Industrial Technologies Program — Boosting the Productivity and

Competitiveness of U.S. Industry

Industry consumes 33 percent of all energy used in the United States. By developing and adopting more

energy efficiency technologies, U.S. industry can boost its productivity and competitiveness while

strengthening national energy security, improving the environment, and reducing emissions linked to global

climate change.

The U.S. Department of Energy’s (DOE) Office of Energy Efficiency and Renewable Energy (EERE) works in

partnership with U.S. industry to increase the efficiency of energy and materials use, both now and in the

future. EERE’s Industrial Technologies Program (ITP) is working to build the Industries of the Future through

a coordinated program of research and development (R&D), validation, and dissemination of energy

efficiency technologies and operating practices to reduce energy intensity in the industrial sector. ITP

develops, manages, and implements a balanced portfolio that addresses industry requirements throughout

the technology development cycle. The primary long-term strategy is to invest in high-risk, high-return R&D.

Investments are focused on technologies and practices that provide clear public benefit but for which market

barriers prevent adequate private sector investment.

ITP focuses its resources on a small number of energy-intensive materials and process industries that account

for over 55 percent of industrial energy consumption.

ITP also conducts R&D projects on enabling technologies that are common to many industrial processes such

as industrial energy systems, combustion, materials, and sensors and process control systems. In addition,

ITP funds technical assistance activities to stimulate near-term adoption of best energy-saving technologies

and practices within industry. These activities include plant assessments, tool development and training,

information dissemination, and showcase demonstrations.

New technologies that use energy efficiently also lower emissions and improve productivity. By leveraging

technical and financial resources of industry and government, the ITP partnerships have generated

significant energy and environmental improvements that benefit the nation and America’s businesses.

Energy-intensive industries face enormous competitive pressures that make it difficult to make the necessary

R&D investments in technology to ensure future efficiency gains. Without a sustained commitment by the

private and public sectors to invest in new technology R&D and deployment, the ability to close the gap

between U.S. energy supply and demand will be severely compromised.

• Forest Products

• Glass

• Metal Casting

• Mining

• Steel

• Aluminum

• Chemicals

ITP uses a leveraging strategy that maximizes the energy and environmental benefits of its process-specific

technology investments by coordinating and cooperating with energy-intensive industries. By working

closely with the private sector, the ITP is able to effectively plan and implement comprehensive R&D agendas

and help disseminate and share best energy management practices throughout the United States. The ITP

public-private partnerships also facilitate voluntary efforts, such as the President’s Climate VISION initiative,

to encourage industry and government to reduce greenhouse gas emissions.
CONTENTS

Executive Summary........................................................................................................................................ i

Industry Overview ........................................................................................................................................ 1

Energy Use in Steelmaking ................................................................................................................................... 1

The Challenge ................................................................................................................................................ 3

The Goal: Reducing Steelmaking Energy Intensity .............................................................................................. 3

R&D Pathways ..................................................................................................................................................... 3

FY 2004 Highlights and Accomplishments ................................................................................................... 6

R&D Highlights.................................................................................................................................................... 7

Partnerships Highlights........................................................................................................................................ 8

Improving Energy Efficiency Today ..................................................................................................................... 9

Disseminating Research Results to Industry ........................................................................................................ 9

Energy Analysis - Targeting Energy Efficiency...................................................................................................... 9

Tools, Publications, and Resources Available .............................................................................................. 11

How To Get Involved and Contact Information............................................................................................ 12

Partnership Information ................................................................................................................................... 12

Access to Resources and Expertise....................................................................................................................... 12

Where to Go to Get More Information............................................................................................................. 13
EXHIBITS

1. 2003 Steel Shipments by Market Classification............................................................................................ 1

2. Energy Use in the Steel Industry.................................................................................................................... 2

3. Steel Industry Energy Bandwidth .................................................................................................................. 4

4. Steel Portfolio Targets .................................................................................................................................... 4

5. R&D Pathways for the Three Steel R&D Focus Areas .................................................................................... 5

6. Steel Research Projects with Completed Government Funding in FY 2004................................................... 6

7. Active Steel Research Projects in FY 2004 ....................................................................................................... 6

8. Examples of Other EERE Research Projects Relevant to Steel ......................................................................... 7
EXECUTIVE SUMMARY

Steel is one of the most energy-intensive industries in the United States. The steel industry is critical to the

U.S. economy, providing the backbone for construction, transportation and manufacturing. In addition,

steel has become the material of choice for a variety of consumer products. Traditionally valued for its

strength, steel has also become one of the most recycled materials, with two-thirds of U.S. steel now

produced from scrap.

Since the late 1990s, the U.S. steel industry has been hurt by large quantities of low-cost imports stemming

from excess global steelmaking capacity and a collapse in Asian demand. This crisis has exacerbated the

industry’s existing problem of low profits and relatively low investment in research and development.

Permanent technology changes, rather than short-term fixes, are needed to revolutionize the way energy is

used in the manufacturing of iron and steel. Unfortunately, the industry is unable to support high-risk,

long-term research on revolutionary technologies that could change the way steel is manufactured and

greatly reduce its energy requirements.

Transformational R&D, such as that funded by the U.S. Department of Energy (DOE), Office of Energy

Efficiency and Renewable Energy (EERE), Industrial Technologies Program (ITP), is critical to maintaining

the global competitive position of the U.S. steel industry. Studies sponsored by EERE have quantified the

opportunity for saving energy in steelmaking (defined as the difference between today’s energy use and the

practical minimum energy use). DOE’s goal in this area is to develop transformational technologies that

will capture half of this opportunity by 2020, equivalent to a reduction in integrated steelmaking energy

intensity of about 3 million Btu/ton.

A Successful Strategy with Industry

DOE’s Office of Energy Efficiency and Renewable Energy leads federal development of advanced energyefficient and environmentally-friendly industrial technologies. Steel industry R&D is a component of the

overall EERE strategy, contributing to a reduction in energy intensity of industry, a goal outlined in the

National Energy Policy.

