At the 51th annual worldsteel meeting held in Brussels on October 16-17, Manoj Kohli, executive chairman of SoftBank Energy (SB Energy), gave a presentation titled “Solar for Steel” in which he put forward the case for the use of solar energy in the steel industry, which he said would boost the industry’s profitability and sustainability.
Solar Energy, he said, has been the fastest-growing energy source worldwide over the last two years, while the shares of coal and gas have been declining. He went on to state that solar energy is the future due to its affordability, pointing out that the affordability of solar energy has improved by 85 percent in the past five years and that it will continue to become even more affordable. With the future focus of the steel industry expected to be on electric arc furnaces over the next 20 years, he said that the big question was how to integrate EAFs and solar energy. Meanwhile, he mentioned in passing that in the next 10 years and beyond Asia is expected to be the major growth region for steel.
The SB Energy chairman continued by saying that solar energy can help to overcome CO2 emissions, fuel demand and operating expenditure (opex). On the issue of how solar energy works at night, he stated that storage has become cheaper and is expected to decline significantly over the next five years. He also said that engineering, procurement and construction (EPC) has become faster for solar energy installations, though the situation depends on different governments. Typically, Kohli said, eight to ten weeks are needed for technical feasability studies ahead of building a solar plant, while execution can be completed within 12 months of the signing of the agreement, and this period can also be as low as six to eight months. Meanwhile, 100 percent automation can be aimed for in terms of maintenance of solar plants through the use of drones and robots. As an example of a recent development in the steel industry in the direction of solar energy, he pointed to the acquisition of the Whyalla Steelworks in South Australia by GFG Alliance and its pledge to make the company viable again through renewable energy. A month of the acquisition, GFG bought an Adelaide-based company specializing in solar energy and battery storage.
Furthermore, he said that the good news for the steel industry is that the solar sector will also be a major customer of the industry as the mounting structures on which solar panels are installed are made of steel.
Mr. Kohli concluded by affirming that solar energy will revolutionize steel, pointing to its low cost for steelmakers and the help it will provide in ensuring they meet their sustainability goals.