Our Challenge for Clean Development and Climate
Steel Industry’s Global Sector-based &Technology-based Approach/Challenge

APP Steel Task Force
Asia-Pacific Partnership on Clean Development and Climate

1 Japan1.
Japan’ss 2006fy
2. Overview of Steel’s Sector-based Approach
3 Steel Industry
3.
Industry’ss global challenge for Clean Development and Climate
A. Uni-lateral: JISF’s Action Plan
B. Bi
Bi-lateral:lateral: Japan
Japan-China
China
C. Seven-lateral: APP Steel Task ForceD Sixty-lateral:D.
Si t l t l IISI international iron and steel institute
4. IISI’s policy statement on Post Kyoto
5 Summary5.
Wednesday 13 February 2008
Teruo OKAZAKI, PhD
Chair for International Environmental Strategic Committee

Japan Iron and Steel FederationGeneral Manager, Global Environmental Affairs Department
Nippon Steel Corporation

The 3rd Symposium of Japan-UK Joint Research Project on Low-Carbon Societies, JISF Wednesday 13 February 20081

0. Introduction
Blast Furnace

Process flow
Coke ovenSintering

Basic Oxygen
FurnaceContinuous Castingg
The 3rd Symposium of Japan-UK Joint Research Project on Low-Carbon Societies, JISF Wednesday 13 February 20082

Keidanren’s Action Plan

1.Japan’s 2006fy

Pledge and Review (commitment and progress) JAPAN BUSINESS FEDERATION, 2006fy○Keidanren’s target is ±0％ or less , 35 industrial sectors participated.
○This covers approx. 45% of the national total and 84% of industrial etc.
○I 2006,○In
2006 1.5%
1 5% reduction
d ti underd 11.9%11 9% increaseiin
i theth activities
ti iti (vs.
( 1990).
1990)
Industrial sector(2006fy)

CO2emissions

1. Iron and Steel

19,326-5.1 %-1045

Energy consumption -10% , - 5.2%
Production increased by +5.4% (2006)

2. Power (portion)

3, 700+20.5% +630

Specific CO2 emission －20%, -2% *3. Chemical

7,288+9.0%+603

Specific energy consumption -10%, -18%

4. Cement

2,184- 20.3% - 557

Specific energy consumption -3%, -3%

5. Petroleum

4,062+31.3% +968

Specific energy consumption -10%, -15%

[10 thousand t-CO2]

6 Other sectors
6.

Target (2010 vs 1990) , Actual of 2006vs1990（%）

104t-CO2/y-

7. Non-energy CO2

5,215

--993

Total(Keidanren)

50,458－1.5%-745

CO2 ±0% or less, －1.5%(*if nuclear operated properly, -3.5%)

The 3rd Symposium of Japan-UK Joint Research Project on Low-Carbon Societies, JISF Wednesday 13 February 2008

3Steel’s National 2．Steel’s Sector-basedand Internationalcollaborations
12.4
108ton/year, 2006 crude steel production

7.5
1 00
1.00

IN/AU/KR
0.44/0.08/0.48

China:

USA:

45
4.5
Japan:

1.16

Canada:

0.15

CIS
CIS:

1 20
1.20

EU25-EU15:

0.25

EU15:

1.73

World-wide
coverage 100%

Japan:

1.16

4 19
4.19

0 99
0.99

Japan: 1.16
Canada:KP (Kyoto Protocol）
≒40%

10.7

0.15

APP*

KP+APP*

≒60%

≒90%

APP*: Asia-Pacific Partnership on Clean Development and Climate STEEL TASK FORCEThe 3rd Symposium of Japan-UK Joint Research Project on Low-Carbon Societies, JISF Wednesday 13 February 2008

4JISF* action plan

3-A. Uni-lateral（VAP)Pl d andPledged Review
R i (commitment(itt andd progress))

