—

W H I T E PA P E R

Energy efficiency
in iron and steel making
2 ENERGY EFFICIENCY

—
Reducing energy consumption,
costs and emissions in the iron
and steel industry

The iron and steel industry emits 2.3 Gt of CO2 per year, which amounts to
7% of total global carbon emissions.1 To meet global climate and energy
goals, the IEA estimates that these emissions must be cut by 50% by 2050.1
This will require both decarbonization of the steel process – meaning
removing coal/fossil fuels from the energy supply – and improving energy
efficiency.
 IN IRON AND STEEL MAKING 3

—
Decarbonizing
the iron and steel industry
The largest industrial consumer of coal
On average, producing 1 ton of steel using traditional technology releases
1.85 tons of CO2 emissions. 2 The majority of these emissions come from the
two main steps in the process. First, the conversion of iron ore into iron using
blast furnaces and second, turning iron into steel using basic oxygen furnaces.
Even today, coal is used in iron and steel making to generate heat and to make
coke. As a result, the steel industry uses coal to meet 75% of its energy needs
making it the largest industrial consumer of coal. 3

—
70% of the steel produced in
the world uses coal.4

—
Energy and coal use in iron and steel making processes.

Coke making Iron making Steel making Steel finishing

Coal
Basic oxygen furnance
Coke oven

Blast furnance

Casting

Electric arc furniture

Coke, Pellet, Iron ore,
Sintered ore and
Limestone

Rolling

Steel recycling
4 ENERGY EFFICIENCY

—
New processes are being
developed which could
completely decarbonize
iron making.

In the steel making process, electric arc furnaces are a

viable alternative to basic oxygen furnaces. Because
Technological steps towards
these are electrically powered, they offer the potential to decarbonization7
eliminate the use of fossil fuels and transition to renewable
sources of electricity. Furthermore, new processes are Improving the efficiency of blast furnaces and basic
being developed that use hydrogen to replace carbon oxygen furnaces
and coke as reducing agents in production, which could • Optimizing the blast furnace mix
completely decarbonize the iron making process. • Fuel injection technologies
• Using coke oven gas
However, it must be realized that both electric arc furnaces
and producing hydrogen also require a significant amount Using biomass
of energy. For example, in 2019, 157 million tonnes of steel • Sustainable biomass from sugar or eucalyptus
was produced in the EU. 60% of this – 94 million tonnes – • To replace fossil-based fuels and reductants
could be produced using hydrogen methods. 5 Since it takes
about 50 to 55 kilowatt hours (kWh) to produce 1 kg of Electric arc furnaces
hydrogen, it has been calculated that making 94 million • Using renewable electricity
tonnes of steel using H2 would require 296 TWh of • Using recycled scrap steel or direct reduced iron
electricity. This would account for 10% of the EU’s total
electricity consumption. 5,6 Therefore, it’s important that Hydrogen
losses are minimized and efficiency is maximized at all • To replace fossil fuels
stages of the iron and steel production process. • To power electric arc furnaces
• To act as fuel and reductant in direct reduced iron
processes
 IN IRON AND STEEL MAKING 5

