3. What are the types of furnaces used for steel production in Spain, and what is the current proportion between them?
In Spain, steel production is carried out mainly using two types of furnaces: Blast Furnace-Basic Oxygen Furnace (BF-BOF) and Electric Arc Furnace (EAF).
Blast Furnace-Basic Oxygen Furnace: This type of furnace uses coking coal as the main source of energy and is essential for the production of steel from iron ore. The process involves the reduction of iron ore to produce pig iron, which is then refined into steel. Although blast furnaces are less common than before due to environmental concerns and the search for more efficient and cleaner methods, they are still an important part of steel production in some sectors.
Electric Arc Furnace: This method uses electricity to melt scrap steel and other materials. It is more energy efficient and allows greater control over the composition of the steel. In addition, it is more flexible in terms of production and can quickly adapt to different types of steel and market needs. Producing steel in electric furnaces is also more sustainable, as it does not rely on coal and emits less CO2.
In terms of proportion, electric arc furnaces have gained more relevance in recent years. In 2022, it was estimated that around 70% of steel production in Spain was carried out by electric arc furnaces, while the remaining 30% was produced in blast furnaces. This trend is due to the growing demand for more energy-efficient production processes.
Demand for more energy-efficient steelmaking means 70% of steel produced in Spain today is done electric arc furnace and only 30% in blast furnace
4. Why is it difficult to decarbonize iron ore extraction?
The decarbonization of steelmaking and the decarbonization of mining go hand in hand. Mining for iron ore is a complex process often in remote open-pit or underground environments. Mining companies must dig down thousands of meters using heavy machinery, factoring in getting uninterrupted power supplies to the site, running large infrastructure and diesel trucks 24/7. However, automation, electrification and digital solutions are coming to the fore in terms of accepted technology use. Here, ABB is acting as an enabler too, with expertise in hoisting, grinding and truck electrification for transportation of ore and pit-to-port integrated electrification and automation systems.
5. What technology does ABB offer for process optimization and energy efficiency in the steel sector?
ABB offers a broad portfolio of technologies for the metals industries, combining advanced automation, electrification and digital solutions for steel mills, in the melt shop and for onward casting and processing lines, with industry-specific metallurgy equipment too, such as
ArcSave® electromagnetic stirring (EMS) options for electric arc furnace (EAF), flow control and tundish operations. ABB supports enhanced productivity, safety and energy efficiency in operations.
Modern metallurgy using EAF is known for vast temperature and chemical differences within liquid steel baths. Energy usage is extremely high and costly but technologies such as ABB’s ArcSave EMS can be deployed to create equilibrium in the melt. In partnership with Tenova, this solution has been deployed on one of the world’s largest EAF, operated by customer Acciaieria Arvedi in Italy. The results include an 18 degrees Celsius lower tapping temperature, a 3.6 percent reduction in electrical energy consumption and a 38,000-ton annual reduction in CO₂ emissions at the plant. EAF productivity has also increased by 5 percent.
Further into the production process, ABB is responsible for ongoing automation and electrification, including the introduction of new energy-efficient motors and drives, when steelmakers are running their hot rolling, cold rolling, annealing, galvanizing and pickling lines. Here, gains can be made in energy efficiency, power and control optimizations through a range of hardware and software.
In digitalization,
ABB Ability™ Smart Melt Shop operational excellence combines real-time crane and ladle tracking, automatic and optimized crane scheduling and heat loss prediction. Benefits include raising casting speeds by 4-5 percent, 5OC less arcing per heat, reduced delays, less material rejection and increased human safety. Meanwhile,
ABB Ability™ Energy Management System, a digital solution to monitor and optimize energy consumption and CO₂ footprint, improves planning of operations and 5 to 15 percent energy cost savings in the entire mill.
ABB’s digital and metallurgical technologies enable safer, more productive and sustainable melt shop operations
6. What is the main source of carbon used in blast furnaces to produce steel?
Today, the main source of carbon used in blast furnaces to produce steel is mineral coal, also known as coking coal. However, cleaner alternatives are sought, including products made by integrating hydrogen into the mix. Three pathways for decarbonization in primary steel production are carbon capture and storage (CCS), electrochemistry, and direct reduced iron with hydrogen (with natural gas used as a bridging technology until the hydrogen process matures). Other solutions do exist, such as the use of charcoal from sustainable, owned forest plantations in Brazil, as demonstrated by ABB’s customer Aperam.