In 1996,, JISF launched① Energy-saving by △10％ (1990→2010)② Utilization of Waste Plastics etc.
(utilization of 1 million-ton).
③ Utilization
Utili ti off W
Wastet E
Energy outside.
t id④Contribution to society by “Eco-products” and by-products.
⑤ International Technology Transfer.
Transfer*JISF: Japan Iron and Steel Federation

The 3rd Symposium of Japan-UK Joint Research Project on Low-Carbon Societies, JISF Wednesday 13 February 2008

5Overview of performance

3-A. Uni-lateral（VAP)(Steel Industry in Japan total, 2006)

Inside of Steelworks

Outside of Steelworks(Unit:Mt-CO2/year)

Household/Office-5.1%

Products &by-products

Energy-CO2
E
CO2
203.7
193.3

1990
Crude steel 112-10.5 Mｔ-CO2/y-12.4Mｔ-CO2/y

Eco-Products-7.9Mt-CO2/y(2006)

2006
118mt/yCross-Sector

ForestTechnology Transfer

Cement(BF slag)

CO2 Global reduction-4.6Mt-CO2/y+abroad 4.6)

Kyoto mechanism
Mt-CO 2 /y-8.8

Transport

BF slag-4.6

Long-term R&D, Post Kyoto
The 3rd Symposium of Japan-UK Joint Research Project on Low-Carbon Societies, JISF Wednesday 13 February 2008

6

Japan-China Steel Industry Advanced
JapanTechnology
gy Exchange
g Meetingg inEnvironmental Protection & EnergyEnergy-Saving
4-5 July 2005
1-2 Nov. 2006
28 Sep. 2007

3-B. Japan-China Steel:the 1st meeting in Beijing,
Beijing China:the 2nd meeting in Beppu, Japan (#1 Expert meeting):the 3rd meeting in Beijing, China (#2 Expert meeting)Common Understanding
Importance of technical exchanges in the area of environmental preservation and energysaving technologies, from the standpoint of the effective use of resources and the preservationof the global environment.
Agreement
To realize
i the above, the Japan Iron and SteelS
Federation and the China Iron and Steel
Association will continue exchanges of informationand experts on environmental preservation andenergy-saving.

The 3rd Symposium of Japan-UK Joint Research Project on Low-Carbon Societies, JISF Wednesday 13 February 20087

Overview of APP

3-C. APP

APP denotes Asia-Pacific Partnership on Clean Development and Climate. Thisinitiative was started in January 2006
2006. This covers energy security and climatechange issues etc. as a regional partnership.

【Asia-Pacific countries participation 】– Seven nations: Japan、USA、Australia、Korea、China、India、Canada【Focusingg on Energy【gy and SOX/NOX issues】】【Government-Private Partnership with small number of nations】•

Huge potential for CO2 emissions reduction– APP seven nations CO2 emissions are approx. 60% or a whole world.
Characteristicsof APP• Technology oriented, sector-based and bottom-up

approach•

Government-Private collaborations non-legally binding-Dynamism
i off private
isector andd potential
i l forf R&D activatedid

The 3rd Symposium of Japan-UK Joint Research Project on Low-Carbon Societies, JISF Wednesday 13 February 200883-C. APP

APP structure
Ministerial

PIC(USA)CCFEREDG
GPTG
G

Steel

(Australia)(Korea)(USA)(Japan)( ) : Chair
PIC: Policy and implementation Committee

Al i i
Aluminium

CCementC
CoalBA
A(Australia)(Japan)(USA)(Korea)

CFE: Cleaner Fossil Energy, REDG: Renewable Energy and Distributed Generation, PGT: Power
Generation and Transmission, Coal: Coal Mining, BA: Buildings and Appliances＜B fit off sector-based＜Benefitt b d approach＞
h＞•Based on the actual technical situations of each sector, it is possible to evaluate
accurate and practical potential of CO2 emissions reduction.

