China's TISCO breaks new ground with 0.9 mnt zero-carbon ferro chrome plant

*Company relies on Baowu's low-carbon technology series

*Production line will be located in Shuozhou, Shanxi Province

*New plant a trailblazer in the global steel industry

Taiyuan Iron & Steel Co. (TISCO) is setting up a 0.9 million tonnes (mnt) per year plant for zero-carbon ferro chrome production in China's Shanxi Province. The project will tap available photovoltaic power in the region to produce hydrogen, which will then be used for chrome ore smelting, thereby forming an integrated chain of green power + green hydrogen + hydrogen smelting + capture and utilisation of carbon dioxide.

Baowu Group, the world's top steel producer, has a 51% stake in TISCO. The company's stainless steel production is around 6 mnt per annum at present. By 2023, TISCO and Baowu Group plan to build a mega conglomerate with a total capacity of around 15 mnt of stainless steel and by 2025 the target is as high as 18 million mnt, which would triple TISCO's yearly output.

TISCO's affiliation with Baowu, and announcements related to enhancing stainless steel production capacity, is part of the consolidation measures China is seeking in the steel sector. Privately owned stainless steel major Tsingshan, with capacity of over 10 mnt, has huge production facilities in Indonesia.

Green hydrogen metallurgy

China's fifth session of the 13th National People's Congress opened in the Great Hall of the People in Beijing on 5 Mar'22. The delegation from Shanxi Province comprised Gao Xiangming, deputy to the National People's Congress and Chairman of the TISCO Group, one of China's and the world's leading stainless steel producers.

Outlining TISCO's plans to achieve low-carbon development, Xiangming said the growing maturity of global low-carbon metallurgical technology and Baowu Group's low-carbon metallurgy process technology will be used to accelerate emissions reduction in carbon steelmaking.

In stainless steel manufacturing, TISCO will develop key technologies for hydrogen metallurgy, build an emissions reduction project at Shuozhou in Shanxi Province in order to make full use of its abundant photovoltaic resources to generate electricity, use green electricity to produce hydrogen and use hydrogen produced through a fossils-free route to reduce chromium ore used in stainless steel.

The near-zero emissions chromium alloy production line will be a trailblazer in China's stainless steel industry and promote the low-carbon development of the industry on a global scale, Xiangming said.

High-end industrial transformation

The 0.9 mnt ferro chrome smelting project will be located in the Shuozhou Economic Development Zone and while Shuozhou is engaged in the refined coal industry, it is also actively seeking industrial transformation.

At a meeting held recently, Baowu Taiyuan Iron and Steel Group delegates presented a report to the Shuozhou Economic Development Zone Management Committee on the implementation of the ferro chrome smelting project and related matters such as project implementation, land integration, and the water, electricity and heating requirements of the proposed site.

The development of low-carbon industries in sync with China's 'dual carbon' goals is an opportunity for Shuozhou to establish high-end industries. TISCO has a strong technical force and obvious industrial advantages. A leader in the global stainless steel industry, it has rich experience in the development of mineral resources, new material industries, engineering technology, energy savings and environment protection. Shuozhou is a city with high development potential and outstanding advantages in terms of land, energy, transportation, etc.

All relevant departments at all levels are required to support the project construction, strengthen service guarantees, coordinate and integrate resources and optimise the industrial layout. On its part, TISCO has promised to strengthen investor confidence, coordination and communication, accelerate the implementation of projects and to ensure that construction starts soon.

Xiangming said Shuozhou has unique resource endowments, a solid industrial foundation and development potential. TISCO Group will speed up the in-depth investigation and feasibility study for the project and complete the preliminary work as soon as possible.