Sinosteel International: Be a "crab-eater" in hydrogen metallurgy

Original source: China Securities Journal

Original title: Lu Pengcheng, Chairman of Sinosteel International: “Crab-eaters” in hydrogen metallurgy provide full-process services for steel companies to reduce carbon emissions

Reporter: Zhang Jun

"The next step will be to promote the green and low-carbon transformation of the steel industry and related industries, continue to advance the in-depth fight against pollution, and provide technical support for achieving the goal of'carbon neutrality'.

China Baowu Bayi Iron and Steel's hydrogen-rich carbon cycle blast furnace test project, which is EPC general contracted by Sinosteel International, is expected to reduce carbon dioxide emissions by 30%.

Layout hydrogen energy metallurgy

China Baowu, the world’s largest steel group, recently announced a timetable for carbon emission reduction.

With the announcement of this plan, what attracted the attention of the industry is the ongoing green pioneer project of China Baowu Global Green and Low-carbon Innovation Research Base-Bayi Iron and Steel's hydrogen-rich carbon cycle blast furnace test project.

"This pilot project can be said to have no precedent in the world to learn from, and it is of iconic significance to the industry.

According to the information disclosed by Sinosteel International, the hydrogen-rich carbon cycle blast furnace test project is researched and implemented in two phases: the first phase mainly includes gas purification, pressurization, and air outlet cold gas injection.

    "This pilot project can not only greatly increase the utilization factor of smelting furnaces, but also reduce carbon dioxide emissions by 30%.

    At the same time, another project of Sinosteel International was signed in the near future.

    In Lu Pengcheng’s view, “The company has deployed hydrogen metallurgy technology research and development and research in advance.

    Sinosteel International's 2020 annual report shows that the ultra-low emission pre-charged bag filter for steel kiln dust and fine particles independently developed by the company's Sinosteel Tiancheng has reduced the particle emission concentration by 30%-50% compared with traditional bag dust removal technology.

    Zhongtai Securities Research reported that Sinosteel Tiancheng is a backup "golden seed" company listed in Wuhan.

    Sinosteel International proposes that in the future, the company will take green development as the lead to create the core competitive advantage of low-carbon metallurgical technology; support the high-quality development of the steel manufacturing industry with the support of intelligence.

    Provide technical support

    Under the goal of "carbon neutrality", the time and path of carbon emission reduction in steel, cement, non-ferrous metals and other industries have attracted much attention from the market.

    Li Xinchuang, vice chairman of the China Iron and Steel Association and chief engineer of the Metallurgical Industry Planning and Research Institute, said recently that the steel industry is currently proposing an overall goal of achieving a peak carbon emission by 2025.

    As an upstream technology player in the metallurgical industry, Sinosteel International proposed that during the "14th Five-Year Plan" period, the company will uphold the new-stage corporate mission of "becoming a pioneer in the'Belt and Road' initiative, a pioneer in green development, and a contributor to smart steel.

    Sinosteel Safety and Environment Research Institute, a wholly-owned subsidiary of Sinosteel International, is the first batch of energy-saving and green development evaluation centers recognized by the Ministry of Industry and Information Technology, and a business support unit in the field of climate change in Wuhan.

    Lu Pengcheng stated that the China Steel Safety and Environmental Protection Institute undertook consulting projects such as the "Thirteenth Five-Year" Pilot Assessment and the "14th Five-Year Plan" for Climate Change in Wuhan City, and the "Development of Short- and Long-Process Carbon Emission Calculation Technology Development in the Iron and Steel Industry" service.

    "In the next step, the company will consolidate its market competitive advantages in green and low-carbon metallurgical technologies, such as belt roaster pellets and high-end long-rolling.
The R&D investment and integration of low-carbon metallurgical cutting-edge technologies such as hydrogen energy steelmaking has achieved the company's goal of'taking the first step' in the low-carbon metallurgical cutting-edge technology field.
" Lu Pengcheng said.

    Lu Pengcheng also pointed out, "The company also plans to carry out green and low-carbon market-related consulting services and energy-saving and low-carbon strategic planning services, in order to promote the green and low-carbon transformation of the steel industry and related industries, continue to promote the in-depth fight against pollution, and achieve carbon neutrality.
'The goal is to provide technical support.
'

    His plan is that in the future, the company will continue to increase research and development and build the company into a world-class technology-based engineering company to provide value-added services to the steel industry.
At the same time, Sinosteel Safety and Environmental Engineering Institute will become a professional service company, positioning it as an industry think tank and solution provider, and "let it become an IP in the industry.
" "It is expected that future profitability will also increase significantly.
"

    Carbon emission reduction breeds trading market

    Following China's Baowu, Hegang Group also announced a carbon emission reduction action plan.
The market speculates that the steel industry may be one of the industries that will be included in the national carbon emission trading market first after the power industry.

    What are the conditions for preferential inclusion in the steel industry? "The carbon dioxide emissions of the steel industry can be calculated, although the method is more complicated.
" Lu Pengcheng pointed out.

    He said that the timetable announced by China Baowu is to achieve the "carbon peak" in 2023, which is already in the forefront.
For the steel industry as a whole, it is expected to reach the standard a few years later.
In the future, the transformation and upgrading of the steel industry and new green technologies will eliminate traditional smelting technologies, and new oxygen blast furnaces and hydrogen energy development technologies will develop.
There is huge room for green and low-carbon transformation of the industry, and the progress will be faster than expected.
Companies will rush to be top students, because the faster they are, the more competitive they are.

    Lu Pengcheng believes that the “carbon neutral” path of the steel industry includes: focusing on energy efficiency upgrades in the long process, promoting the transformation of long processes to short processes, and achieving breakthroughs in cutting-edge emission reduction and zero-carbon technologies (hydrogen replacing fossil fuels and CCUS technology), fundamentally To reduce the carbon emissions of the entire industry; develop high-end steel products, use steel scientifically and rationally, and promote social transformation; build a circular economy industrial chain, and use 100% recyclable materials to achieve environmental friendliness.

    "In the future, Sinosteel Safety and Environment Research Institute will undertake corporate carbon asset management projects, including emissions management, emissions business consulting, carbon trading services, etc.
There are many opportunities in this," Lu Pengcheng told the China Securities Journal reporter.

    The first-quarter performance forecast disclosed by Sinosteel International showed that the company achieved a net profit of 115-140 million yuan attributable to shareholders of listed companies in the first quarter, a significant increase of 1204.
22%-1487.
75% year-on-year.
Regarding the reasons for the significant increase in performance, the company stated that during the reporting period, the company based on the new development pattern of "double cycle", focused on green and low-carbon business, strengthened technical marketing, and empowered development with technological innovation.