—
Energy use
in iron and steel making
A significant industry challenge Recycling to reduce energy use
Iron and steel production is very energy intensive, with The steel industry uses a high percentage of recycled raw
energy and raw materials accounting for 60-80% of the material and most steel production uses recycled scrap
costs.8 Globally, the industry accounts for 8% of global final steel. All the scrap steel that is collected globally is recycled,
energy use and it is estimated that steel production has with a recycling rate of approximately 85%. In plants that
doubled in the past two decades, which has caused a use electric arc furnaces, up to 100% of the raw materials
subsequent doubling of the industry’s greenhouse gas can be from recycled sources, while blast furnaces typically
emissions.9 Furthermore, it is predicted that by 2050, the use up to 30%. 11
demand for steel could increase by another 40%. 10
Compared to producing steel from iron ore, producing it
Due to the need to reduce energy consumption and from recycled steel saves significant amounts of energy
emissions, and energy costs, there is a big push in the because all the steps used to convert ore to iron, such as the
industry to find ways to improve energy efficiency. blast furnace process, are avoided. As a result, producing
These include improving the energy efficiency of current steel from recycled material also generates significantly
processes, improving material efficiency and developing fewer CO2 emissions than producing it from iron ore. It’s
new steel making technologies. Hydrogen and renewable estimated that every tonne of recycled steel scrap that is
energy are also likely to play a big role in fossil-free used to product steel prevents 1.5 tonnes of CO2 being
technology. emitted. 11 However, since the industry already has a
relatively high recycling rate, further reductions in energy
use and emissions will be hard to achieve via recycling alone.

—
Producing steel from
recycled scrap requires
1/8th of the energy
needed to produce steel
from iron ore.12
6 ENERGY EFFICIENCY

—
Iron and steel
production processes
Energy intensive processes with significant losses —
Fired heaters like blast furnaces and other furnaces use the Energy end-use in the steel industry13
majority of the energy involved in the iron and steel making
process, consuming about 81% of the final energy. There
can also be significant energy losses in an iron or steel
Other
plant, with up to 23% of the energy that enters the plant Facilities 2%
being lost to inefficiencies in equipment and distribution. 13 3%
Steam
While, motor systems account for a relatively small 7%
proportion of energy use, at around 7%, it has been Motor
estimated that up to 70% of the energy consumed by these systems
7%
motors is lost due to system inefficiencies. 1 This means
that there are actually very good opportunities to reduce
energy use in motor systems throughout the industry.
These kinds of improvements are straightforward and
quick to implement, and they typically have attractive pay-
back periods.

Motor applications in iron and steel making

Motor systems are used throughout the whole process in
applications including hot and cold rolling mills, blowers,
fans, pumps, compressors, roller tables, conveyors and Fired
other materials handling systems such as overhead cranes. heaters
81%
Within these applications, the losses can often use more
energy than the actual work done by the motor. For
example, a U.S. Department of Energy report found that in
the iron and steel industry up to 70% of the energy input to
motor systems can be lost due to system inefficiencies. 14
 IN IRON AND STEEL MAKING 7

—
Improving energy efficiency
in iron and steel applications
Energy efficient motors
—
Motors are always required for applications like pumps, fans Overall motor system efficiency –
and compressors, and improving the energy efficiency of
the motor system can have a big impact on the efficiency
a comparison of reduction in energy
of the application overall. When looking for ways to improve consumption in a motor system
the energy efficiency of a motor system, it is worth
considering the efficiency of the system overall, life cycle
costs, as well as the age and efficiency class of the motor.

Energy is by far the biggest cost associated with a running

an electric motor system, and it accounts for over 90% of
the costs over a motor’s lifetime, while the purchase price
only accounts for about 5% or less. 15 Many facilities also
operate motors well beyond their expected lifetime and in
some markets up to 60% of industrial motors are over
10 years old. 16 These older motors typically have greater
losses and hence lower efficiency than newer motors,
with an energy efficiency class of IE3 or even IE2.

As a result, investing in more modern, more energy efficient

motors, is likely to be an effective way to reduce losses,
energy consumption and cost over the course of a motor’s
life time. The potential energy savings of upgrading to a
motor with a higher IE efficiency class are quite easy to
estimate: five international classes are specified by the IEC,
ranging from IE1 to IE5, with IE1 being the least efficient and
IE5 the most efficient. Each class of efficiency equates to
20% lower motor losses. For example, IE4 motors have 20%
lower losses that IE3 motors, and 40% lower losses than an
IE2 motor. 17

Overall motor system efficiency

While reducing motor losses is worthwhile, and reduces the
motor’s operating costs throughout its life, the energy this
saves throughout the whole motor system is only one part
of the picture.

