Tecnored innovative technology in iron making, which uses non conventional method in making hot metal

1. PR1 TECNORED OJECT

2. Metals Board
Low Carbon Metallic Integrated Complex with TECNORED technology
two

3. THE TECHNOLOGY
TECNORED
3

4. Technology Status
Technology is in the expansion stage for greater capabilities
Technological evolution Chronology of installation / operation
The technology was conceived and developed by Brazilian engineers in
1987. In 2011, Vale took over the development of the process. And after almost 30 years of development,
the technology is in the final proofing stage to enable the construction of industrial plants.
2009
2011
Completion of the industrial demonstration plant in
Pindamonhangaba
2011 Startup IDP ( Industrial Demonstration Plant)
2012 Total commissioning of the industrial demonstration plant.
Operation in test campaigns to prove and validate technology
2013
2018
Oven
Modular
Pilot plant Pilot Oven IDP New Plants
2019
1987 -1999 1999 -2000 2000 -2011 2011 -2019 2019+
Biomass Projects / Campaigns
Industrial Demonstration Plant ( Pindamonhangaba / SP) Chronology of participations
• Annual production: 75,000 t / year of pig iron
• Recycling or commercialization of all by-products:
• Particulate: recycled
• Slag: Cement and fertilizer industry
• Top gas: used for drying briquettes and cogeneration of electricity (projected).
• Raw material:
• Iron Unit: Iron Ore, Nickel Ore and Ferrous Waste.
• Carbon Unit: Coke (initial phase), Green Petroleum Coke, Anthracite, Blast Furnace Balloon
Powder and mineral coal, thermal coal and Biomass.
2008 Aço Villares S / A (now Gerdau) and BNDES acquires
2009 Tecnored actions
2009 Vale acquires Gerdau shares (38%)
Vale acquires shares
2014 TECNOLOGOS, and now holds 100% of shares
Tecnored
BNDES and
4

5. Mass Balance of Processes
Tecnored is more flexible with greater power generation and lower emissions
Lump iron ore
200 kg / thm Steel slag 300 kg / thm
Sinter
1,280 kg / thm
Pellet Primary Iron (pig iron) 1,000 kg
310 kg / thm
Metallurgical Coke
350 kg / thm
Injection coal Electric Energy Credit² 0.0 - 0.4 MW / thm
130 kg / thm
Floating
10 kg / thm
550 - 700 kg / thm
Blast Furnace¹
CO emission ₂ ⁵ 2.0 - 2.5 tCO ₂ / thm
Total Carbon¹
Self-Reducing Briquette
• Iron Ore
• Coal or Biomass
• Floating
• Binders
• Steel Waste⁴
Fuel Briquette
• Coal or Biomass
• Binders
• Carbonaceous Waste
Total Carbon³
2,200 - 2500 kg / thm Steel slag 400 kg / thm
Primary Iron (pig iron) 1,000 kg
480 - 700 kg / thm Electric Energy Credit² 0.85 MW / thm
Tecnored
CO emission ₂ ⁵ 0.0 - 2.5 tCO ₂ / thm
550 - 700 kg / thm
¹ Estimated average of Integrated steelmakers in Brazil, 5 considering
Coke oven, pelletizing, sintering and blast furnace;
² Considering energy
generated discounted from
intern consumption;
³ Considering
contained carbon
in Briquettes;
⁴ Internal waste
and other plants
⁵ The emission of CO ₂
depends on credits and biomass
used

6. The Tecnored Oven
Reactor developed for self-reduction
Load Level
Briquette
Fuel
Briquette
Self-reducing
Briquette
Self-reducing
Briquette
Fuel
Z (cm)
T (K)
Curve of
reduction
Breath
Cold
Breath
Cold
COCONUTS two
Reduction
Final
Beginning of the softening and melting zone
CO = CO 2 + • H
0 20 40 60 80 100
Reduction (%)
Breath
warm
COCONUTS two Breath
warm
C + ½ O 2 = xCO / CO two
6
TECNORED TECNORED VIDEO

