This paper presents the potential for energy savings in various capacity sponge iron plants by estimating heat transfer rates using stabilized and optimized temperature data within the rotary kiln/reactor Air jet seal instead of mechanical seal arrangements at specific locations in the rotary kiln and cooler are proposed and this is shown to reduce the power consumption and the size of the centralized grease lubricating system. The paper proposes atomized water spray on the post combustion chamber instead of larger droplets to reduce the size of the water handling system, thereby saving energy. The paper also suggests optimization of the performance of a pneumatic coal injector by optimizing coal and air quantities.