With the aim of promoting new technology in the sponge iron plants to reduce carbon emission and ensure optimum use of the resources in the production process, the Orissa government plans to promote a sponge iron cluster at Bonai in Sundergarh district.
About 11 sponge iron units located in about 5 km radius of Bonai are proposed to be covered under the Cluster Development Programme (CDP).
Since Orissa considers the sponge iron plants as major feeders units for steel production in the state, improving productivity, reducing emissions and optimisation of resources have turned out to be of paramount importance.
Emanated as an initiative of the Green Technology Cell (GTC) of Industrial Promotion and Investment Corporation (Ipicol), the programme aims to reduce the consumption of raw materials like coal and iron ore by the sponge iron plants. It also aims to minimise the pollution by these units to make the production process sustainable.
As part of the Technical Assistance Programme, the United Nations Industrial Development Organisation (UNIDO) will commission a study on Bonai cluster and suggest adoption of new technology to reduce carbon emission.
However, the sponge iron cluster will be formed first after which a diagnostic study for the sponge iron units will be commissioned by UNIDO. Depending on the outcome of the diagnostic study, the model of developing the project will be decided, sources said.
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The diagnostic study will make assessment on ways to increase productivity of those sponge iron units located at Bonai and will aim at minimising the level of pollution through use of waste gases and solid waste management.
A special purpose vehicle (SPV) will be formed to implement the project. The Bonai Sponge Iron Association may also be roped as partner in the implementation of the project.
Sources said, at present, these sponge iron units are producing about 2000 tonne char having low calorific value per day. So the project envisages to utilise the char generated by these sponge iron units to generate about 60Mw to 70 Mw power. It is proposed to link this project with carbon credit under the Clean Development Mechanism (CDM).
Further, it also envisages to use pellets in the sponge iron units and increase their efficiency. Each unit will be assessed for increasing the energy efficiency, reduce consumption of water and raw-material. Besides, the possibility of these units having common facilities like coal washery, water storage, R&D and testing facilities will also be explored.