78

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                            TABLE IV-34

            ENERGY REQUIREMENTS OF THE CONVENTIONAL AND
                DIRECT REDUCTION STEELMAKING ROUTES

                                        10  Btu/ ton steel

Direct Reduction

     Kiln

        Coal                                10.96
        Electric Power W                    0.41

     Electric Arc Furnace

        Electric Power*-1*                    6-30

     Total Production                                  17.67

Pollution Controls;

     Air: Kiln  (electric power)              0.036
          EAF  (electric power)               0.487
     Water: Kiln  (electric power)            0.065
            Kiln  (fuel)                      0.187

     Total Pollution                                    O-78
           Total:        ______________________________ 18.45

Base Line

     Coke Oven                               I-85
     Blast Furnace       ,^                 9.45
     Basic Oxygen Process^ '                 (0.13)

     Total Production                                  11.17

Pollution Controls:

     Air (electric power)  f                 °-34
     Water  (electric power)                   0.08
     Water  (fuel)                             °-25

     Total Pollution
           Total :

(1) 1 kWh = 10,500 Btu fuel equivalent at power source.
(2) Includes 0.44 x 106 Btu credit for CO recovery.

Remark:  This  table assumes  that  both the base  case and the direct
         reduction alternative . use  30% scrap with  a zero energy content.

                                     79

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4.  Investments and Operating  Costs

a.  Capital Costs

     The same production  capacities were adopted for comparing the base line
and the option.  Table  IV-35 summarizes the capital costs of the two routes.

     Modern direct-reduction facilities often consist of one or several 400,000
ton/yr modules.  One such SL/RN facility includes the raw materials intake and
the handling facilities for the shipment of products.  The economy of scale
realized with three kilns is small and rests largely with the raw materials
and products handling capacity.  A direct-reduction plant, including three
SL/SN kilns, was estimated to  cost about $168 million.  The electric arc fur-
nace shop has a capacity  for melting  30% scrap and 70% prereduced materials.
Its capital cost is $65 million,  bringing the total capital associated with the
production costs to $233  million. For comparison the base line investments are
estimated to be $195 million.   Due to the absence of the coke oven and the
simpler pollution technology required by electric furnaces (as compared to
BOP's), the cost of pollution  of the  DR route is 2/3  that of the base line
($20 million versus $30 million).
                                TABLE IV-35
                               CAPITAL COSTS
  BASE CASE;
    Process Unit
      Coke Oven
      Blast Furnace
      EOF Shop

        Total Production
      Wastewater Treatment
      Air Pollution Control
        Total Pollution

  TOTAL BASE CASE
Capacity (ton/yr)	
   660,000   (coke)
 1,200,000   (iron)
 1,710,000   (steel)
Investment  ($10 )
       60
       90
       45
                           18.70
                           11.08
                                   195
                                    29.78
                                  $224.78
  DIRECT REDUCTION;
    Process Unit
      Three Kilns
      Kiln Air Treatment
      EAF Shop
        Total Production

      Wastewater Treatment
      Air Pollution Control
        Total Pollution
   TOTAL DIRECT REDUCTION
 Capacity (ton/yr)
  1,200,000 (iron)

  1,710,000 (steel)
  Capital  ($10°)
      168
       65
                            8.53
                           11.26
                                   233
                                    19.79
                                                                      $252.79
                                        80

-------
     The total capital costs of the DR route are $253 million, or 10% more than
that of the base case ($225 million).  Such a difference is well within the cost
estimating procedure; thus both routes can be considered equally capital-
intensive.  From the viewpoint of minimizing investments, much larger facilities
would favor the blast furnace route, because of the economy of scale.  Conversely,
much smaller facilities would favor the direct-reduction approach.

b.  Operating Costs

     Tables IV-36 through IV-38 give the breakdown of the operating costs of the
three process units of the base line sequence.  The pollution control costs are
excluded, as they have been reported separately.  On this basis, raw steel costs
$134.l4/ton.  The pollution control costs are $9.26/ton, so that the total charge
against raw steel production is $143.40/ton.

     Tables IV-39 and IV-40 give the breakdown of the operating costs of the
two process units of the DR route:  raw steel costs $139.89 a ton.  Lower pol-
lution costs still add $7.94,  giving a total charge against raw steel production
of $147.83.

     The 3% difference between the two routes shown in Table IV-41 is well within
the cost estimate uncertainty and does not favor either route.  Operating costs
again do not constitute a significant decision factor.

5.  Adoption Status

     Table IV-42 gives the nominal characteristics of existing SL/RN facilities
around the world as communicated by Lurgi (1975).

