Energy Transition of German steel mills

Around the sustainable development of the German economy, Germany’s Energy Transition has been a hot topic in political and public life. While the big trend of the energy-saving and emission reduction is bound to challenge industrial’s development, especially the energy-consuming industrial. It is also required by the European energy policy and climate policy.

German steel enterprises invest continuously in technology and equipment to improve energy efficiency, energy conservation and make a great contribution. And it also opened up a new path, so is worthy of reference for domestic steel enterprises.

ArcelorMittal’s production site in Germany is one of the world’s highest energy efficiency of steel production site. Because energy costs exceed the production process of all other costs, ArcelorMittal has been trying to minimize the use of energy.

Today, the political decisions which influent the German energy transformation and European climate policy are: a renewable resource regulations, energy taxes, energy efficiency guidance and energy price compensation regulations. These policies and regulations directly affect the German steel industry. Renewable energy regulation and energy tax policy were discussed in summer of 2012 and led to increase the cost of € 167 million in ArcelorMittal Company. Therefore, how to improve energy efficiency in the German factory becomes very important. Moreover, the environmental investment, quality of raw materials and high-tech advanced steels also require higher energy consumption. German energy prices are one of the highest in Europe and the global. It is estimated that the German steel cost on the energy will increase € 0.01 and will cause the entire German steel industry an additional € 170 million in costs. Today, as the European steel overcapacity, steel demand will lower than in 2009 by 25%.

For these reasons, in order to maintain and further improve the advantages of its cost and energy efficiency, ArcelorMittal will have continuous investment to their subordinates in technology and equipment. For example, in its Bremen Company, has invested in secondary dedusting system. Hamburg companies of ArcelorMittal spend 15% of direct investment costs for energy efficiency projects. ArcelorMittal Duisburg – Ruhr Port Company recently completed an advanced wire rolling plant, investing €95 million. In Eisenhüttenstadt region, about 80 small and medium-sized primary processing workshop and finishing workshop projects are under construction.

Major cities in Germany’s energy transition are mainly reflected in: Hamburg, improving energy efficiency; Duisburg, improving combustion technology efficiency; Bremen, enhancing gas utilization; Eisenhüttenstadt, reducing the whole process emission.

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