We should consider that while VSDs help increase the It is important to note that any upgrades must also take the
efficiency of motors of any age, many of the systems in efficiency of the motor system as a whole into account –
which they are employed are old and lag behind current IE efficiency gains in the motor may be squandered if the rest
standards. In these cases, particularly noticeable savings of the system is inefficient. Motor systems can be or can
may be realised through upgrading the motor to a higher become inefficient for many reasons. For example, poorly
class. maintained equipment is often responsible for significant
drops in efficiency. For pumps, it has been estimated that
regular maintenance can reduce energy consumption by
between 2% and 7%. As another example, over-dimensioned
equipment, such as motors, fans or pumps will also reduce
energy efficiency. Correcting oversized pumps could
reduce electricity consumption by 15% to 25%, estimates
suggest. 18
8 ENERGY EFFICIENCY

Variable speed drives Fans

Using variable speed drives (VSDs) to control motors can Fan systems are used in a variety of applications in steel
significantly improve the energy efficiency of motor production, including ventilation, extraction systems and
systems and the applications they run. In the iron and steel material handling. The efficiency of fan systems can be
industry, the majority of fan and pump applications operate improved in several ways, including choosing the most
at partial load and use mechanical control methods like efficient fan type for the application, proper fan sizing,
valves, brakes and throttles to regulate flow. With these better airflow design, and using VSDs. For example, it has
methods, motors run at a higher speed than necessary and been estimated that the energy saving potential in fan
waste energy, losing it as friction and heat. Variable speed systems in the steel industry in the US is about 6%. 20
drives (VSDs) can be used to overcome this type of
inefficiency. VSDs control the speed and torque of an In practice, the energy savings will depend on the
electric motor directly, enabling direct regulation of the application, however the savings can be significant. For
flow. This means that the work the motor does matches the example, in a basic oxygen furnace where large fans are
actual demands of the application and no more. This results used to control air quality and to control gasses in batch-
in higher efficiency at a range of different flow rates and it type processes, where flow demand varies greatly, adding
eliminates the need for mechanical flow control and the VSDs has been shown to reduce power demand by 20%.
associated losses. And, when VSDs are added to an improved fan system,
energy savings of 50% have been obtained. 21
Because VSDs enable motors to run at lower speeds,
they can generate significant savings. This is because in
applications with a centrifugal pump or a fan, the power
consumption of the motor is proportional to the cube of its
speed, and there is also a quadratic relationship between
the speed and torque. Therefore, using lower motor speeds
and lower motor torque will result in a measurable reduction
in energy consumption and cost. On average, adding a
variable speed drive to a fan, pump or compressor can
reduce energy use by about 25%, and in some cases
companies have seen savings of up to 50%. 19,1 With these Compressors
kinds of savings, the investment can payback in as little Different types of compressor systems are used throughout
as a year. iron and steel making, from the overall process pneumatics
air supply, up to and including applications like air
separation processes, which use very large compressor
motors. According to some estimates, more than 85% of
the electrical energy input into a compressor is lost as
waste heat. However, there are good opportunities in most
systems to improve energy efficiency. These include better
maintenance to ensure optimum performance, minimizing
leaks in pipes and equipment, using filters and cleaning
systems to ensure good compressed air quality, right sizing
compressors and pipes, better compressor control and
Pumps using VSDs. Typically, adding a VSD to a rotary compressor
Pumping systems are used throughout iron and steel system can reduce energy consumption by up to 15%.
production to pump a range of gasses and liquids including In addition, heat recovery units may be able to recover
by-product gasses, process air and cooling water. These 50 to 90% of the available thermal energy from compressor
pumping systems lose efficiency over time if they are not systems for useful work. 22 Since air separation, in particular,
maintained properly and older systems will also be less is a very energy intensive process, high efficiency motors
efficient than more modern ones. It has been estimated and compressor systems should be used to minimize
that the energy efficiency of these pumping systems could electricity consumption and costs.
be improved by 5-10% by using improved equipment and by
reducing friction through better maintenance. In addition,
optimizing pump systems, for example, by using more
efficient pumps, improving pump controls, proper pump
and pipe sizing, and using VSDs could improve energy
efficiency by a further 10-20%. 18
 IN IRON AND STEEL MAKING 9

