• Green Manufacturing
  • Green
  • Green
  • Green Idea and Initiatives
  • Green Achievements

Green manufacturing refers to the adoption of various management and technical measures in the iron and steel production process to maximize energy conservation and reduction of consumption and emission with the aim to realize clean production along with healthy economic returns and therefore harmonious co-existence with the environment of such production. In 2012, Baosteel invested RMB 1.522 billion in energy-conservation and emission-reduction projects and successfully completed a series of key energy-conservation and emission-reduction projects, including the energy-conservation reconstruction of No.1 steel-making converter furnace of Baosteel Co., Ltd., sintering and desulfuration reconstruction at Bayi Iron & Steel headquarter, sintering and desulfuration reconstruction at Ningbo Iron & Steel and construction of gas-fired boiler at Shaoguan Iron & Steel Co., Ltd., despite the extensive losses suffered throughout China’s iron and steel industry.
As compared with 2011, the Group realized a year-on-year energy conservation of 483,000 tons of coal equivalent and reduced the emission of SO2 and COD by 16,585 tons (36%) and 701 tons (32%) respectively.

Green Management System

Energy Management System

Baosteel is the first to initiated certification for energy management system in China’s iron and steel industry.

In 2012, Baosteel Co., Ltd. (Headquarter) and Baosteel-NSC/Arcelor Automotive Steel Sheets Co., Ltd. passed the review for the three-year pilot of energy management system. Baosteel’s energy management system has maintained the standards under GB/T23331-2009 and the certification in pursuance of EnMSGT-2010 the Implementation Rules for Certification of Energy Management System of Iron and Steel Industry (Trial).

Clean Production Review

In 2012, Baosteel Stainless Steel passed the second acceptance inspection. Four entities, including Baotong Iron & Steel and Jiangnan Rolls Company, passed the first acceptance inspection and three entities, including Changxin Slag Company, initiated clean production review. Yantai Bao-Mit Steel Distribution Co., Ltd. under Baosteel International passed the clean production review and was recognized as an outstanding “Clean Production Enterprise” of Shandong Province. This is a breakthrough in the implementation of environment management in Baosteel’s processing and distribution services.

Management and Project Construction of Energy Conservation and Emission Reduction

2012 was a crucial year for the comprehensive implementation of the National “Twelfth Five-Year” Plan. Baosteel segmented the energy conservation and emission reduction performance targets, implement such targets at all levels and ensured full control over energy conservation and environmental protection indicators through dynamic monitoring, follow-up and strict accountability practices on a monthly basis.

Currently the country has launched the first group of carbon emission trading pilots in seven provinces and municipalities, including Shanghai, Hubei and Guangdong. In response to that, Baosteel has organized carbon emission trading right pilots at concerned entities and actively cooperated with Shanghai in the research on and establishment of the monitoring and statistical methods for carbon emission of Shanghai’s iron & steel industry.

In light of the requirement that all unit output energy consumption indicators should be appraised using comparable indicators during the National “Twelfth Five-Year” Plan and the difficulties in management of unit output energy consumption indicators by department, Baosteel has set up a comparable unit output indicator statistics and management system.

With regard to the development of energy conservation and emission reduction projects, 367 energy conservation and emission reduction projects have been established and 77 energy conservation and emission reduction projects as well as 62 environmental protection projects have been completed and implemented. Meanwhile, it is planned that 159 contractual energy management projects will be implemented over the next three years. These projects will enable an annual energy conservation capacity of 1.09 million tons of coal equivalent. New iron and steel production units joining Baosteel Group Corporation over the past few years, such as Bayi Iron & Steel, Shaoguan Iron & Steel Co., Ltd. and Baosteel Desheng Stainless Steel Co., Ltd., have promoted the comprehensive development of energy conservation and emission reduction projects and achieved remarkable results.

In 2012, Baosteel Co., Ltd. engaged in comprehensive and in-depth promotion of hot charge rolling Note in hot rolling areas and realized a year-on-year energy conservation of over 4,800 tons of coal equivalent. Meanwhile, the successful CC-HCR technological reconstruction at Shaoguan Precision Steel Wire Plant enabled the production to be more compact, efficient and energy-conserving.