     The SL/RN process has had a history of operating difficulties.  While some
of our industry contacts clearly question whether these technical problems can
ever be solved with a kiln based process, others are more optimistic.   Construc-
tion of an SL/RN kiln 19.7 ft in diameter and 410 ft long has just been com-
pleted at Griffith Mine in Northern Ontario.  It has a design capacity of
400,000 net tons of prereduced pellets per year.  The solid reductant is a
subbituminous coal from Alberta; the prereduced pellets  (95%  Fe)  will possibly
be shipped, by the same rail cars bringing the coal, to a 500,000-ton/yr steel
mill in Alberta featuring three electric furnaces.  Any objectionable (more
than 1%) repxidation of the pellets during transportation is expected to be
effectively prevented by use of covered railroad cars.  The degree of success
with which this facility will operate will be closely watched by the iron and
steel industry as a new test of the viability of the process.

     The results of this new plant cannot be judged before a few years of success-
ful operation have passed.  Moreover, the success of such a plant is closely
related to its feed material and is, therefore, site specific.  Given the
historical experience of similar operations in the past, we do not expect the
steel industry to adopt this process extensively in the near-term future.  Suc-
cessful testing of the Griffith Mine facility would go far in alleviating the
concerns about the technical viability of a coal-based rotary kiln process.
                                       81

-------
                     TABLE  IV-36
COST STRUCTURE IN NEW  COKE-MAKING FACILITIES
             Annual Design Capacity:  660.000
             Capital Investment:  S60 million
             Location:  Great  Lakes	

VARIABLE COSTS
Raw Materials
• metallurgical coal
Byproduct Credits
• ammonium sulfate
Energy
• Purchased Steam
• Electric Power Purchased
Energy Credits (Specify form)
• coke oven gas
• BTX
• tar
• coke breeze
Water
• Cooling (Circulating rate)
Direct Operating Labor (Wages)
Direct Supervisory Wages
Maintenance Labor and materials
Labor Overhead
• Operating supplies
TOTAL VARIABLE COSTS
FIXED COSTS
Plant Overhead
Local Taxes and Insurance
Depreciation 18 years
TOTAL PRODUCTION COSTS
Return on Investment (pretax)
TOTAL
Units Used, in
Costing or
Annual Cost
Basis


ton
ton
1000 Ib
kUh
106 Btu
gal
gal
ton


man-hr
151 labor
6% CI
35Z (L&S)


65Z (L&S)
2% CI


203! CI

$/Unit


50.00
94.00
3.00
0.016
2.00
0.70
0.43
40.00

0.05
7.00











Units Consumed
per Ton of
Product


1.43
0.02
0.67
25.00
4.5
3.0
10
0.05

5
0.25











$/ton of
Product


71.43
(1.88)
2.01
0.40
(9.00)
(2.10)
(4.30)
(2.00)

0.25
1.75
0.26
5.45
0.70
1.00
67.97

1.31
1.82
5.00
72.10
18.13
90.28
                           82

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                      TABLE IV-37

COST STRUCTURE IN NEW BLAST FURNACE FACILITIES

      Annual Design Capacity:  1.22 x 10  tons hot metal
      Capital Investment:  $90 million	
      Location:  Great  Lakes	

VARIABLE COSTS
Raw Materials
• Pellets
• limestone
Energy (Details on Table B)
• Purchased coke
• Electric Power Purchased
Energy Credits (Specify form)
• blast furnace
Water
• Cooling (Circulating rate) '
Labor (Wages) (1)
Direct Supervisory Wages (s)
Maintenance Labor and Material
Labor Overhead
Misc. Variable Costs/Credits(a>
• slag sampling
• scrap credit
TOTAL VARIABLE COSTS
FIXED COSTS
Plant Overhead
Local Taxes and Insurance
Depreciation 18 years
TOTAL PRODUCTION COSTS
Return on Investment (pretax)
TOTAL
Units Used in
Costing or
Annual Cost
Basis

Btu
ton
ton
kWh
106 Btu
103 gal
man-hr
15% labor
5Z CI
35% (L&S)
ton

652 (L&S)
2% CI


20% CI
1
$/Unit

0.45
5.00
90.25
0.016
2.0
0.05
7.00



80.00







Units Consumed
per Ton of
Product

84.7
0.25
0.53
25.00
3.8
11
0.15



0.01







$/Ion of
Product

38.11
1.25
47.85
0.40
(7.60)
0.55
1.05
0.16
3.69
0.42
0.25
(0.80)
85.33
0.79
1.48
4.06
86.21
14.76
106.42
                             83

