To: Senate Additional Committee Support (SEN)

Subject: Scott submission re Steel Industry and associated matters Date: Wednesday, 6 April 2016 4:02:34 PM Attachments: Attachment to Scott submission to Senate Enquiry re Steel Industry Sustainability.pdf Scott submission to The Senate enquiry re the future sustainability of ’s steel industry and any other related matters..pdf

The Secretariat, The Senate Economics References Committee, Enquiry into the future of Australia's steel industry and related matters.

Please accept this email and the two attachments to it as my submission.

I have focussed my attention on some aspects of Arrium's steel industry in and the most affected community, .

I have attempted to address aspects of the industry and the community which were not canvassed in detail during the public hearing which I sat through in the Whyalla Council Chamber during yesterday afternoon.

My main submission document (attached) is set out in three parts - A, B and C:

A. Government options for action to increase demand for Steel products from the Whyalla steel mill.

B. Government options to facilitate the transition of various steelmaking processes from dependence on fossil fuels, to use of renewable energy, and thereby improve prospects of future sustainability.

C. Government options for facilitating steel community transition..

The second attachment to this email supports part B of the main document with brainstorm notes from 2010 about potential to reduce dependence of steelmaking and other industries on fossil fuels.

Kind regards,

Andrew John A. Scott FIEAust

Russell Street Whyalla Norrie SA 5608 Scott submission to The Senate Economics References Committee – enquiry re the future sustainability of Australia’s steel industry and any other related matters.

In response to Term of Reference number one, some strategic points for government response to the steel industry situation in Whyalla are:

A INCREASE the MARKET DEMANDS for outputs from the Whyalla Steel Mill - for example:

1. Government(s) to place orders for rails etc for the Australian National rail network.

2. Government(s) to place orders for rails etc for the rail network.

3. Government(s) to place orders for structural angles for the transmission towers needed to upgrade the High Voltage Transmission network on Eyre Peninsula from Whyalla to .

4. Government(s) to place orders for structural angles for the towers needed to upgrade/extend the High Voltage Transmission network across Eyre Peninsula from Whyalla to the Elliston coast to encourage wind farm developments in the regions of high wind resource.

5. Government(s) to place orders for structural angles for the towers needed to upgrade the High Voltage Transmission network between South Australia and New South Wales.

6. Government(s) to place orders for structural angles for the towers needed to upgrade the High Voltage Transmission network between South Australia and Victoria.

7. Identify and bring forward other public infrastructure works which require use of structural steel in the form of columns, beams, channels and angles. Possibility 1 - a desalination plant on the southwest coast of Eyre Peninsula. Possibility 2 – a pumped storage hydro power station between Whyalla and .

Scott submission to The Senate Economics References Committee – enquiry re the future sustainability of Australia’s steel industry and any other related matters.

B In pursuit of sustainability, FACILITATE the TRANSITION of the Whyalla Ironmaking and Steelmaking Processes from high dependence on Fossil Fuels to use of ‘Renewables’ - for example:

1. Government(s) to fund and expedite Innovation Investigations and Trials for introducing solar thermal inputs to the Blast Furnace Hot Blast system.

2. Government(s) to fund and expedite Innovation Investigations and Trials for introducing solar thermal inputs to the Coke Ovens Coking cycle.

3. Government(s) to fund and expedite Innovation Investigations and Trials for introducing solar thermal inputs to the Pellet Plant Induration system.

4. Government(s) to fund and expedite Innovation Investigations and Trials for introducing solar thermal inputs to the operation of the Lime Plant Kilns.

5. Government(s) to fund and expedite Innovation Investigations and Trials for introducing solar thermal inputs to the operation of the Steel Mill Reheat Furnace.

6. Government(s) to fund and expedite Innovation Investigations and Trials in the use of solar thermal inputs in methods of large scale production of Hydrogen.

7. Government(s) to fund and expedite Innovation Investigations and Trials for injection of Hydrogen into the Blast Furnace to increase liquid iron output and reduce coke consumption and hence CO2 emissions.

For further background to the above 7 points see the attachment to this submission - some brainstorming notes compiled in 2010 re some sustainability improvement possibilities for various steelmaking processes.

Scott submission to The Senate Economics References Committee – enquiry re the future sustainability of Australia’s steel industry and any other related matters. In response to Term of Reference number two, some strategic points for government response to the crisis situation of the Whyalla community are :

C FACILITATE Steel Community Transition Assistance Whyalla community has already been severe adversely affected by the changed circumstances of it’s steelmaking and related mining activities.

During similar circumstances in the early 1980’s a $10 million Steel Community Assistance fund was provided for Whyalla. Among other things, new public infrastructure was established, including the Whyalla Marina.

