POSCO, at the forefront of assessing the impact of steel in its full life cycle, has been making a sizable investment to achieve ‘clean steel’ since its establishment. Yoon-Gih Ahn, the Senior Vice President of Energy and Environment Business Office at POSCO offers valuable insights for the company and the steel industry. POSCO Newsroom reports.

l Sustainable circular economy and steel products

We are now entering an era of “sustainable competitiveness” defined as looking beyond simple economic performance to pursue environmental soundness and balance with the social aspect. Considerable economic research, including Wernerfelt, B. (1984), M.E. Porter (1996), Prahalad, C. K. (2002), Wilson, M. (2003), and Y.G. Ahn (2007), has suggested this concept as a direction for corporate competitiveness. Given the imminent depletion of the natural resources that fueled the Industrial Revolution, such as oil, coal, and gas, and growing environmental concerns regarding the use of fossil fuels, both academia and industry are paying keen attention to sustainable competitiveness as a new means for achieving competitiveness. At the 2012 World Economic Forum, economists and scholars stressed the importance of a transition by the global economy to a circular economy to address pressing environmental issues such as resource scarcity, climate change, fine dust, wastes, and toxic chemicals—the key challenges for sustainable competitiveness.

When looking at the steel industry from the perspective of sustainability and a circular economy, process and product should be considered separately. In terms of the steel-making process, steel is not free from environmental concerns such as energy scarcity, CO₂, fine dust, and wastes.

For the products, however, the drawbacks of the steel-making process can be overcome. Lightweight steel products help to reduce CO₂ and NOx emissions and improve fuel efficiency and give a tremendous opportunity to the overall industrial ecosystem and society.

Source: compiled by the author

In particular, steel has a much longer service life than other materials, so it contributes greatly to improving efficiency in a circular economy. With its high recycling rate, infinite recyclability, and relatively easy removal of impurities, steel has proven to be a key material for addressing resource scarcity.

Considering the extent of current iron ore reserves, steel can become a cornerstone for a sustainable circular economy and industrial ecosystem. Steel slag, a by-product of steelmaking, provides an alternative to cement and can be used as a fertilizer to help increase agricultural production, demonstrating how steel can stand at the center of the shift to a new industrial ecosystem.

Source: Shutterstock

Life Cycle Assessment (LCA) is a technique used to determine the potential impacts of a product at all stages based on life cycle thinking. The global community uses this technique to identify products suitable for a circular economy. Ever since the International Organization for Standardization (ISO) adopted LCA as a global standard in the mid-1990s, it has been used for product development and marketing strategy. ISO is also discussing a new and improved global standard for a circular economy as a global standard.

Source: POSRI

Taking up the OECD’s Polluter-Pays Principle(PPP) and Process and Product Methods (PPM), the European Community adopted its Integrated Product Policy (IPP) based on life cycle thinking and life cycle assessment in 2000. Several directives and regulations have taken effect based upon the IPP, including the Restriction of Hazardous Substances (RoHS) in Electric & Electronic Equipment, Waste Electrical and Electronic Equipment (WEEE), End-of-Life Vehicle (ELV), and Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH).

These are already being used as a basis for global and domestic regulations and will become a sticking point in future trade concerns.

Clearly, steel products will be subject to more stringent regulations. This article discusses POSCO’s preparations and measures for improving its sustainable competitiveness in the face of shifting global and domestic market conditions.

l POSCO’s Responses for a Circular Economy Era

The economic system of the future will pursue not only traditional economic profits, but also environmental soundness and social needs for sustainable growth. This requires all economic players to cooperate on dealing with environmental and social challenges. In particular, sustainability will be highly dependent on the capability to alleviate or address resource scarcity. In this process, the recyclability or eco-friendliness of resources will have a significant influence. For these reasons, POSCO has been seeking the improvement of the steel-making process, product development, and utilization of by-products from the full life cycle perspective. Considering that the steel-making process is energy-intensive and burdensome to the environment, the company has been working to enhance energy and carbon efficiency and emplace eco-friendly process technologies. It has designed high-performance lightweight steel products with improved recyclabilityand circularity. By doing so, POSCO helps to make steel-consuming industries less carbon-producing and more eco-friendly. This contributes to the overall sustainable competitiveness of all global industry. Furthermore, it undergoes third-party monitoring and supervisions (conformity assessment) to assure the sustainability of products and ensure customer trust in a society seeking low-carbon eco-friendliness.

