Unlocking data to generate tangible value for the steel industry

The metals industry stands at a crossroads. The challenge facing industry decision makers is to significantly reduce carbon emissions while improving productivity and operational efficiency. Decarbonization is essential for long-term operations, and energy efficiency is paramount for both environmental and economic reasons. Artificial intelligence (AI), data analytics, and digitalization offer a powerful toolkit for building the future steel industry. Tarun Mathur, Global Portfolio and Sales Manager Digital, metals industry, ABB, explains.

First published in Steel Times International magazine, Future Steel Forum June 2024 event edition.

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Tarun Mathur, Global Portfolio and Sales Manager Digital, metals industry, ABB.

In recent years, many organizations are tuning in to the huge potential of AI and big data to achieve efficiency and minimize downtime while reducing carbon emissions. As recently as five years ago, only 10-20% of the industry was ‘connected’ in this way with organizational siloes commonplace. Since then, progress has been made. These siloes are now being replaced by cloud or edge solutions where data can be stored, accessed, and shared, enabling gains in productivity, quality and yield. It means that an industry traditionally considered as conservative has taken important steps. In the last two years, we have seen more AI applications relevant to the industry and more companies displaying an appetite to invest. 

ABB’s value-driven industrial software solutions are powered by advanced data analytics, machine learning (ML) and AI. They support the goals of metals manufacturers in areas such as operational excellence, improved asset and process performance and sustainability while facilitating the digitally connected workforce and safeguarding operations via proven industrial cyber security. Digitalization gives visibility and control along the entire value chain – and is a key enabler for sustainable metals manufacturing.

Digital transformation continues to emerge as a lynchpin for long-term business success, and AI and big data have become increasingly synonymous within that. However, for many, there are still questions to be answered about just how they can unlock their business potential using these methods.

Data: an energy savings enabler

Steel production remains energy intensive. Furnaces must reach extremely high temperatures, up to 1,800 degrees Celsius, and vast amounts of power fuel the machinery that transforms raw materials into the backbone of modern civilization. This insatiable appetite for energy translates to high costs for steel producers and a significant environmental footprint. However, the tide is turning. AI is emerging as a potent weapon in the fight for a more sustainable and cost-effective steel industry, specifically by tackling the energy challenge.

At this stage, it is important to note that the idea of simply gathering data in a pool and then applying AI and ML to magically transform industrial operations is flawed. What is often missing is a conceptual understanding of how the data got into that pool – and, just as important, how it can best be leveraged to add real value to a business.

Digitalization gives visibility and control along the entire value chain – and is a key enabler for sustainable metals manufacturing.

Imagine a vast network of sensors embedded within the labyrinthine steel production process. These sensors, the industry's digital eyes and ears, continuously gather data on furnace temperatures, energy consumption, and raw material properties. This data becomes the fuel for AI algorithms, acting as a virtual brain constantly analyzing and optimizing energy use.

The beauty of this model is that it can obtain, process, and analyze data from across the entire production chain, identifying bottlenecks and areas for improvement. For instance, AI might suggest adjustments to conveyor belt speeds or optimize cooling processes, all leading to reduced energy consumption across the entire production chain.

Reactive repairs to crystal ball accuracy

The harsh reality of reactive maintenance, the traditional approach where repairs are only made after equipment fails, is critical equipment breaking down and production grinding to a halt while precious time – and money – are lost in the process of diagnosing and fixing problems.

More than ever, companies realize that Asset Performance Management (APM) plays a key role in remaining competitive and overcoming challenges to stabilize productivity and reduce uncertainties. Avoiding unplanned shutdowns and reducing unnecessary interventions are the key objectives of companies that are mature in reliability centred maintenance. At every point of the journey, there is value to be gained by applying APM to operations in terms of improved productivity, safety, and cost-efficiency.

Unplanned equipment failures can disrupt production schedules and cost steel producers dearly. The network of sensors once again plays its part as the symphony of data that they collect on any equipment’s health are fed into a sophisticated algorithm that acts as a digital crystal ball.

