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Innovation Centre for Industrial Transformation and Emissions

DRI-EAF implementation at Saarstahl / Dillinger steelworks (POWER4STEEL)

Saarstahl and Dillinger are transitioning from the conventional BF/BOF route to the DRI/EAF route. Saarstahl (located in Völklingen) produces long products while Dillinger (located in Dillingen) produces heavy plates. Two EAFs are scheduled for commissioning in the second quarters of 2028 and 2029. The DRI plant (Dillingen) will be commissioned in the third quarter of 2029, after this a blast furnace will be closed in 2030. This transformation will lead to meet fit-for-55 targets by 2030.

TECHNICAL DESCRIPTION:

The core units of the Power4Steel project are the DRI plant in Dillingen and one EAF each in Völklingen and Dillingen. The DRI plant in Dillingen uses the Midrex Flex technology. The construction of the DRI plant and the EAF will be carried out by Primetals Technologies and the DSD Steel Group. The DRI plant has an annual capacity of 2 million tonnes of DRI. The EAF in Dillingen is designed for a weight of 195 t per heat. The EAF for Saarstahl will be constructed by SMS Group and is designed for a weight of 190 t per heat. The entire construction project will require 300,000 m3 of concrete and more than 100,000 tonnes of steel.

In Dillingen, the core units will be built besides the existing steel plant and near the existing rolling mill. The core units are supplemented by a hot link from the DRI plant to the EAF to transfer hot DRI directly to the EAF with significant savings in terms of energy consumption. Cold DRI bins are also built to supply the EAF in Völklingen with passivated cold DRI. Due to an increasing demand for scrap, a scrap yard will also be built near the EAF in Dillingen. Additionally, a new electric power supply and a hall for slag treatment is necessary. The amount of steel mill slag will increase compared to the conventional route while the amount of blast furnace slag will be reduced if one of the furnaces closes.

In Völklingen, the EAF building with a dedusting plant will be built besides the existing steel plant. As in the Dillingen plant, a scrap yard to manage the increased scrap demand, cold DRI bins to store cold DRI and a slag treatment facility will be built. Additionally, an expansion of the secondary metallurgy will be necessary in Völklingen.

The main environmental purpose of the transition from BF/BOF to DRI/EAF is the reduction of CO2 emissions. ROGESA currently operates two blast furnaces in Dillingen, which melt and reduce iron ore using coke to produce pig iron. This is then supplied to the BOFs in Völklingen and Dillingen. In Step 1, CO2 emissions are reduced by the DRI plant using natural gas `while DRI and scrap are melted into crude steel using the EAF and electricity. Further reductions in carbon emissions can be achieved in step 2 by substituting natural gas with hydrogen and using green electricity in the EAF. The new DRI/EAF route will aim to a 50:50 ratio of DRI and scrap, primarily due to CAPEX optimisation.

DEGREE OF MATURITY
Steel production with a DRI plant using natural gas combined with an EAF is already commercially available with very high degree of maturity.
However, the use of 100 % H2 in the MIDREX process will need to be demonstrated full scale and is currently on the demonstration level to reach TRL 7/8.
Increasing the hydrogen content is not only a question of technological maturity, but also of hydrogen availability in the future. After commissioning of the DRI plant in 2029, the hydrogen content is to be gradually increased over the years, if sufficient hydrogen is available.


CROSS-MEDIA EFFECTS:
In the current BF/BOF route, slags produced can be mainly sold as a building material after cooling and preparation. In the future DRI/EAF route, this is not straightforward, and it is much more challenging to fulfil the environmental demands for using electric furnace slag as a building material. This issue is currently under investigation as part of the EU funded project InSGeP (Investigation of Slags from Next Generation Steel Making Processes), in which Saarstahl is involved. This project is exploring potential paths for the valorisation of slags produced in the DRI-EAF value chain.

