Application Cases

What's going on in the steel industry?

1. Energy Intensity of Steel Production:
The steel industry is one of the most energy-intensive industrial sectors globally, accounting for approximately 7-9% of global industrial energy consumption. In terms of electricity consumption, it is estimated that electric arc furnaces (EAFs) (which are increasingly popular for producing steel) consume between 400–600 kWh of electricity per ton of steel produced.
● Steel production also involves high-temperature processes, such as blast furnaces, which require significant amounts of energy, primarily in the form of natural gas and coal for heating and melting.

2. Energy Mix in Steel Production:
● The energy mix for steel production varies significantly by region, depending on the availability of energy sources. In many regions, steel mills rely heavily on coal and natural gas, which can make energy costs highly volatile.
● In developed countries, there’s a shift towards electric arc furnaces (EAFs) that use electricity, particularly renewable electricity, which can lead to more energy-efficient and lower-emission production.
● However, large-scale steel plants that use blast furnaces (BFs) still dominate in many developing countries and are highly dependent on fossil fuels.

3. High Energy Demand and Peak Loads:
● Steel production often involves peak electricity demands, especially when large furnaces or other high-energy machines are in use. This creates challenges in managing costs and avoiding disruptions in production when energy demand spikes.
● The need for constant energy during long operational hours and high-intensity processes (like melting and forging) makes energy storage critical to smooth operations, reduce reliance on expensive grid electricity, and ensure uninterrupted supply.

4. Environmental Impact:
● Steel production is responsible for approximately 7% of global CO2 emissions due to its reliance on carbon-intensive fuel sources. The industry is under increasing pressure to reduce emissions and improve sustainability.

● Renewable energy integration in steel mills is being explored, but without reliable storage solutions, intermittent sources like wind and solar cannot be fully utilized during non-peak hours. BESS can play a crucial role by storing excess renewable energy when available and providing it when production demand is high.

Energy Storage as a Solution? How Does it Work?

1. Smoothing Power Supply Process: Battery Energy Storage Systems (BESS) can address the steel industry's energy challenges by smoothing out the power supply and providing a buffer during peak demand periods, reducing reliance on external grid supplies. BESS also enables peak shaving, where stored energy is used during peak hours to reduce electricity costs and avoid high tariffs, especially when steel production runs at full capacity.

● A typical steel plant can save significant energy costs by using energy storage for demand response programs (shifting energy use during peak times), load leveling, and self-consumption of renewable energy. For example, studies suggest that industrial companies, including those in steel production, can cut their electricity costs by 10-30% through the strategic deployment of energy storage systems, depending on their energy usage and local electricity pricing structures.
 

2. Supporting Electrification of High-Heat Processe: Steel manufacturing increasingly explores replacing fossil fuels in high-heat applications with electricity. BESS can store renewable energy to power such systems consistently, ensuring electrification remains efficient and reliable.
 

3. Enhancing Furnace Load Management: Electric arc furnaces (EAFs) and other high-demand equipment cause sudden energy spikes. BESS smoothens these fluctuations, improving grid stability and reducing penalties from utilities for demand surges. Many steel plants adopt solar or wind installations to lower operational emissions. BESS ensures these intermittent energy sources are used optimally, storing excess power for later use during downtimes.
 

4. Unlocking Dynamic Pricing Strategies: Supporting Electrification of High-Heat Processes: BESS allows steel plants to strategically consume electricity during off-peak pricing periods and store it for high-demand phases, significantly reducing energy expenses in regions with dynamic pricing structures; Energy storage enables steel plants to operate during power outages or unstable grid conditions, maintaining productivity and meeting customer demands even during crises.
 

5. Enabling Decentralized Energy Ecosystems: With a BESS, steel plants can integrate into local energy-sharing systems, selling excess stored energy back to the grid or collaborating with nearby industries, fostering regional energy independence.

6. Reducing Transformer Stress: Heavy energy consumption in steelmaking can overload transformers, leading to costly repairs and downtime. BESS alleviates this stress by acting as a buffer, extending transformer lifespans.
 

7. Compliance with Emerging Energy Regulations: Governments increasingly demand energy-intensive industries to meet strict carbon and efficiency targets. BESS facilitates compliance by providing the flexibility needed to meet these standards cost-effectively.
 

8. Improving Operational Predictability: Steel plants often face volatile energy prices and production schedules. BESS allows operators to plan energy use better, offering more predictability in operations and reducing financial risks.
 

9. Facilitating Waste Heat Recovery Integration: Steel mills are exploring waste heat recovery systems to improve efficiency. BESS can integrate seamlessly with these systems, storing electricity generated from recovered heat for other plant operations. Also, By emphasizing these benefits, your article can present a fresh perspective on how BESS solutions go beyond the typical narrative of cost savings and emissions reduction, showcasing their strategic importance to the steel industry.