Font Family: Benton Sans 131, 176, 70 Steel production through electrolysis: impacts for electricity consumption 0, 0, 75 204, 102, 51 Adam Rauwerdink 144, 144, 144 VP, Business Development October 18, 2019 Font Family: A 3,000 year old formula Benton Sans Iron Ore Carbon (Coal) Iron Carbon Dioxide 131, 176, 70 Fe2O3 C Fe CO2 0, 0, 75 204, 102, 51 >2 144, 144, 144 Gt CO2 per year (8% of global emissions) Iron Age 1000 BC Digital Age 2019 2 Boston Metal | 2019 Font Family: Steel in 2018 Benton Sans 131, 176, 70 Aluminium is #2 at 1,800 64 million tonnes 0, 0, 75 million tonnes 204, 102, 51 70% 30% 144, 144, 144 Integrated Steel Mill Mini Mill (Iron ore new steel units) (Scrap recycled steel units) Source: World Steel Association 3 Boston Metal | 2019 Font Family: Integrated steel mill: material flow Benton Sans 131, 176, 70 0, 0, 75 204, 102, 51 144, 144, 144 4 Boston Metal | 2019 Font Family: Molten oxide electrolysis (MOE) is emissions free Benton Sans Molten Oxide Electrolysis (MOE) 131, 176, 70 Iron Ore Electricity Iron Oxygen 0, 0, 75 - Fe2O3 e Fe O2 204, 102, 51 144, 144, 144 No carbon in the process = No CO2 emitted Electricity decarbonization eliminates/reduces indirect emissions! 5 Boston Metal | 2019 Font Family: Changing the formula from coal to electricity Benton Sans Iron Ore Carbon (Coal) Iron Carbon Dioxide 131, 176, 70 Fe2O3 C Fe CO2 0, 0, 75 204, 102, 51 Molten Oxide Electrolysis (MOE) 144, 144, 144 Iron Ore Electricity Iron Oxygen - Fe2O3 e Fe O2 6 Boston Metal | 2019 Font Family: MOE is more energy efficient Benton Sans ENERGY TO PRODUCE ONE TONNE OF CRUDE STEEL 6 131, 176, 70 5 5.5 MWh COAL 0, 0, 75 4 4 MWh 3 ELECTRICITY 204, 102, 51 2 144, 144, 144 1 0 Integrated Steel Mill Molten Oxide Electrolysis (Coke Oven > Blast Furnace > Basic Oxygen Furnace) Source: World Steel Association 7 Boston Metal | 2019 Font Family: But the sheer volume (and energy) is immense Benton Sans 131, 176, 70 1.2 Bt 0, 0, 75 Integrated Steel production requires: 204, 102, 51 Today 100% MOE 144, 144, 144 Nearly 1 Bt of Coal 4,800 TWh of Electricity (~15% of 2018 consumption) (~20% of 2018 consumption) Aluminium production used 870 TWh Source: World Steel Association 8 Boston Metal | 2019 Font Family: Transportation will be demand far more electricity Benton Sans Fossil Fuel Electricity Retirement (TWh) Growth (TWh) 131, 176, 70 Steel Production (100% MOE Adoption) 6,600 (Coal) 4,800 0, 0, 75 Transport 204, 102, 51 (2° Scenario) 15,900 (Oil) 7,100 144, 144, 144 Transport (Beyond 2° Scenario) 22,900 (Oil) 10,200 TWh (2014 vs 2060) Source: IEA 2017 Technology Perspectives 9 Boston Metal | 2019 Font Family: In US, LED savings could power all MOE steel Benton Sans 131, 176, 70 26 Mt MOE Production 104 TWh 0, 0, 75 US Integrated Steel Electricity needed production 2017 204, 102, 51 ACEEE: US LED Lighting Electricity Savings (2030 vs 2019) 144, 144, 144 45 TWh + 56 TWh Residential Commercial Source: American Council for an Energy-Efficient Economy New Horizons for Energy Efficiency: Major Opportunities to Reach Higher Electricity Savings by 2030 10 Boston Metal | 2019 Font Family: Lower cost and lower volatility Benton Sans Steel Raw Materials Cost $ per tonne steel $600 131, 176, 70 “Green” steel premium equivalent to $30/t-CO2 0, 0, 75 $400 204, 102, 51 $200 Blast / Basic Oxygen 144, 144, 144 Furnace Iron Ore Coking Coal $0 Scrap 2004 2006 2008 2010 2012 2014 2016 2018 11 Boston Metal | 2019 Font Family: Lower cost and lower volatility Benton Sans Steel Raw Materials Cost $ per tonne steel Molten Oxide $600 “Green” steel premium 131, 176, 70 Electrolysis equivalent to $30/t-CO2 Iron Ore Electricity 0, 0, 75 $400 $35/MWh 204, 102, 51 $200 Blast / Basic Oxygen $15/MWh 144, 144, 144 Furnace $15-35/MWh Electricity Iron Ore (Typical for aluminum industry) Coking Coal $0 Scrap 2004 2006 2008 2010 2012 2014 2016 2018 $15/MWh = 35% lower materials cost (2004-2018) 12 Boston Metal | 2019 Font Family: World-class partners Benton Sans 131, 176, 70 Tavarua 0, 0, 75 International 204, 102, 51 144, 144, 144 13 Boston Metal | 2019 Font Family: Metals made better Benton Sans Emissions free steel Lower commodity cost Industrial-scale modularity 131, 176, 70 0, 0, 75 204, 102, 51 144, 144, 144 Electrifying the largest industrial source of CO2 Competitive without a carbon tax Efficient allocation of capital 14 Boston Metal | 2019 .