A Whyalla community assistance fund of the order of $100 millions is needed now for local infrastructure – to create local employment, immediate and continuing - to create conditions for diversifying the local economy - to enhance the lifestyle appeal of the Whyalla region for current residents, retirees and visitors.

Examples: Government funding is needed now to provide Facilities for Cultural services and Tourism infrastructure such as:

1. Establish a modern multipurpose Public Art Gallery

2. Develop the Tanderra Heritage Precinct including a Steelworks Museum and Whyalla Visitor Centre redevelopment.

3. Upgrade the Museum and the Recreation Reserve at the Mount Laura Homestead precinct in the hub of the city.

4. Establish a Lowly Peninsula Caravan Park and camping facilities.

5. Establish a Cuttlefish Coast Interpretive Centre.

AJA Scott 05 April 2016

Attachment to Scott submission to The Senate Economics References Committee – enquiry re the future sustainability of Australia’s steel industry and any other related matters.

“Carbon” industrial initiatives SA – 2011 onwards AIMS:  Firstly to encourage growth of our renewable energy sector.  Secondly to reduce reliance on rapidly exhausting fossil fuels.  Thirdly to reduce emissions of carbon dioxide into our atmosphere. SOME BRAINSTORM OPTIONS: STEELWORKS CONVERSIONS FROM FOSSIL FUEL DEPENDENCE:

Ironmaking:  PREHEAT THE HOT BLAST AIR FOR THE BLAST FURNACE (4,000 tonnes per day at 1,200 degrees Celsius) by solar thermal or electric heating , compression, heat pump or some other “non Fossil fuelled” means. (currently gas is burned for heating stoves which preheat the hot blast air)  INJECT HYDROGEN INTO THE BLAST FURNACE to improve furnace throughput and reduce the volume of coke required as the reductant and energy source.

Cokemaking:  Use solar thermal or electric heating, compression, heat pump or some other “non fossil fuelled” means of providing a superheated draught of air to pass through the ‘hollow”refractory walls which separate the ovens and thereby heat up the Coke Ovens Battery. (currently gas is burned for heating the ovens))

Pelletising:  Use solar thermal or electric heating, compression, heat pump or some other “non fossil fuelled” means of providing a superheated draught of air to pass through and heat up the Pelletising Kiln and pellets. (currently gas is burned for heating)

BLOOMS/BILLETS Reheating:  Use solar thermal or electric heating, compression, heat pump or some other “non fossil fuelled” means of providing a superheated draught of air to pass through and heat up the Reheat furnace and steel feed. (currently gas is burned for heating)

LIME KILNS  Use solar thermal or electric heating, compression, heat pump or some other “non fossil fuelled” means of providing a superheated draught of air to pass through and heat up the Kilns and their feed materials. (currently gas is burned for heating)

POWERING WHYALLA STEELWORKS AND ASSOCIATED MINESITES:  Purchase 100% green electricity when buying in electrical energy. Attachment to Scott submission to The Senate Economics References Committee – enquiry re the future sustainability of Australia’s steel industry and any other related matters.

SOLAR THERMAL  Utilise solar concentrating dishes/troughs for heating large quantities of air to very high temperature (500-1200 degrees Celsius) for industrial process heating.  Utilise solar concentrating dishes for powering production of HYDROGEN.

POWERING NEW MINING VENTURES:  Insist that all new electric power requirements for the Olympic Dam expansion and other new mines must come from NEW RENEWABLE ENERGY FACILITIES.

WINDFARMS FACILITATION:  Provide a new HV power transmission line from the Cultana substation to the Cleve-Kimba region for new windfarms.  Provide a new HV power transmission line from the Cultana substation to the Elliston Coastal region for new windfarms.  Provide a new HV power transmission line from the Cultana substation to the White Flat-Ungarra region for new windfarms.

PHOTO VOLTAIC FARMS FACILITATION :  Encourage distributed large scale photovoltaic stations for electricity generation along the routes of Northern and new East to West HV power transmission lines.

ENERGY STORAGE:  Provide elevated storage facilities for pumped seawater, to support our electricity network which is currently seriously flawed in having no energy storage.  Progressively install storages for up to 100 million tonnes on Cultana plateau overlooking Blanche Harbour Upper  Investigate storages on the Nullarbor overlooking the .

GRID RESPONSIVENESS TO SURGES AND PEAKS IN ELECTRICITY DEMAND  Install hydro power stations to give our seriously flawed electricity network some rapid response capability for meeting surges in electricity demands and also to meet recurring peak power requirements.  Top priority to be a Cultana Pumped Hydro Station rated at 500 MW for 4 days or 1000 MW for 2 days.

AJA Scott FIEAust Whyalla Norrie SA Sept 2010