Combating climate change – Outokumpu's Energy & low-carbon programme
Being a global player in an energy-intensive industry means that our targets are ambitious. Outokumpu's long-term efforts and results in the field of energy and material efficiency, R&D and product stewardship – and the results achieved – have reinforced our leadership position and provide a solid base in our way towards a low-carbon society.
The Outokumpu Energy and low-carbon programme presents both the Group's ambitious targets and the actions required to reach them. In the last ten years Outokumpu has managed to reduce its direct carbon dioxide (CO2 ) emissions by 25% per tonne of stainless steel produced. Outokumpu's target is a 20% reduction in the Group's specific carbon emissions profile (indirect and direct CO2 emissions) in stainless steel production by 2020.
Emissions are calculated per tonne of stainless steel produced hence highlighting not only the actual reductions but also production efficiency.
Outokumpu carbon profile consists of:
- direct emissions from production operations,
- indirect emissions from purchased electricity as well as
- emissions resulting from transport of products and business travel.
The targeted annual reduction is approximately 370 000 tonnes of CO2 emissions totalling 2 200 000 tonnes during the programme period 2010–2020, calculated against current capacity and products.
The primary actions within the programme consist of further improvements in energy efficiency, increasing the share of low-carbon electricity and targeting for efficient and optimal production levels. Additionally, air travel offsetting will be implemented for business travelling, and sustainable aspects will be integrated when planning logistics and transportation. These actions cover our operations in all countries and business units. Progress in the different plans will be monitored and reported on an annual basis. The full report can be read here.
Participation in life-cycle studies
Outokumpu recognises the importance of life-cycle data, both for internal use in highlighting areas for improvement and for communications purposes in the supply chain. Outokumpu participated in a project to collect and update European Life Cycle Inventory (LCI) data for the production of stainless steel during 2007–2008. The results were published in 2009. Compared to a similar exercise in the late 90s, the carbon efficiency (CO2 efficiency) of stainless steel manufacturing had improved dramatically. According to the study the carbon footprint of austenitic stainless steel was now more than 40% lower than a decade ago. This is possible through better process efficiency, higher input of recycled stainless steel and better electricity mix today.
Carbon footprints of Outokumpu products are smaller than EU average.
Outokumpu's production sites are well positioned when it comes to carbon efficient steel manufacturing. All Outokumpu products had smaller carbon footprints than the average EU stainless steel. The carbon footprint of quarto plate products was almost 20% smaller than the average European values. Austenitic flat products were about 10 times more carbon efficient than average. Also the ferritic grade 430 performed well compared to average. Outokumpu ferritic data was updated with new information since ferritic production was almost non existing when this study was started.
Outokumpu has also actively participated in the Swedish Steel Eco-Cycle research project. The project is the first large and coherent research effort with an environmental focus in the steel industry in Sweden. It is looking for areas to improve in all stages of steel's life-cycle, from mining to steel products and recycling. Projects involving life-cycle assessment, recycling and slag utilisation have been of special interest to Outokumpu. The first phase of the project that started in 2004 has now been successfully completed. The second phase, stretching from 2009 to 2012 has been initiated.