More than 150 global businesses set a public goal to source 100% of their electricity consumption from renewables. Shifting away from the traditional use of fossil fuels, the companies are identifying this shift as an opportunity to reduce green gas emission thereby minimizing their environmental impact and support cleaner energy alternatives – while also meeting the demands of the environmentally conscious communities, customers and investors. Increasingly, there are compelling business cases for switching to renewables – more companies are transitioning to renewables to reduce the energy costs.

l What is RE100?

RE100, meaning Renewable Energy 100%, is an initiative seeking to source 100% of electricity consumption from renewables. A UK nonprofit CDP introduced the initiative in 2014 in partnership with the Climate Group. The member companies are energy consumers, not producers, who work together to increase demand for – and delivery of – renewable energy. The voluntary membership involves coming up with their own renewable energy consumption target and the year, and the participating companies submit performance reports annually in accordance with the technical standards provided by RE100. The eligible renewable energy sources are biomass, biogas, geothermal, solar, wind and hydropower.

l How RE100 Emerged

1. Favorable Political Climate
Governments around the world set bold targets to supply renewable energy. Their support for renewables through subsidies, tax benefits, and deregulations alleviated anxieties about investing towards renewables. To meet their goal for renewable energy supply, governments are likely to maintain such policy atmosphere by identifying obstacles from investors’ perspectives and offering practical solutions.

<Renewable energy targets set by governments>

It was the European governments who took to transforming the global energy market early on, seeking to accelerate the expansion of renewables. The European Union set a binding renewable energy target of at least 32% by 2030. All EU countries hold national renewable energy action plans and strive to meet the shared goals as members of the EU community.

Even within the EU however, the reality of each country’s renewable energy varies. Denmark who has the highest proportion of wind power in the world naturally set a bold goal of 100%. Meanwhile, countries like France with less favorable infrastructure for renewables proposed a lower target of 40%. The circumstances were similar for the countries with high dependence on the existing energy infrastructures like nuclear power plants.

Asian and Latin American countries came on board at a relatively later date. Due to the difficulty in securing supply chains as well as the sheer lack of professional services in the renewable sector, these countries presented with more conservative goals.

2. Increased competitiveness of renewables
Renewable-related technologies and facility efficiencies continue to evolve, improving the cost competitiveness of renewables accordingly (e.g. solar energy: $304/MWh → $86 MWh). Furthermore, tighter regulations on fossil fuels and nuclear power are bringing down the appeal toward those energy sources, and the business case for switching to renewables is more compelling than ever.

3. A major shift in the consumer landscape – consumer roles expanded
More companies are sourcing their energy that reflects community values, leaning towards more sustainable energy sources. Low cost and stable energy supply are no longer default preferences for the leading global companies. Corporate responsibility to limit our environmental impact is increasingly becoming a critical factor in their business decisions.

l Performance Records of RE100 Partner Companies

Launched in 2014, the number of companies joining RE100 initiative has been steadily increasing: a total of 160 companies (as of January 2019 ). Companies like Google, Microsoft, Starbucks, and Mark & Spencer have already announced their successful 100% shift to renewables.

<Targets set by key partner companies>

No Korean companies have yet to join the RE100 initiative, though Greenpeace is consistently calling on Korean companies to lead by example and exercise their corporate responsibility. Considering the esteemed market status and influence, Greenpeace officially demanded Samsung Electronics to declare a shift to renewables. In response, Samsung announced a plan to expand their use of renewable energy to 3.1GW in all its sites across the globe (as of June 2018). Within Korea, the company is in the process of installing solar panels at their production facilities in Suwon, Hwaseong, and Pyeongtaek. SK Hynix, South Korean memory semiconductor supplier and the world’s second-largest memory chipmaker after Samsung Electronics, also aims to go 100% renewable at its overseas plants in China by 2020. SK Hynix further announced their 2022 ECO vision, purported to cutting greenhouse gas emissions by 40% compared to 2016.

l Potential Implications for the Korean Companies

Compared to Korean companies, the RE100 partner companies currently implementing their energy shift commitments, operate in a relatively favorable atmosphere. For them, renewables are readily available at lower costs, whereas Korean companies must overcome several hurdles beforehand. With no secure transaction route in place, Korean companies should pay a considerably higher sum to purchase renewables. What must precede is political and institutional changes that help pave the way towards reasonable costs and availability.