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                    TABLE IV-38





COST STRUCTURE  IN NEW BASIC OXYGEN PROCESS





        Annual Design Capacity:  1.71 million tons steel



        Capital Investment:  $45 million	



        Location:  Great Lakes	

VARIABLE COSTS
Raw Materials
• Hot Metal (93? Fe)
• Scrap (96% Fe)
Energy
• Electric Power Purchased
Energy Credits (Specify term)
• Carbon monoxide
Hater
• Cooling (Circulating rate)
Direct Operating Labor (Wages)
Direct Supervisory Wages
Maintenance Labor and materials
Labor Overhead
Misc. Variable Costs/Credits
• oxygen
• FeMn, lime, spar
• Slag disposal, hot metal,
scrap treatment
TOTAL VARIABLE COSTS
FIXED COSTS
Plant Overhead
Local Taxes and Insurance
Depreciation 18 years
TOTAL PRODUCTION COSTS
Return on Investment (pretax)
TOTAL
Units Used in
Costing or
Annual Cost
Basis

ton
ton
kWh
106 Btu
1000 gal
man-hr
15* labor
8Z CI
35* (L&S)
ton


65% (L&S)
2% CI


20Z CI

$/Unit

106.42
80.00
0.016
2.00
0.05
7



10








Units Consumed
per Ton of
Product

0.83
0.35
30
0.44
2
0.25



0.08








$/Ton of
Product

88.33
28
0.48
088)
0.10
1.75
0.26
2.09
0.70
0.80
3.00
1.00
125.63

1.31
0.52
1.45
128.90
5.23
134.14

-------
                              TABLE IV-39




COST STRUCTURE IN NEW SPONGE  IRON  (93% METALLIZED)  FACILITIES
                     Annaul Design Capacity:  1,200,000 tons




                     Capital Investment:  $168 x 10	




                     Location:  Great Lakes	

VARIABLE COSTS
Raw Materials
• pellets
• limestone
Energy (Details on Table B)
• Purchased Fuel
• Coal
• Purchased Steam
• Electric Power Purchased
• Misc.
Water
• Process (Consumption)
• Cooling (Circulating rate)
Direct Operating Labor (Wages) (L)
Direct Supervisory Wages (S)
Maintenance Materials and Supplies
Labor Overhead
TOTAL VARIABLE COSTS
FIXED COSTS
Plant Overhead
Local Taxes and Insurance
Depreciation 18 years
TOTAL PRODUCTION COSTS
Return on Investment (pretax)
TOTAL
Units Used in
Costing or
Annual Cost
Basis


Ltu
ton
fi
10 Btu
ton
105 Btu
kUh


103 gal
103 gal
man-hr
L
4Z CI
35Z (L&S)


652 (L&S)
22 CI


20Z CI

$/Unit


0.45
5.00

2.00
25.00
3.00
0.018


0.50
0.05
7.00











Units Consumed
per Ton of
Product


8.5
0.140


0.625

56.0



4
0.20
152 L










$/Ton of
Product


38.25
0.70


15.62

0.90



0.20
1.40
0.21
5.60
0.56
63.44

1.05
2.80
7.84
35.83
28.00
102.88

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                    TABLE  IV-40





COST STRUCTURE IN NEW  ELECTRIC  FURNACE  SHOP





         Annual Design Capacity:  1.71 x 10  tons



         Capital Investment:  $65 million	



         Location:  Great Lakes	

VARIABLE COSTS
Raw Materials
• reduced pellets
• scrap
Energy
• Electric Power Purchased
• electrodes
Water
• Process (Consumption)
• Cooling (Circulating rate)
Direct Operating Labor (Wages).
Direct Supervisory Wages
Maintenance Labor and Materials
Labor Overhead
Misc. Variable Costs/Credits
• refractories
• fluxes, oxygen, misc.
nonmetallics
• metallic additions
TOTAL VARIABLES COSTS
FIXED COSTS
Plant Overhead
Local Taxes and Insurance
Depreciation 18 years
TOTAL PRODUCTION COSTS
Return on Investment (pretax)
TOTAL
Units Used in
Costing or
Annual Cost
Basis
ton Fe
ton
kUh
Ib

man-hr
15% Labor
5% CI
35% (LSS)


65% (LSS)
2Z CI


20% CI

$/Unit
102.88
80
0.016
0.55

7.00











Units Consumed
per Ton of
Product
0.75
0.32
600
10

0.3











$/Ton of
Product
77.16
25.60
9.60
5.50

2.10
0.32
2.27
0.85
2.00
1.00
1.50
127.90
1.57
0.76
2.10
131.83
7.56
139.89
                           86

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                                TABLE IV-41

                              OPERATING COSTS
                             ($/ton of steel)
Production Costs:
Pollution Costs:

GRAND TOTAL
Base Case

 134.14
   9.26

$143.40
Direct Reduction

     139.89
       7.94

    $147.83
                                TABLE IV-42

             SL/RN PLANTS AND ROTARY KILNS  FOR PREREDUCTION
                   TO FEED  ELECTRIC REDUCTION FURNACES
                   (PLANTS  BUILT OR UNDER CONSTRUCTION)
Company





Plant
size


Ore
Through-
put
Raw
•Materials.


