Energy management systems: A blueprint for sustainability innovation in steelmaking

Steel is the backbone of modern civilization. As the industry faces mounting pressure to decarbonize, many steelmakers are placing their bets on digitalization to accelerate change. In this article ABB's Tarun Mathur and Nazanin Azari explore the reality – while digital technologies hold tremendous promise, adoption across the industry remains inconsistent.

This article was first published in the August 2025 issue of Steel Times International
According to the latest available research from McKinsey, despite recognition of the impact that digitalization will have on metals companies, 75% of these businesses have not been able to achieve digital impact at scale, with many still in the early stages of rolling out digital technologies. Energy management systems (EMS), a critical digital tool for emissions and efficiency gains, are still vastly underutilized. Meanwhile, the global steel industry is responsible for 8% of direct emissions from fossil fuels, and with net-zero deadlines fast approaching, ambition is outpacing execution.

The paradox of progress

Despite bold sustainability goals and growing stakeholder pressure, many steel plants still operate in the dark when it comes to energy transparency. Without granular, real-time insights into how, where, and when energy is being consumed, any attempt to cut emissions is like trying to steer a ship through fog without radar.

Several factors contribute to this inertia. The high capital expenditure associated with digital transformation, coupled with a lack of standardized protocols and concerns over data security, often deter investment. Moreover, the complexity of integrating EMS with legacy systems poses technical challenges that many operators are ill-equipped to address. Yet, as energy costs escalate and regulatory pressures mount, the cost of inaction increasingly outweighs these obstacles.

The core issue isn’t lack of will, it’s lack of visibility.

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Tarun-11

Tarun Mathur, Global Digital Lead for Metals Business Line, ABB Process Industries

Nazanin

Nazanin Azari, Digital Solutions Consulting Director, Europe, ABB Process Industries

Turning data into decarbonization

Energy-Management-Systems
Many steel plants still operate in the dark when it comes to energy transparency, without the granular, real-time insights on energy consumption needed  to meaningfully cut emissions.

The EMS serves as the core system within a steel plant, continuously monitoring and optimizing energy flows. By collecting data on water, air, gas, electricity, and steam (collectively known as WAGES), EMS provides a holistic view of energy consumption across the facility. This data is then contextualized with production metrics, enabling operators to discern patterns, identify inefficiencies, and make informed decisions.

Before you can even begin to think about monitoring and optimizing energy, you have to start with visibility. A steel plant must be adequately tooled to gather the data necessary to enable EMS. That means deploying sensors, flow meters, and digital instrumentation across every major process – casting, melting, rolling, heat treatment, and beyond. These devices feed raw operational data into a centralized platform which acts as the plant’s memory. Without this digital backbone, energy behavior remains insufficiently studied and disconnected, siloed across spreadsheets. A memory database, by contrast, consolidates it all. It becomes the single source of truth, capturing real-time data and making it retrievable, comparable, and actionable.

Once the data exists in a usable form, the next phase is turning that raw stream into insight. This is where automated monitoring and reporting come into play. Instead of energy data being buried in periodic reports (or worse, only surfacing when something breaks) modern EMS platforms bring it into full view. Dashboards track performance by area, by shift, by energy type. Alarms flag abnormal consumption behavior. Reports that once took days to assemble can now be generated in seconds and tailored to the KPIs that matter most, whether that’s energy per ton of steel or CO₂ per production grade.

At this stage, many operators uncover the so-called “low-hanging fruit” – quick wins like compressed air leaks, inefficient furnace cycles, or misaligned shift patterns. These fixes may seem minor, but they compound quickly, delivering measurable reductions in energy spend and emissions without the need for capital-intensive changes. And perhaps most importantly, they build trust in the system. Operators begin to see the EMS as a decision-support tool, a way to automate or streamline compliance chores.
Energy-Management-Systems

Energy Management System turns raw data streams in to insights via automated monitoring and reporting, acting as a decision-support tool for operators.

With monitoring in place, the logical progression is forecasting. This is where artificial intelligence steps in, using historical data to map future needs. Instead of reacting to spikes in energy usage or purchasing blindly into volatile markets, production managers can align energy procurement with real-world demand. When maintenance is scheduled, or a product changeover is expected to increase energy intensity, the system can predict that deviation and feed it into a consumption model.