EERE/ITP is working to build the Industries of the Future through a strategy that is based on multi-year

planning, industry involvement and input during the planning process, and careful analysis and data

based decision making. This strategy not only takes into consideration the interests of the industry as

described in their R&D Technology Roadmaps, but also consists of an agenda of analytical studies that

provide the basis for decision-making. For instance, the Steel Industry Technology Roadmap, published in 1998

and revised in December 2001, has provided the basis for focusing the R&D by identifying industry research

interests. The Steel Energy and Environmental Profile, Bandwidth study, and Footprint study were

developed using both government and industry data and information, and industry expertise to provide

the next level of prioritization for the portfolio. By using these studies, the portfolio is able to design a

multi-year R&D plan based on the focus area, barrier, and pathway approach. In this approach, a limited

number of critical technology focus areas are identified along with the technical barriers preventing their

successful implementation. A multi-year plan (called a “Pathway”) is then developed that will guide the

R&D activities leading to a successful development of the focus area technology. The “Pathways” are then

the basis for solicitations of pre-competitive R&D that addresses both energy efficiency goals outlined in the

National Energy Policy and steel industry research priorities. This successful strategy has now evolved to a

point where it provides focus on potentially high-impact research to make revolutionary improvements in

ironmaking and steelmaking.

Strong industry involvement ensures direct application of research results and testifies to the importance of

this cost-shared research partnership. Both the American Iron and Steel Institute (AISI) and the Steel

Manufacturers Association (SMA) participate in the development and implementation of the steel R&D

portfolio. The AISI is also a major R&D partner and manages projects that address key priorities defined by

the industry under their Technology Roadmap Program (TRP). Involving industry in the early R&D stages

helps accelerate the development and application of energy efficiency technologies. The ITP Steel portfolio

i
ii

also emphasizes university- and national laboratory-based research in order to tap into the technical

resources of our nation’s educational institutions and National Laboratory systems.

Achieving Energy Savings: Portfolio Strategy

DOE’s portfolio of investments in steel processing R&D supports cost-shared, pre-competitive research

addressing technological needs that have broad application throughout the steel industry. ITP has devised a

strategy to foster both revolutionary ironmaking and steelmaking technologies and make incremental

improvements to existing processes, thereby addressing long-term goals, as well as short-term needs. ITP also

strives to expand the industry’s fundamental base of knowledge to optimize key processes and resource

efficiency.

ITP recently conducted, as noted previously, an energy bandwidth analysis that compared the practical

minimum energy intensity of major steelmaking processes with energy intensity typical of today’s processes.

The results of this analysis are helping DOE identify the best opportunities for future R&D thrusts. As a

result, DOE is now targeting high-risk, potentially high-impact opportunities for reducing the energy

intensity of steel industry processes.

To facilitate this shift toward higher impact projects, the Steel portfolio is organized into three categories:

Next Generation Steelmaking, Cokeless Ironmaking and Advanced Process Development. The Cokeless

Ironmaking and Next Generation Steelmaking categories include several revolutionary technologies selected

by DOE for development under its Ironmaking and Steelmaking Challenge solicitations issued several years

ago. Projects within the Advanced Process Development category focus on improvements to conventional

ironmaking, steelmaking, casting, forming, and fabrication technologies.

FY 2004 Highlights

• The pilot demonstration plant for the Mesabi Nugget Ironmaking project, part of an exciting, large-scale

initiative to demonstrate the revolutionary ITmk3 ironmaking process, has completed four sustained

operating tests. Construction on the first commercial unit is expected to begin in the spring of 2005

near Hoyt Lakes, Minnesota.

• An upgraded version of a Hot-Strip Mill Model that simulates hot-strip mill operations and predicts the

steel’s final mechanical properties has been developed by the INTEG Process Group, Inc. and is being

used by a number of steel companies.

• In 2004, research continued on two projects that have been exploring innovative new ways to produce

steel. Novel Direct Steelmaking by Combining Microwave, Electric Arc, and Exothermal Heating Technologies

would eliminate the ironmaking step, while Continuous Process to Melt, Refine and Cast Steel would convert

steel scrap into high-quality steel in one continuous process.

• Major progress continues to be made in developing materials to increase the Pot Hardware Life on Steel

Galvanizing Lines by a factor of 10. More than 50 candidate materials and coatings have been tested for

up to 6,000 hours, and two patents on new roll and bearing designs have been submitted.

• ISG-Bethlehem Steel continued long-term, successful operation of a set of 101 Nickel-Aluminide Transfer

Rolls in its slab plate mill in Burns Harbor, Indiana. The new rolls have reduced the number of

shutdowns related to roll blistering and have improved product quality, leading to significant cost and

energy-savings.

• An Automated Steel Cleanliness Analysis Tool is being used at a number of steel mill test sites to evaluate

such issues as steel castability, clogging, and the effect on inclusion content of adding “chill” scrap and

late alloy additions.

• Michigan Technological University is leading an effort to develop and refine a technology that will

Increase the Value-added Utilization of Steelmaking Slag. U.S. Steel has agreed to provide 500 tons of
desulfurization slag from its Gary Works facility to the technology licensee’s demonstration-site in

Michigan to test the new process.

• ITP participated in a two-day meeting focused on energy issues with SMA’s Plant Operations Division in Durham,

North Carolina. More than 30 EAF mill operators learned about DOE-sponsored R&D projects and

training, tools, and other energy management opportunities available from the office. The attendees

were particularly interested in the new Mesabi cokeless ironmaking nugget technology described by

Mesabi Nugget LLC.

