1. Circular Manufacturing
WMF 2016
Circular Manufacturing
World Manufacturing Forum
Barcelona
4 May 2016
Axel Eggert, Director General

2. EU Steel industry 500 production sites 320,000 direct jobs
166 billion € turnover
1.3% of EU‘s gdp
Millions dependent jobs in value chain
1 € demand for steel = 3.1 € to society

3. Steel in the circular economy
Steel underpins value-chains
Automotive
Construction
Transportation
Machinery & engineering
Electricity & power applications
Source: WorldSteel

4. Steel in the circular economy
The advantages of steel
Source: EUROFER

5. Steel in the circular economy
Steel’s circularity is reality, not just theory
Globally, 650 million tonnes of steel are recycled every year
That’s nearly 40% of total global production
Since 1900, 22 billion tonnes of steel scrap has been recycled globally
Saved 28 billion tonnes of iron ore
Saved 14 billion tonnes of coal
50% of steel produced in Europe is made from scrap
Source: WorldSteel

6. Steel in the circular economy
Scrap will gradually become a greater share of production
Global scrap availability to hit 1 billion tonnes in about 2030
Source: WorldSteel

7. The future of circular steel
Demand is set to peak: the system will reach equilibrium
Source: EUROFER

8. Steel in the circular economy
How long does steel take to be recycled?
Steel returns to the scrap pile at different rates
‘Material recovery’ is thus an important step in the Circular Economy
20% of European scrap leaves the continent – the leakage of a valuable resource
Source: WorldSteel

9. Steel in the circular economy
Source: WorldSteel

10. Achieving circular steel
Focus on by-products – from the blast furnace
(Primary) Steelmaking results in useful by-products…
Process gases
Ferrous slag
…which substitute for natural resources in other sectors
Steel production is almost “closed-loop”
Very little can be considered “waste”

11. -50% : C02 emissions from EU Steel
Source: EUROFER

12. Breakthrough TEchnologies
ULCOS project
ULCOS stands for Ultra-Low CO2 Steelmaking.
Aims to reduce CO2 from primary steel production by 50%
Hlsarna is an example of ULCOS in practice
Carbon Capture & Use
Use process gases to produce ethanol, methanol, dimethyl ether or formic acid using catalytic & biological processes
Source: Tata Steel

13. Fostering circular steel
EUROFER priorities on the EU’s circular economy package
Recognition in legislation of steel as „permanent material“
Preference for material-to-material recycling
Proper differentiation between Recycling and Recovery
Clear definition of the final recycling process
Product design requirements on recyclability, disassembling, reuse
Priority of end-of-life recycling over recylced content targets
‘By-product’ status cogenerated products & market incentives
Incentives for Carbon Capture & Use
Public funding and risk financing for relevant projects

14. Conclusions Steel is at the forefront of the circular economy
For the steel industry, circularity is fact, not theory
Eventually, demand for steel will be in equilibrium with the availability of scrap
Nevertheless, there are important areas of research
Further reducing CO2 from production
Putting to even better use all by-products, including carbon-based
EU policy measures can be improved to better support steel industry’s efforts

15. Steel is high tech