Because an electricity market reform is yet to take place in Korea, the industry option for renewable energy purchase is minimal. Companies in the United States and Europe who underwent the restructuring earlier can purchase renewables through various methods like Power Purchase Agreement (PPA), self-consumption, green pricing, unbundled certificates, etc. In Korea, the only available legal option is self-consumption. Grid parity, which indicates the level of cost competitiveness of renewables – compared to existing energy sources like thermal and nuclear – is much lower compared to those in Europe and North America. There, renewable energy has been active since the early 2000s.

Therefore, Korean companies must overcome challenging circumstances to be more proactive about purchasing renewables. What needs to happen is securing purchase routes for Korean companies for renewable energy source through institutional reforms. The Korean government is recognizing such institutional hurdles and plans to introduce premium pricing schemes within the year. They are also reviewing other reforms like PPA. Korean companies, on their part, need to become selective about the system that works for them, establishing a review plan for a preemptive application to minimize the costs.

Nevertheless, the policy and market shift propelled by RE100 are likely to increase the burdens on Korean companies. Increasingly the RE100 participating companies are demanding commitments to renewables not just from within, but from their partner companies in their supply chain. Apple has asked their partner companies to use renewables, and Korean battery companies also received similar requests. Going forward, companies sourcing their energy elsewhere other than renewables might face adverse circumstances in their contracts.

Now is the time for Korean companies to step up and take ambitious corporate action by switching to renewables to meet the demands of global clients and stakeholders, and by redefining their community and economic values. Furthermore, it’s important to make smart strategic decisions by utilizing their own resources to remain competitive in the global market. Above all, the companies must face the realities of energy transition head-on and establish strategies that respond to the demands of the time and the global community we all belong.

Offshore wind power is rapidly emerging as a realistic alternative in these times of upheaval to cope with climate change and transition into a low-carbon economy. Offshore winds from the ocean farms are much well-supplied in quantity than onshore winds and is relatively free from issues such as noise and environmental damage. Not to mention the ocean is a favorable domain for large-scale turbine installations and vast complex constructions.

Granting these agreeable conditions, it is undeniable that offshore wind power has lacked the public recognition it deserved on the grounds that the costs are high and installations challenging. However, revised policies and technological innovations led by Europe yielded the steady growth of offshore wind market, gearing up for present-day application, not a far-fetched one.

London Array, one of the largest offshore wind farms in Europe(Source: reve)

Traversing from Europe into Asia

Since the construction of the world’s first commercial offshore wind farm on the Danish coast in 1991, European countries including the United Kingdom, Germany and Denmark have been dominating the offshore wind market. 26 years later, as of the latter 2017, the installed capacity of offshore wind power in Europe amounts to 15.8 GW(gigawatt: offshore wind power capacity unit), accounting for 85% of the world’s total. Even the expectation for new offshore wind station in Europe measures up to about 50 GW by 2030. This implies the capacity yet to be installed over the next 13 years will more than triple that already established over the past 26 years.

As the European offshore wind market has passed into a full-blown growth period, continued investment in offshore wind power is observed beyond Europe, including China, Asia and the United States. That China is forecasted to overtake Great Britain in the next five years as world’s no. 1 offshore wind power nation is especially noteworthy.

Probing the Fall in Installation Costs

The recent spotlight on offshore wind power market is the result of the decreasing expenses and improving business conditions. As stated by the International Renewable Energy Agency (IRENA), the global offshore wind equivalent cost (LCOE: Levelized Cost of Electricity) for 2016 is $ 0.14 per kWh(kilowatt hour), about 20% lower than 2010, and expected to drop by up to 60% in the year 2022.

Some main observations in Europe underpin the shrinkage in costs. In the UK, offshore wind power that is less expensive than the new nuclear power plants has emerged. Furthermore, ‘subsidy zero’ projects have become apparent in the auctions held in Germany and the Netherlands revealing that offshore wind power has boosted its competitiveness to the extent that it could secure profitability without the support of their government.

Factors that drove the decline include the maturity of the value chain and the establishment of foundational infrastructure. More often than not, however, the vast expansion in turbine size and its resulting rise in capacity factor are major attributes. The average capacity of newly installed offshore wind turbines in Europe has increased from 3 MW in 2010 to 6 MW in 2017. The capacity of the largest commercial turbine currently in operation is 8 MW, and in the next two to three years will witness the onset of 10 MW to 12 MW super-sized turbines one after another.

Offshore wind turbines expanding in size(Source: Open Ocean)

A case in point is GE’s 12 MW super-sized turbine in development, with a 220-meter rotor, reaching up 260 meters above sea level prepared to be tested for application in 2019. The capacity factor of offshore wind power is 40% to 45% but is expected to increase to 50% or higher as the installation of super-sized turbines is anticipating augmentation in the future.

