With the Labor government pushing towards a new target of a 43 per cent reduction in emissions by 2030 and high energy prices due to supply issues, organisations will start to feel the pressure to comply and reduce costs.
This includes metal foundries, with 9% of the world’s emissions coming from metal production which surprisingly accounts for more emissions than all cars combined. Demand for metals is not going to disappear, with countries looking to increase their stocks to provide essential services such as transport, housing, and communications.
As an energy-intensive industry, there is pressure to move towards net zero due to increasing energy prices, regulation, and customer expectations. The steps to reducing energy costs are the same first steps companies must take to get to net zero – so what should companies be doing to keep up with industry changes?
Moving towards net zero
There are two approaches to take for metal foundries to reduce their environmental impact. The first is to change the process to ‘green steel’ – a process that involves manufacturing steel without using coking coal, which is predicted to become more efficient than blast furnace steelmaking.
The second approach is to be more energy efficient, which is of course easier said than done, but nonetheless important. Why? Rising energy costs will have a considerable impact on business profitability, and there are business continuity risks when it comes to only being reliant on one single source of energy. As we move towards a more sustainable future globally, there is also additional pressure from consumers and regulatory policies to move towards greener practices.
How metal foundries can reduce energy costs
To review energy use and look at how costs can be minimised, Sustainability Victoria worked with more than 300 metal fabrication manufactures and identified keyways to reduce energy costs. These include:
- Insulate piping: Insulating steam or chilled water piping to reduce temperature loss and improve the amount of energy used to function
- Implement heat recovery: Redirect heat that would otherwise be vented outside to preheat water for boilers or heat the workplace
- Install power factor correction equipment: Power factor is a measure of how effectively your equipment uses electricity. Reduce the amount you pay on your ‘network demand charges’ by improving your power factor and correcting supply inefficacies
- Install a gas or electricity meter on high-energy equipment: Monitor use on equipment that uses the most energy. Analyse the data to see if the equipment is working efficiently
- Invest in solar: Power your site with a photovoltaic solar system to reduce your energy costs and greenhouse gas emissions
In this fast-paced environment it is important to act now to start making an impact. To begin, it is necessary to measure usage and emissions, as you can’t improve what you don’t measure. From there, you can identify the key areas that require improvement and review the emission reduction options in line with budget and timelines. The final steps involve procuring energy at the lowest cost and manage the process towards net zero goals.
About Bruce Macfarlane
Bruce Macfarlane is currently interim CEO and Director at Energy Action (ASX:EAX), which buys 10% of Australia’s business energy. With over 20 years’ experience in the energy sector, Bruce understands how the energy market operates. He has worked across regulatory and technology projects with consulting company Capgemini, held energy services roles with electricity retailers Genesis Power and AGL, and he co-founded BidEnergy (now Bill Identity, ASX:BID).