Basic information about the technique

Reference documents related to the innovative technique

sa_105337_152.pdf
(815,92 KB - pdf)
Download
shs-michael-bott.pdf
(1,74 MB - pdf)
Download

Participant Companies

Technology provider

  • MIDREX
  • Primetals Technologies
  • DSD Steel Group
Under construction
Expected TRL 8
Environmental purpose of the innovative technique
Decarbonisation
Energy efficiency
Reduction of emissions to air (including noise and odour)
Relevant industrial sector
Iron and Steel
IED activity
2.2 Production of pig iron or steel (primary or secondary fusion) exceeding 2,5 tonnes per hour

Locations

AG der Dillinger Hüttenwerke

Dillingen 66763 Germany

Commissioning expected date

SAARSTAHL AG

Völklingen 66333 Germany

Commissioning expected date

Environmental benefits

As compared to: Conventional production of liquid steel using the blast furnace / basic oxygen furnace (BF/BOF) steelmaking route.

Legend

  • Expected data (on project completion)
  • Estimated data (not measured)
  • Monitored data in pilot scale installation
  • Monitored data in full scale installation

GHG Emission

CO₂ emissions using the current BF/BOF route are 1.921 t CO2eq / t of product. Switching to the DRI-EAF route using natural gas in step 1 reduces CO₂ emissions to 1.098 t of CO2eq / t of product. This figure can be further reduced to 0.709 t of CO2eq of product by using green electricity. The greatest reduction is achieved by using green hydrogen instead of NG in the DRI plant, alongside green electricity, which would result in 0.339 t CO2eq / t of product.

Energy efficiency

In the current BF/BOF route, the total energy is 23.3 TWh/a. The main energy source is coal, providing 21.1 TWh/a; the remainder comes from natural gas and electricity. With a DRI scrap mix of 80:20 in the new DRI/EAF route (similar to BOF route), the total energy would increase to 27.5 TWh/a, due mainly to H₂ electrolysis that would require 16.5 TWh/a. Using a DRI scrap mix of 50:50 in order to optimised CAPEX, the total energy consumption can be decreased to 19.7 TWh/a, mainly due to the reduced energy need for the H2 electrolysis of 10.4 TWh/a. The remainder comes from natural gas (4.3 TWh/a), electricity (3.8 TWh/a) and coal (1.2 TWh/a).

Emission of Pollutants to Air

Dust

Pollutant, noise or odour emission reduction (%)
  • 2030
    50 % Avg
    0 % 100 %

SO2

Pollutant, noise or odour emission reduction (%)
  • 2030
    50 % Avg
    0 % 100 %

NOx

Pollutant, noise or odour emission reduction (%)
  • 2030
    50 % Avg
    0 % 100 %

CO

Pollutant, noise or odour emission reduction (%)
  • 2030
    50 % Avg
    0 % 100 %

HCl

Pollutant, noise or odour emission reduction (%)
  • 2030
    50 % Avg
    0 % 100 %

Using data from the European Pollutant Release and Transfer Register (E-PRTR), the annual load of air pollutants such as fine dust (PM10), NOX and SOX emitted by the two blast furnaces in operation at ROGESA in 2023 were compared to the estimated annual load emissions reduction that would originate from the decommissioning of one blast furnace. Overall, the data showed that emissions to air for these pollutants would be reduced by about 50% following the closure of one blast furnace in 2030.

Project

State Aid SA.105337 (2023/N) – Germany

POWER4STEEL

The Power4Steel – Phase 1 project aims at the decarbonisation of the steelmaking processes of Dillinger, Saarstahl and ROGESA by implementing a hydrogen based direct reduction plant that in combination with two Electric Arc Furnaces would substitute the current BF-BOF route in Dillingen and Völklingen.

Project funding
€2,600,000,000 National state aid / IPCEI
Total cost of project
€4,600,000,000

Economics

Assuming that DRI remains more expensive than scrap in the future and considering the influence of the scrap rate on the energy balance that was explained in the previous section on energy consumption, the OPEX is too high if the same share of scrap used in the BF/BOF route is used in the DRI-EAF route. When taking into consideration both CAPEX and OPEX as well as product quality, the optimised DRI-EAF route should aim at a 50:50 target share between scrap and DRI for economic viability.