Note: Hot charge rolling is the technique of charging the continuous casting slab from the casting machine directly to the hot rolling reheating furnace so as to adequately utilize the residual heat of the slab, reduce heat losses and therefore lower energy consumption of the hot rolling reheating furnace. In practical production, keeping the slab hot throughout the casting process faces much difficulty due to restrictions in output-consumption matching, product variety structure, production organization, logistics and other factors and demands higher standards in the basic site management and coordination capability between various processes.

Baosteel Co., Ltd. coke oven upgrading and integrated reconstruction project is put into production (Figure 2). The project applies the new generation large environmental-friendly JNX70-3 furnace and employs the dry quenching technique, coal moisture control devices and several coke oven smoke control technologies, such as dust removal systems for four major types of vehicles and coal tower dust removal system. Meanwhile, the waster water treatment device constructed is the first model device for zero emission of coking waste water in China and will be able to achieve clean production upon full operation.

Baosteel Co., Ltd. 1880 hot rolling production line reheating furnace exhaust gas waste heat recovery project has carried out reconstruction while sustaining production and is expected to be completed and operational by the end of the year. By then, the project will realize annual energy conservation of 11,300 tons of coal equivalent.

The “Energy-Conservation Reconstruction of Cinder Flushing Pump for the Casting House of 750 Blast Furnace” and “Reconstruction of Cooling Tower of No.2 Cold Rolling Machine Water Treatment, Purification and Recycling System” projects implemented by Baosteel Stainless Steel in 2012 are expected to realize annual energy conservation of 500 tons of coal equivalent upon completion and operation.

In 2012, Bayi Iron & Steel increased investments in projects such as resource utilization and energy conservation and consumption reduction. The implementation of sintering machine waste heat generation project, supported by a 33MW generator unit, will generate 260 million KWh of electricity per year. The newly constructed blast furnace top gas waste pressure generation project, supported by an 18MW generator unit, will generate 40 KWh of electricity per ton of iron. The steam turbine driven method applied to the newly constructed 430m2 sintering machine will realize annual energy conservation of 100 million KWh. Power generation through steam produced by the newly constructed pure gas-fired boiler fueled by surplus blast furnace gas and coke oven gas in place of steam coal significantly improved the atmospheric environment and reduced costs. Combined heat and power generation phase II project achieved annual power generation capacity of 320 million KWh. A 120,000m3 converter gas tank was newly constructed to recover the converter gas from the newly constructed 2×150 tons converters and can recover 75m3 of converter gas per ton of steel. In addition, 10 energy conservation and emission reduction projects of Bayi Iron & Steel have been elected as the Key Energy Consuming Entity Energy-Conservation and Low-Carbon Project under the Twelfth “Five-Year” Plan for the Xinjiang Uygur Autonomous Region.

In 2012, the integrated energy conservation reconstruction projects for all 6 stainless steel annealing furnaces of Baosteel Desheng Stainless Steel Co., Ltd. have been completed and commenced operations. The 125 ton/hour dry quenching and waste heat power generation projects have commenced construction and the dry quenching power generation and on-grid generation of the power plant will be realized by the end of 2013 according to the schedule.

Active Exploration of the Application of New Energy Technologies

In order to accumulate experiences in on-grid photovoltaic power generation projects, Baosteel Co., Ltd. launched the “Energy Centre Building 130 KW Photovoltaic System Project” in March. The project commenced on-grid power generation in May and laid solid foundation for Baosteel’s full involvement in solar photovoltaic power generation projects.

Baosteel Co., Ltd. has undertaken the implementation of the “Golden Sun Demonstration Project” in steelwork. The project, with an installed capacity of 50MW, is expected to generate 50 million KWh per year, making it the largest steelwork solar power generation demonstration project currently in China. The project generates power from solar energy absorbed directly by solar arrays installed on rooftops and occupies no land resources.

Note: The “Golden Sun Demonstration Project” is a policy implemented by China since 2009 to support the domestic promotion of the technological advancements and large-scale development of photovoltaic power generation and to cultivate strategic emerging industries.