Water treatment
CUSTOMER CASE
The steel industry uses large quantities of water for
processes like cooling, descaling and dust scrubbing. For
example, an integrated steel plant has an average water
intake of about 28.6 m3 per tonne of steel produced.
However, after use around 90% of this water is cleaned,
cooled and returned to the source. At each stage of the
cycle, from extraction to use to cleaning and return, pumps
are used to transport the water, and this pumping consumes
a lot of energy. Therefore, an effective way to reduce energy
use is to prevent unnecessary pumping. One way to do this
is to reuse water this reduces the energy needed to extract
and transport water. Another way is to ensure that the
correct amount of water is provided. For example, in a hot
strip mill, automatic flow control systems with integrated Futureproofing rolling mill
VSDs can be used to the regulate water levels in the header efficiency
tanks to prevent the cooling water from overflowing. 23
Kanthal® – a world-leading brand in sustainable
Rolling mill processes heating technology and resistance materials – chose
In steel rolling mill processes, motor systems drive ABB solutions for their new drive system at their
applications like the actual rolling mills, as well as cooling, Hallstahammar blooming mill. The decades-old DC
lubrication and descaling pumps, furnace combustion motor and drive system was removed and replaced
and fume extraction fans, run out tables and other with a modern AC design. The system provides
material handling equipment. Due to the high loads and numerous benefits including enhanced reliability,
temperatures that these applications handle, they are very improved performance, and an increase in total
energy intensive. As a result, motor systems account for efficiency of around 3.5%.
about 40-45% of the total primary energy consumption
of a steel rolling mill. Since rolling mill applications involve
quickly changing loads, wide torque ranges and high
accuracy, modernizing the motor systems with VSDs and
CUSTOMER CASE
more efficient motors can reduce energy consumption and
maintenance, as well as improving production quality. 24

Air separation with ABB products

Air separation is the dividing of atmospheric air into its
constituent gases, typically nitrogen and oxygen. The
process is required in steelmaking during the oxygen
converter process. Oxygen is blown through molten pig iron
to create low-carbon steel. In order to obtain the oxygen
needed for this process, large synchronous motors drive air
separation compressors. High-purity gases can be obtained,
but the method is highly energy-intensive, requiring large
motors. ABB has produced and delivered a 44 megawatt
6-pole synchronous motor that has achieved a world record Optimizing processes in
in energy efficiency. The motor has an efficiency 0.25%
greater than contractually required by the customer, an air
the long term
separation plant. This type of motor typically has an average
When steel producer SSAB needed to upgrade their
efficiency of between 98.2 and 98.8%. The energy efficiency
hot strip mill in Borlänge, they formed a long-term
improvement realised by ABB could result in saving 100 MWh
partnership with ABB. A three-phase installation and
of energy a year – equivalent to the annual energy
commissioning program between 2021 and 2023 –
consumption of 240 European households. 25
tied to planned maintenance shutdowns – will
modernize the old roller table motors and drives
with new, optimized multidrives and AC motors,
integrated into a distribution control system. These
motors and drives will result in improved continuous
operation with reduced energy consumption,
maintenance, and spare part requirements.
10 ENERGY EFFICIENCY

—
Conclusion
While iron and steel making will continue to require
significant amounts of energy, as discussed, there are clear
opportunities in the industry to improve energy efficiency
and reduce the use of fossil fuels. Production processes
can be decarbonized using electric arc furnaces and with
hydrogen-based technology. And, by modernizing
applications which rely on motor systems to reduce
inefficiencies, measurable savings in energy use and
energy costs can be achieved. Thanks to savings like these,
investments in technologies like VSD-motor systems can
quickly pay back, while also helping companies to meet
global climate and energy goals.

