ArcelorMittal

ArcelorMittal

World’s largest steel and mining company joins capacity market to help solve peak power shortage

A landmark agreement between steel and mining company ArcelorMittal and Europe’s leading Demand Response company REstore will return up to 150 MW to the transmission grid at peak periods. The agreement will deliver cost savings for two of ArcelorMittal’s factories and contribute enough power to mitigate the need to invest in new peak power plants.

Overview

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ArcelorMittal

ArcelorMittal, the world’s largest steel and mining company, has partnered with European Demand Response aggregator REstore in Belgium to implement innovative management of its energy consumption, create new revenue and contribute to the country’s power needs. Globally, ArcelorMittal consumes approximately the same amount of gas and electricity as Austria or 25% of the total annual energy consumption of the UK. To mitigate growing costs from energy taxes, transport and renewables levies, in 2011 ArcelorMittal set up an internal business unit, called ArcelorMittal Energy SCA, to focus on energy optimisation and energy trading for its manufacturing plants across Europe. ArcelorMittal Energy SCA is now working with REstore to intelligently reduce its power demand, pooling its ‘spare megawatts’ to relieve pressure on the transmission grid at peak times. 

“We are not 100% available because of the very nature of the electric arc furnace, but at times when blackouts are possible, we can help the network with the right incentives”

Luis De Miguel Martinez, Managing Director ArcelorMittal Energy SCA

Challenges

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ArcelorMittal

In March 2014, two steel plants in Belgium – one owned by ArcelorMittal and one owned by stainless steel producer Aperam - started to assess the opportunity to participate in the capacity market. This followed comments from Belgium’s Minister of Energy that the country was going to struggle to avoid power blackouts during the coming winter. The critical question was whether it was possible to limit power to their machinery fast enough, and long enough, to qualify for Demand Response. During a few hours in the day and some days during the year, ArcelorMittal could not allow power to their electric arc furnaces or hot and cold roll mills to be curtailed. In addition the local operations teams were concerned that steel quality and customer delivery would be impacted if machinery was without power for certain periods. On its own, it was likely that ArcelorMittal would not be able to meet Elia’s stringent requirements for demand response participation.

The Solution

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ArcelorMittal

REstore overcame these challenges by aggregating both the ArcelorMittal and Aperam plants into its portfolio, which also contain a wide array of other industrial sites owned by different companies. When circumstances meant that ArcelorMittal’s plants couldn’t curtail power, another company in REstore’s portfolio could step in as a substitute, ensuring that Elia had the required guaranteed power available at all times. This pooling approach ensured that ArcelorMittal’s local operations team could carry on with business as usual, whilst still enabling ArcelorMittal to participate in the capacity market.

Direct benefits
for ArcelorMittal include

Corporate Social Responsibility

Corporate Social Responsibility

Demand Response enables large industrial consumers to reduce their consumption and return power to their local community when power is scarce.

Money Savings

Money Savings

The REstore portfolio generates significant recurring revenue. Industrial consumers can use these earnings to reduce their energy bill.

Sustainable Development

Sustainable Development

Demand Response facilitates the further development of renewable energy. It lowers industry's carbon footprint. It helps to curb global climate change.