World’s first 12 MW capacity wind turbines developed by GE(Source: GE)

More recently, the development of floating offshore wind power has become increasingly apparent, promoting expectations for offshore wind farm development in the deep ocean, an area with constraints in installation. Hywind Scotland, the world’s first commercial floating offshore wind power project in the Scottish coast in 2017 has a maximum underwater depth reaching down 129 meters and consists of five 6-MW turbines. In the three months after this operation, the average capacity factor reached 65%, higher than the 55% of the US thermal power plants, demonstrating the possibility of constructing a large-scale floating complex of several hundred MW in the future.

Hywind Scotland, the world’s first floating wind turbines(Source: Equinor)

Steel, the Integral Element of Offshore Wind Turbines

Steel plays a central component in the design of wind power stations. It is a predominant material that composes most of the structure of a wind turbine such as the tower and the generator, excluding only the blades. The performance of electrical steel sheets and bearing steel used in the internal structure is in direct relation to the turbine efficiency.

One of POSCO’s acknowledged inventions, PosWIND, maximizes durability by increasing the content of alloying elements (Si, Mn, Cr) compared to ordinary bearing steel, enabling long-term high resistance to static and dynamic loads as well as to corrosion and damages from external forces.

PosWIND, POSCO’s highly durable steel material used as turbine bearing

For stable support of turbines worth several hundred tons, its underwater structure must be installed to withstand strong winds and ocean waves. To tolerate inconsistent weather conditions over 20 years, its underwater structure requires key material— a highly corrosion-resistant steel of excellent quality. Amid the growth of turbine size and deepening sea levels, highly durable steel is used to increase the strength of the underwater structure while decreasing the weight, in turn, improving the logistics and installation efficiency.

Next Itinerary: Expanding into Asia

Europe’s offshore wind power investment continues to rise while Asia including China is drawing attention as the next-generation market. China has already secured third largest in the world while expecting to ascend as the world’s top offshore wind power nation within the next five years. Meanwhile, Taiwan has already decided on a project for its plans to install 5.5 GW by the year 2025. Nonetheless, Asia has yet to gain experience in contrast to the seasoned Europe. The fact that a sufficient number of supply chains of large turbine manufactures, installation vessels and port facilities are unavailable remains as an undertaking to fulfill.

Cover photo courtesy of The Daily Telegraph

As a result, new innovations in battery technology are beginning to open up new possibilities for not just the automotive industry, but for consumer electronics, wearables, drones and much more. Such industries are positioned for growth in the Fourth Industrial Revolution, and supplying enough lithium to meet the growing demand through sustainable practices is posing a challenge.  

SEE ALSO: The Fuel of Tomorrow: Mining Lithium for Tomorrow’s Cars

New Developments in Lithium Batteries

Today, almost every automaker is invested in EVs, and it will be batteries and software, not brakes and engines, that will play a decisive role in the success of future fleets. The biggest challenge for battery manufacturers is to make a high-capacity battery that can charge in a short period of time, but still be lightweight and compact at the same time.

Solid-state lithium-ion batteries are lighter, more compact and safer than liquid-state batteries. (Source: UPS Battery Center)

Solid-state lithium-ion batteries are a feasible solution. These super-capacity batteries replace traditional semi-liquid electrolytes with solid electrolytes that allow for faster charging times (about 7 minutes) and are not susceptible to explosion on impact as liquid-state electrolytes are. Solid-state batteries can also operate in dynamic temperatures between -30 degrees Celsius and 100 degrees Celsius. Plus, they are far lighter and take up less space in an EV. Toyota has announced they will use solid-state lithium-ion batteries in their EVs starting from 2020.

Professor Yang’s flexible lithium-ion batteries are composed of stiff and flexible parts to resemble the human spine. (Source: eeNewsAnalog)

Besides cars, lithium-ion batteries are great for portable electronic devices, and a new invention looks to widen the applicability of the batteries. Assistant Professor Yuan Yang of Material Science and Engineering at Columbia University recently came up with a flexible type of lithium-ion battery that resembles the human spine. He first got the idea for the design while doing sit-ups at the gym when he noticed how his flexible spine allowed his body to move in various ways. Yang applied the idea to lithium-ion batteries by rearranging the traditional battery in a vertical structure made of stiff and flexible parts, just like the human spine. The end result was a flexible battery with more than 85 percent of the energy density found in a standard battery. The flexible and energy-dense batteries are expected to open up new possibilities for consumer technology designs and further accelerate the growing wearables market.