•Energy efficiency of developed and developing countries can be evaluated.

•Best practices can be shared in the easier way.

•

Practical projects can be Implemented.

The 3rd Symposium of Japan-UK Joint Research Project on Low-Carbon Societies, JISF Wednesday 13 February 20089

Overview: APP Steel TF

Survey (energy efficiency)

Survey (diffusion rate)

3-C. APP

1st TF（April 2006）・USAIdentifying
Id
tif i 101 technologyt h l
For energy-saving and environment
SOACT Handbook

・Agreed on Action Plan・Zero-order-draft for SOACT (State-of-th-art Clean Technology Handbook)
・Methodology for the diffusion-rate Survey

2nd TF（September 2006）・Japan

Coherent and commonMethodology for energy survey（A common boundary definition
And coefficients）agreed

・Results of diffusion survey
・Methodology for energy efficiency survey

3rd TF（March 2007）・India・Reduction Potential evaluated by diffusion survey
・Agreed on the methodology for energy efficiency survey
・First-order-draft for SOACT

4th TF（October 2007）・Australia

Methodology for energy
Efficiency survey agreed(the 1st challenge in the world)

Most important 17 technology
Site-by-site diffusion survey

CO2 reduction potential
Evaluated by the results
From diffusion survey

Outcomes of survey

・Performance indexes and energy
gy efficiencyy surveyy
・Site visit in China and India
・Measures for promoting technology transfer and diffusion

Reduction potential
in details

Discussion on performance indexes

5th TF（Springp g 2008） ・Korea
Further discussions○ A guideline for information sharing and disclosure○ Approcedures for target
g settingg○ Applying to the national policy and measures
The 3rd Symposium of Japan-UK Joint Research Project on Low-Carbon Societies, JISF Wednesday 13 February 2008

10

APP Steel Task Force Action Plan

3-C. APP

Projects
Steel Task Force

Chair of Project

Project description

Project-1(APP Steel workshop)

Host country(rotational basis)-Annual exchanging information and sharing
experience. Incl. On-site visits.

Project-2
jJapan-Reviewing of equipment diffusion of energy saving,environmental protection and recycling withidentification of barriers in diffusion.
-Estimation of potentials for emission reduction.
A common boundary definition setting and survey of-A
energy efficiency.

(Performance Indicators Setting)

Korea(Co-chairJJapan/USA)/USA)-Identification of indicators for energy saving andenvironmental improvement.
-Setting ambitious and realistic milestones.

Project-4

China, India-Site visit for performance diagnosis of energy saving
and environment protection.

USA(co-chair Japan)-Compile a comprehensive information document for
global and local environment countermeasures as abible.
11 Jan 2008

AAustralia
i-Flagshipi projectj on the basis
i off plant
diagnosis(project-4).

(Status Review of Steel Industry
Related Indicators for Energy
Saving etc)

Project-3(Performance Diagnosis)

Projects-5-1(State-of-the-art Clean TechnologyHandbook)

http://asiapacificpartnership.org/

Project-5-2(Technology Deployment)

The 3rd Symposium of Japan-UK Joint Research Project on Low-Carbon Societies, JISF Wednesday 13 February 200811

Establish of Common Methodology
gy3-C. APP

to Identity Reduction Potential and Performance Benchmarking
Step 1: Status Review
Step-1:
Diffusion rate of technologies
Selection of technologies for survey
from a common data base, SOACT handbook

I t it b
Intensitybenchmarkinghki
A common Methodology
setting for benchmarking

Diffusion SSurvey
yBarriers Survey

FormulaBoundary

Intensity Survey

Conversion
Factors

Step-2: Reduction potential
Step-3: Target setting
The 3rd Symposium of Japan-UK Joint Research Project on Low-Carbon Societies, JISF Wednesday 13 February 200812

Development of Mechanism

3-C. APP

for Eligible Technology Diffusion
based on Expert Diagnoses Methodology and Procedures

Step-1: Site visit (Project-4)
Fact findings
On-site evaluations, candidate technologies for improvementof a particular steelworks

Recommendations

Energy saving

Appropriate and suitable implementations
from SOACT for each steelworks

Compilation of allsites data and list-up
the candidate
projects

SOX, NOX etc.