1. Steel Times International, March 2021, Driving energy efficiency and sustainability, page 27,
https://search.abb.com/library/Download. aspx?DocumentID=9AKK107992A1022&LanguageCode=en&DocumentPartId=&Action=Launch)
2. European Parliament Briefing, The potential of hydrogen for decarbonizing steel production, December 2020, page 2-3;
The potential of hydrogen for decarbonising steel production | Think Tank | European Parliament (europa.eu)
3. EA, Iron and steel technology roadmap, Towards more sustainable steelmaking, October 2020, page 11;
https://www.iea.org/reports/iron-and-steel-technology-roadmap
4. https://www.worldcoal.org/coal-facts/coal-steel/#steel-production
5. Meinke-Hubeny_Vito_Carbon-free steel production_20210224.pdf, page 7;
www.europarl.europa.eu/cmsdata/230504/Meinke-Hubeny_Vito_Carbon-free steel production_20210224.pdf
6. European Parliament Briefing, The potential of hydrogen for decarbonizing steel production, December 2020, page 4;
The potential of hydrogen for decarbonising steel production | Think Tank | European Parliament (europa.eu)
7. McKinsey & Company, Decarbonization challenge for steel, Hydrogen as a solution in Europe, April 2020, page 4-5;
https://www.mckinsey.com/~/media/McKinsey/Industries/Metals and Mining/Our Insights/Decarbonization challenge for steel/Decarbonization-
challenge-for-steel.pdf
8. IEA, Iron and steel technology roadmap, Towards more sustainable steelmaking, October 2020, page 16;
https://www.iea.org/reports/iron-and-steel-technology-roadmap
9. IEA, Iron and steel technology roadmap, Towards more sustainable steelmaking, October 2020, pages 32, 35 and 38;
https://www.iea.org/reports/iron-and-steel-technology-roadmap
10. IEA, Iron and steel technology roadmap, Towards more sustainable steelmaking, October 2020, page 57;
https://www.iea.org/reports/iron-and-steel-technology-roadmap
11. World Steel Association, Public Policy Paper, Climate change and the production of iron and steel, 2021, page 4;
Climate-change-and-the-production-of-iron-and-steel.pdf (worldsteel.org)
12. IEA, Iron and steel technology roadmap, Towards more sustainable steelmaking, October 2020, page 12;
https://www.iea.org/reports/iron-and-steel-technology-roadmap
13. ERNEST ORLANDO LAWRENCE BERKELEY NATIONAL LABORATORY, Energy Efficiency Improvement and Cost Saving Opportunities
for the U.S. Iron and Steel Industry, An ENERGY STAR(R) Guide for Energy and Plant Managers, October 2010, Chapter 4 Energy use, page 15; (PDF)
Energy Efficiency Improvement and Cost Saving Opportunities for the U.S. Iron and Steel Industry An ENERGY STAR(R)
Guide for Energy and Plant Managers (researchgate.net)
14. U.S. DOE (2004) Energy Use, Loss and Opportunities Analysis: U.S. Manufacturing & Mining. U.S. Department of Energy,
Office of Energy Efficiency and Renewable Energy, Industrial Technologies Program. December 2004, page 45;
https://energy.gov/sites/prod/files/2013/11/f4/energy_use_loss_opportunities_analysis.pdf
15. ERNEST ORLANDO LAWRENCE BERKELEY NATIONAL LABORATORY, Energy Efficiency Improvement and Cost Saving Opportunities
for the U.S. Iron and Steel Industry, An ENERGY STAR(R) Guide for Energy and Plant Managers, October 2010, Chapter 11, Motor Systems, page 53;