Ore

Coal


Product
and
Further
Proces-
sing

Remarks




Hlghveld Steel and
Vanadium Corp.
South Africa +•

6 kilns
4 x 60 m
kiln nos. 7/8
under construction
start-up, late
1976
2,000,000 mtpy


Lump ore
M-25 mm


55Z Fe
1.6Z V,0
high-volatile

45% pre-reduced
ore
smelter
PIG IRON
VANADIUM SLAG

No SL/RN
process
Lurgi
designed and
delivered the
kilns
New Zealand
Steel Ltd.
New Zealand

1 kiln
4 x 75 m




190,000 mtpy


Iron sand
concentrate


58.0% Fe
8X TiO,
sub-
bituminous
High-met .
concentrate

arc furnace
STEEL







Western Titanium
Corporation
Australia

1 kiln
2.4 x 30 m




20,000 mtpy


Ilmenlte
concentrate




bituminous

High-met .
concentrate

leaching
ARIIFICAL
RUTILE






Acos Finos
Plratlni
Brazil

1 kiln
3.6 x 50 m




95,000 mtpy


lump ore,
pellets


67. OX Fe

high-vola-
tile
High-met.
ore, pel-
lets
,- arc fur-
nace STEEL







Nippon
Kokan KK
Fukuyama
Japan
1 kiln
6 x 70 m
with pre-
hardening
grate
250 sqm
525,000
mtpy

Bf, BOF-
dust and
Ore fines
pellets


bituminous

High-met.
pellets,
Zn, Pb
blast
furnace
PIG IRON

Start-up
early
1975


Hecla Mining
Arizona
USA

1 kiln
3.6 x 50 n
separate
pellet In-
durating
machine
95,000 mtpy


Leach-Resi-
due pellets


50-53Z Fe

sub-bitumi-
nous
High-met.
pellets

copper
cementation


Start-up
mid
1975


Steel Corp.
of Canada
Canada

1 kiln
6 x 125 m




520,000 mtpy


Pellets



66.51 Fe

sub-bitumi-
nous
High-met.
pellets

arc fur-
nace STEEL


Start-up
mid
1975


 Source: Lurgi, September 1975
                                       87

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Agarwal, J.C., and Elliot, J.F., "High Sulfur Coke for Blast Furnace Use,"
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American Iron and Steel Institute, Wash., B.C., "Annual Statistical Report,"
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American Iron and Steel Institute, Wash., B.C., "Energy Conservation in the
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Ashton, M.C., et al., "Use of Magnesium Wire Injection for the Desulfurization
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Barker, J.E., "The Case for Dry Cooling," paper presented at a joint meeting
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Cavaghan, N.J., et al, "Utilization of In-Plant Fines," Journal of Iron and
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Fisher, P.A., "Magnesium Desulfurization of Blast Furnace Iron," Metals and
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Hersche, W., "Sulfur Dry Coke Cooling Plants," Sulfur Technical Review
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Industrial Gas Cleaning Institute, Inc., "Air Pollution Control Technology and
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Kemmetmueller, R., "Dry Coke Quenching - Proved, Profitable, Pollution-Free,"
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Linsky, B., et al., "Dry Coke Quenching, Air Pollution and Energy:  A Status
Report," Journal of Air Pollution Control Association, 25(9), September 1975,
pp. 918-924.
                                       88

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A.D. Little, Inc., "Steel and the Environment:  A Cost Impact Analysis," Report
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Lurgi, Publication No. 166, "The SLRN Process," Lurgi Gesellschaft fur  Chemie und
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Huttenwesen, MBH, Frankfurt am Main, Sept. 1975.

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Maubon, A., "Technical and Economic Considerations of the IRSID-CAFL Oxygen Con-
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Meichsner, W.E., et al., "Desulfurization of Hot Metal," Journal of Metals,
April 1974, p. 55.

Roederer, C., et al., "Gas Collection Without Combustion - IRSID-CAFL Process
Operating Data," Journal of Metals, 18(7), July 1966, pp. 852-860.