Step-2: Prioritization and selection of actual flagship projects using results of site visits
E l i andEvaluationd prioritization
i ii iof all candidate projects-Barriers for realization (financial, technological etc.)-Cost-effectiveness etc.

Step-3: Proposal to the Steel Task Force as actual Flagship Projects
The 3rd Symposium of Japan-UK Joint Research Project on Low-Carbon Societies, JISF Wednesday 13 February 200813

3-C. APP

Chi site
ChinaitT h lTechnology
TransferTf

Mongolia

China

Beijing

Taiyuan(太原)〇●Jinan ●China (3plants)(済南)

Jiangyin ●①Taiyuan(Taiyuan(太原太原))：JFE②Jinan(Jinan(済南済南))(江陰)：Nippon Steel、
Steel、Kobe③Jiangyin(Jiangyin(江陰江陰))：Sumitomo
Schedule：Schedule： Dec. 2007
3～4 Specialists/Experts (from Japan) at
each site

The 3rd Symposium of Japan-UK Joint Research Project on Low-Carbon Societies, JISF Wednesday 13 February 2008143-C. APP
T h l
Technology
TransferTf
India (5plants)
2007fyI di site
Indiai
Tata Steel Ltd

Site: SAIL(Rourkela)
Schedule：
Schedule： 1414--19 Jan.2008
10 Specialists/Experts (from Japan)*Work shop and Site visit

SAIL(Rourkela)
Ispat Industries
Ltd. (Dolvi)

Rashria Ispat
Nigam LtdJSW Steel(JVSL)The 3rd Symposium of Japan-UK Joint Research Project on Low-Carbon Societies, JISF Wednesday 13 February 200815

Project 2 Summary of diffusion survey
010

2030

3-C. APP
million t / year

40

20.24

CDQ
5.27

Coal moisture control

36.09

COG Recovery
5.14Sinter Waste Heat Recovery

36.10yBFG Recovery
5.30

TRTPCIHot Stove Waste Heat Recovery

3.65
0.86
9 57
9.57

BOF Gas Recovery
BOF Gas Sensible Heat Recovery

4.98

CO2 emissions reduction Potential

127 million t-CO2/year
The 3rd Symposium of Japan-UK Joint Research Project on Low-Carbon Societies, JISF Wednesday 13 February 2008

16

IISI’s CO2 Breakthrough Program

3-D. IISIOctober 2003
2003~
North American
ProgramEU

Eletrolysis etc.

ULCOS

Korea
Programog*Ultra Low CO2 Steelmaking
CCS, H2, BFG recycling with
CO2 separation

SouthAmerican
ProgramPhase-1: Seeds R&D （until 2008）

JapanProgram
gJISF
CO2 separation
H dHydrogenproductiond i etc.

Australia
ProgramPhase-2: Pilot project（2008～）

The 3rd Symposium of Japan-UK Joint Research Project on Low-Carbon Societies, JISF Wednesday 13 February 2008

17IISI New Climate Policy Statement

4. Position

Published in 7 May 2007

Th C
TheCommitment
itt off steelt l industry
i d t (7 main sets of actions)“A Global issues requires Global solutions”“There is a need for a Steel specific solution”
1. Expanding the use of current efficient technologies.
2. New technology solutions to radically reduce the CO2 intensity.
3. Continuing to optimise and maximise the recycling of steel scrap.
4. Maximising the value of steel industry by-products.
5. Using the new generation of steels to improve the energy efficiency.
6. Developing common and verified reporting procedures
7. Adopting
p ga gglobal sector-specificpapproachpp“The Expert Group set up by the Board is busy working on developing the framework for a
global sector-specific approach. It is also establishing how the steel industry can report its
present CO2 emissions which is the starting point for setting future commitments.