Source: Compiled by the author

To this end, POSCO has adopted Life Cycle Thinking and Analysis as a basic methodology and been interested in the global discussion on Life Cycle Analysis since the mid-1990s. POSCO has developed the Life Cycle Inventory (LCI) database and analytics suitable for steel-making processes and products. It has also actively participated in the global discussion surrounding Life Cycle Analysis, such as Environmental Labeling (ISO
14020) and Life Cycle Assessment (ISO 14040)under ISO/TC/207. In addition, it has developed products and improved recyclability of by-products from the sustainability perspective and it has been certified by international certification bodies to ensure customer trust in the eco-friendliness of its products and by-products. POSCO has a dynamic Plan-Do-Check-Act (PDCA) approach in place for continual improvement. It is conducting Life Cycle Thinking and Analysis from the PDCA perspective for improving circularity of products. The “Plan” phase sets the goals and scope for LCA and selects designated products.

During the “Do” phase, database is compiled for LCA. In this process, informatization by data analysis is important for interpretation of the environmental impacts from the perspective of whole life thinking.

The “Check” stage conducts Life Cycle Assessment for evaluation, and the outcomes are subject to third-party conformity assessment.

Finally, in the “Act” phase, the outcomes are reported to top management and used to take corrective action taking into account the original targets. The next plan phase is then initiated and the PDCA cycle is infinitely repeated for troubleshooting and continuous improvement.

These processes are conducted in close cooperation with the Energy and Environment Business Office, Department of Technology Management, RIST, and Marketing Department.

l POSCO products from a sustainability perspective

POSCO believes that sustainable competitiveness can be attained only when process and product are innovated in terms of eco-friendliness and recyclability. Therefore, it has spared no efforts in producing steel products offering higher performance and lighter weight. Based on whole life cycle thinking, it is applying LCA to develop products from the perspective of sustainable competitiveness and improve especially their eco-friendliness.

Representative products to which LCA was applied include advanced high strength steel (AHSS), Hyper NO electrical sheet, Giga Steel, and PosMAC. POSCO has also developed its PosMent cement with a higher slag content to improve overall resource efficiency and reduce CO2 emissions. Through the recycling of steel scrap and off-gas, it is strengthening its eco-friendliness and improving profitability. Below are details on some examples of POSCO’s preparations for a sustainable circular economy.

(1) Advanced high strength steel (AHSS) – Lighter car bodies to raise fuel efficiency
AHSS applied to gasoline vehicles reduces vehicle body weight, improving fuel efficiency and reducing greenhouse gas emissions.

In close cooperation with its domestic automaker partners, POSCO begins suggesting steel products from the design stage and has developed lightweight products that enhance fuel efficiency and reduce greenhouse gas emissions.

AHSS is about 10 percent lighter but more than twice as strong as conventional steel sheets for cars. A new 2016 model using more AHSS is 130 kg lighter than the 2015 model with less AHSS but boasts even higher crash performance. Annval fuel use of a vehicle is reducsd by 140ℓ CO2 emissions by 301kg and fuel costs by KRW 201,882. If Applying the Lifetime Driving Distance (LTDD), the new model can reduce fuel use per vehicle by around 2 kℓ, CO2 emissions by 4.4t CO2 and fuel costs by KRW 3 million.

(2) Hyper NO electric sheet – Reducing electricity consumption of home appliances through improved motor efficiency
Improving power efficiency in home appliances to reduce energy consumption and cut greenhouse gas emissions.

POSCO has developed a top-grade non-oriented electrical steel, Hyper NO. Hyper NO can be used in motor cores, a key component in motors that converts electric power to mechanical power. It helps to make motors more efficient and improves the energy efficiency of home appliances. Motor cores with Hyper NO minimize core losses, thereby improving the power efficiency of home appliances using compressor motors with these motor cores.

In a pilot test, a refrigerator using a motor with Hyper NO in place of a compressor motor with a conventional motor core saw its compressor motor efficiency improve by up to 1.5% and electricity use efficiency rise
by 1.2%.

