Linde to initiate a cryogenic oxygen plant in Rourkela, Odisha
Linde's subsidiary in India has secured a contract to establish a cryogenic oxygen plant with a capacity of 1,000 tonnes per day in Rourkela, Odisha. Following the receipt of a Letter of Acceptance from the Steel Authority of India (SAIL) on 25th August 2023, Linde India is set to undertake the project, which will operate on a construct, operate, and maintain basis for two decades post-commissioning. The contract also has a provision for a potential five-year extension, contingent on mutual agreement.
Request Access To The Latest Price Trends of Steel
The Rourkela Steel Plant, established in 1955, stands as India's inaugural fully integrated steel facility, boasting production capacities of 4.5 MTPA of hot metal, 4.2 MTPA of crude steel, and 3.9 MTPA of saleable steel. Oxygen plays a pivotal role in steel production, influencing the quality of the end product. In steelmaking processes like the basic oxygen furnace and EAF, carbon reacts with oxygen to form carbon monoxide. The combustion of CO to CO2 releases thrice the energy, facilitating the melting of more scrap in the BOF, thereby optimizing the energy required for steel production.
Data from Statista reveals a surge in India's crude steel production using BOF from 40.6m tonnes in 2016 to 57.4m tonnes in 2022. Interestingly, India has recently outpaced China in the development of coal-based steelmaking capacity. Reports indicate India accounts for 40% of the coal-based blast-furnace-basic BOF capacity in the developmental phase, slightly ahead of China's 39%. Th`is growth, however, contrasts with the global momentum to curtail coal-based steelmaking.
The International Energy Agency's projections emphasize the need for EAF capacity to constitute 53% by 2050. This implies the retirement or cancellation of nearly 350m metric tonnes of coal-based capacity and the addition of 610m metric tonnes of EAF capacity. Linde Hydrogen's report titled 'Green steel: the road to Net Zero' sheds light on potential technologies that can curtail emissions and facilitate a transition to clean hydrogen. Linde's OXYGON product line, which employs pure oxygen for combustion, can enhance the heating process's efficiency, as explained by David Muren, Linde's R&D Director for Europe, Middle East, and Africa.
Linde asserts that the adoption of oxyfuel and hot oxygen technologies in steelmaking can diminish carbon emissions by up to 60%, translating to an annual reduction of 200m metric tonnes of CO2. Linde also emphasized the potential of 'green oxygen', produced using renewable energy sources. Furthermore, Linde India's shares recently soared after securing a contract with the Indian Oil Corporation.
Read More About Liquefied Steel Production Cost Reports - Get Free Sample Copy in PDF
According to the article by Procurement Resource, Linde India's recent contract to establish a 1,000 tonnes per day cryogenic oxygen plant in Rourkela, Odisha, emboldens the pivotal role of oxygen in steel production. As India's steel production surges, notably outpacing China in coal-based steelmaking capacity, there's a global push towards cleaner methods. Linde's innovations, like the OXYGON product line and 'green oxygen', offer promising solutions to reduce carbon emissions in steelmaking by up to 60%. This commitment to sustainable practices has positively impacted Linde India's market standing, as evidenced by its rising shares post the Indian Oil Corporation contract.
