Energy is a major part of Qatar Steel’s production costs and the company’s aspiration is to greatly improve energy efficiency, given that it operates in an energy intensive industry. This decision also makes business sense as electricity is a major element in the unit cost of steel. Worldwide, about 90% of the energy used to make steel comes from burning coal. Qatar Steel uses the fuel of the future, natural gas, which is the greenest fuel source available.
Not only does Qatar Steel use a cleaner fuel source, it also invested in much more energy efficient electric arc furnaces (EAF) which use dramatically less energy than traditional blast furnaces that are standard in other regions of the globe. Although the indirect energy consumption (measured in kWh) declined only slightly, Qatar Steel did achieve success in reducing total Direct Energy Consumption by more than 9% compared to 2015.
Indirect and Direct Energy Consumption
2014
2015
2016
Total Electricity Consumption (kWh)
2,408,501,262
2,151,850,894
2,069,256,278
Vehicle and Equipment Fuel Consumption (ltr)
4,635,898
3,087,397
2,806,444
Energy Intensity Ratio (GJ/tonnes of Molten Steel)
14.9
15.6
15.32
The net total result of the company’s energy conservation efforts is a reduction of the energy intensity to 15.32 in 2016, comparing to 15.6 in 2015.
Qatar Steel owes it to future generations to produce steel in the most energy-efficient way possible. To stay competitive and manage escalating costs, Qatar Steel continuously invests in its facilities and processes, which reduces energy consumption and expenditures.