(PDF) Energy Efficiency Improvement and Cost Saving Opportunities for the U.S. Iron and Steel Industry An ENERGY STAR(R) Guide for Energy and
Plant Managers (researchgate.net)
16. Lawrence Berkeley National Laboratory, U.S. industrial and commercial motor system market assessment report,
Volume 1: characteristics of the installed base, January 2021, Page 67, permalink: https://escholarship.org/uc/item/42f631k3 )
17. ABB White Paper, Designing for optimum energy management, page 4, July 2021;
https://search.abb.com/library/Download.aspx?DocumentID=9AKK108386&DocumentPartId=&msclkid=91666413c46211ec863c9ce416af9402
18. ERNEST ORLANDO LAWRENCE BERKELEY NATIONAL LABORATORY, Energy Efficiency Improvement and Cost Saving Opportunities for the U.S. Iron and
Steel Industry, An ENERGY STAR(R) Guide for Energy and Plant Managers, October 2010, Chapter 12, Pump Systems, Page 59; (PDF) Energy Efficiency
Improvement and Cost Saving Opportunities for the U.S. Iron and Steel Industry An ENERGY STAR(R) Guide for Energy and Plant Managers (researchgate.net)
19. For an example of the calculations involved, see “Program Insights: Variable frequency drives,” Consortium for Energy Efficiency, 2019;
https://www.cee1.org/content/variable-frequency-drives)
20. ERNEST ORLANDO LAWRENCE BERKELEY NATIONAL LABORATORY, Energy Efficiency Improvement and Cost Saving Opportunities for the U.S. Iron and Steel
Industry, An ENERGY STAR(R) Guide for Energy and Plant Managers, October 2010, Chapter 13, Fan Systems, Page 65; (PDF) Energy Efficiency Improvement and Cost
Saving Opportunities for the U.S. Iron and Steel Industry An ENERGY STAR(R) Guide for Energy and Plant Managers (researchgate.net)
21. ERNEST ORLANDO LAWRENCE BERKELEY NATIONAL LABORATORY, Energy Efficiency Improvement and Cost Saving Opportunities for the U.S. Iron and Steel
Industry, An ENERGY STAR(R) Guide for Energy and Plant Managers, October 2010, Chapter 18, Steel Making BOF, Page 86; (PDF) Energy Efficiency Improvement and
Cost Saving Opportunities for the U.S. Iron and Steel Industry An ENERGY STAR(R) Guide for Energy and Plant Managers (researchgate.net)
22. ERNEST ORLANDO LAWRENCE BERKELEY NATIONAL LABORATORY, Energy Efficiency Improvement and Cost Saving Opportunities for the U.S. Iron and Steel
Industry, An ENERGY STAR(R) Guide for Energy and Plant Managers, October 2010, Chapter 14, Compressed Air Systems, Page 68; (PDF) Energy Efficiency
Improvement and Cost Saving Opportunities for the U.S. Iron and Steel Industry An ENERGY STAR(R) Guide for Energy and Plant Managers (researchgate.net)
23. World Steel Association, Public Policy Paper, Water management in the steel industry, 2020, Page 5, Page 7;
https://worldsteel.org/publications/policy-papers/water-management-policy-paper/
24. UNITED NATIONS ENVIRONMENT PROGRAMME (UNEP), Manual on Energy Efficiency, Energy Efficient Technologies and Best Practices
in Steel Rolling Industries (Indonesia), 2014, Chapter 4.2 Rolling Mill, page 46; http://sameeeksha.org/books/Manual-on-Energy-Efficiency.pdf
25. https://new.abb.com/news/detail/1789/ABB-motor-sets-world-record-in-energy-efficiency-saves-half-a-million-dollars
 IN IRON AND STEEL MAKING 11

—
ABB Motion
P.O. Box 1
FI-00232
Helsinki, Finland

3AXD50000903047

© Copyright 2022 ABB. All rights reserved.

Specifications subject to change without notice.