Meanwhile, Baosteel has also piloted the “Golden Sun” photovoltaic projects in diversified industries outside Shanghai. On the morning of November 28th, the contract for Changzhou Xinbei District Industrial Building Rooftop Photovoltaic Generation Demonstration Project, Baosteel’s first photovoltaic project outside Shanghai and the winner of the national “Golden Sun” government grant, was signed. The project features an installed capacity of 10MW and an operation term of 25 years, implemented in the form of contractual energy management. Upon completion and operation, the project is expected to generate over 9.75 million KWh of electricity every year, achieve energy conservation of 3,266 tons of coal equivalent and reduce the carbon dioxide emission by nearly 8,000 tons.

Optimization of Whole-Process Management of By-Product Resources

Baosteel Development Inland River Dock Vertical Mill Production Line and Technological Reconstruction Project and Baolong Solid Waste Resource Integrated Utilization and Environmental-friendly and Energy-Conserving Reconstruction Project were launched. They promoted the construction of slag micro powder pilot production line of MMC Baosteel Technology Service Co., Ltd. and thorough utilization of slag products, such as water permeable bricks and shot blasting materials, constructed the green energy-conserving sample estate using Baosteel’s by-product resources as raw materials and paved slag water permeable bricks on the pedestrian walks along main roads in the factory area, such as Weisan Road.

The construction of Xinjiang Baoxin Shengyuan Building Material Corporation Phase III Slag Micro Powder Production Line Project was launched. Upon completion of the project, an annual integrated production capacity of 3 million tons of slag micro powder will be formed, which will be sufficient to digest the water-granulated blast furnace slag from Bayi Iron & Steel and reduce carbon dioxide emission by nearly one million tons per year. The Bayi Iron & Steel Pyrolytic Slag Processing and Production Line was completed and commenced operation, realizing 100% utilization of steel slag and reducing unorganized fume dust emission by 3,000 tons every year. Shaogang Jiayang Slag Powder Phase III Project and Shaogang Hengran Zinc Hazardous and Waster Materials Integrated Utilization Project have been completed.

The research and application of new processing technology for by-product resources have been strengthened. The research and development of hot rolling plant ferric oxide mud briquetting for reuse in steel-making and steel pipe plant grinding briquetting for reuse in production have increased both the by-product resource utilization rate and by-product re-utilization rate in production of Baosteel Co., Ltd. headquarter to historical highs of 98.8% and 27.9% respectively.

For Baosteel, green products refer to the products that conserve energy, lower consumption and reduce emission of pollutants throughout their lifecycles of design, manufacturing, transportation, use, recovery and recycling and make contributions to improvement of environmental quality and reduction of damages to human health.

Green Product Research Methods

Baosteel has pioneered in China's research on Life Cycle Assessment (LCA) of iron and steel products since 2003 and consistently engaged in the development and optimization of LCA models for iron and steel products over the years, obtaining LCA results for a variety of products, including hot-rolled plate, cold-rolled plate, galvanized sheet, silicon steel and stainless steel. In recent years, Baosteel has actively promoted the generalization and application of LCA in the upstream and downstream industry chains of iron and steel enterprises through channels such as release of environmental declaration, green procurement, ecological design and green marketing and services and led the compilation of the national standard Technical Norms for Life Cycle Assessment of Iron and Steel Products for the continued standardization of LCA in China's iron and steel industry.

On the 46th Annual Conference of World Steel Association held on October 12th, 2012 in New Delhi, India, the World Steel Association organized the Third “Steelies Note” Award Presentation Ceremony and Baosteel won the “Excellence in Life Cycle Assessment” Award for its Excellent LCA Cases.

Note:The “Steelies” Award of the World Steel Association is awarded to the most influential work or activities in the iron and steel industry during the year and includes seven awards appraised annually. This year’s Steelies is the third event. Nominees for the awards will be submitted by members of the World Steel Association to the corresponding committees of the World Steel Association and the final winners will be decided by the corresponding expert panels.

Classification of Green Products

In 2012, Baosteel Co., Ltd. published the classification criteria for Baosteel’s green products and classified all Baosteel products into three main categories. The first category includes basic products in compliance with the environmental regulations of various countries and regions (BASE). The second category includes superior products with excellent environmental performances (BETTER). The third category includes cutting-edge products with outstanding environmental and economic performances and employing breakthrough technologies (BEST).