SolidEnergy Systems lithium-metal batteries are energy-dense and one of the smallest batteries available. (Source: Digital Trends)

There’s another up-and-coming invention that makes use of solid-state lithium batteries. SolidEnergy Systems recently received USD 34 million in funding to commercialize their lithium-metal batteries, bringing total funding to USD 50 million. The batteries have twice as much energy density as lithium-ion batteries, making them perfect for devices that have battery size limitations. By replacing graphite with lithium metal foil for the negative electrodes, the company was able to pack more energy into a smaller space. The resulting energy density is 450 watt hours per kilogram and 1200 watt hours per liter. For now, it is being sold to drone companies and the makers are working on lithium-metal batteries for wearables and EVs.

Sustainable Lithium Extraction

In the midst of development and advances in lithium batteries, the question to ask is where is all the lithium coming from, and is there enough to feed growing demand? The answer is yes, there is more than enough lithium in different parts of the world, but the problem is that there are not enough mines to extract all the lithium in demand.

Lithium is a growing source for jobs in South America due to the high demand. (Source: Twitter/@BrianDColwell)

More than half of the world’s lithium reserves are in South America, more specifically in Chile and Argentina, but Australia is the biggest producer. Even with new mines opening up at a frequent pace, lithium extraction isn’t easy. Political, social and environmental hurdles have led to unstable output. Coupled with the exponential growth of the EV market, the price of lithium carbonate has more than doubled from 2011 to 2016.

Another concern is the environmental impact of lithium extraction and production. Critics have pointed out that raw materials, such as lithium, used to produce eco-friendly batteries have a large carbon footprint on their own.

POSCO CEO Ohjoon Kwon holding lithium during his visit to PosLX, POSCO’s battery production factory in Korea.

That’s why earlier this year, steelmaker POSCO opened up PosLX, Korea’s first lithium plant, as part of the move to expand its non-steel businesses and make headways into the batteries market. The new plant has an annual production capacity of 2,500 tons and will use POSCO’s innovative technology, developed in-house. POSCO’s eco-friendly extraction technology entails extracting lithium from water, and takes anywhere between 8 hours up to a month to complete. Traditional evaporation methods take 12 to 18 months to produce the same amount. Moreover, POSCO’s technology can obtain a purity rate of 99.9 percent, as well as a recovery rate of over 80 percent.

In addition, POSCO has developed a way to extract lithium phosphate, a raw material of lithium carbonate, from used rechargeable batteries. The lithium carbonate produced from recycled secondary batteries are equal in purity, charge, discharge efficiency and capacity as existing lithium carbonate, but at a lower cost to the environment.  

SEE ALSO: POSCO’s Innovation Shapes the Ever-Growing Lithium Market

Going forward, POSCO plans to increase its lithium production capacity to 40,000 tons per year to supply the increasing demand from new-growth industries and ensure a sustainable future of renewable energy.

Cover photo courtesy of Cleantechnica.

However, these building projects are on another level of huge, and with all the megacities popping up throughout the country, China boasts many of the biggest infrastructure projects in the world. Here’s the Steel Wire’s look at some of the most impressive to date.

Three Gorges Dam

China is home to the largest dam in the world, measuring 1.5 miles in length and sitting 60 (!) stories tall. The Three Gorges Dam took 1.92 million tons of rolled steel to complete, along with 10.82 million tons of cement and 1.6 million cubic meters of timber. The dam opened in 2003 on the Yangtze River and last year, generated a record-high 97.8 billion kilowatt-hours of electricity, 4.35 percent higher than the previous year.

The Three Gorges Dam is the biggest dam in the world and is made up of 1.92 million tons of steel. (Source: Wikipedia)

Beijing Capital International Airport

Beijing Capital International Airport (PEK) was the second largest and busiest airport in the world in 2016, just behind the Hartsfield–Jackson Atlanta International Airport in the U.S. PEK recorded 94,393,454 passengers that flew in and out in 2016, a 5 percent increase from 2015, and is easily the biggest airport in all of Asia.

Beijing Capital International Airport is the biggest airport in Asia, and second in the world. (Source: Top China Travel)

The first phase of the airport cost USD 3.5 billion and was completed in 2008, but in order to handle the growing number of passengers, an expansion project is planned for 2025. The estimated 5-year project will almost double PEK’s capacity and cost an additional USD 13 billion.   

Jiaozhou Bay Bridge

China is also home to the longest sea-crossing bridge in the world. The massive structure stretches over 26.4 miles and connects the cities of Qingdao and Huangdao. The 110ft width accommodates 6 traffic lanes that are supported by 5200 steel pillars.

