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HIsarna – Developing a Sustainable Steel Production Process |
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| This case was adjudged Runner-up in the Project Management Institute (PMI) 2019 Instructional Case Writing Competition at the Decision Sciences Institute Annual Meeting. |
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| The steel industry played a major role in the global economy. Steel was extensively used in industries like construction, heavy engineering, infrastructure development, shipping, and automobile, as well as in the production of coal, natural gas, electricity, and raw minerals. The production of steel increased constantly over the years, and 1.5 billion tons of steel were produced in 2012 as against 0.85 million tons in 2001. Steel, an alloy of iron and carbon, was one of the most recycled industrial materials in the world with 97% of steel being reused, remanufactured, or recycled to create new products... |
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| The Paris Agreement set standards for CO2 reductions globally. The European Union was targeting to cut the emission levels by 80%–95% of the 1990 levels by 2050. The European Union was also looking toward developing a circular economy to reduce pressure on the environment and to enhance security of supply of raw materials... |
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| HIsarna originated from HI-for HIsmelt (process from Rio Tinto) and sarana from Isarna, the Celtic word for iron. It was a combination of three processes namely, the heated screw coal pyrolysis feeder, Cyclone Converter Furnace (CCF), and the HIsmelt vessel... |
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| The IJmuiden, based in Velsen-Noord, the Netherlands, was founded in 1918 and became a part of Tata Steel after the acquisition of Corus. It employed around 9000 people and produced 7 million tons of steel annually. As a part of the ULCOS project, Tata Steel built the HIsarna pilot plant in 2010. The € 20 million plant was funded jointly by ULCOS, the European Commission, and the Dutch Ministry of Economic Affairs... |
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| HIsarna was expected to become a game changer that significantly improved the sustainability performance of steel production. Steel companies and scientists from all over the world took a keen interest in the development of HIsarna, and touted it as a revolutionary innovation that had eliminated 2 out of the 3 process steps for iron making. It was seen as a solution to high energy use and CO2 emissions. .. |
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| The main challenge was to develop HIsarna into industrial scale, and transition to suit specific location size and configuration. After successful runs, the designing of the HIsarna industrial plant began. The plant was two to three times the size of the existing plant and could make ten times more liquid iron. .. |
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| Realizing that trading was a sunset industry, William and Victor planned to evolve Li & Fung into a supply chain manager by taking the company through several stages of development, driven by significant changes in the global retailing industry, customer and retailer preferences, and economic trends across Asia... |
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Exhibit I: Tata Steel – Global Presence
Exhibit II: Tata Group – IJmuiden Plant
Exhibit III: CO2 Emissions and Energy Consumption Per ton of Crude Steel 1960-2014
Exhibit IV: HIsarna
Exhibit V: HIsarna Process – Key Development Achievements
Exhibit VI: Conventional Steel Making Vs HIsarna
Exhibit VII: HIsarna with Carbon Capture
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