The 3rd Symposium of Japan-UK Joint Research Project on Low-Carbon Societies, JISF Wednesday 13 February 2008

18

IISI New Climate Policy Statement

4. Position

Published in 7 May 2007

F GovernmentForG
t: 6 main sets of actions

Governments need to:•

Replace cap and trade emission regimes with policies thatallow the most efficient steel companies
pin terms of CO2emissions to expand and the least efficient to decline.

•Engage with industry to adopt a “Sector Specific” framework which involves
j steel producing
pg countries.
all major
Establish recycling rules for “Steel-to-Steel recycling” as a closed-loop which
encourages market-based recycling as used in the steel industry.
g the closure and replacement
pof the least efficient steelmakingg
Encourageplants.
Support the long-term research initiatives for radical new technology solutions
proposed by the steel industry. Government also need to develop policies thatencourage demonstration
dt ti off thesethinnovativeiti technologies.
t h l iEngage with industry develop reporting procedures that account for and reportprogress towards achieving CO2 emission reductions.

••••

The 3rd Symposium of Japan-UK Joint Research Project on Low-Carbon Societies, JISF Wednesday 13 February 2008

19Summary

5. Conclusion

1) Participation of all major emitters (countries, sectors, entities ~)2) Technology ~Solution- Diffusion of best practice and technology- CO2 Breakthrough Technologies

3) Sector-based and technology-based collaborations- “Sectoral Approach”

4) Taking action toward a challenging target- “Global top-runner (front-runner)- Challenging target with pledge and review

5) Mechanisms for promoting and accelerating technology transfer and R&D
6) Collaboration through APP and IISI etc.
- Asia-Pacific model.

The 3rd Symposium of Japan-UK Joint Research Project on Low-Carbon Societies, JISF Wednesday 13 February 200820

Appendix: Energy efficiency/CO2 intensity benchmarking

Baseline-2: Baseline/average or lessBaseline-1: Global top-runner(front-runner), “industrial ultimate”
Ch ll
Challenging
i targettt setting
ttiShut down
Shut-down

Steelworks 1

23

45678 9 10 11 12 13 14 15 16 17 181920 21 22 23 24

25 26 27

The 3rd Symposium of Japan-UK Joint Research Project on Low-Carbon Societies, JISF Wednesday 13 February 200828 29 30 31 32 33 34 35 36

21

China~6bt-CO2/yWorld-wide emissions~27bt-CO2/yreference
USAEU

Japan National Totalemissions ~1.3bt-CO2/yTransport~0.25bt-CO2/y~6bt-CO2/yHousehold/
Office~0.17bt-CO2/y・CO2 Breakthrough Program
・BAT, BP diffusion

Car MF~0.01bt-CO2/yGlobal steel industry’semissions ~2?bt-CO2/y

El. Appl.
~0.02bt-CO2/y

Aus/Canada

China~1?bt-CO2/y

技術移転

JISF~0.2bt-CO2/y

India Korea

USAPower~0.4bt-CO2/yy

AP7~1+?bt-CO2/y~4bt-CO2/yRussiaEUBrazil“Heavy burden” under
the Kyoto Protocol

Cement~0.02bt-CO2/yTechnology TransferKeidanren 35 sctors~0.5bt-CO2/y

Cross-sector
The 3rd Symposium of Japan-UK Joint Research Project on Low-Carbon Societies,

JISF Wednesday 13 February 2008

22

Memo

Are there limits to adaptation?

Dutch cow ready for sea level rise?
Europe-Asia Dialogue on Climate Challenge of the 21st Century
The Finnish Parliament Group for Global Issues
Helsinki, 8th September 2006
Dr. Ottmar Edenhofer / Kai Lessmann