The Jiaozhou Bay Bridge is held up by 5200 steel pillars. (Source: Feel the Planet)

The bridge first opened in 2011 and took USD 2.3 billion and over 10,000 workers to build. The Jiaozhou Bay Bridge also took 450,000 tons of steel to complete, allowing the bridge to be able to withstand earthquakes up to 8.0 in magnitude, typhoons and the force from a 300,000-ton object.  

Jiuquan Wind Power Base

Not surprisingly, the largest wind farm in the world located in China. Jiuquan Wind Power Base is made up of 7,000 turbines that generate enough electricity to sustain a small country. The plant was approved in 2008, and the government has pledged an additional USD 17.4 billion by 2020 as part of the effort to develop China’s renewable energy industry. For now, only 3.3 percent of all the electricity generated in China comes from wind turbines. With the additional investment, Jiuquan Wind Power Base will be able to generate a massive 20 gigawatts of sustainable electricity.

The Jiuquan Wind Power Base generates enough energy to power a small nation. (Source: The New York Times)

New Century Global Center

What does the biggest building in the world look like? A mini country. Located in Chengdu, Sichuan province, the New Century Global Center combines a shopping mall, water park, hotels, movie theaters, offices, restaurants, ice rink and more into 19 million sq.ft. of space. The structure is made of glass and steel and measures 500 meters long, 400 meters wide and 100 meters high. Designed by architect Zaha Hadid, it even has artificial sun for the perfect weather, 24 hours a day.

The New Century Global Center located in Chengdu is the largest city in the world. (Source: Thousand Wonders)

Port of Shanghai

The world’s biggest ports are mostly located in China, and the biggest one is the Port of Shanghai. In 2012, 744 million tonnes of cargo and 32.5 million twenty-foot equivalent units (TEUs) of steel containers passed through the port. The entire area of the port on the Yangtze River covers 3,619km² comprised of 3 main ports: Wusongkou, Waigaoqiao and Yangshan Deep-Water Port. About 25 percent of China’s trade passes through the Port of Shanghai, or 2,000 steel container ships per month.

The Port of Shanghai is the largest port in the world and a quarter of China’s trade passes through it. (Source: Thomson Reuters)

Most recently, the 4th phase of the Yangshan Deep-Water Port was completed, making it the largest automated port in the world. It spans across 2.23 million square meters, and can automatically handle 4 million standard containers per year, or 25 per hour. It was also built to accommodate the heaviest ships in the world.

China is using its steel to build up the country’s infrastructure, and set world records along the way. Besides being impressive in size, the structures are expected to contribute to greater connectivity and economic prosperity throughout China.

Cover photo courtesy of Morgan Stanley.

The U-Shaped Relationship

However, the argument is not so black and white according to Spyridon Stavropoulos, Ronald Wall and Yuanze Xu’s Environmental regulations and industrial competitiveness: evidence from China. The study suggests that the relationship between stringent economic regulations and industrial (or economic) competitiveness is U-shaped. Meaning, initially, stringent regulations will increase the cost of production and make companies less profitable, but after a certain turning point, companies will be forced to adapt and innovate, thus becoming more competitive in the long run.

Many activists sit on both sides of the debate. (Source: Ethical Shopper)

When regulation policies are consistent over a long period of time, companies are forced to tackle the root of the problem, instead of focusing on meeting certain numbers. In today’s global economy, many governments have already begun to implement stringent economic regulations that only look to get tighter in the future. In such a context, companies that choose to innovate and come up with solutions to global pollution problems will come out more competitive in the end.

Sustainability Equals Competitiveness

Looking at major economic players around the world, it’s safe to say that environmental sustainability is a common topic on each of their respective national agendas. Pressing national challenges are tied to the environment in one way or another. For example, many countries are shifting their policies to ensure energy security. Countries that import most of their energy from external regions are subject to volatile prices and thus unstable economies. Thus, governments are actively supporting companies that can cultivate domestic, renewable energy sources. Another, more obvious, example is the direct link between pollution and health risks.

China is the fastest developing country in the world, and by 2035, it will be responsible for 28 percent of the total global energy demand. China also happens to be almost completely dependent on energy imports. Subsequently, the government has started a variety of government programs to boost sustainability as part of President Xi Jinping’s pledge to build a “Beautiful China”. These policies also come in the wake of shocking statistics: in 2015, pollution led to 1.8 million premature deaths in China.

