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Energy Efficiency
Published in: Energy Efficiency 3/2015

01-06-2015 | Original Article

Economic and operational factors in energy and climate indicators for the steel industry

Authors: Johannes Morfeldt, Semida Silveira, Tomas Hirsch, Susanne Lindqvist, Alena Nordqvist, Jan Pettersson, Magnus Pettersson

Published in: Energy Efficiency | Issue 3/2015

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Abstract

European steel producers need to increase energy efficiency and reduce CO2 emissions to meet requirements set by European policies. Robust indicators are needed to follow up these efforts. This bottom-up analysis of traditional energy and climate indicators is based on plant-level data from three Swedish steel producers with different product portfolios and production processes. It concludes that indicators based on both physical and economic production are interlinked with aspects both within and outside the company gates. Results estimated with partial least squares regression confirm that steel production has complex relationships with markets, societal context, and operational character of the industry. The study concludes that (i) physical indicators (based on crude steel production) may be useful at the process level, but not at the industry-wide level, (ii) the value added is not a reliable alternative since it cannot be properly estimated for companies belonging to larger international groups, and (iii) structural shifts may influence the results significantly and veil improvements made at the process level. Finally, harmonised system boundary definitions are vital for making indicators comparable between companies. The use of traditional indicators, as defined today, may lead to uninformed decisions at the company as well as policy levels.
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Appendix
Available only for authorised users
Footnotes
1
In an integrated steel mill, steel is produced from iron ore using a blast furnace and a basic oxygen furnace. An integrated mill covers the whole chain of production, including coke production, steel production as well as rolling and finishing processes.
 
2
In contrast to correlation, which is a linear relationship between two variables, multi-collinearity indicates that a linear relationship exists between the variable and another variable or with a linear combination of a set of other variables (Alin 2010).
 
3
Carbon leakage is the phenomenon of CO2 emissions increasing elsewhere as a result of implementing regional regulations to reduce emissions (i.e. the Kyoto Protocols mitigation policy’s pressure on Annex B countries that could result in emissions increasing in non-Annex B countries) (Peters and Hertwich 2008).
 
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Metadata
Title
Economic and operational factors in energy and climate indicators for the steel industry
Authors
Johannes Morfeldt
Semida Silveira
Tomas Hirsch
Susanne Lindqvist
Alena Nordqvist
Jan Pettersson
Magnus Pettersson
Publication date
01-06-2015
Publisher
Springer Netherlands
Published in
Energy Efficiency / Issue 3/2015
Print ISSN: 1570-646X
Electronic ISSN: 1570-6478
DOI
https://doi.org/10.1007/s12053-014-9296-0

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