print mail ENERGY EFFICIENCY AT ELBASAN STEELWORKS

Kurum Elbasan Steel currently operates with Electric Arc Furnace (EAF) technology, smelting ferrous metal scrap. Globally, scrap supply moves into difficult times, a situation that puts Elbasan Steel and similar factories in vulnerable situation since there is no more adequate scrap in Albania to operate the factories at full capacity. The company has invested in leveling off environmental pollution, but the steel plant, in the long run, must shift to modern technologies and less-scrap, more pig iron or sponge iron in order to survive.

Previously, Elbasan Steel was incepted as an integrated plant processing iron and ferro-nickel. In that respect, there is abundant ferro-nickel, and titano-magnetite resource in Albania that is given for utilization to Kurum Elbasan Steel, located 90km from Durres. The reserves have shown to be promising, together with available coal that would yield as much as 6,000kcal.
Primary objective of Steel Factory at Elbasan is to increase production while retaining the environmental hazards at lowest possible levels. Up to date, the factory spent around 7.5 million USD for the measures to decrease environmental pollution, and by September 2007 it is planned to complete the optimization of the filtering system.
The objective of the proposed project activity is to reduce GHG by introducing different energy efficiency measures. By increasing energy efficiency in the industry of high energy intensity, the project will generate GHG emission reductions, which would come from reductions in heavy fuel oil and electricity consumption. The annual steel production in the years 2003, 2004 and 2005 was 86.120, 96.103 and 123.055 tons of steel, respectively.
As an example, a 60-tons Electric Arc Furnace consumes approximately 800,000 kWh/day of electricity to produce steel billets through continuous casting. Three graphite electrodes conduct the electrical current and form the arc for the metallic charge. The high temperatures facilitate the melting of every steel grade irrespective of the charge (scrap, sponge iron, hot metal or any related mixture).
Due to the utilization of electric arc furnace technology, the electricity consumption is growing steadily. Given that the electricity consumption last year was 212 GWh/year, the ERE gave to Kurum International sh.p.k. status of eligible customer. The company, however, hasn’t exercised yet this status effectively. Therefore, the company has to take very fast actions to reduce the cost of energy by increasing energy efficiency.
The factory consumes:
  • Electricity,
  • Heavy fuel oil (HFO).
  • Electricity (used widely in the arc furnace).
The annual electricity consumption of Kurum Factory in the years 2003, 2004 and 2005 was 61,44, 104,33 and 156,71 GWh, respectively.
The average annual HFO consumption for the industrial processes in the years 2003, 2004 and 2005 was 5.050, 6.025 and 9.330 tons, respectively. The average annual coke consumption for the same period was 2.280, 3.000 and 3.750 tons, respectively.
Different energy efficiency measures and introduction of new arc technology could reduce electricity consumption by 25-28%. By improving burners of residual fuel oil, furnace fuel consumption could be reduced up to 20-23%.
Based on the market research, the Directly Reduced Iron (DRI) technology could be the best solution in the case of Kurum Elbasan Steel.
The advantage of this technology is that the minerals with iron ore could be reduced by using the local coal (or imported coal). The output would be sponge iron or pig iron that could be used in the Electric Arc Furnace, together with scrap, to minimize GHG emissions. Through such technologies, not only standard steel, but stainless steel and ferro-titan could also be produced in the Elbasan Steel Factory.
The possible energy savings measures, which could be undertaken, are listed below.

Steel mill

In this unit, the change of the electric arc furnace and burner system has been envisaged. The improvement of electricity arc could reduce electricity consumption by 22-25%. In further calculations, the lower estimation of 22% has been taken into account.
In order to optimize the burning process, control of O2 flow rate and analyzer of waste gasses have been envisaged. This will result in decrease of the HFO consumption. It is expected that improvement of burners would reduce electricity consumption by 20-23%. In further calculations, the lower estimation of 20% has been taken into account. Final calculation shows that annual GHG reductions in the steel mill could be 37.000 tCO2eqv.

Rolling mill

In this part of the Kurum complex, the main energy saving potential is related to the optimization of the burning process, which could be achieved through changing 17 burners in the process furnace and reusing of the high temperature waste gasses. This would result in the decrease of HFO consumption, as well as O2 necessary for the burning. Since the distance between steel and rolling units is almost 500m, the heat losses are significant, as the blades have temperature of app. 560°C after the melting process. In regard to this, the losses could be reduced by designing the most optimal transport of the blades from one unit to another. Under these circumstances, the blades are completely cooled before entering in the furnace, where the temperature reaches 1.100°C.
It has been estimated that improvement of electric efficiency could reduce electricity consumption by 10-13% in the rolling mill. In further calculations, the lower estimation of 10% has been taken into account. Energy efficiency, due to transportation of blades in the thermal insulation “package” and due to increasing efficiency of burners, could result in reduction of consumption by 50-55%.
Final calculation shows that annual GHG emission reductions in the rolling mill could be 20.420 tCO2eqv.

Lime production unit

In this process unit exists the possibility to optimize the shaft furnace for melting limestone and coke, as well as to change the rotating system of the furnace’s bottom. This would result in the decrease of coke consumption, as well as in decrease of electricity consumption.
The improvement of energy efficiency could reduce electricity consumption by 10-12% in the lime production unit. In further calculations, the lower estimation of 10% has been taken into account. Energy efficiency, due to improvement of burning process of coke, would result in the consumption reduction of 22%. Final calculation shows that annual GHG emission reductions in the lime production unit could be 1.400 tons of CO2eqv.

Summary of energy savings and GHG reductions

As mentioned before, there are three groups of energy efficiency measures which need to be undertaken, in order to obtain optimal electricity and fuel savings and GHG emission reductions. Total annual GHG emission reductions are shown in the following figure.

Applied methodology

The project activity is small-scale energy efficiency project, with the total saving less than 60 GWhe (180 GWhth) . The estimation of the emission reduction could be calculated by using the simplified methodology for small scale projects “Energy efficiency and fuel switching measures for industrial facilities” II.D.

GHG offset

It is estimated that the project has a capacity to avoid emission of app. 588.000 tCO2eq for the period 2008-2018 (with the steady production intensity).

Sustainability

The project will considerably contribute to sustainable development by mitigating the negative effects which are at the present are very high, due to intensive energy consumption and GHG emissions per unit of production.

Current status

Winner of tender process: Mwh Ambiente e sicurezza (www.mwh-ambienteesicurezza.it)

Estimated investment cost

According to the preliminary assessment done by Kurum the total investment costs for all measures defined above can be up to 64 millions EUR.

Local Partners

Kurum International sh.p.k.