If these figures were applied to the total sales for the refrigerator model, it would reduce annual electrical power consumption by 2.1 GWh and save annual electric costs of KRW 390 million.

Moreover, assuming that a high-efficiency motor with Hyper NO steel were used in all refrigerators sold in Korea, it would reduce annual electrical power consumption by 89.5 GWh and annual electric costs by KRW 16.8 billion.

(3) PosMAC and Giga Steel – Building the Life Cycle Inventory database and conducting third-party certification
Preparing for a low-carbon circular economy characterized by eco-friendliness and recycling of resources through a full life cycle database and third-party certification.

Acknowledging that the future will be characterized by a circular economy dominated by sustainable competitiveness, POSCO believes that eco-friendliness, and recyclability in particular, will become a key to product quality. The company has begun evaluating the eco-friendliness of its steel products based on whole life cycle thinking. A first for a Korean steelmaker, POSCO established the Lif Cycle Inventory database (LCI).

Since January 2018, it has been preparing for obtaining Environmental Product Declaration (EPD)4 certification at home and abroad. It has selected PosMAC5, the construction steel materials produced at the Pohang Steelworks and Giga Steel6 for automobiles produced at the Gwangyang Steelworks as its WP (World’s Premium) products.

In May 2018, it compiled quantitative environmental information on PosMAC taking into consideration the extraction of raw materials, supply, manufacture (cradle-to-gate) and recyclability. This information can be used for setting directions for reducing the environmental impact of the steel production process by considering the use of resources and energy in the whole life cycle of steel products and potential effects on climate change.

In addition, POSCO is building the environmental information on Giga Steel from the whole life cycle perspective. It plans to obtain Environmental Product Declaration (EPD) certification from an international certification body and the Korean Ministry of Environment by August 2018.

(4) PosMent – Eco-friendly cement with a higher slag content
Developing “PosMent” with a higher slag content, a by-product from the steel-making process, to strengthen the circular industry ecosystem and reduce greenhouse gas emissions.

Ground-granulated blast furnace slag is a sandtype slag manufactured by spraying high-pressure water jets on molten slag from a blast furnace. It has a chemical composition similar to cement. As an alternative to cement clinker,7 granulated slag is used up to 5% in a cement mixture to conserve natural resources such as limestone and reduce energy and CO2 emissions associated with cement calcination. In cooperation with RIST and POSCO E&C, POSCO developed PosMent in 2012, which has a higher slag content but demonstrates improved physical properties such as pressure resistance and strength. It can reduce CO2 emissions by up to 60% compared to conventional cement.

In 2017 alone, the company used 10.95 Mt of ground-granulated blast furnace slag for the production of cement and reduced 8.6 Mt of greenhouse gas emissions.

(5) Utilization of process off-gas – Innovative energy efficiency improvement and CO2 emissions cuts
Using off-gas created in the steel-making process to improve energy efficiency, reduce CO2 emissions, and minimize electricity costs.

POSCO collects most of the off-gas (BFG, COG, LDG, FOG) created in the steel-making process for use as a process energy source and power generation. In 2017, Pohang Steelworks and Gwangyang Steelworks self-supplied 72% of their electricity needs through energy collection equipment, off-gas generators, and LNG power generation equipment, such as Coke Dry Quenching (CDQ) and Top Gas Pressure Recovery Turbines (TRT). This figure has increased by 6%p from the generation rate of 68% in 2016.

To prepare for stricter greenhouse gas restrictions and rising electricity prices in the future, the power generation rate using off-gas will continue to increase.

l Suggestions for the future

It is an undeniable fact that the global economy is shifting toward a low-carbon and eco-friendly sustainable circular economy in order to address the potential depletion of energy resources, climate change, and air pollution. The steel industry will not be exempted from these changes in the business environment.

Although steel is a CO2-and energy-intensive industry, recently developed lightweight and high-strength steel products bolster the sustainable competitiveness of the steel industry, demonstrating that the steel industry can become a representative industry for sustainable competitiveness in a circular economy.