• DOE and the American Iron and Steel Institute co-sponsored a series of four training events in Cleveland,

Ohio in September 2004. These events were aimed at educating steel mill operators, demonstrating ways

to improve the efficiency of their plant utility systems. The events covered fundamentals of compressed

air systems, process heating equipment, pumping systems and steam systems.

iii
INDUSTRY OVERVIEW

Steel is an integral part of the U.S. infrastructure,

providing the foundation for construction (bridges,

buildings), transportation systems (railroads, cars, trucks)

and utility systems (municipal water systems, power

systems). It is also the material of choice for such diverse

applications as military equipment, food storage,

appliances and tools. Exhibit 1 displays the steel

industry’s market distribution.

The U.S. steel industry is a $50+ billion enterprise, and

additional downstream processing pushes the value

closer to $75 billion. The U.S. produced 103 million net

tons of raw steel in 2003, nearly 10 percent of the total

world steel production of 1.06 billion net tons. Large

quantities of low-cost imports have challenged the

industry in recent years, but restructuring, downsizing

and widespread implementation of new technologies

have led to vastly improved labor productivity, energy efficiency, and yields.

As a result of industry consolidation, the number of steelmaking facilities has decreased significantly over the

last few decades. In 2002, 90 companies produced raw steel at almost 140 locations. The absolute number of

integrated mills producing steel in basic oxygen furnaces has always been relatively small and is currently at

around 20. The highest geographic concentration of mills is in the Great Lakes region, including Indiana,

Illinois, Ohio, Pennsylvania, Michigan and New York. Approximately 80 percent of U.S. steelmaking capacity

is in these states. The industry employs about 125,000 people nationwide.

Energy Use in Steelmaking

Steel is produced via two different routes, both of which are energy-intensive. An integrated steel mill

produces molten iron in blast furnaces using a form of coal known as coke, which is either produced onsite

or purchased. This iron is used as a charge to produce steel in a basic oxygen furnace (BOF). An electric arc

furnace steel producer, also known as a mini-mill, uses electric arc furnaces (EAFs) to produce steel from steel

scrap and other iron-bearing materials. Over the past several decades, the balance of production has been

shifting from integrated to EAF-based because of cost considerations and other factors. In 2003, integrated

mills accounted for 49 percent of steel production in the U.S., while EAF mills accounted for 51 percent.

The U.S. steel industry consumed about 1.6 quadrillion Btu in 2003, and typically spends in excess of $4

billion per year on purchased fuels and electricity. As shown in Exhibit 2, electricity (and its associated

generation and distribution losses) account for 25 percent of all energy used in the industry, with coal and

other fossil and by-product fuels accounting for the other 75 percent. Coal and coke represent 40 percent of

the industry’s total energy consumption (or 55 percent of its fuel use). The by-product fuels – coke oven gas

and blast furnace gas – represent another 16 percent of the industry’s total energy consumption, or 20

percent of fuel use.

An analysis of steel industry energy use and losses reveals that about a quarter of the energy delivered to the

plant is lost within the plant boundary prior to being used in specific processes. Process heating (including

the blast furnace, steelmaking furnaces, reheat furnaces, other furnaces and boilers) represents the largest use

of fuels in the steel industry (60 percent). Blast furnace ironmaking and electric arc furnace steelmaking are

particularly energy-intensive, although the former relies mainly on coke, and the latter on electricity.

Technologies that improve the efficiency of furnaces and other process heating systems have significant

potential to reduce overall steel industry energy use.

1

Exhibit 1

2003 Steel Shipments by Market Classification

Converting

8.9% Automotive

15%

Construction

22.4%

Service Centers

26.9%

Export

2.7%

Oil & Gas

Industry

2%

Non-Classified

12.2%

Machinery/

Electric

1.1%

All Other

4%

Containers

2.9%

Appliances

1.9%
2

Natural

Gas

263

Coke Oven

Gas

89

Steel Industry

BOF

Steelmaking

5%

Rolling &

Finishing

25%

Energy Use Among Steel Sectors

Trillion Btu

of Fuels Used

(excluding electricity)

Electricity

400 trillion Btu

270 trillion Btu

130 trillion Btu

1,198 trillion Btu

1,598 trillion Btu

Electricity received

at plant

Off-site power

generation losses

Other

6

 The steel industry provides about 5

 percent of the total manufacturing GDP

 In 2003, U.S. steel industry shipments

 totaled $33 billion 

 Carbon and alloy steel make up 98

 percent of total domestic shipments, with specialty steels accounting for the rest

 Energy consumption amounted to 1.6

 quads in 2003

 The steel industry accounts for more

 than 1/3 of total U.S. manufacturing sector coal consumption

 The industry employs about 125,000

 production workers

BF

Ironmaking

50%

Coke

145

Oxygen

39

Blast Furnace

Gas

157

Coal

499

EAF

Steelmaking

20%

Exhibit 2

Energy Use in the Steel Industry
3

THE CHALLENGE

The steel industry is one of the most energy-intensive industries in the U.S. manufacturing sector. A stable

and dependable domestic source of steel is vital to America’s economic and national security. However, the

industry’s financial and market woes in recent years have severely limited investment in research activities,

emphasizing the need for public-private R&D collaboration.

Despite the domestic steel industry’s modernization efforts of the past two decades, the industry has been

struggling to survive. Between 2000 and 2003, high levels of imports caused many U.S. steel companies to

declare bankruptcy (more than 30 during 2001 and 2002 alone). Because of the low-profit margins and high

levels of foreign competition, the industry has been unable to conduct the high-risk, long-term technology

R&D needed to ensure its survival in the 21st century.

In addition to economic issues, the steel industry faces major technological challenges in its bid to maintain

international competitiveness, including:

• Making high-quality iron without coke,

• The high energy intensity associated with making steel via multiple inefficient processes, and

• Costly yield losses throughout the processing chain.

The competitive and financial demands facing steel companies have made them more willing to collaborate

in strategic, pre-competitive areas to improve energy efficiency in iron and steel manufacturing processes. In

its Technology Roadmap, the industry emphasizes the importance of collaborative partnerships involving

government, industry, and academia in meeting the technology challenges of the future and accelerating the

pace of technological innovation.