Chinese President Xi Jinping laid out a 2-step plan to achieve a “Beautiful China.” (Source: News Gru)

Sustainable Steelmaker

Even with strong government commitment and plenty of programs to support sustainable business, most developing countries lack affordable renewable energy sources and the technology to apply those sources to existing production processes. Nevertheless, the world is changing and only those that adapt and innovate survive and thrive. That’s exactly what POSCO did starting back in 2007.

FINEX: A Game Changer

POSCO came up with a new molten iron production technology called FINEX. The technology allows molten iron and non-coking coal to be produced directly in a blast furnace during the iron-making process. It is different from the conventional blast furnace process, as it combines the coking plant, sinter plant and blast furnace into a single iron-making unit. This lowers production costs and reduces harmful emissions.

FINEX is a sustainable game-changer for steel production.

Ultimately, FINEX is one of the most cost-effective and eco-friendly ways to make steel. The technology mitigates the use of C02, has the lowest process-related emission rates and preserves resources through the use of a wide range of iron ores and non-coking coals. FINEX reduces SOx and NOx emissions by 40 and 15 percent respectively, and fine dust particles can be reduced by 34 percent compared to traditional blast furnaces. Furthermore, the by-products from the process generate highly valuable export gas that can be used for various purposes like electric power generation or natural gas substitution.

On December 7, 2017, POSCO reached 20 million cumulative tons of molten iron production using the FINEX technology. POSCO is not the only company enjoying the benefits of sustainable competitiveness – POSCO’s manufacturing partners can see lower emissions levels when evaluating the entire life cycle of their products.

SEE ALSO: POSCO Reaches 20 Million Tons of Production Using FINEX Technology

Sustainability is no longer just jargon. As environmental issues are intricately tied to the economy and even national security, governments around the world will be actively supporting sustainable companies in the years to come. Companies can expect sustainability and competitiveness to become interchangeable terms in the near future.

Upon completion, the Green Iris will transport limestones from the port of Donghae in Gangwon-do to Gwangyang Works from the beginning of 2018.

POSCO’s high manganese steel allows the fuel tank to withstand temperatures as low as -196℃, so that it can store and transfer LNG. Moreover, it is highly weldable and cost-efficient compared to other common materials for LNG fuel tanks such as nickel steel or aluminum alloys.

POSCO developed the technology for its high manganese steel after 10 years of research since the late 2000s. Now, it is one of POSCO’s leading World Premium Products (WPP). Due to strengthening environmental regulations worldwide on emissions of sulfur oxides, nitrogen oxides and carbon dioxide from vessels, demand for high manganese steel for LNG tanks are expected to increase dramatically.

Cover photo courtesy of Gas Asia Summit.

More and more automakers are adding EVs to their fleet. (Source: Engineering and Technology)

While all this sounds promising for the environment, EVs don’t automatically translate into lower GHG emissions. According to World Auto Steel (WAS), the emissions from vehicle production will be greater than the amount of emissions from driving. As such, it is becoming increasingly important for manufacturers, policymakers and consumers alike to view material options by considering its life cycle assessment (LCA).

World Auto Steel Case Study

WAS conducted a case study in which they compared two popular lightweight materials for EVS; aluminum and Advanced High-Strength Steel (AHSS). The study followed the University of California Santa Barbara Automotive Energy & GHG Model (UCSB Model) for a comprehensive analysis of each material’s total energy use throughout its entire life cycle, from production to end of life recycling. For the study, WAS examined 1,000,000 BEVs of equal range that were made up of either entirely aluminum or AHSS.

BEVs made of AHSS require over 15 percent less energy than aluminum cars. (Source: World Auto Steel)

The study found that automakers can make over 17 percent more BEVs made of AHSS than aluminum BEVs with the same amount of energy. In other words, with the energy it takes to make 1 million aluminum BEVs, automakers can make 1.17 million AHSS BEVs.

Why is AHSS More Energy Efficient?

Aluminum production requires 8 times more energy per kilogram than steel production because the production process of aluminum is much more complicated and involves more steps than steel production. The aluminum BEVs in the study used up 30 percent more energy than those made from AHSS throughout its entire life cycle. Plus steel is 100 percent recyclable and can be reused almost indefinitely.

There are many sources of emissions output involved in the entire life cycle of a vehicle. (Source: World Auto Steel)

This poses a serious need to reexamine existing policies and regulations that only seek to reduce tailpipe emissions. By also taking into account emissions from the production of materials all the way to how a car is disposed at the end of its life cycle, automakers can grasp a better picture of the real impact of their choices on the environment.

