New Data on Reducing Steel Emissions Shows Opportunity for Iron Ore Pellets

This article was authored by:

Carrie Carlson
Technical Writer

The industry making the material that has literally built the world around us is under increasing pressure to reduce emissions. The steel industry, which is responsible for an estimated seven percent of global CO2 emissions, has been the subject of numerous debates as of late, particularly following the release of several key reports.

The world over, the steel industry is being called to make significant cuts in emissions immediately. And while this presents a challenge for the industry, it also creates greater opportunity for those pelletizing iron ore.

The following covers how this new information could impact the industry going forward.

Flood of Data Calls for More Action From Steel Sector

While steel sector emissions have long been a concern, they have become an increasingly volatile topic with the close timing of the release of several reports. Among the data are findings from key organizations:

  • The International Energy Agency (IEA)
  • Global Energy Monitor (GEM)
  • Institutional Investors Group on Climate Change (IGCC)
  • Wood Mackenzie

Each organization’s findings offer something unique, but together they tell a similar story: we must take immediate action to reduce emissions from the industry if we are to meet climate goals. 

Higher Demand for Iron Ore Pellets

Reducing emissions enough to meet climate goals will require a multi-pronged approach involving increased recycling, a reduction in demand, carbon capture, use, and storage (CCUS), and many other tactics. The use of iron ore pellets will also play a vital role. Here’s why. 

Iron Ore Pellets Are More Environmentally Friendly

Pellets are known to minimize emissions in the traditional steelmaking process, improve furnace productivity, and reduce the amount of coking coal required in the process, among other advantages. 

Many producers are also finding that by replacing iron ore sinter with high-grade pellets, they can avoid the sintering process, which is recognized as the most polluting step of the steelmaking process. For more information on the benefits of iron ore pellets, see our article, Iron Ore Pelletizing Essential in Meeting Future Steel Needs.

EAF & DRI Production Are on the Rise

Electric arc furnace (EAF) technology is recognized as a more sustainable alternative to traditional blast furnace-basic oxygen furnace (BF-BOF) technology. This steelmaking method has historically relied on steel scrap as a primary feed, but as the scrap market tightens, producers are turning increasingly to direct-reduced iron (DRI) as an alternate feed. And as DRI production relies significantly on pellets as a feed, this will further increase the demand for pellets. 

In fact, Wood Mackenzie stated that in order to reduce emissions from the sector by the required 75% (to meet a 2-degree scenario), DRI production would need to triple: 

“Steel’s potential extreme decarbonisation in a 2°C scenario would mean tripling DRI production. This presents a huge opportunity for suppliers of premium iron ore,” said Rohan Kendall, head of iron ore research. “Although the rise in scrap consumption would lead to total iron ore demand falling by 24% below our base case, the market for pellet products would expand by 35%.”

This increased demand for pellets has already created a bottleneck in the market. 

Iron Ore Pelletizing Equipment in Demand

A number of companies in the steel sector have been stepping up to the plate in recent years, committing to reducing their carbon footprint. This includes replacing and converting dated technology with more efficient and environmentally friendly approaches to steel production. ArcelorMittal, for example, recently announced that the steelmaker plans to convert its Dofasco plant from BF-BOF technology to DRI-fed EAF in an effort to cut their carbon emissions. 

As more and more companies continue down this path, pelletizing equipment, already widely used in the industry, will become an increasingly essential aspect of steel production. 

Iron ore producers employ either a balling disc (disc pelletizer) or balling drum (agglomeration drum) to pelletize fines into high-quality iron ore pellets.

Steel Mill Byproduct Recovery

The recovery of byproducts yielded during the steelmaking process will also become more important in the push for a circular economy. A number of byproducts are produced in the forms of dust, sludges, and slags during steel production. Oftentimes these byproducts still contain valuable iron. Instead of disposing of them, producers can recover them and through drying (typically carried out in a rotary dryer) and blending (carried out in a pugmill mixer), prepare them for briquetting so they can be reintroduced to the steel process. This recovery and reuse maximizes available resources and helps to prevent valuable materials from going to landfill. 

This circular approach is especially critical in EAF steel production, where a significant amount of zinc-bearing dust is produced and must be recovered. Here again, pelletizing plays a critical role in processing the byproduct for recovery. 

Conclusion

The growing body of data around emissions from the steel sector is putting increasing pressure on the industry to make drastic efforts to reduce its carbon footprint. While this presents a significant challenge, it also opens up opportunities for pellet producers, with pellets becoming an increasingly important feed. As such, demand for iron ore pelletizing equipment, both for producing feed and recovering byproducts, is likely to rise. 

In addition to custom balling discs, drums, rotary dryers, and pugmill mixers for use in the steel industry, FEECO also offers a unique testing facility where producers can test their materials at batch and pilot scale to confirm feasibility and develop a commercial-scale processing line. The FEECO Customer Service Team is also available for troubleshooting, repairing, and upgrading pelletizing lines, as well as training operators. For more information on our iron ore pelletizing equipment and services, contact us today!

About the Author . . .


Carrie Carlson is a technical writer and visual designer.

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