SummaryI.

Outline of the ProjectCountry: People's Republic of China

Project title: Improvement of Environment Protection
Technology for Metallurgical Combustion Project

Issue/Sector: Energy and mining

Cooperation scheme: Technical cooperation

Division in charge: Natural Resources and Total cost (at the time of evaluation):
Energy Conservation Team, Group II (Natural Approx. 800 million yen
Resources and Energy), Economic Development
Dept.
(R/D):
Period01/09/2002 – 31/08/2007 Partner Country’s Implementing Organization:of (Extension): –Cooperation

the Central Iron & Steel Research Institute(F/U): –Supporting Organization in Japan: Japan International(E/N): (Grant aid)

Cooperation Agency (JICA)
Other Supporting Organization: Ministry of Economy, Tradeand Industry

1-1 Background and Overview of the ProjectIn the People's Republic of China (hereinafter called China), recent economic growth has been putting a large
burden on the environment, and especially air pollution in urban areas are widely recognized as a serious
social issue. Looking at each industry sector, the iron and steel industry accounts for 15% of the total smoke
emissions and about 7% of the total SO2 emissions in all industries. However, the SOx removal efficiency
remains as low as 16% and the industry is slow in taking measures against SO2.
Moreover, as steel production has increased, energy consumption in the iron and steel industry has increased
to 10% of the total energy consumption in all industries, and, combined with combustion of fossil fuels andinsufficient antipollution measures, it has led to increased air pollutant emissions. Therefore, there is anurgent need to reduce energy consumption through the improvement of combustion efficiency in the iron andsteel industry.
Against such background, in 2001, the Chinese government announced guidelines for the iron and steel
thindustry in its 10 5-Year Plan, and set concrete numerical targets: for environmental protection, reduction ofemissions of major pollutants by 10% from the 2000 level, and, for energy conservation, reduction of standard
coal equivalent to energy consumption per ton crude steel from 920 kg to 800 kg by around 2005. To achievethese targets, the Chinese government requested the implementation of the Improvement of Environment
Protection Technology for Metallurgical Combustion Project in the form of a technical cooperation projectaiming at transfer of environmental protection technologies and human resource development in the iron andsteel industry that has especially low heat efficiency as well as dissemination of environmental protection
technologies to the ironworks in the country.

1-2 Contents of the Cooperation(1) Overall Goal
Technologies of energy saving and environmental protection in metallurgical combustion are widelyaccepted by the iron and steel industry in China.
(2) Project Purpose
Enabling the Energy Saving and Environmental Protection Center for Metallurgical Combustion toteach technologies related to energy saving and environmental protection in metallurgicalcombustion to ironworks in China(3) Outputs
1. Project becomes operational.
2. Equipment is furnished.
3. Capability to improve combustion technology is increased.
4. Exhaust gas treatment technology is mastered.
5. Factory audit technology for combustion and the environment are mastered.
6. Dissemination activities for environmental protection and energy saving technology inmetallurgical combustion can be carried out.
(4) Inputs (Actual)
Japanese side
Long-term experts: 5 persons
Short-term experts: 27 persons
Trainees: 37 persons
Equipment provided: About 194 million yen
Local cost: About 23.4 million yen
Others: - yen
Chinese side
Counterparts: 28 persons
Land and facilities
Local cost: 2.207 million RMB
OthersII.

Evaluation Team

Members of Evaluation Team

Leader: Makoto Ashino (Director, Natural Resources and Energy
Conservation Team, Group II, Economic Development Dept., JICA)
Environmental protection technologies in metallurgy: Takumi Yamano(Sumitomo Metal Industries, Ltd.)
Research planning: Daisuke Iijima (Natural Resources and Energy

Conservation Team, Group II, Economic Development Dept., JICA)
Evaluation analysis: Ren Arakane (Global Planning Corp.)
Period of Evaluation

04/03/2007 – 17/03/2007

Type of Evaluation: Terminal evaluation

III. Results of Evaluation
3-1 Project Performance•

Although there was a delay in delivery of some equipment items due to the outbreak of SARS, otherequipment items were installed as scheduled.

•Although there was a delay in some of the planned activities in an early stage, most activities areexpected to be completed.

•Outputs will be achieved.

•The Project has achieved the Purpose and produced results exceeding it.

•The implementation processes were mostly good (except some negative impacts caused byresignation of counterparts, etc.).

•If the proposed improvement measures are carried out for the target furnaces, energy conservation of
an average of 30% or more can be expected.

3-2 Summary of Evaluation Results(1) Relevance•

The Project is highly relevant to China’s policy to develop an resource-saving andenvironmentally-friendly society.

•The Project is highly relevant to Japan’s policy for cooperation with China in the fields of energy
conservation and environment protection.

•The Project is highly relevant to the development of next-generation recyclable steel processes led
by the Central Iron & Steel Research Institute.

(2) Effectiveness•Chinese staff members have acquired capabilities for all processes of combustion experiment anddiagnosis from planning to report, except analysis of combustion experiment data.

•

They have reached the level to be able to provide instructions to ironworks with the use of existing
technologies for environmental protection such as desulphurization of smoke emissions.

•15 improvement proposals have been made to ironworks.

•It is difficult for the ironworks that received improvement proposals to carry out all the proposals due
to management issues, etc.

(3) Efficiency•Although there was a delay in the installation of a multifunctional experimental combustion furnace
due to such factors as the outbreak of SARS and experiments were also delayed, thanks to theefforts made in the latter half of the Project, the planned activities including experiments are expectedto be completed.
•There was a delay in some technical transfer activities due to resignation of Chinese staff members.

•Some of the dispatches of Japanese short-term experts were delayed or cancelled.

•With deeper understanding of combustion technologies, emission control technologies, anddiagnostic techniques for combustion and environment of ironworks, each Chinese staff member is
now able to carry out his/her duties in his/her own position.