A Sustainable Choice

As a solution-providing partner for automakers, steelmaker POSCO designed the perfect AHSS for cars that is lightweight, extremely strong, highly formable and environmentally friendly. POSCO GIGA STEEL belongs to the highest category for tensile strength of greater than 1GPa (Gigapascal). It can withstand more than 100 kg of force per square millimeter, making it 3 times stronger than aluminum. It is also 3.5 times cheaper than aluminum and 2.1 times cheaper to manufacture.

SEE ALSO: Infographic: Driving the Future with POSCO GIGA STEEL

POSCO GIGA STEEL is three times stronger than aluminum.

In 2016, POSCO sold 9 million tons of steel sheets for cars, making up 10 percent of the entire global automotive market for steel sheets. POSCO GIGA STEEL was designed to further improve the performance and efficiency of POSCO’s auto partners around the world. As the auto industry heads towards a future where environmentally-friendly EVs become the norm, POSCO will strive to equip its auto partners with the materials and tools necessary to stay ahead and competitive.

In major cities around the world, industrial activity is creating visible damages. (Source: International Business Times)

In order to meet this mark, industries need to find sustainable sources of fuel in the near future, or be met with costly penalties. Up to now, the price of non-renewable fuel was too attractive for clean energy to be competitive. However, tighter regulations, major leaps in technology and state-level commitment have birthed a new era of renewable energy.

Energy you can bank on

According to Bloomberg analysts, USD 10.2 trillion will be spent on new power generation by 2040, 72 percent of which will go towards wind and solar photovoltaic plants. By then, the cost of solar electricity will drop 66 percent, meaning by 2021, solar power will be cheaper than energy from coal in China, India, Mexico and the UK. The cost of onshore wind power will decrease by 47 percent by 2040, and offshore wind power by 71 percent thanks to more advanced and cost-effective wind turbines.  

Renewable energy is getting more and more competitive, and companies who don’t make the switch to clean fuel will be left out of the race.

SEE ALSO: How POSCO Sees a Future of Renewable Energy

However, electricity doesn’t fall from trees.

It falls from steel! Tons of steel (literally) are used to extract and convert energy from renewable energy sources.

Wind Energy

Most wind turbines are made of steel, and for an average wind turbine, 140 tons of steel are used. That accounts for 80 percent of all the materials that go into the tower, the nacelle, rotor blades and its supporting facilities. The majority of steel is used to make the tower which serves as the foundation on which the blades turn to generate energy. There are several types of turbine towers, such as steel-concrete hybrid towers, steel truss towers and steel lattice towers, but about 90 percent of all wind turbine towers are made of tubular steel. Also, steel’s non-corrosive properties maximize the lifetime of wind turbines and minimize maintenance costs.

Solar Energy

Solar electricity is one of the most promising types of renewable energy. By as soon as 2030, it can make up 13 percent of the world’s energy, and by 2050, the sun will be the largest source of electricity on earth. And steel will be soaking it all up – the sunlight that is. Steel makes up not only the frame of the solar panels, but the heat exchangers and other related infrastructure. Stainless steel is a great choice for solar panel frames because it is dense, high in strength and has the greatest corrosion-resistance than other light metals.  

SEE ALSO: India: A Rising Sun in the Global Renewable Energy Industry

Geothermal Energy

Mother earth just keeps on giving. There are about 1400 TWh of geothermal energy in the earth’s core that can be harvested by 2050. Geothermal energy gives off extreme heat, so it is vital for the heat exchangers, condensers, pipes, filters, pumps and valves to be corrosion resistant. Otherwise, maintenance costs would be unsustainable and corrosion can contaminate the water as well. That’s why most of the infrastructure related to geothermal energy is made of iron castings, stainless steel and steel alloys.

Tidal Energy

There’s plenty of energy in the sea as well. In the world’s oceans, there are about 1 million megawatts of usable tidal energy. Steel makes up most parts of the underwater turbines including the nacelles, support structures and underlying piles for a sturdy and sustainable power source. As with other renewable energy, increasing the lifetime and decreasing maintenance costs will determine the competitiveness of tidal energy. Thus, stainless steel is the go-to material for corrosion resistance. The infrastructure related to tidal energy extraction is massive in scale and will call for thousands and thousands of pounds of steel to construct.  

Korea is the largest source of tidal energy in the world, with 552.7 GHw of electricity harvested from Siwha Lake every year. It’s also where steelmaker POSCO is located to provide the necessary types and grades of steel for renewable energy production.

POSCO E&C has its own solar, wind, tidal and refuse-derived fuel (RDF) plants, which makes sure even industrial wastes get turned into energy. The company was also the first company in Korea to build a solar power plant in 8 different regions capable of generating 31.2MW of solar electricity.