In 2012, Baosteel Co., Ltd. produced 5.11 million tons of BETTER products and 550,000 tons of BEST products in total, accounting for 26.6% of its total products. In the next planning cycle, the carbon emission is expected to be reduced by 17 million tons through the promotion of green products, which is equivalent to raising 560,000 hectares of green forests.

The green industry of Baosteel involves the integrating energy-conserving and environmental friendly technologies, developing energy-conserving and environmental friendly industries, expanding the application of energy-conserving and environment-improving technologies accumulated by the iron and steel industry both internally and externally, conducting systematic commercial development of energy-conserving and environmental friendly technologies, fostering the capability to provide parties within and outside the industry with energy-conserving and environmental friendly solutions, providing the society with valuable products and services and at the same time realize mutual gains in the corporate

Energy Saving

Baosteel Energy Conservation

Baosteel has embarked on its basic approach and implementation strategy for contractual energy management and energy-conservation service industry and established “Baosteel Energy Technology Co., Ltd.” since 2010. Over the past two years, Baosteel has organized internal and external experts to conduct all-around and in-depth researches on business models of contractual energy management and achieved relatively comprehensive results in research projects. Such research results were extensively adopted by the energy-consuming entities and also provided the industrialization practices of Baosteel Energy in its early years with precious methodological and management basis.

Baosteel Energy has taken a series of milestone projects, including the Baosteel Desheng Stainless Steel Annealing Furnace Integrated Energy Conservation Reconstruction and Baosteel Co., Ltd. 1880 Hot Rolling Production Line Reheating Furnace Exhaust Gas Waste Heat Recovery Project, as examples, actively enhanced capabilities in project management and technological planning, further optimized and standardized the relevant systems and procedures of contractual energy management and laid solid foundation for the large-scale and low-risk implementation of contractual energy management projects. So far, Baosteel Energy has secured 45 EMC contracts with total contract value of RMB 940 million and expected energy conservation of 277,000 tons of coal equivalent.

Currently, Baosteel Energy is expanding into energy industry sectors, such as decentralized energy and Building Integrated Photovoltaic, and successfully signed the Changzhou Xinbei District Industrial Building Rooftop Photovoltaic Generation Demonstration Project. The "Ningbo Beilun District User-side Centralized Contiguous 20MW Photovoltaic Generation Project" submitted by Baosteel Energy has been listed among the second group of National Golden Sun Demonstration Projects and officially approved by four state-level authorities (namely Ministry of Finance, Ministry of Science and Technology, Ministry of Housing and Urban-Rural Development and National Energy Administration). The successful implementation of these projects will further expand the Baosteel Group’s application scope in the field of renewable energy and actively promote the rapid development of Baosteel's “Green Industry”.

Environmental Protection

Exhaust Gas to Ethanol

In March 2011, Shanghai Baosteel LanzaTech New Energy Co., Ltd. was jointly founded by Baosteel and LanzaTech to promote the industrialization development of the microbial gas fermentation technology in China. The microbial gas fermentation technology converts steelwork coal gas and other industrial exhaust gases rich in carbon monoxide into ethanol and other chemical products through microbial fermentation in biological reactors, not only creating high added value for the factory but also reducing the corporate carbon footprint through the generation of clean energy – turning wastes into an opportunity.

In late October 2012, the National Energy Administration under the NDRC conducted comprehensive technical verification on the operation and pilot test results of Baosteel LanzaTech’s ethanol plant. According to the verification report, the microbial process of steelwork exhaust-to-ethanol employed by the plant has achieved stable equipment operations, reasonable process flow design, the largest scale in the world and world-leading standards in indicators such as gas conversion rate and concentration of fermentation broth. The technologies have been recognized as systematic, original and advanced and NEA therefore recommended that industrialization planning for such technologies should commence as soon as possible. The microbial process of industrial exhaust-to-ethanol, involving Baosteel, LanzaTech and CAS, has completed the pilot test stage and entered the industrialization stage. As planned, the construction of the first industrialization plant will commence at a chosen location after successful pilot test.

