Electrification: A key pathway to decarbonizing downstream processes

The steel industry is one of the most energy-intensive industries. Processes such as smelting, rolling, and reheating necessitate extremely high temperatures, while rolling, forging, and extrusion require substantial mechanical energy to shape steel into the desired form. However, electrification represents a promising path to decarbonizing the steel industry by enabling the replacement of fossil fuels with renewable energy sources.

Electricity from renewable sources such as wind and solar power is a key energy source for decarbonizing the metals industry. Electrification allows steel plants to transition from fossil fuels to cleaner energy alternatives, significantly reducing their carbon footprint. Electric systems often achieve higher efficiency compared to fossil fuel-based systems, leading to reduced energy consumption. Replacing gas-powered processes, for example heating, with electric options, especially those utilizing renewable energy, is a strategic move in the ecological and energy transition.

At SMS group, we engineer solutions that meet sustainability standards and evolving production needs. We combine expertise in process optimization, mechanics, electrics and automation, digital solutions (especially for energy saving), and the corresponding equipment maintenance. As a lifecycle partner, SMS offers comprehensive packages and advises customers on efficient and sustainable measures. Intercepting changes in advance ensures that our technologies remain at the forefront of sustainability and production efficiency.

A good example of a strategic shift towards electrification is the modernization of Feralpi Group’s rebar mill in Lonato, Italy. As part of this project, which started in September 2023, SMS dismantled the billet reheating furnace and replaced it with a new, electrically-powered SMS Elotherm induction heating system. These heaters utilize electromagnetic induction to adjust the temperature, allowing for precise temperature control and reduced energy consumption compared to traditional gas-fired furnaces. The inductors operate only when billets pass through, avoiding unnecessary energy consumption during inactive periods.

With the upgrade, Feralpi has successfully realized a continuous and uninterrupted flow of billets from the continuous casting to the rolling area with minimal energy losses. The plant features a new transfer device that transports hot billets from the continuous casting facility to the rolling mill more efficiently, thus reducing unwanted heat losses. Additionally, a new billet welding machine joins multiple billets into a single semi-finished product for continuous rolling, thereby increasing productivity and cutting waste.

As a result of this revamp, Feralpi was able to eliminate direct CO₂ emissions. By removing the gas-fired furnace, Feralpi has effectively eliminated fossil fuel usage in this specific process. The new billet welding machine has improved plant utilization rates and reduced waste, further enhancing the mill’s environmental performance.

Feralpi’s modernization project demonstrates that retrofitting brownfield plants with state-of-the-art technology can significantly reduce CO2 emissions. By replacing traditional gas-fired furnaces with electrically-powered induction heating systems, Feralpi has set a benchmark for other brownfield plant operators aiming to implement fossil-free solutions in steel manufacturing.

Electrification is a crucial element in Feralpi’s journey towards sustainable steel production. When integrated with renewable energy sources, electrification can significantly reduce a plant’s CO₂ emissions. Even in regions that lack a renewable energy infrastructure, energy-efficient technologies from SMS group can reduce the consumption of primary fossil energy.

While electrification is not the sole solution, it serves as a foundational strategy. Combined with other innovations, energy efficiency solutions, and waste reduction measures, electrification can lead to improved sustainable production in both greenfield and brownfield steel plants.