The Goal: Reducing Steelmaking Energy Intensity

The steel industry consumes between 1.6 and 2.0 quads (quadrillion, or 1015 Btu) of energy each year. The

cost of purchasing this energy represents about 15 percent of the total manufacturing cost for steel, even

higher for EAF steelmakers who rely heavily on electricity. The difference between the practical minimum

energy requirement and actual requirements for energy-intensive unit operations of ironmaking and

steelmaking are in the range of 20 to 30 percent (see Exhibit 3). DOE’s goal is to develop technologies that

will capture half of this opportunity by 2020, equivalent to a reduction in integrated steelmaking energy

intensity of about 3 million Btu/ton.

R&D Pathways

The Industrial Technologies Program seeks to develop advanced technology for the domestic steel industry to

help it survive in an environment of low profits and stiff foreign competition. A strong domestic steel

industry with minimal reliance on imported raw materials and energy sources will help ensure national

security.

The ITP Steel portfolio consists of cost-shared, pre-competitive research addressing technological needs that

have broad application throughout the steel industry. All research projects are selected through a

competitive review process. They must address priorities outlined in the Steel Industry Technology Roadmap and

serve the EERE mission of increasing energy efficiency.

The Department of Energy’s Steel portfolio has devised a strategy to foster both revolutionary ironmaking

and steelmaking projects and make incremental improvements to existing processes, thereby addressing longterm goals while meeting short-term needs. Included in these activities are efforts to expand the industry’s

fundamental base of knowledge to optimize key processes and resource efficiency. Since 2001, there has been

increased emphasis on revolutionary steelmaking concepts in order to maximize energy-savings. This shift in

focus should produce dramatic reductions in steelmaking energy intensity over the long term.
4

0

2

4

6

8

10

12

14

16

18

Hot Metal (pellets

and coke)

EAF Steelmaking

(long products)

EAF Steelmaking

(flat products)

Reheating/ Hot

Rolling

(106 Btu/ton)

Today’s Actual Energy Use 

2010 Projected Energy Use 

Practical Minimum Energy Requirement 

Theoretical Minimum Energy 

Requirement 

Exhibit 3

Steel Industry Energy Bandwidth

Cokeless

Ironmaking

Next Generation

Steelmaking

Advanced Process

Development

Power Delivery

Modeling

Mesabi Nugget

Ironmaking Pilot

Demonstration to

Produce High-Quality

Iron Nuggets from

Low-Grade Ores

Continuous and

Combination Processes

to Convert Ore and

Scrap Metal into Steel

Improved EAF Efficiency

Feedstock Preparation

Improved Yield

Inclusion and Defect

Reduction

Coordination of

and Reduced

Impact from

Large, Highly

Varying Loads

Energy Savings: Reduce annual energy use by over 30 trillion Btu in 2010 and

 175 trillion Btu in 2020

Environmental Benefits: Reduce CO emissions by nearly 0.5 MMTCe in 2010 and 

 3.4 MMTCe in 2020

2

Exhibit 4

Steel Portfolio Targets

The portfolio is organized into three major focus areas or pathways:

• Cokeless Ironmaking

• Next Generation Steelmaking

• Advanced Process Development

Exhibit 4 presents major opportunities or

targets for each of these focus areas, and

Exhibit 5 shows the corresponding

research pathways identified by ITP.

One of the strengths of ITP’s Steel

portfolio is the comprehensive

participation of industry and universities

who provide both cost-share and in-kind

support. The involvement of industry

accelerates technology transfer and

dissemination of research results.

Industry partners represent the diversity

of the steel industry and include

integrated producers, EAF producers,

suppliers, and end-users in several industries.
Steel Focus Area

Cokeless 

Ironmaking

Next-Generation 

Steelmaking

Advanced Process 

Development

Power Delivery 

Modeling

R&D Pathways

Make iron with reductants other than coke, such as coal

Evaluate ITmk3® process at pilot scale 

Test iron product in a commercial steelmaking facility 

Integrate iron and steelmaking production processes

Develop processes that are less capital-intensive 

Investigate novel combinations of existing technologies

Improve the energy efficiency of hot processing steps

Improve the yield of steel production processes

Integrate technological advances into existing processes

Develop short-term load forecasting and intelligent control of 

electric load dispatching that can be integrated with regional steel 

mill operators 

Exhibit 5

R&D Pathways for the Three Steel R&D Focus Areas

5
Advanced Process Development

• Optimization of Post Combustion in Steelmaking

• Intermetallics for the Steel Industry

• Large-Scale Evaluation of Nickel Aluminide Rolls in a Heat-Treat Furnace at the Burns Harbor Plant

• Development and Application of Steel Foam Materials and Structures

• Ultra-Low Carbon High-Strength Steels for Enhanced Stretch Formability and Dent Resistance

• Nitrogen Removal in EAF Steelmaking by Direct Reduced Iron Fines Injection

• In-Situ, Real-Time Measurement of Melt Constituents. Since it is not a Steel Project, it may be replaced by Quantifying Thermal

Behavior of Slags.