Rowe, A.D., et al., "Waste Gas Cleaning Systems for Large Capacity Basic Oxygen
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Sherman, C.W., and Chipman, J. "Activity of Sulfur in Liquid Iron and Steel,"
Trans. American Institute Min. (Metall.) Engrs., 1952, 194, pp. 597-602.

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March 1966, p. 82.

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p. 31.

Swindell-Dressier Company, "Gas Cleaning and Recovery in Oxygen Steelmaking -
The IRSID-CAFL Process," December 1967.

Ward, M.D., "Consistent Iron, the Steelmaker's Viewpoint," Iron Making and
Steelmaking, No. 2, 1975, p. 89.

Ward, R.G., An Introduction to the Physical Chemistry of Iron and Steelmaking,
Edward Arnold (Publishers) Ltd., London, 1962.

Yawata Iron and Steel Co. Ltd., OG Process, 1964.

Yawata Iron and Steel Co. Ltd., New Improved OG, 1966.

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33 Magazine, May 1976, "Energy Saved is Money Saved," p. 33.
                                       89

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                                   TECHNICAL REPORT DATA
                            (Please read Instructions on the reverse before completing)
 1. REPORT NO.
  EPA-600/7-76-034c
                                                           3. RECIPIENT'S ACCESSION-NO.
4. TITLE AND SUBTITLE  ENVIRONMENTAL CONSIDERATIONS OF
 SELECTED ENERGY CONSERVING MANUFACTURING PROCESS
 OPTIONS.  Vol. III. Iron and Steel  Industry Report
             5. REPORT DATE
              December  1976  (Issuing Date)
             6. PERFORMING ORGANIZATION CODE
7. AUTHOR(S)
                                                           8. PERFORMING ORGANIZATION REPORT NO.
9. PERFORMING ORGANIZATION NAME AND ADDRESS
 Arthur D.  Little, Inc.
 Acorn Park
 Cambridge, Massachusetts 02140
                                                           10. PROGRAM ELEMENT NO.
             11. CONTRACT/GRANT NO.

               68-03-2198
 12. SPONSORING AGENCY NAME AND ADDRESS
  Industrial  Environmental Research Laboratory
  Office of Research and Development
  U.S.  Environmental Protection Agency
  Cincinnati, Ohio 45268
             13. TYPE OF REPORT AND PERIOD COVERED
               FINAL
             14. SPONSORING AGENCY CODE

                 EPA-ORD
15. SUPPLEMENTARY NOTES Vol. IV-XV, EPA-600/ 7~76-034d  through EPA-600/7-76-034o,  refer to
  studies of other industries as noted below;  Vol.  I, EPA-600/7-76-034a,     is  the
  Industry Summary Report and Vol. II, EPA-600/7-76-034b, is the Industry  Priority Repor
16. ABSTRACT
 This  study assesses the likelihood of new process technology and new practices being
 introduced by energy intensive industries and explores the environmental  impacts of
 such  changes.

 Specifically, Vol. Ill deals with the iron and steel industry and examines four
 alternatives:  (1) recovery of carbon monoxide from BOP (basic oxygen process),
 (2) external desulfurization of blast-furnace hot metal, (3) conversion from wet to
 dry coke quenching, and (4) direct reduction of iron ore, all in terms of relative
 process  economics and environmental/energy consequences.  Vol. IV-XV deal with the
 following industries:  petroleum refining, pulp and paper, olefins,  ammonia,
 aluminum, textiles, cement, glass, chlor-alkali, phosphorus and phosphoric acid,
 copper,  and fertilizers.  Vol. I presents the overall summation and  identification
 of research needs and areas of highest  overall priority.  Vol. II, prepared early
 in the study, presents and describes the overview of the industries  considered
 and presents the methodology used to select industries.
17.
                               KEY WORDS AND DOCUMENT ANALYSIS
                  DESCRIPTORS
                                             b.lDENTIFIERS/OPEN ENDED TERMS
                          c.  COSATI Field/Group
   Energy;  Pollution; Industrial Wastes;
   Iron;  Steels
Manufacturing Processes;
Energy Conservation;
Dry Quenching; Direct
Reduction; Desulfuriza-
tion; Carbon Monoxide
13B
13. DISTRIBUTION STATEMENT
 Release to public
                                              19. SECURITY CLASS (ThisReport)
                                                   unclassified
                                                                        21. NO. OF PAGES
                              106
20. SECURITY CLASS (This page)
     unclassified
                                                                        22. PRICE
EPA Fotm 2220-1 (9-73)
                                            90

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