Other companies, such as Boston Metal and SSAB, have fossil-free steel production lines that work as pilot projects, made possible by agreements with clean power generators, which guarantee supply for a minimum of operations. Swedish company SSAB expects to be able to implement a fossil-free steel production line on a commercial scale as soon as 2026.
Also in Sweden, mining company LKAB has developed an ore enrichment method that removes some impurities at the mine site. This method was used to produce the world's first batch of emissions-free steel in 2021, melted in EAFs operated by SSAB, and ultimately purchased by the Volvo Group.
Globally relevant Indian company Tata Steel has developed a cost-effective process that transforms iron ore into powder. This purer from of the material can reduce emissions in blast furnaces by up to 10 percent. The company is also modernizing its equipment to operate with natural gas and pursuing the goal of being carbon neutral by 2045.
Clearly, from these examples, buy-in from the steel industry, the supply chain, customer and consumers is vital – demand creates some of the drivers for the changes that are required. Together, with the legislative, technology and sustainability drivers, the transition can happen.
7. Why is it difficult to implement electric arc furnaces around the world?
Electric arc furnaces produce liquid steel from the electric arc with up to a 95% lower carbon footprint compared to coal-fired blast furnaces. However, the electric arc furnace is difficult to implement in many parts of the world because it depends on abundant, affordable and clean energy (wind, solar and green hydrogen) to make sense. Additionally, the infrastructure and availability of these energy sources varies by region.
In addition, the lifecycle of existing blast furnaces can be more than 40 years, so, even if an investment decision was made for this technology at the turn of the century, some producers are locked into using their existing furnace for another 15-20 years.
8. Which energy sources are considered clean and could be used to boost steel production?
It’s true that transformational change is needed for a thriving sustainable steel future. Steel producers, original equipment manufacturers (OEMs), including furnace builders, and steel producers are showing their commitment to that future. It’s an exciting place to be in key steel markets in Europe, Asia and North America. Clean energy sources are available or under development in hydro, wind, solar and green hydrogen. Scaling to the required levels and finding ways of encouraging or driving adoption in markets with less infrastructure or fewer supply chains remains a challenge – this will take investment reaching trillions of US dollars up to 2050.
The demand is there. The first companies to produce fossil-free steel have sold millions of tons of their product at premium-rate prices. Take automotive end customers, for example, their customers are calling for tracking of where the metals and materials in their vehicles come from, and seeking steel products that are fit-for-purpose and produced using cleaner energy sources. Productivity and quality must remain, but with the sustainability tag too.
Hydrogen is often touted as the answer, but an energy mix is most likely before it goes through the significant technological advancement needed to be viable in steelmaking. There is optimism, particularly with the likes of the Hydrogen Breakthrough Ironmaking Technology (HYBRIT) that has been underway by SSAB, LKAB, Vattenfall and others in Sweden. ABB has been involved in the development phases with consultation, automation and electrification since 2016. We know that the projections are to produce steel from green hydrogen before the project reaches its 10th anniversary.
9. What role does digitalization play in the decarbonization process and with the goal of zero emissions?
The actions mentioned above give the steel sector the prospect of producing steel with net-zero emissions, but with a lot of investment. This is where efforts to digitalize and automate steel operations become of great importance, which can even generate additional capital to finance the transition and make the numbers add up. Digitalization makes it possible to see and correct a series of losses and inefficiencies that many plants around the world were unaware of previously.
Optimizations through digital solutions can drive sustainability through productivity, safety, innovation, quality and service. For example, energy networks for steel plants can be optimized by accurately forecasting power demand, monitoring all inputs and outputs, including fuels.
ABB has helped customers to improve operational excellence using
ABB Ability™ Manufacturing Operations Management for metals (MOM4Metals), an integrated digital solution that automates order entry, validation, order tracking and order quality standards. One option is to track and schedule operations from furnace to finishing rolling mills.
When it comes to workforce, safety, improving efficiency or decrease workload are the common questions from customers. ABB can digitalize maintenance operator rounds, collect and analyze information (sometimes with AI tools and machine learning) to provide the right information to operators at the right time.