• Clean Steels – Advancing the State-of-the-Art

• Validation of the Hot-Strip Mill Model

• Submerged Entry Nozzles that Resist Clogging (Plant Trials)

Exhibit 6

Steel Research Projects Completed in FY 2004

Cokeless Ironmaking

• Mesabi Nugget Ironmaking

Next-Generation Steelmaking

• Development of a Process to Continuously Melt, Refine, and Cast High Quality Steel

• Novel Direct Steelmaking by Combining Microwave, Electric Arc, and Exothermal Heating Technologies

Advanced Process Development

• Automated Steel Cleanliness Analysis Tool

• Pulverized Coal Injection (PCI) Combustion Behavior in the Blast Furnace During PCI at High Rates

• Recycling and Reuse of BOF/BOP Steelmaking Slags

• Ladle Metallurgy and Casting

• Hydrogen and Nitrogen Control in Ladle and Casting Operations

• Inclusion Optimization for Next Generation Steel Products

• MAG-GATE System for Molten Metal Flow Control

• Controlled Thermal-Mechanical Processing of Tubes and Pipes

• Low-NOx Heating Alternative for Round Shapes, Steel Substrate (Strip), and Coil Box Transfer Bars

• Life Improvement of Pot Hardware in Continuous Hot Dipping Processes

• Constitutive Behavior of High-Strength Multiphase Sheet under High Strain Rate Deformation Conditions

• Development of Appropriate Resistance Spot Welding Practice for Advanced High-Strength Steels

• Novel Low-NOx Burners for Boilers in the Steel Industry

• Impact of Large, Highly Variable Loads

• Future Steelmaking Processes

Exhibit 7

Active Steel Research Projects in FY 2004

6

FY 2004 HIGHLIGHTS AND ACCOMPLISHMENTS

In FY 2004, the Steel portfolio included nearly 40 projects, some of which were completed during that year

(Exhibit 6). Exhibit 7 shows ongoing projects organized by the focus areas: Cokeless Ironmaking, Next

Generation Steelmaking, and Advanced Process Development. In addition, nine projects relevant to the steel

industry that are funded by other EERE program activities are shown in Exhibit 8.

In addition to sponsoring R&D, the Steel portfolio achieved a number of noteworthy accomplishments in

2004.
Exhibit 8

Examples of Other EERE Projects Relevant to the Steel Industry

Combustion Projects

• Forced Internal Recirculation (FIR) Burner

Sensors and Controls Projects

• In-Situ, Real-Time Measurement of Melt Constituents in the Aluminum, Glass, and Steel Industries

• Tunable Diode Lasers Sensors for Monitoring and Control of Harsh Combustion Environments

• Advanced Wireless Sensors for the Industries of the Future

• Eaton Wireless Sensor Network for Advanced Energy Management Solutions

• Distributed Wireless Multisensor Technologies – A Novel Approach to Reducing Motor Energy Usage

• Wireless and Sensing Solutions Advancing Industrial Efficiency

• SQA: Surface Quality Assured Steel Bar Program

Small Business Innovation Research (SBIR) Grant Projects

• Fiber-Optic Sensor for Industrial Process Measurement and Control (Combustion)

7

R&D Highlights

Mesabi Nugget

Ironmaking – The

Mesabi nugget

ironmaking project

seeks to evaluate

and refine the

ITmk3 process

developed by Kobe

Steel, Ltd. The

ITmk3 process is a

new ironmaking

technology that

uses a rotary hearth

furnace to

transform iron ore fines and pulverized coal into iron nuggets of a similar quality to blast furnace pig iron.

The direct use of coal to make iron is an alternative to the current ironmaking practice that uses coke made

from coal. The high-quality, low-cost nuggets can be fed into either a basic oxygen furnace or an electric arc

furnace. A pilot demonstration plant built by Mesabi Nugget, LLC in Silver Bay, Minnesota has completed

multi-week trials to demonstrate continuous operation. In the four trials held since the spring of 2003, the

plant generated nearly 10,000 tons of iron nuggets from Minnesota Mesabi range ore. The purpose of the

project was to assess process conditions for producing iron nuggets that can be fed into a commercial

steelmaking furnace. Construction on the first commercial nugget facility is expected to begin in Butler,

Indiana in the spring of 2005. Additional facilities are expected to be constructed in Hoyt Lakes, Minnesota.

Novel Direct Steelmaking by Combining Microwave, Electric Arc, and Exothermal Heating Technologies

– A novel direct steelmaking process combining multiple technologies continues to be evaluated by Michigan

Technological University. Direct steelmaking eliminates the need for a separate ironmaking step, which could

greatly reduce the energy intensity of the overall steelmaking process. The goal of the project is to develop a

solid base of data on the technical, market, and economic potential of the process and to set targets for

energy use, emissions, and costs. Combinations of raw materials are being tested with different heating

methods to determine the effect on steel yield, carbon content, and exhaust gas emissions.

Development of a Process to Continuously Melt, Refine, and Cast High-Quality Steel - The University of

Missouri-Rolla is developing a design for a new process that will convert steel scrap into high-quality steel in

one continuous process. The new process will be less capital-and energy-intensive and more productive than

conventional batch steelmaking processes. Efforts in FY 2004 included the development of fluid flow, mixing

and heat transfer models; development of a thermodynamic model of the individual vessels used in the

process; and initiation of melting experiments.

Future Steelmaking Processes – Carnegie Mellon University and U.S. Steel are examining the feasibility of

using a combination of proven technologies to produce iron more efficiently with lower capital and

operating costs. The goal is to develop a flexible fossil fuel-based process as an alternative to energy-intensive

coke-based blast furnace ironmaking. During FY 2004, the project team continued to create energy and

materials balance models for a number of existing smelting technologies combined with rotary hearth

furnace technology. The models were then used to perform process optimization and perform process

economic calculations. A final report is expected in early FY 2005.

Molten Metal Flow Control System – Precise control of the flow of molten steel at 3000 degrees Fahrenheit

is difficult, but critical for quality control in casting. The Concept Engineering Group, Inc. has developed an

electromagnetic valve that was designed and built to control the flow of molten metal; the system has been

successfully tested in industrial applications. A market research study has identified 18 prospective casting

operators interested in the technology. These findings were included in a commercialization plan prepared

in FY 2004.
During an 18-month period, the rolls have been successfully used during the processing of more than 300

million pounds of steel. The new rolls are stronger and more temperature-resistant than traditionally-used

alloys, and their enhanced properties are leading to vastly improved furnace system operations. Benefits

have included elimination of more than 50 furnace shut-downs (~150 days; over 30 percent increase in uptime) over the last 18 months; higher yield and increased product quality of steel; 35 percent increase in

energy efficiency; and lower operating and maintenance costs. This is a cooperative project by three areas of

ITP: the Steel portfolio, Technology Delivery and Industrial Materials for the Future.