What separates advanced EMS platforms from rudimentary systems is their ability to make these forecasts more nuanced. They don’t just project based on yesterday’s totals. They factor in production recipes, ambient temperature, maintenance intervals, even grade-specific energy intensity. For energy buyers and procurement teams, this intelligence is worth its weight in gold. They can lock in favorable rates, avoid penalties, and plan purchases with surgical precision – especially in deregulated markets where pricing fluctuates dynamically.

The final stage is optimization, where strategy becomes dynamic. Here, EMS platforms go beyond observation and begin to guide action. Energy-intensive tasks can be scheduled during off-peak pricing windows. On-site energy generation and storage assets can be orchestrated to offset grid dependency at key intervals. For plants with multiple energy sources or contracts, the EMS can advise on which source to tap, and when to minimize total cost and environmental footprint.

Critically, optimization is not static. It evolves with every cycle. The more data the system ingests, the more refined its recommendations become. For some steelmakers, this capability is already being used to redesign production schedules, pushing the melt shop’s peak load into lower tariff periods or coordinating ladle furnace use with predicted energy dips. In an industry where margins are tight and energy costs represent a major line item; these adjustments can make the difference between surviving and thriving in a carbon-heavy world.

A case study in industrial agility

Melt shop ladle transfer from stock footage digital film

Proactive energy management essential to evolving regulatory landscapes like the European Union's Carbon Border Adjustment Mechanism allows steelmakers to take stringent approach to emissions accountability

At one of the largest integrated stainless steel production sites in Europe, ABB AbilityTM Energy Management System (EMS), ABB’s industrial software solution for sustainability, is redefining how energy is understood and managed in heavy industry.

This high-consumption facility – operating at over 300 MW of power – faced mounting energy costs, fragmented data reporting, and a lack of forecasting capabilities. A targeted pre-study identified priority areas, allowing the team to focus on delivering early results in high-consumption zones like the Ferrochrome and Melt Shop, rather than attempting a site-wide overhaul from the outset.

Two core capabilities drove the transformation: Energy Monitoring & Targeting and Energy Forecasting. The former unified fragmented data streams across electricity, heating, water, and LNG into one transparent platform, giving operators real-time visibility into usage patterns and inefficiencies.

Forecasting proved even more impactful. At this site, furnace behavior shifts with each melt, depending on scrap type and melting profiles. The EMS now pulls from production plans, maintenance schedules, and live operational data to generate 15-minute forecasts that account for real-world variability – flagging risks and enabling preemptive action. The goal: a 50% improvement in forecasting accuracy, directly translating to smarter energy procurement and reduced penalties during volatile market swings.

With foundational tools in place, the site is already seeing operational and cost efficiencies. The next phase – predictive optimization – will enable dynamic load shifting and smarter orchestration of energy sources. What began as a response to energy cost pressure is fast becoming a blueprint for digitally empowered, decarbonized steelmaking.

The broader implications for the steel industry

This example underscores a broader truth: the integration of EMS is a strategic imperative for steelmakers. As global demand for steel continues to rise, the industry must reconcile production growth with environmental stewardship. EMS offers a viable pathway to achieve this balance, enabling incremental improvements that collectively yield significant impact.

Moreover, the adoption of EMS aligns with evolving regulatory landscapes. Initiatives like the European Union's Carbon Border Adjustment Mechanism signal a shift towards stringent emissions accountability, making proactive energy management essential.

In an industry where tradition often dictates practice, the adoption of EMS represents a forward-thinking approach, marrying technological advancement with environmental responsibility. As the steel industry navigates the challenges of the 21st century, such strategies will be instrumental in forging a more sustainable future. Digital optimization is about giving plant managers the tools to act on more than just intuition. It’s about creating a feedback loop between energy data and operational execution – a loop that becomes smarter, faster, and more efficient.

In short, the path to decarbonized steelmaking doesn’t require a revolution. It requires a structure. First gather the data. Then interpret it. Then anticipate what will come next. Then act with intent. With each step, momentum is built, and with the right digital tools in place, the end goal is achievable.

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