7. THE PROJECT
Pig iron plant 500 kta
CARBON FOOT PRINT
7

8. Sustainability Pillars
Agricultural, agro-industrial and steel processes
SUSTAINABILITY POLICY: BALANCE AND QUALITY OF LIFE
ECONOMIC ENVIRONMENTAL SOCIAL
▪ Competitiveness at the center
Results
Innovation
Operational Excellence
Strategic objectives
▪ Environment at the Energy
Center
▪ People in the center
Health and safety
Organizational culture
Relationship with Society
▪ ▪ ▪
▪ ▪ Water
▪ Effluents and Waste
▪
▪ ▪
▪
▪ Emissions
ISO 50.001 ISO 14,001 and 14,064 OHSAS 18,001
Relations of
work and
social
healthy
Mitigation of
Gases
Greenhouse effect
Mitigation of
Impact
Environmental
Mitigation of
Scratchs
Operational
Reduction of
Costs
8

9. Sustainability Pillars
2.0 t CO two/ t pig
Pig
1.0 t CO two/ t pig
Pig
Tecnored 50% Biomass
Differentiated conception of the steel industry
Tecnored oven Use of waste
Biomass Process optimization
9
Steel production using alternative carbon sources contributes to carbon savings
Coal
Route
mineral
Green
Pig
Route

10. THE PROJECT
Pilot Plant
Development and
Characterization of
Biomass (R&D)
10

11. Modules for validation of biomass and raw materials
Development continues in the company's DNA
Pilot modules for evaluation of
Raw material
Burn Burn Burn Reduction and
Fusion
Tecnored
Types
• 3 x Burn
• 1 x Reduction and Fusion
Results obtained
• calorific value of fuels
• Integrity and consumption
• Flame isotherms
• Thermal level of the produced metal
40 15
Number of tests per raw material
two 1
SNC - Computational Numerical Simulations
Adherence of results with computer
simulation
11

12. ENGINEERING &
TECHNOLOGY
PROCESSING
SUSTAINABLE
BIOMASS
12

13. Contextualization of the project
Pilot Plant for Biomass Processing and Pyrolysis
Biomass
Crowding
Biomass Processing
Biomass
Pyrolysis Roasting
Lignin
Biogas
Lignin (26%)
Fiber
30%
Pulp (46%)
Hemicellulose
(27%)
Others (1%)
Extract
65% Soluble solids
Fermentable
Organic matter
13
30% Fiber
65% extract

14. Contextualization of the project
Pilot Plant - Macro Flowchart
Bicarbonate
P
Prro
occeessssaam
meen
ntto
O
ffiib
laugh
Distillation
Capim Energia
PPrreeppaarroo
CTT
TQ
Ethanol
Processing
extract
extract extract Wine
fiber
effluent
CTT
Biogas
Yeast
Supply
Fleet
Biogas
Biogas
Yeast
Dry
Lignin
Processing
Biogas
Processing
Biogas fiber
Lignin
Organomineral
TECNORED
Fertigation
Pyrolysis
Roasting
Crowding
14
GUSA

15. Contextualization of the project
Agglomeration Plant Organic Binder Plant
FS Bio Corn
Crowding
Corn Processing
Corn Starch
Oil (3-4%)
Germ (7-8%)
Glutén (4-5%)
Starch (70-75%)
Fiber (18-22%)
28 to 30% of the process = co-products
30% of co-products = reduces + - 50% in the cost of corn
15

16. Contextualization of the project
Binder Plant - Macro Flowchart
Storage
Corn Classification
Drying
Maceration Milling
Separation
Germ - Starch
Corn
DDG
Bran
Oil
liquor Evaporation
Concentrated liquor
Starch
Gluten
Asset sharing
with Pilot Plant Distillery
Bicarbonate
Centrifugation
TQ
Ethanol
Dehydration
Fermentation
Starch
Processing
Yeast
Starch Gluten
Yeast
Yeast
Dry
16