Hot-Strip Mill Model – A hot-strip mill model that simulates steel being processed in a hot-strip mill and

predicts its final mechanical properties, originally developed by the University of British Columbia, has been

upgraded and validated by INTEG Process Group. Enhancements in FY 2004 include the addition of Grade

Builder, which allows users to develop and add new grades of steel. A detailed microstructure manual was

also developed as a result of this addition. The latest version of the model is being used by a group of steel

companies that participated in the validation effort, and has also been licensed to additional companies.

Pot Hardware Life for Galvanizing Lines – Major progress continues to be made in developing materials to

increase the life of molten zinc pot hardware on steel galvanizing lines by a factor of 10. Interest in this

project is great because these high-speed hot-dip lines often experience catastrophic component failures

requiring shutdown of the line. Steel industry hot-dip operators are collaborating with researchers from West

Virginia University Research, Oak Ridge National Laboratory, and materials suppliers on testing of

components made from the new materials.

Recycling and Reuse of BOF/BOP Steelmaking Slags – Michigan Technological University is leading an

effort to develop and refine a technology that will increase the value-added utilization of steelmaking slag.

In FY 2004, U.S. Steel agreed to provide 500 tons of desulfurization slag from its Gary Works facility to the

technology licensee’s demonstration site in Michigan. The new technology will demonstrate its ability to

process the slag on a 5 to 10 ton/hour basis.

Enhancing the Operation of Highly Varying Industry Loads to Increase Electricity Reliability, Quality,

and Economics – The random nature and size of the electric loads associated with the operation of electric

arc furnaces, rolling mills and large motors can cause large frequency deviations on the electricity grid. Oak

Ridge National Laboratory is investigating the concept for handling highly varying loads while enhancing

electric power reliability and quality. The concept comprises a number of load-forecasting and coordination

techniques that can be applied in a particular utility control area. The results of this project may have

application well beyond the steel industry and should yield economic and operational benefits.

Partnership Highlights

Steel Manufacturers Association (SMA) Meeting – In March 2004, ITP participated in a two-day meeting of

SMA’s Plant Operations Division in Durham, North Carolina focusing on energy issues. More than 30 EAF

mill operators from around the country discussed ways to improve mill energy efficiency and listened to

presentations about DOE-sponsored R&D projects and training, tools and other energy management

opportunities available from the office. The attendees were particularly enthusiastic about the new Mesabi

cokeless ironmaking technology described by Mesabi Nugget, LLC.

Student Fellowship Program – The Steel Manufacturers Association (SMA), in cooperation with steel

companies and the DOE/EERE, has completed a cooperative education program for selected college students.

Students were selected on the basis of knowledge, experience, desire and initiative. The sponsoring company

submits details for a potential student project. At the conclusion of the work effort, SMA-DOE Fellows and

industry-mentors provide a joint critique for the purpose of determining the success of the study program

and measuring student interest in the steel industry.

Steel Industry Medal – The Board of Directors of the American Iron and Steel Institute (AISI) awarded the

2003 AISI Medal for the best steel industry technical paper to Dr. Scott Story (U.S. Steel), Dr. Mike Potter (R.J.

Lee Group Inc.) and Dr. Richard Fruehan (Carnegie Mellon University) for their paper entitled “Inclusion

8
Analysis to Predict Casting Behavior.” The paper resulted from research performed under an ITP financial

assistance contract (DOE share $1.492 million) with R.J. Lee on computer controlled electron microscopic

inspection of steel. The purpose of this work is to develop technology to improve the yield of quality steel.

The AISI Medal is awarded annually to the one technical paper that demonstrates special merit and the most

significance to the activities and interest of the iron and steel industry.

Improving Energy Efficiency Today

Technology Delivery – EERE/ITP’s Technology Delivery activities offer products and services to assist industry

in saving energy in the near-term. These products and services include software tools and associated training

to improve the efficiency of plant utility systems, cost-shared plant assessments, no-cost plant audits for

small-and mid-size companies, and numerous helpful publications describing applications of good plantoperating practices. Activities such as these have the potential to save the steel industry millions of dollars

annually. To learn more, please visit: http://www.oit.doe.gov/bestpractices. For more information on the nocost audits, visit: http://www.oit.doe.gov/iac.

Energy Management Training – DOE and the American Iron and Steel Institute have co-sponsored a series

of four training events in Cleveland in September 2004 aimed at educating steel mill operators and

demonstrating ways to improve the efficiency of their plant utility systems. The events covered

fundamentals of compressed air systems, process heating equipment, pumping systems, and steam systems.

Plant-Wide Assessments (PWAs) – PWAs are cost-shared assessments of plant utility and process-related

energy efficiency opportunities across a plant. Plants are selected through a competitive solicitation. Based

on the experience of other manufacturers, each steel mill performing a PWA can expect to cut energy costs by

a possible $1 million to $10 million per year. PWAs conducted in 2003 at two steel mills (North Star Steel in

Wilton, Iowa and Weirton Steel in Weirton, West Virginia) identified potential annual savings in excess of

$2.6 million and $1.3 million, respectively, in FY 2004.

Disseminating Research Results to Industry

ITP Web site – The ITP Web site (http://www.eere.energy.gov/industry/steel) is a valuable tool for

disseminating information on the ITP’s steel activities. The recently redesigned Web site highlights steel

industry R&D activities, provides access to EERE publications, and notes upcoming solicitations. The Web site

also contains a “News” section that provides articles on recent events, updates on research successes and

notification about new software tools and other services of potential interest to the steel industry.

