Air Emissions (GHG And Others)
Reducing our air emissions, and in particular our GHG emissions, stands as a pivotal strategic objective outlined in our established sustainability roadmap. A crucial initial phase towards effective GHG management entails precise identification, measurement, and monitoring of our emissions.
It is important to note that Qatar Steel distinguishes itself from most international steel manufacturers by utilising natural gas as an energy source for steel production. This is a cleaner and more environmentally friendly alternative to the conventional method of coal burning.
In line with the QatarEnergy GHG Accounting and Reporting Programme, our approach involves managing and reporting GHG emissions as carbon dioxide equivalent (CO2eq) for Scope 1 and Scope 2 emissions. This framework aligns with the European Union Monitoring and Reporting Regulation (MRR2012), ensuring consistency and adherence to international standards.
Scope 1 emissions encompass direct emissions resulting from fuel combustion (natural gas and flaring) and from emissions that take place in our processes. Emissions due to combustion of natural gas and flared gas are calculated using emission factors derived from the gas characteristics which we periodically analyse. The gasses included in the calculations are CO2, CH4 and N2O from Natural Gas combustion, materials and process emissions. Scope 2 emissions cover indirect emissions arising from the consumption of electricity. These emissions
are calculated using emission factors provided by QatarEnergy for Kahramaa.
To ensure the credibility of our GHG report and verification, QatarEnergy has entrusted SGS, UK as the third-party verifier. We are pleased to announce that Qatar Steel has successfully completed the verification process in April 2023 and obtained the Scope 1 and Scope 2 verification statement in May 2023 (please click here or visit https://www.qatarsteel.com.qa).
Furthermore, to participate in the worldsteel CO2 emissions data collection programme, Qatar Steel submits CO2 emission monitoring data to worldsteel annually. In year 2022, we received a recognition for our 15-year participation in the “Worldsteel Climate Action Data Collection Programme” as climate action data provider.
Qatar Steel’s Impact: Climate Action
In 2022, based on the submitted annual report on CO2 and Energy intensity by the World Steel Association, Qatar Steel is positioned in the top 15% performers in terms of CO2 intensity. This recognition is a result of our ongoing dedication and focus on reducing CO2 emission intensity. Additionally, we are proud to have received a 15- year recognition certificate for our continued participation in the worldsteel Climate Action data collection program.
In the current reporting period, both Scope 1 and Scope 2 absolute emissions experienced an increase compared to the previous year. This notable increase can be attributed to the rise in production levels, primarily at the energy intensive DR2 facility, which heavily relies on natural gas combustion.
The reporting of GHG intensity at Qatar Steel is based on the World Steel Association frameworks, which employ the total production of crude steel as the denominator.
It is important to note that although our GHG intensity has increased during the reporting period, our value remains approximately 43% lower than the global industry average, equal to 1.91 tons CO2eq/ ton of crude steel produced. Even when comparing our intensity to the global average for the DRI-EAF route (equal to 1.65 CO2eq/ ton of crude steel cast1), still it is 23% lower.
As part of our ongoing sustainability journey, we have identified the strategic objective of achieving a Breakthrough Low Carbon Footprint in the Steel Industry.
As part of this commitment, we have set a target to measure and monitor Scope 3 emissions, specifically focusing on transport related emissions, including upstream and downstream activities, employee transportation, and business travels. This target was incorporated into our updated Sustainability Policy in 2022. As for the upcoming year, we will map all the sources of transport-related emissions and after that we will start the monitoring process.
Currently, we are actively evaluating the impact of transportation resulting from our production, including both procurement of raw materials and shipping of finished products. To do so, we analyse the percentage of transport taken place via sea or road, while also evaluating our environmental footprint in terms of kilometres per tonne of material:
During 2022, we also dedicated significant efforts to conducting pre-feasibility studies focused on exploring and evaluating various initiatives aimed at reducing our Scope 1 carbon emissions. One of them revolved around the implementation of H2 DRI (Hydrogen Direct Reduced Iron) technology, in collaboration with our technology supplier (MIDREX). This innovative approach seeks to replace natural gas with hydrogen-based processes.
These studies are still in the early phase of exploration and require a detailed feasibility study and necessary approvals.
To effectively manage and reduce the fugitive emissions, Qatar Steel has implemented a comprehensive program focused on monitoring and controlling natural gas losses.
Since 2019, we have initiated a third partyled survey of natural gas pipelines, known as LDAR (Leak Detection and Repair), to systematically monitor gas leakages. This monitoring extends to all potentially leaking equipment, including valves, pumps, flanges, and connectors and is followed by a maintenance campaign aiming at reducing or eliminating such losses.
The final maintenance survey report, which includes Methane Emissions and LDAR findings, provides valuable insights into the emission reduction achieved through equipment repairs and mapping of new sources of leaks. The downward trend of the fugitive emissions, compared to the first period of implementation of LDAR, highlights the efficiency of the program implemented.
OTHER AIR EMISSIONS
Significant air emissions for Qatar Steel, as listed on our CTO, are those of sulphur dioxide (SO2), nitrogen oxides (NOx), and particulate matter (PM). These emissions primarily result from the combustion of natural gas. To effectively assess and control these environmental emissions, we conduct regular monitoring activities. The monitoring procedures employed include Ambient Air Quality Monitoring (AAQM), monthly assessments of ambient air quality at various locations conducted by a third-party entity, utilisation of Continuous Emission
Monitoring Systems (CEMS), and manual stacks monitoring.
To mitigate the impact of emissions, we have implemented pollution control measures across all emission sources. These measures involve the use of bag house filters at EAFs and lime kilns, cyclone dust collectors, and wet scrubbers at DR Plants. Additionally, the company has established control units to address fugitive emissions, such as conveyor belts, hoppers, and suction hoods.
Despite the production levels increased, during 2022, we were able to keep the amount of pollutants emitted to the air constant (NOx) or even reduce them (-17.5% SO2 emissions and -15% PM emissions). The reduction in PM emissions is mainly due to improved dust control measures, such as using fog cannon and increasing the dust suppression frequency.