17. Contextualization of the project
Pilot Plant - Macro Flowchart
Bicarbonate
P
Prro
occeessssaam
meen
ntto
O
ffiib
laugh
Distillation
Capim Energia
PPrreeppaarroo
CTT
TQ
Ethanol
Processing
extract
extract extract Wine
fiber
effluent
CTT
Biogas
Yeast
Supply
Fleet
Biogas
Biogas
Yeast
Dry
Lignin
Processing
Biogas
Processing
Biogas
Corn Integration
fiber
Lignin
Organomineral
TECNORED
Fertigation
Pyrolysis
Roasting
Crowding
17
GUSA

18. Contextualization of the project
Integration of Pilot Plant and Ligand - Macro Flowchart Maximization
of the asset
Distillery
P
Prro
occeessssaam
meen
ntto
O
ffiib
laugh
Bicarbonate
Capim Energia
PPrreeppaarroo
Dehydration
CTT
TTQ
Q
EEttaannooll
Processing
extract Wine
extract extract
fiber
effluent
CTT
Biogas Corn
Yeast
Supply
Fleet
Biogas
Biogas Processing
Yeast
Yeast
Dry
Lignin
Processing
Biogas
Processing
Biogas fiber
Yeast
Starch
Processing
Corn
Lignin
Organomineral
Fertigation
Ethanol
DDG
Bran
TECNORED
Pyrolysis
Roasting
Crowding
Oil
18
GUSA

19. Contextualization of the project
Pilot and Binding Plant Integration - Products and Co-products
Bicarbonate
Starch
Oil
Yeast
Energy
Pyrolysate
Ethanol Ethanol
Protein
Biogas Biogas
Bran Fiber
E2G Biomass
19 Organomineral

20. ENGINEERING &
TECHNOLOGY
Development of
Biomass (R&D)
20

21. Biomass
Sustainability in Land Use and Occupation - Environmental Issues
Strict compliance with current legislation;
Performance in the scope of the best corporate socio-environmental practices of the monoculture agricultural sector;
Commitment to the “green” supply chain - suppliers and producers; Consideration of outstanding
environmental values in the context of cultivation areas;
Priority option for deforested areas, particularly degraded pastures - focus on zero deforestation;
Environmental control and monitoring plans and programs:
Land uses; biodiversity; control of forest fires; water and soils / sediments; Consideration of International Finance
Corporation - IFC Performance Standards.
Nursery of Native Species Ecological Corridors
21 Integrated Planning

22. Biomass
Scope of Technological Development
Pilot area for the development of energy crops
✓ Development of an agricultural production area of 2000 ha to study the
main energy biomasses;
Genetic Development Field
Pilot Area
Competition
in
Varieties
Crossings
Ge
22 netic
Tests in
Demo Plots

23. ENGINEERING &
TECHNOLOGY
INTEGRATED COMPLEX
PRODUCTION
LOW METALLIC
CARBON
23

24. Metalworking Pole in Marabá - TECNORED
The plant will be installed in the area of the former Carajás pig iron
Pig iron
TECNORED
Pilot plant/
Laboratory of
Biomass
Partial Disassembly /
Mps Courtyard
Inputs for
Cement and
Fertilizers
Steel Waste Ore
of iron recycled
Pig iron Cogeneration of
Energy
Jobs
(direct + indirect)
24
0.8 Mta 0.1 Mta 0.5 Mta 70 MW 0.2 Mta 1,200

25. Tecnored + Biomass Project in Northern Brazil
Fepasa - 400 km
Interconnection between Vila do Conde Industrial and
Port Logistics Complex.
EFC - 892 km
Transport of ores, pig iron, manganese,
copper, fuels and coals
State of Pará - Natural Candidate
Second largest state in Brazil in area and with Mining and
Agribusiness are important economic activities, Pará is a natural
candidate for the new plant using Biomass and the construction of
39 others, totaling 20 Million tons of pig iron per year
Proper Logistics System:
Porto Ponta da Madeira (PDM) Porto
Vila do Conde
Presence
Industrial Eucalyptus
in Forests
Land Availability
25 Serra dos Carajás - VALE Iron
Ore Source
Soil and climate suitable for
cultivation of short-cycle biomass
EFC - Railroad Carajás FEPASA -
Ferrovia Paraense

26. END
26