A long-term approach to energy efficiency

Outokumpu takes a long-term approach to energy efficiency and the target is continuous improvement. Energy efficiency is a component in the environmental management systems at most of the Group's mills. Major production sites have also had long-term, prioritised energy efficiency investment plans since 2009. In general terms, the largest energy saving potential lies in recovering waste heat, improving process integration and improved efficiency in using raw materials.

Improvements in energy efficiency are not however only associated with large, energy specific investments. The systematic monitoring and analysis of energy consumption is very important, as is life-cycle analysis when purchasing new electrical equipment. The Group provides energy efficiency training for production personnel.

Voluntary agreements to improve energy efficiency

Outokumpu has participated in voluntary national energy efficiency agreements in Finland, Sweden and the UK for many years. The Tornio Works joined the Finnish programme at the beginning of the 1990s. Achieved energy savings in electricity, heat and fuel sum up to total of 650 GWh during 2009. To continue these systematic improvements in energy efficiency, Outokumpu sites in Finland signed new energy efficiency agreements in December 2007. These new agreements are valid from 2008 to 2016. In Sweden, the first round of the PFE (Programmet för energieffektivisering i energiintensiv industri) agreement ended in the summer of 2009 having achieved annual savings in electricity consumption totalling 8 GWh rather than the agreed 4 GWh. The Group has now applied for the second period between 2009 and 2014. In connection with energy issues, Outokumpu usually works closely with the authorities – with Motiva in Finland and by participating in the Jernkontoret forum in Sweden.

Outokumpu has participated in voluntary national energy efficiency agreements in Finland, Sweden and the UK for many years.

Continuous improvement, efficient operations and maintenance are essential part of our energy efficiency work. In our Avesta Works measures for improvements during 2009 were:

  • New routines for maintenance shut downs to shut down motors when not used.
  • Improved control system of flameless combustion in the annealing line, which resulted in fuel savings and lower emissions.
  • New pressurised air control system installed and work started to find leakage to improve compressor utilisation and save energy.
  • New industrial water pump station installed with increased capacity. frequency controlled pumps save energy and improve regulation.
  • Amount of free cooling from the water increased by replacing a larger power supplied compressor.
  • Energy and data collection system developed and better analysing tools prepared.

Sustainable power solutions

Outokumpu is protected against price volatility in the Nordic electricity market by having its own electricity production facilities and long-term electricity purchasing agreements. In addition to reasonable and stable electricity prices, one of the Group's aims is to purchase environmentally sustainable electrical power. Outokumpu has acquired low-carbon nuclear, hydropower and windpower production assets.

Nuclear power

Outokumpu has a 20 MW share in the new Olkiluoto 3 nuclear power project currently under construction in Finland. As one of the shareholders in Fennovoima, a company planning to build a new 1500–2500 MW nuclear power plant in Finland by 2020, Outokumpu's aim is to have access to an additional 150 MW of low-carbon electrical power.

Hydropower

Through a long-term lease agreement, Outokumpu has access to 104 MW of Norwegian hydropower capacity in Rana, Norway until 2020.

Windpower

Outokumpu is a minority shareholder in Rajakiiri Oy, a company building a wind farm in Tornio. The first investment decisions regarding eight shoreline wind generators were made in 2009. Rajakiiri is also drawing up plans for an offshore wind farm that will produce up to 200 MW.

The winning proposal of Outokumpu's internal EUR 5 million competition was to invest in power generation by wind turbines to reduce CO2 emissions. The investment will be made in Rajakiiri. More about the competion can be found at Outokumpu's website.

Combined Heat and Power (CHP)

The Group has a minority stake in a Combined Heat and Power (CHP) plant in Tornio. This plant delivers heat to the Tornio Works, and a proportion of the fuel used is carbon monoxide gas created as a by-product of the ferrochrome production process. The CHP plant has also acquired a local heating business in Tornio. This acquisition will lead to better optimisation of the CHP plant, improvements in energy efficiency and a reduction in the level of carbon dioxide emissions in the Tornio-Haparanda region.

 

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