Currently, exhaust gases produced by steelwork in iron- and steel-making (BFG and LDG) are mainly used in gas-fired power generation or discharged, producing large amounts of carbon dioxide. The process converts steelwork exhaust gases into liquid ethanol and hence significantly reduced carbon dioxide emission. The fuel ethanol produced therefrom can also be applied extensively as a new energy additive for gasoline. In addition, China’s fuel ethanol is mainly produced from grain feed stocks which involve high costs and large amount of arable land. The advanced microbial gas fermentation ethanol production process, on the other hand, enjoys many advantages including sufficient feed stocks, low costs and extensive application and therefore can satisfy the development requirement of "Competition Neither with People for Grain nor with Grain for Arable Land”. The use of non-grain feed stocks completed avoided the reliance on grain and arable land.

Comprehensive Resource Utilization

Baosteel’s resource regeneration business has achieved new progresses in 2012. Currently the two major categories of resource regeneration products which have formed mass production capabilities realized annual sales revenue of RMB 2.3 billion. Among such, new building material business has developed seven product lines, including slag micro powder and slag composite powder. New magnetic material business has developed three product lines, including lithium iron phosphate battery anode material. The annual sales revenue of Baosteel Magnetic has reached RMB 510 million.

Mineral Wool from Blast Furnace Slag

Slag wool, also know as “mineral wool”, offers excellent heat insulation, sound absorption and fire resistance properties and is widely applied in the heat preservation, thermal insulation, fire protection and noise reduction in all types of industrial and civil buildings. It is internationally acknowledged as the main energy-conserving material in the “Fifth Conventional Energy” and enables a reduction in total building energy consumption of 50% to 65% with its outstanding heat insulation properties.

In June 2012, Baosteel Mineral Wool Science and Technology (Ningbo) Co., Ltd., an joint venture of Baosteel Development, Ningbo Iron & Steel and Baosteel Engineering, was inaugurated for the construction of a granular wool pilot production line with annual capacity of 20,000 tons. Baosteel Mineral Wool is uses hot melted slag as the main feedstock in place of cold blast furnace dry slag in traditional process and employs new melting furnace process. Upon completion and operation, the project will reduce energy consumption by 51% from that of traditional process, i.e. realizing annual energy conservation of 3,295 tons of coal equivalent or reducing carbon emission by approximately 8,764.7 tons. Compared with rock wool products, the exploitation of basalt can be reduced by 17,000 tons every year.

After the project commences production next year, Baosteel will become the first Chinese iron and steel enterprises to successfully produce mineral wool from hot melted slag, enabling Baosteel to assume a leading position among Chinese counterparts in the high value-added utilization of metallurgical slag and play a exemplary role in the development of a recycling economy as well as energy conservation and emission reduction in China’s iron and steel industry.

On the 46th Annual Conference of World Steel Association held on October 12th, 2012 in New Delhi, India, the World Steel Association organized the Third “Steelies” Award Presentation Ceremony and Baosteel won the “Excellence in Sustainability Reporting” Award for its Direct Production Technology of Mineral Wool from Hot Melted Blast Furnace Slag.

Education and Training

Since the environment management strategy was drawn up in 2009, Baosteel has timely incorporated the concepts of environment management into its training programs which were implemented across all levels of the company, including managers, technicians, intermediate & senior operators and maintenance staffs, procurement and marketing staffs as well as new entries. As of the end of 2012, 30 different training sessions have been organized for 1,921 trainees. Meanwhile, Baosteel has developed a series of courses, including “Concepts and Practices of Environment Management”, “Environment Management of Baosteel”, “Environment Management and Green Manufacturing of Baosteel” and “Environment Management and the Low-Carbon Development of Iron and Steel Industry” by continuously drawing from the environment management experiences accumulated. Through timely communication of the Corporation’s new environment management concepts and relevant policy information as well as learning and sharing of practical experiences and discussion on solutions to relevant problems, the environment-management-themed training sessions helped employees to reinforce their understanding of the environment management concepts and awareness of the importance of the Corporation’s efforts to implement environment management. Therefore these training sessions inspired the employees’ enthusiasm towards practicing the environment management concepts in their day-to-day work and helped employees to enhance their capabilities to create value for the Corporation through environment management.

Technology Exchange

Academic and technological exchanges are an integral part of green development and therefore Baosteel has always emphasized and actively participated in the relevant exchanges between internal and external parties which have turned out to be fruitful.