Steel Newsletter – ITP distributes an electronic newsletter to more than seven hundred steel industry

personnel and other stakeholders in DOE research aimed at the steel industry. The Steel Industry News from the

Industrial Technologies Program at DOE newsletter highlights recent accomplishments and milestones of Steel

R&D projects.

Technical Papers and Articles – The plant-wide assessment conducted at North Star Steel in Wilton, Iowa

was the subject of an article in the Winter 2004 edition of Energy Matters. The article discussed the benefits

accrued at the Wilton plant as a result of implementing the changes recommended in the assessment, noting

that North Star’s parent company, Cargill, had embarked on a corporate-wide initiative to reduce waste and

energy. The article described in detail the recommendations for improving the efficiency of the Wilton

plant’s electric arc furnace and rolling mill bill reheat furnace.

Energy Analysis – Targeting Energy Efficiency

Energy Bandwidth Study – An energy “bandwidth” showing the magnitude of energy-savings possible for

each major steelmaking process was created using data from the Fruehan and Stubbles studies completed in

previous years. A draft report documenting the bandwidth analysis and detailing the results was prepared in

FY 2004. The bandwidth is being used to provide a rationale for supporting R&D on revolutionary new

technologies with the highest potential impact on industry energy consumption.

9
Energy Footprint Study – ITP has developed an energy footprint study of the U.S. steel industry showing the

energy flow and losses for energy supply, central energy-generation/utilities, energy distribution, energy

conversion, and process energy use. Use and losses are shown for each process heating operation and for the

various motor-driven systems. The goal of this study, which continued in FY 2004, is to provide a baseline of

energy consumption and loss data for each major operation in the steel industry. The magnitude of the

energy losses can provide guidance to the program on areas of R&D opportunity.

Critical Metrics Analysis – In FY 2004, ITP established key technical metrics for the Steel portfolio against

which it can measure technical progress toward program goals. Although increased energy efficiency is

understood to be the aim of all R&D sponsored by the program, additional metrics are needed to reflect the

technical and scientific goals of the four R&D focus areas. For the Cokeless Ironmaking focus area, for

example, the key metric was determined to be nugget purity (the percent of iron in the nugget), which is

critical to this product’s applicability in steelmaking furnaces. The analysis included determining the current

baseline value for each metric, setting a goal, and identifying research pathways to achieve the goal.

10
TOOLS, PUBLICATIONS, AND RESOURCES AVAILABLE

EERE offers valuable tools and publications to help steel companies improve productivity and energy

efficiency. Some of these resources are described below. Visit the Web site at http://www.eere.energy.gov/

industry/steel/ for a complete listing.

Steel Industry Technology Roadmap – The Steel Industry Technology Roadmap represents an industry-defined,

long-term agenda of research and development. As a public document, the roadmap provides a clear

indication to both government and the private-sector of the desired directions to be followed in future steel

related research. The roadmap was updated in FY 2001 in response to technological advances, changes in the

global market, and new technical insights. To learn more, please visit: http://www.eere.energy.gov/industry/

steel/roadmap.html.

Fact Sheets and Success Stories – Publications describing ongoing R&D projects, emerging technologies and

commercial successes are available on the Web site at: http://www.eere.energy.gov/industry/steel/

portfolio.html and http://www.eere.energy.gov/industry/steel/success.html.

Cost Reduction Now Brochures – A series of brochures on motors, steam systems, compressed air systems,

pump systems, process heating and other topics can help companies recognize low-cost and quick-payback

energy-saving opportunities. To learn more, please visit: http://www.eere.energy.gov/industry/steel/

tools.html.

Energy and Environmental Profile of the U.S. Iron and Steel Industry – The profile, part of an industry

series, benchmarks the energy and environmental characteristics of major unit operations in the steel

industry. To learn more, please visit: http://www.eere.energy.gov/industry/steel/pdfs/steel_profile.pdf.

Theoretical Minimum Energies to Produce Steel for Selected Conditions – DOE-sponsored research has

determined the theoretical minimum energy requirements for producing steel from ore, scrap and direct

reduced iron. Dr. Richard Fruehan’s report, Theoretical Minimum Energies to Produce Steel for Selected Conditions,

provides insight into the potential energy savings (and associated reductions in carbon dioxide emissions) for

ironmaking, steelmaking, and rolling processes. To view this report, please visit: http://www.eere.energy.gov/

industry/steel/pdfs/theoretical_minimum_energies.pdf.

Energy Use in the U.S. Steel Industry: A Historical Perspective and Future Opportunities – Renowned

industry expert Dr. John Stubbles has projected the U.S. steel industry’s potential energy savings over the next

10 years. The report examines the potential impacts of state-of-the-art technologies and operating practices,

as well as structural changes in the industry itself. To view the report, please visit: http://

www.eere.energy.gov/industry/steel/pdfs/steel_energy_use.pdf.

Ironmaking Process Alternatives Screening Study – This study evaluates and compares a number of

alternative ironmaking processes – some already proven and some under development – that will feed iron

units to current and future steelmaking processes. To view the report, please visit: http://

www.eere.energy.gov/industry/steel/pdfs/ironmaking_process.pdf.

11
HOW TO GET INVOLVED AND CONTACT INFORMATION

Partnership Information

Public-private partnerships are the foundation of ITP’s technology delivery strategy. ITP includes its partners

in every phase of the technology development process to focus scarce resources where they can have the

greatest impact on industrial energy efficiency. To learn more, please visit our Web site at http://

www.eere.energy.gov/industry.

• Collaborative, cost-shared research and development projects are a central part of ITP’s strategy. Annual

solicitations provide technology development opportunities in a variety of energy-intensive industries.

• Industries of the Future Partnerships increase energy efficiency in the most energy-intensive industries. In

addition to cost-shared research and development projects, industry partners participate in the

development of vision and roadmap documents that define long-term goals, technology challenges, and

research priorities.

