SUPPLEMENT SUSTAINABILITY IN MANUFACTURING
SUSTAINABLE STEEL MANUFACTURING
The clean energy transition, combined with energy efficiency and renewable energy sources, will be key to industrial transformation in the stainless steel industry. At a recent
press conference, Rachael Morling discovered how Outokumpu aims to become the first choice for sustainable stainless steel
or OEM’s, steel is one of the preferred materials for components due to its strength and durability, meaning it is used in a multitude of applications across a wide range of industries. But with sustainability high on the agenda for most companies these days, sourcing components and materials that are produced by a company that is reducing its impact on the environment is essential. Outokumpu is a prime example. Steel is almost everywhere and will continue
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to be crucial for future development. The industry, however, has a significant impact on the climate, with steel production – both carbon and stainless – accounting for 10% of global greenhouse gas emissions. To meet the Paris Agreement’s goals, the industry needs to reduce emissions by 90% by 2050. The green transition is therefore a necessity in the sector. However, different regions of the world are
on very different decarbonisation pathways, an issue when countries like China are ramping up production of steel. In fact in 2000, China represented approximately 17.5% of global steel production. In 2023, this number was 54%.
REDUCING CARBON FOOTPRINT Low carbon solutions – from renewable energy to hydrogen, and also the infrastructure – are all dependent on stainless steel. Stainless steel
producers therefore need to think about solutions to reduce their impact on the environment. Steel manufacturer Outokumpu has operations
in around 30 countries and mills in Finland, Sweden, Germany, the US and Mexico. To meet requirements, the company continues to lead the industry with the lowest carbon footprint in the market, and is committed to keeping global warming below 1.5 degrees. In addition to this, it is already supporting customers to reduce their emissions by over 12 million tonnes annually; and every year, the company processes more than two million tonnes of recycled steel and gives it new life at its mills. Additional benefits include:
• Up to 75% emission reduction to conventional product (Scope 1, 2, 3)
• Verified emission calculation • No offsetting of emissions • Low carbon energy and fuels used in production • Premium material with Scope 3 reduction potential for customers. The company is committed to carbon
neutrality, but a roadmap needs ambitious energy efficiency targets, with the company setting an 8% energy efficiency improvement target by the end of 2024. This corresponds to energy savings of some 600,000 MWh or the annual electricity usage of 15,000 households. Outokumpu is also prioritising investments in
energy efficiency and increasing related annual capital expenditure by EUR 20 million in 2023 and 2024. During 2023, it implemented approximately 100 projects delivering 215 GWh of energy savings, which cover about 35.8% of its commitment of 600 GWh.
PRODUCING SUSTAINABLE STAINLESS STEEL So how was the company done this? By investing in improving the furnaces on its heat treatment lines, optimising its energy consumption and fully utilising its energy management system, and improving yield. Outokumpu was the first stainless steel
company to adopt ambitious science-based climate targets to limit global warming to 1.5˚C. This company is also committed to reduce emission intensity from direct, indirect and supply chain by 42% by 2030 from a 2016 base year. Its European mills now have certificates under the industry’s first sustainability standard ResponsibleSteel. The result is that Outokumpu is the carbon
footprint benchmark in the stainless steel industry. And it’s vision? To be the first choice in sustainable stainless steel.
Outokumpu
www.outokumpu.com/en
Steel production at Outokumpu
30 DESIGN SOLUTIONS - SUPPLEMENT DECEMBER/JANUARY 2025
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