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The very structures of energy systems powering steel production are changing fast, creating vast opportunities to rethink how power is managed and optimized for critical processes. Last year, 10% of the world’s power was generated by solar and wind. By 2050, renewables are expected to provide 50% of the world’s energy. For steel, there are new ways to leverage proven technologies to minimize emissions, bolster resilience and reduce energy bills. And while incorporating renewables may be relatively novel to steel production, onsite power is not at all new to the industry.
For decades, steel producers have used diesel generators to ensure reliable energy and island certain operations. This strategy helps reduce the load on the local utility, cut energy costs and provide some level of resilience. What’s different today is the ability to make a greater impact on energy costs, boost resilience even more and reduce the load on the local grid for longer – all while dramatically cutting carbon emissions. In other words, the payoff of self-generated power for steel producers is bigger than ever.
Meanwhile, renewables have moved beyond providing an “alternative” energy and into the mainstream. Today, it is not uncommon to see renewable energy installations helping power critical operations in hospitals, on the manufacturing floor, for our military and more. Beyond expanding clean energy infrastructure, these energy systems provide powerful organizational advantages and recalibrate infrastructure to deliver reliable power amid the biggest changes to energy systems in more than a century.
Switching power sources has traditionally been challenging for continuous process industries. And it’s compounded by the high cost and safety risks associated with steel production. Field-proven digital innovations are addressing this challenge.
The breakout innovation is in the new intelligence and control that can be gained through the microgrid controller. Based on your site constraints and energy needs, the controller intelligently manages energy resources and loads to help lower utility bills, while also increasing the energy resilience of your operation.. Further, by optimizing your energy system to maximize onsite energy sources and better match performance targets, you can meet your Environmental, Social, and Governance (ESG) goals and ensure the power is always on, even when the grid cannot match your energy needs.
Further, there are opportunities to inform decisions with data and insights from installed assets through new digital tools customized for industrial operations. By monitoring the broader production ecosystem, you can identify and correct power anomalies and plug energy leaks from water, gas and electrical lines. With the right data, you can drive new levels of energy efficiency, enhance productivity and reduce emissions.
Next steps to energize operations into the future
1. Review organizational ESG goals and financial impacts. First things first, financial outcomes drive decisions. And the unique realities for your operations will inform what matters most. For example, at Eaton, we’re expanding our own clean energy infrastructure and strengthening resilience for manufacturing plants in Puerto Rico in the face of increasingly frequent and massive climate emergencies. We’re adding microgrid systems, incorporating existing diesel generators and adding 10 megawatts (MWac) of solar PV and approximately 2.23 MW/4.46 MWh of battery storage across two manufacturing sites. These investments will help us withstand extreme weather emergencies, while also reducing our emissions by 8,345 metric tons in the first year of operation. What do you need to do to realize your organizational goals? There are a lot of ways to get there and microgrid technology has been proven to work in continuous process environments.
2. Time and talent evaluation. In-house resources to study, plan, deploy and finance distributed energy resources and microgrid systems are typically in short supply. And there isn’t a one-size-fits-all solution to optimize electrical infrastructure for steel production. Every facility has its own unique realities, conditions, age and more. So how do you move ahead? An Eaton feasibility study can help determine whether a microgrid makes sense based on technical requirements, economic analysis, energy and reliability realities and system studies. Also, it’s important to know that it’s not an all or nothing approach—with a solid plan in place, you can incrementally add in energy resources to yield the results you need.
3. Source a trusted advisor. For more than a century, Eaton’s intelligent power management solutions have been applied to support safe, reliable electricity supply. The steel industry has always relied on our solutions to energize processes. And for decades, we’ve been integrating onsite power—generators, solar, wind—to store energy and optimize electrical infrastructure with powerful digital solutions. Contact us to learn more.
Our world’s new energy ecosystem creates opportunities to meet growing energy needs locally, economically and sustainably. While it’s currently unlikely that steel production sites could be entirely powered through onsite energy resources, self-generated power will become more prevalent due to the payback on financial and operational fronts.
Microgrids keep the power on while managing energy costs and improve environmental stewardship along the way. But what configuration and components are optimal for your power needs? What is the most economical way to power your operations? Our team of experienced engineers can provide a cost-effective feasibility study that will help plan, right-size and enable incremental additions to adjust your energy infrastructure for today and into the future. Learn how our approach can help simplify the complex task of discovering whether a microgrid is right for you.
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