By analyzing historical trends and identifying subtle deviations from the norm, the AI can predict equipment failures well before they occur. This level of foresight allows for preventative maintenance to be scheduled, averting a potentially catastrophic breakdown. Beyond unplanned downtime, catching issues early has extended benefits including prolonging equipment lifespan, and improving Original Equipment Effectiveness (OEE), a key metric for production efficiency.

As AI technology continues to evolve, we can expect even more sophisticated solutions to emerge. Imagine self-learning AI systems that not only predict failures but also recommend optimal maintenance procedures. This level of intelligent automation can create unprecedented efficiency in steel mills, where equipment operates seamlessly, and breakdowns become a relic of the past.

Breaking the mold for the steel industry

JSW Steel's Dolvi Works plant in India is just one of the examples of businesses reaping the rewards of digitalization. ABB Ability™ Smart Melt Shop, a comprehensive solution that leverages data from sensors and process equipment, has boosted productivity by up to 24,000 tonnes annually at the site and cut energy costs by around $250,000. This intelligent system optimizes crane and ladle tracking, leading to faster casting speeds and reduced arcing in the ladle furnace.
Energy-efficient-safe-and-productive-melt-shop-operation

The future of steelmaking includes autonomous steel melt shop operation.

In addition, the ABB Ability™ Energy Management System for industries enabled site-wide optimization of energy consumption and availability for a large European steelmaking site. The solution covered steam yield, by-product gases, energy purchase and production, including site plants and turbines and resulted in 10 percent less flaring of gases, 15 percent improvement in accuracy of electricity purchasing forecasts and an average saving of 15KEUR per month.

By bringing transparency around energy consumption and sustainability performance, both sites were able to deliver on their sustainability commitments and regulatory requirements while maximizing energy cost savings.

Forging a brighter future

The potential benefits of data utilization in steel production are multifaceted. However, no one said that the path to unlocking universal digital transformation would be without its hurdles. Legacy equipment may lack the necessary sensors to collect data for analysis, and integrating these solutions can be time-consuming and the upfront investment costs for sensor networks and digital software can be a barrier for some producers.

The good news is that these challenges are not insurmountable. The cost of implementing AI is steadily decreasing, and the return on investment (ROI) is significant. Steel producers can invest in retrofitting older equipment with sensors, and collaborations between industry experts and digitalization specialists can bridge the knowledge gap. Additionally, companies like ABB are actively developing user-friendly software solutions specifically designed for the steel industry, making adoption easier and more accessible than ever.

Furthermore, the positive impact of AI extends beyond just the technology itself. By embracing AI, steel producers can foster a culture of data-driven decision making, leading to continuous improvement across all aspects of operations.

The marriage of technology and people capabilities can be directly seen with the use of ABB’s data analytics and collaborative technology. Customers of all sizes can gain a competitive advantage by testing in virtual environments or by seeking further domain-specific advice. Often, when ABB Ability™ Data Analytics Platform for metals is in place, metals producers can learn and conduct simulations based on a range of scenarios, adjusting materials parameters and pushing to limits. It also acts as a plant and enterprise-wide data integration, monitoring, data analytics and optimization platform. Further to this, the ABB Collaborative Operations Center (COC) for Metals provides round-the-clock service to help predict future failures or potential maintenance issues. The COC team is on hand, with AI tools and big data learnings from real processes at their disposal for customer use.

The future of steel: sustainable, efficient, and powered by data

Looking ahead, the future of the steel industry is undeniably data-driven. As data analysis tools and AI technology continue to evolve, we can expect even more sophisticated solutions to emerge. Imagine self-learning systems that not only optimize processes but also continuously adapt to changing conditions and refine their strategies over time. This level of data-driven intelligence could revolutionize the industry, creating a future where steel production is not just efficient and cost-effective, but also remarkably energy-conscious and environmentally sustainable.

By embracing data and embarking on this digital transformation journey, the steel industry can shed its image as an energy guzzler and a reactive industry. Instead, it can forge a new path, becoming a leader in sustainable manufacturing and a shining example of how data can be harnessed to create a brighter future for generations to come.

ABB is committed to helping the steel industry on this journey by providing cutting-edge AI solutions and collaborating with industry leaders to develop innovative new applications.

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