On March 15th to 16th, the “China Iron & Steel Enterprise Energy-Conserving Technology Seminar” was held by Baosteel and experts and scholars in the relevant area from iron and steel enterprises, including Anshan Iron & Steel, Wuhan Iron & Steel, Shougang Jintang Steelwork, Taiyuan Iron & Steel, Jinan Iron & Steel, Magang (Group), Tangshan Iron & Steel and Anyang Iron & Steel, as well as industry associations and institutions of higher education, including China Iron and Steel Association, University of Science and Technology Beijing and Northeastern University were invited to gather at Baosteel to exchange views on and explore the application of energy-conserving technologies in iron and steel enterprises and the relevant practical experiences and discuss the energy conservation and emission reduction solutions during the “Twelfth Five Year Plan” so as to effectively facilitate the energy conservation and emission reduction efforts in China's iron and steel industry.

In June, a Baosteel delegation visited Swerea MEFOS and engaged in technology exchanges with SKAB, LKAB, OUTOKUMPU, RUUKI and other companies in the fields of iron-making and steel-making. The delegation also visited German Iron and Steel Institute (VDEh). After a tour at the BFI Experiment Centre of German Iron and Steel Institute, the parties discussed issues in relation to cooperative researches in areas such as steel-making, rolling and testing.

The Corporation also actively sent out delegations to participate in relevant academic exchange conferences of the international iron and steel industry, such as the AISTech 2013 The Iron & Technology Conference and Exposition, Materials Science and Technology 2012 Conference & Exhibition, The 165th and 166th ISIJ Meeting, 9th International Conference on Zinc and Zinc Alloy Coated Steel Sheet, 4th International Conference on Thermomechanical Processing of Steels, 7th International Conference on Electromagnetic Processing of Materials and International Conference on Superconductivity and Magnetism.

On April 17th to 18th, 2012, the “Thirteenth Baosteel - Sinosteel Scientific and Technological Exchange” was held at Baosteel. This exchange covered contents from technology expansion to technology management and the parties exchanged views on three topics, namely R&D management, quality consistency management and thick-plate technology.

Development in Cooperation

In order to adapt to the requirement of Baosteel’s technological innovation and development and optimize the international scientific and technological cooperation platform, Baosteel Co., Ltd. established International Technological Cooperation Online Management Platform in 2012 and launched international technological cooperation, covering energy and environmental protection, material development, surface technology and metallurgical process, with the U.K. Oxford University, The Welding Institute, Italian Metal Research Institute and Canadian C-FER and expanded the sources of technologies and knowledge for Baosteel's technological innovation.

“The Research on Key Technology for the Industrialization of Thin-Strip Continuous Casting”, a Shanghai Key Technological Support Project undertaken by Baosteel Research Institute involving Baosteel Engineering, Baosight Software, Shanghai Jiaotong University and Shanghai University, passed expert review and acceptance in 2012 and entered the industrialization stage. 110 patent applications have been submitted through this research project among which 62 have been granted. In addition, totally 58 applications for enterprise technological secrets have been submitted.

Meanwhile, the “New Generation Energy-Conserving High-Efficiency Continuous Heat Treatment Key Technology Research and Demonstration” project under the National “Twelfth Five-Year” Technological Support Plan, organized by China Iron and Steel Association, led by Baosteel and involving several Chinese universities such as University of Science and Technology Beijing, Northeastern University and Shanghai Jiaotong University, was launched in 2012.

Active Support for the Sustainable Development Efforts of World Steel Association

Baosteel has been appointed as the chair organization of China 2020 Project under the Economic Committee of World Steel Association, the Clean Atmosphere Project under the Technology and Environment Committee and the Sustainability Reporting Project under the Sustainable Development Committee.

Apart from the clean atmosphere, raw material improvement, sustainable development reporting, energy benchmarking, equipment maintenance, key indicators and other projects that Baosteel has participated in, Baosteel further participated in World Steel Association’s nomination and research for NOx Project, Mercury Emission Reduction Project and Livingsteel Forum.

In 2012, Baosteel's comprehensive energy consumption per ton of steel was 4% lower than the energy conservation and emission reduction target. SO2 emission was 16,600 tons less than the annual target. COD emission was 701 tons less than the annual target. Refer to the following table for details. Baosteel had no environmental-protection-related violations or any related penalties in 2012.