•Major activities to be carried out include the implementation of experiments based on a road map,
technical transfer of methods to analyse combustion experiment data, and a performance review
meeting at the time of project completion comprised of seminars and demonstrations.

(4) Impact•

We are still waiting for a reply from the Iron and Steel Association about whether the percentage ofthe heating furnaces with heat storage type burners has reached 30%. However, considering that theiron and steel industry in China has been growing rapidly and there is an increasing number of new
heating furnaces, the indicator for the overall goal is likely to be achieved.

•Based on the diagnosis of special steel manufacturers, it is estimated that existing heating furnaces
have energy saving potential of an average of about 30%.

(5) Sustainability•

China’s environmental protection and energy saving policy is very unlikely to regress and will support
the sustainability of the Project.

•The Central Iron & Steel Research Institute will play the central role in the development ofnext-generation recyclable steel processes. The institute is expected to further develop the outputs ofthe Project.

3-3. Conclusion
Considering the fact that the JICA project was carried out for the five year period when steel production
increased in China and the Chinese government put weight on energy saving and environmental protection
technologies, the implementation of the Project was timely.
Despite some negative factors in the first half of the project period including the outbreak of SARS and delayin the multifunctional combustion experiments, the Project caught up and met the schedule especially in thelatter half. The Project purpose is expected to be achieved and contribute to the achievement of the overallgoal.

3-4. Recommendations
1. Recommendations for the Remaining Periods till the Completion of the Project1) Technical transfer concerning combustion experiment methods has made progress. Technical transfer
concerning methods for evaluation and analysis of experiment data should be carried out in the remainingperiod.
2) The seminar at the performance review meeting to be held before the completion of the Project should be
led by the Chinese side.
2. Recommendations for the Period after the Completion of the Project1) Japanese high-efficiency combustion technologies have been transferred to the Chinese side. Furtherspreading the technologies across the country will be important in ensuring sustainability of the Project.
2) To ensure effective utilization of the multifunctional experimental combustion furnace, it has been decided
to submit a report to JICA biannually for three years after the Project completion.
3) Measures should be taken to accumulate the outputs of the technical transfer in the organization.

3-5 Lessons Learned
1. Country-focused training was included in the training conducted in Japan with many participants invitedfrom the counterpart organization and other organizations, and it increased the ripple effect of the Project.
This method can serve as a useful reference for other projects.
2. To prevent inconsistent interpretation of PDM at the time of evaluation, subjects should be clarified in PDM
descriptions and all activity results should be evaluated.
3. When introducing large-size equipment items, it is necessary to thoroughly check the use plan andownership of the recipient as well as the purpose of use.

3-6 Follow-up Status
As described in the recommendations, effective utilization of the multifunctional experimental combustion
furnace is important in ensuring the future presence of the Central Iron & Steel Research Institute in theindustry. For this purpose, it has been decided that both Chinese and Japanese sides will continue monitoring
the use of the experimental furnace after the completion of the Project. Specifically, the status of use will bereported to the JICA China Office biannually for three years after the completion of the Project.

3-7 Factors Promoting Impact(1) Rapid Development of the Iron and Steel industry in China
The iron and steel industry in China has remarkably grown. The production volume has been showing
tremendous increase at the annual rate of over 20% for the last few years, exceeding 400 million tons in2006. In this situation, many new production facilities have been constructed. As new facilities for rolling etc.
usually have a heating furnace with high heat efficiency, the number of furnaces with heat storage typeburners has increased. The heat storage type heating furnace is especially useful for effective utilization ofblast furnace gas with low heating value generated in small-scale ironworks without a coke oven.
th(2) Further Reinforcement of China’s Energy Saving and Environmental Protection Policy in the 11 5-YearPlan

th

The 11 5-Year Plan, published in March 2006, mentions the development of a resource-saving society, anenvironmentally-friendly society and recycling-oriented economy. Reduction of energy consumption per unitof GDP by 20% and reduction of emissions of major pollutants by 10% for the 5 years from 2006 to 2010 weredefined as binding numerical targets for the 5-year plan.
thThe 11 5-Year Plan was a major contributor to the generation of effect in the latter half of the project period,in terms of promotion of the Project aiming at the enhancement of capabilities of the Central Iron & Steel
Research Institute to spread energy conservation and environmental protection technologies to the ironworks
across the country.
(3) Designation and Certification of the Central Iron & Steel Research Institute as State Key Laboratory of
Advanced Steel Process, Materials, etc.
In March 2005, the Central Iron & Steel Research Institute was designated as above by the Ministry ofScience and Technology. This is not only for the researches of processes and materials but also
high-temperature air combustion. It can be a good motivation for the preferential promotion of experiments
and researches concerning combustion from the latter half of the Project to the period after the termination.
In December 2005, the high-temperature air combustion development project was certified by the National
Development and Reform Commission as a state project and will receive a subsidy of a total of 30,000 RMBfor 3 years. It will also be a good motivation for the future research activities for the utilization of themultifunctional experimental combustion furnace.
thMoreover, in connection with the 11 5-Year Plan, the next-generation recyclable steel process development
project has been certified as a state project and the Central Iron & Steel Research Institute will receive
research funding of 75 million RMB as well as play a core role in the development.
All these events are relevant to the intention of the Project, which has been promoting improvement of use
efficiency of thermal energy and effective utilization of smoke emissions and slag, etc., and will further
increase the effect of the Project.

3-8 Factors Inhibiting the Promotion of the Project(1) SARS
The epidemic of SARS of spring 2003 caused a 4-month delay in the construction of the multifunctional
experimental combustion furnace and forced all the experts to return to Japan temporarily. This contributed tothe delay in the combustion experiment.