POSCO utilizes Life Cycle Assessment for product development. The company analyzes the recyclability and eco-friendliness of its steel products and by-products from the whole life cycle perspective. It applies the analytic outcomes to product development and processes to cut energy and CO2 emissions across the entire industrial and social ecosystems. In particular, it seeks to explore new markets by ensuring the eco-friendliness of both its products and by-products through third-party certification.

Thanks to such efforts, the steel industry can remain a staple of industry in the circular economy and POSCO will stand firmly as a sustainable, competitive company.

* This article has been reproduced from Asian Steel Watch, a bi-annual English journal specialized in the Asian steel industry. The original version Vol 5. (2016.06) can be accessed and downloaded directly from POSRI’s website here.

Sustainability is becoming a top priority across industries everywhere, and car recycling sector is no exception. To tackle the urgent tasks like climate change and carbon dioxide emission, countries around the globe strive to develop more sustainable technology and processes for automobiles – for production as well as for disposal.

<Annual auto production vs disposal in Korea>

Every year, Korea produces about 4 million cars, and according to the Korea Auto Dismantlement Recycling Association, about 790,000 cars are disposed every year (as of 2016). The number of cars disposed annually is about 20% of the number produced, which is much lower when compared to the global average. However, such low number can partially be attributed to the fact that Korea exports a significant number of old cars to developing countries.

Though the 20% disposal rate seems relatively small, 790,000 cars are no small number. Besides, experts predict this number is likely to go up, along with the increase in the number of cars per each household, which is why it’s important to think of sustainable methods to deal with auto recycling.

l How Are Cars Recycled?

Car recycling is extremely complicated – there are so many parts that go into a vehicle, and proper handling of hazardous materials need to precede before the actual recycling process begins. Complexity notwithstanding, to summarize the process of auto recycling in three simple steps, they are de-pollution, dismantlement, and compression.

(1) De-pollution: before the recycling process officially begins, fluids (engine coolant, oil, transmission fluids, gasoline, etc) are drained and removed. Reusable items like batteries, tires, and airbags can also be separated at this stage.

(2) Dismantlement: certain high-value parts such as engine, transmissions, alternators, starter motors, and infotainment systems and hazardous materials such as mercury, sodium azide (used in airbags) may be removed.

(3) Compression: once end-of-life vehicles undergo de-pollution and dismantlement, the remaining scrap metal is tossed in a vehicle shredder that magnetically separates metal fragments into ferrous and non-ferrous metals. They are crushed flat or cubed and are sold to steel mills for recycling.

After further processing (e.g. mixing with other metal components to strengthen them), these scrap metals can eventually end up with auto manufacturers and are used to build new automobile frames.

Non-ferrous residues from the compression stage are called ASR (Automobile Shredder Residue), which were typically buried in a landfill. Since the late 1990s however, companies like Toyota Metal are collecting them instead of tossing them out, in an effort to boost recycling rates for these non-ferrous materials.

l Steel Recycling Rate for Automobiles Is Near 100%

Crushing 10,000 end-of-life vehicles will give out approximately 4,000 tons of steel. Depending on the sophistication of any given recycling technology, products are normally reduced, reused or recycled.

A ‘recycling rate’ for end-of-life vehicles typically refers to the total weight of recoverable weight, out of the total weight of a vehicle. According to the American Iron and Steel Institute, the recycling rate for the steel materials in the United States is anywhere between high-80% to low-90%. The recycling rate of steel used in packaging such as cans is around 70%, but the recycling rate for automotive steel reaches upto 100%.

l Circular Economy and the Future of Steel

Paradigm is shifting from ‘Produce, Consume, and Discard’ to the circular economy that focuses on 4Rs: Reduce, Reuse, Remanufacture and Recycle. From the perspective of Life Cycle Assessment*, the steel industry is in a good position to contribute to various areas and become part of the solution to environmental problems of many current products and services.

*Life Cycle Assessment (LCA) is a technique to assess environmental impacts associated with all the stages of a product’s life from raw material extraction through materials processing, manufacture, distribution, use, repair and maintenance, and disposal or recycling.

As noted earlier, automotive steel is recycled almost 100%. As for giga-level automotive steel sheet such as POSCO’s Giga steel, can improve the fuel efficiency by achieving lightweight in the body of vehicles. This can help reduce carbon dioxide emission and enhance the durability of the vehicle when compared to the current products. From an LCA perspective, steel deserves due recognition for its vast recycling scale and its excellence as material.