• Allied Partnerships provide an opportunity for ITP to reach a broad audience of potential customers by

allying with corporations, trade associations, equipment manufacturers, utilities, and other stakeholders

to distribute industrial energy efficiency products and services. By becoming an Allied Partner, an

organization can increase its value to clients by helping them achieve plant efficiencies.

• State energy organizations work with ITP in applying technology to assist their local industries. ITP

assists states in developing partnerships to mobilize local industries and other stakeholders to improve

energy efficiency through best practices, energy assessments, and collaborative research and development.

• EERE’s technical programs (of which ITP is one of eleven) give manufacturers access to a diverse portfolio

of energy efficiency and renewable energy technologies and bring advanced manufacturing technology

to the renewable energy community. For more information, access the EERE home page at http://

www.eere.energy.gov.

• The President’s Climate VISION (Voluntary Innovative Sector Initiatives: Opportunities Now) effort also

offers opportunities for manufacturers to pursue cost-effective actions that will reduce greenhouse gas

emissions. See http://www.climatevision.gov for details.

Access to Resources and Expertise

The Industrial Technologies Program provides manufacturers with a wide variety of industrial energy

efficiency resources to help your company cut energy use right away. Visit our site at http://

www.eere.energy.gov/ industry or call the EERE Information Center at 877-337-3463 to access these resources

and for more information.

• ITP offers energy management best practices to improve energy efficiency throughout plant operations.

Improvements to industrial systems such as compressed air, motors, process heat, and steam can yield

enormous savings with little or no capital investment.

• Our suite of powerful system optimization software tools can help plants identify and analyze energysaving opportunities in a variety of systems.

• Training sessions are held several times per year at sites across the country for companies interested in

implementing energy-saving projects in their facilities. DOE software tools are used as part of the training

sessions.

• ITP’s qualified industrial energy specialists will work with your plant personnel to identify savings

opportunities and train staff in the use of ITP software tools.

12
• Our extensive library of publications gives companies the resources they need to achieve immediate

energy savings.

• Plant-wide energy assessments are available to manufacturers of all sizes interested in cutting their energy

use. Cost-shared solicitations are available each year for plant-wide energy assessments. In addition, nocost, targeted assessments are provided to eligible facilities by teams of engineering faculty and students

from 26 university-based Industrial Assessment Centers around the country.

• The DOE Regional Offices provide a nation-wide network of capabilities for implementing ITP’s

technology delivery strategy. Regional Offices are located in the Southeast, Northeast, Midwest, Central,

Mid-Atlantic, and Western regions. Visit http://www.eere.energy.gov/rso.html for more information.

WHERE TO GO FOR MORE INFORMATION

Visit our Web site: http://www.eere.energy.gov/industry/steel

Learn about all EERE programs: http://www.eere.energy.gov

EERE Information Center answers questions on EERE’s products, services and 11 technology programs, refers

callers to the most appropriate EERE resources, and refers qualified callers to the appropriate expert networks.

You may contact the EERE Information Center by calling 1-877-EERE-INF (1-877-337-3463) or by completing

the form at this site: http://www.eere.energy.gov/informationcenter. A customer service specialist or energy

expert at the EERE Information Center will respond to your inquiry.

For print copies of DOE, EERE and ITP Publications, contact the

Energy Efficiency and Renewable Energy Information Center

P.O. Box 43165

Olympia, WA 98504-3165

http://www.eere.energy.gov/informationcenter/

For questions regarding Steel portfolio activities, please contact:

Simon Friedrich

Industrial Technologies Program

Office of Energy Efficiency and Renewable Energy

EE-2F

U.S. Department of Energy

1000 Independence Avenue, SW

Washington, DC 20585-0121

Phone: 202-586-6759

Email: simon.friedrich@ee.doe.gov

13

Steel Industry of the Future

Industrial Technologies Program

Boosting the productivity and competitiveness of U.S. industry

A Strong Energy Portfolio for a Strong America

Energy efficiency and clean, renewable energy will mean a stronger economy, a cleaner environment, and great energy

independence for America. By investing in technology breakthroughs today, our nation can look forward to a more

resilient economy and secure future.

Far-reaching technology changes will be essential to America’s energy future. Working with a wide array of state,

community, industry, and university partners, the U.S. Department of Energy’s Office of Energy Efficiency and

Renewable Energy invests in a portfolio of energy technologies that will:

• Conserve energy in the residential, commercial, industrial, government, and transportation sectors

• Increase and diversify energy supply, with a focus on renewable domestic sources

• Upgrade our national energy infrastructure

• Facilitate the emergence of hydrogen technologies as a vital new “energy carrier”

The Opportunities

Biomass Program

Using domestic, plant-derived resources to meet our fuel, power, and chemical needs

Building Technologies Program

Homes, schools, and businesses that use less energy, cost less to operate, and ultimately, generate as much power as

they use

Distributed Energy & Electric Reliability Program

A more reliable energy infrastructure and reduced need for new power plants

Federal Energy Management Program

Leading by example, saving energy and taxpayer dollars in federal facilities

FreedomCAR & Vehicle Technologies Program

Less dependence on foreign oil, and eventual transition to an emissions-free, petroleum-free vehicle

Geothermal Technologies Program

Tapping the Earth’s energy to meet our heat and power needs

Hydrogen, Fuel Cells & Infrastructure Technologies Program

Paving the way toward a hydrogen economy and net-zero carbon energy future

Industrial Technologies Program

Boosting the productivity and competitiveness of U.S. industry through improvements in energy and environmental

performance

Solar Energy Technology Program

Utilizing the sun’s natural energy to generate electricity and provide water and space heating

Weatherization & Intergovernmental Program

Accelerating the use of today’s best energy-efficient and renewable technologies in homes, communities, and

business

Wind & Hydropower Technologies Program

Harnessing America’s abundant natural resources for clean power generation

To learn more, visit www.eere.energy.gov

published February 2005