Environment management has been a priority area for JSPL. We have been treading the difficult path
of maintain our profitability without compromising on our efforts to reduce environmental impact.
Through our innovations we have proved that environmental conservation and profitability is not an
oxymoron if we apply innovation. The case study presented below proves the same.
Background
Direct-reduced iron (DRI), more commonly known as sponge iron, is produced from direct reduction of
iron (in the form of lump, pellets or fines) by reducing gases produced from natural gas or coal.
This reduction takes place at the temperature range 800- 1050C when reducing gases (primarily
Hydrogen and Carbon-monoxide) react with the iron oxides to produce iron. The degree of
metallization, defined as the extent of conversion of iron oxide into metallic iron, is 92-96% in a
typical DRI process. This high percentage of metallization makes DRI a highly suitable input for
steel making. The specific investment and operating costs of DRI plants are low compared to
integrated steel plants and are more suitable for many developing countries where supplies of coking
coal are limited. This holds true for India where most of the coking coal has to be imported.
Challenge
Natural Gas based DRI is highly efficient techniques of manufacturing sponge iron that has lower
environmental impact. However, the challenge in this manufacturing technique is the availability of
natural gas. At JSPL’s Angul site, the DRI-BF- Electric Arc Furnace route has been adopted for
manufacturing steel. To overcome the challenge of non-availability of natural gas Coal to gas plant
was set up. It uses high ash coal, available in the vicinity of the site, and converts it into
Synthetic Gas or SynGas. It is the first plant of its kind in India and only the 2nd in the
world.
Our Solution
At Angul, the Syngas, produced through the gasification process, contains methane, carbon monoxide,
carbon dioxide, hydrogen and water vapour from coal, water and air. This process has lower impact on
environment as compared to coal combustion process. During the gasification process, the
carbon-dioxide emitted in the process is entirely absorbed back into the process and the hydrogen
sulphide produced is entirely used for sulphur production.
Capital expenditure of setting up of the Syngas plant was high and had a gestation period of three
years. However, this high investment is offset by the improved energy efficiency of the system, as
compared to the conventional model of producing steel, and reduced environment impact in the long
run. Another added advantage which we able to explore was the utilization of waste. All seven
by-products of the Syngas plant are recycled through internal use or sold to external parties. This
ensures health and safety of employees as well as local communities and environmental protection.