In order to stay competitive in the market, industries are already using or transitioning towards renewable energy sources to fuel their business activities. As governments around the globe also commit to a greener future, the demand for steel used in renewable energy infrastructure will see a significant boost.

Cover photo courtesy of the National Geographic.

India’s Solar Energy Market

Solar energy is an extremely vital and rapidly developing industry in India. From May 2014 to March 2017, the country quadrupled its solar generation capacity. The average cost of solar electricity is 18 percent below the average price of coal-fired energy, making solar electricity the cheapest form of alternative fuel in India.  

The Indian government is fully supportive of this market, setting a goal of USD 100 billion in investment and 100 gigawatts (GW) of solar capacity for the country by 2022. Solar is particularly important in the rural areas of India where there is limited access to electricity, so the government plans to install solar lanterns, home and street lighting systems and solar cookers.

The world’s largest solar farm is in Tamil Nadu, India. (Source: Alternative Energies)

In November 2017, India became home to the world’s largest solar farm in Kamuthi, Tamil Nadu. The farm covers 2,500 acres with 2.5 million solar modules. India’s solar electricity market has the potential for further expansion, and global suppliers and manufacturers are taking notice.  

POSCO India, a Partner for PV Structure Manufacturers

POSCO is a steel supplier making headway into the Indian solar energy market with its innovative and sustainable products. In September, POSCO India took part in the 2017 Renewable Energy India Expo in Greater Noida.

POSCO’s Booth at the 2017 Renewable Energy India showcased PV structures made of PosMAC steel.

POSCO India Chairman and Managing Director Gee Woong Sung and other POSCO employees showcased POSCO’s solar (PV) structures, constructed from PosMAC steel (POSCO Magnesium Alloy Coating Product). “By the end of this year, we will complete the Indian solution marketing system, which will supply not only steel but also solar PV structures,” said Sung. “In 2018, we will further expand PosMAC sales in India.”

By the end of the event, POSCO signed memorandums of understanding with four major manufacturers of PV structures in India, and will be supplying 49,000 tons of PosMAC with a goal of increasing production to 60,000 tons by 2018.

Solar Electricity Solutions with PosMAC

PosMAC steel has great potential in India because it is ideal for solar panel application. It is ultra corrosion-resistant and cost-effective. Watch the video below to find about the technology behind PosMAC.

A typical PV unit lasts for about three decades, during which a failure of any part would lead to an early demise. PosMAC steel provides weather resistance and is also less expensive than other PV materials like stainless steel.

Despite its varying climate, India is a country with excellent conditions for capturing and using solar energy, with roughly 300 days of sunshine each year. Along with vibrant market conditions, heavy government backing as well as a large consumer base, India’s new and renewable energy industry is set for growth. As solar energy is the cheapest form of alternative fuel, solar PV unit manufacturers will have plenty of business opportunities in India’s growing market.  

Cover photo courtesy of l’Ener Geek.

The REI Expo is one of the world’s largest new and renewable energy exhibitions. More than 725 companies from 40 countries participated in the Expo, along with approximately 50,000 visitors. The turnout was largely due to the Indian government’s infrastructure expansion and intensive investment plans for new and renewable energy.

POSCO’s Booth at REI 2017 showcased PV structures made of PosMAC steel.

POSCO India’s booth at the event showcased its solar PV structures made of PosMAC steel to major solar companies and structure manufacturers such as Adani, Nextracker, Arctech, Softbank, Purshotam, etc.

During the Expo, Memorandum of Understanding (MoU) agreements were signed with four companies. POSCO India’s Chief Managing Director Gee Woong Sung said, “By the end of this year, we will complete the Indian solution marketing system, which will supply not only steel but also solar PV structures. In 2018, we will further expand PosMAC sales in India.”

POSCO India signs an MoU with Ganges Internationale.

In addition to showcasing their premium product, POSCO has been working hard to meet customer demands in all areas. In order to meet short delivery times and structural supplies required by various PV projects in all parts of India, POSCO India has decided to establish a PosMAC structure supply chain system through strategic cooperation with local construction companies.

In the first stage of development, the free space at POSCO-IAPC located in Ahmedabad will be utilized via a long-term lease, and the manufacturing machinery is being installed with an operation target set for October. In the second stage, POSCO India has plans for additional installations in the Delhi and Pune regions.

POSCO India will strive to build a differentiated sales network with its solution marketing activities and secure a sustainable competitive advantage over other companies through its premium-quality products and advanced supply chain system.

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