If steel is the most recycled material in the world, the automobile is the most recycled consumer products. Korea, which possesses world-class technology in automobiles and steel products, will hopefully achieve a recycling technology for both steel and automobile that is on par with its top achievements in steel and automobile industries.

Watch hundreds of steel cans being produced at a Soudronic canning factory.

Advantages of Steel Packaging

Steel is one of the most commonly used packaging materials by manufacturers, because it is widely available, cost-effective and easy to work with. Steel packages can be customized to just about any shape and size depending on the needs of the business, and the continuously improving quality of steel lets manufacturers use less material without losing rigidity.

Steel as a packaging material is tamper-resistant, durable and has an extremely long shelf life, hence the reason why canned food seems to last forever. At the end of its life cycle, steel is 100 percent recyclable and does not lose any of its properties or qualities in the process. Plus, at least 25 percent of every steel can must be made of recycled steel, and its magnetic properties make it even easier to recover for recycling.

Steel is 100 percent recyclable and the most-recycled material in the world. (Source: Causeway Coast and Glens)

According to the Association of European Producers of Steel for Packaging (APEAL), steel packages are the most recycled packages out of all packaging materials, and its recycling rates keep climbing. In Europe, over 77 percent of steel packages are recycled and in countries such as the Netherlands, Belgium and Germany, rates exceed 90 percent.

New Innovations

Today, there are numerous new technologies taking steel packaging to a whole new level. Higher-quality alloys of steel and innovative new methods for processing steel are making everyday products safer, more convenient and efficient. Here’s some examples to show the advances being made in steel packaging.

Bacteria-free stainless steel surfaces

Researchers at Georgia Institute of Technology recently invented a new way to fight harmful bacteria such as E. coli on steel surfaces. Instead of the traditional antibiotics that are temporary and can aid bacteria in developing resistance, this new process uses an electrochemical etching chemical process to create thousands of tiny nano spikes on stainless steel surfaces. By switching up the levels of voltage and current flow in the electrochemical process, the researchers ended up with a rougher, “spiked” surface.

The spikes are about 25 nanometers long, and will kill both gram-positive and gram-negative bacteria on contact, without damaging human cells. The human eye cannot tell the difference between nanotextured steel and regular steel, and the technology increases corrosion resistance as well.

Nanotextured steel can kill bacterial upon contact without harming human cells. (Source: The Engineer)

Though the technology is new and is awaiting additional tests, it could be a permanent solution to treating bacteria and potentially change the medical and food industries completely. Nanotextured stainless steel can be used not only for packaging, but the manufacturing equipment that come in to contact with food. Researchers are also working to apply the technology to spine implants and other implants that come in direct contact with the body.

The world’s lightest 3-piece aerosol can

German company Henkel and packaging manufacturer Ardagh Group developed a new, sustainable aerosol spray can for Henkel’s beauty products using high-quality steel. The can is a mere 0.13mm thick, using up 15 percent less materials than its counterparts, but is also more rigid. The world’s lightest aerosol can also reduce C02 output by 3500 metric tons and water consumption by 900,000 cubic meters per year.

High-quality steel makes this aerosol eco-friendly. (Source: Pack World)

The development is in line with Henkel’s efforts to contribute to a circular economy. Thus the company aimed to design a packaging material that is not only effective and sustainable to produce, but is also 100 percent recyclable.

As the most recycled packaging material in the world, steel will continue to package food, beauty products, paints, chemicals and more manufactured goods. Especially with advances in the quality of steel alloys and innovative ways to process steel, manufacturers can be assured their products will be safe and sound in effective, cost-efficient, sustainable and safe packages.

What is the Circular Economy?

The circular economy concept gained momentum in the 1970s as academics, businesses, and thought leaders realized that there needed to be a change in the way products were manufactured and disposed of. The general goals of a circular economy involved eliminating waste, using renewable energy to manufacture goods, and to be more respectful of the natural environment.

In a circular economy, resources need to be allocated efficiently while making products that earn a return for the businesses without being too costly to consumers. Products should be durable, recyclable, and easily repaired. Simply put, manufacturers and consumers need to extend the life of their products before they are thrown away.

A well functioning circular economy ensures that products retain value even at the end of their use stage. Ideally, products would be-be 100% recyclable, and even before reaching that stage, they should be durable enough for reuse or remanufacturing. Steel represents a critical piece of this concept as it can be reused, repurposed, and remanufactured after use and then still remains infinitely recyclable. Beyond that, advances in steel production technology have created more energy efficient and green processes for steelmakers.

Steel in the Circular Economy

Steel is used to manufacture and ship almost every product on the globe. Its ubiquity makes it a central piece of the concept of a circular economy and more sustainable production. It can be reused, remanufactured, and recycled without losing any of its properties. Also, due to technological advancements in recent decades, steel has become both lighter and stronger making everything from cars to ships more energy efficient.

[clickToTweet tweet=”Steel is 100% recyclable without losing any of its original properties or strength.” quote=”Steel is 100% recyclable without losing any of its original properties or strength.” theme=”style6″]

In addition to lightweighting, one must look at steel’s life cycle assessment in order to measure its effect on the circular economy, Last month on The Steel Wire, Dr. Roland Geyer from the University of California at Santa Barbara took an in-depth look at the life cycle assessment of steel. His research aims to show that steel’s benefit to the automotive industry lies not only in its lightweight properties but also in its ability to be recycled and used over and over again – making it the most optimal material for automakers in a circular economy.

POSCO Innovates in Sustainable Steel Production

For its part in the circular economy, POSCO has been pursuing advancements in sustainable steel production from multiple angles. To reduce greenhouse gas emissions, POSCO helped develop the FINEX® process. It is based on the direct use of iron ore fines and non-coking coal while eliminating the coke-making and sintering processes, which are most critical to the conventional blast furnace process. Combining these two decisive advantages led to lower production costs and a reduction of environmental emissions in comparison with the conventional blast furnace route.

For automakers, the steel used to manufacture vehicles is critical to the circular economy in both its production and use. POSCO has been at work developing new automotive steel solutions that are lighter, stronger, and more affordable. They have also begun utilizing advanced AI and IIoT (internet of things) solutions in its automotive steel plants to reduce waste.

Because POSCO GIGA STEEL is lightweight, strong, and affordable, it is the ideal material option for automakers looking to build more sustainable vehicles.

For its manganese steel production, POSCO developed new technology that cut production time in half while increasing efficiency by 10%. Now, instead of melting the iron, lowering the temperature, and then melting it again, POSCO can store the molten iron at its new PosLM facility helping to reduce energy costs and shorten production time.

In order to move toward a circular economy, businesses and industries must make fundamental changes to how their products are manufactured and used. Steel remains a critical piece of this concept as it can be reused, remanufactured, and recycled. However, more needs to be done, and companies like POSCO are taking the lead to develop more sustainable production processes.

*Graphs courtesy of the World Steel Association

Edwin Basson, Director General at worldsteel commented on the launch: “In a world of finite resources we must leave the outdated ‘take, make, consume and dispose’ mentality behind and move toward a circular economy model for optimal resource efficiency. To achieve this we need a life cycle approach that measures the social, economic and environmental impact of a product at each stage in its life cycle. We believe that life cycle thinking must become a key requirement for all manufacturing decisions going forward.”

“The steel industry is an integral part of the circular economy model. A circular economy promotes zero waste, a reduction in the amount of materials used, and encourages the reuse and recycling of materials. These are all fundamental advantages of using steel. Therefore, in a well-structured circular economy, steel has competitive advantages over other materials.”

• Reducing thickness of steel for packaging has positive environmental impact over its life cycle
• Life cycle thinking leads to intelligent automotive material choices
• Using LCA to calculate energy payback for wind turbines
• LCA in the eco-design of office building

If you are interested in life cycle thinking case studies listed above, read more about the ‘Steel in the Circular Economy’ from worldsteel’s online bookshop. There are many more cases of a life cycle thinking approach in the publication!

[box]The World Steel Association (worldsteel) is one of the largest and most dynamic industry associations in the world. worldsteel represents approximately 170 steel producers (including 9 of the world’s 10 largest steel companies), national and regional steel industry associations, and steel research institutes. worldsteel members represent around 85% of world steel production.[/box]