Chairman Chang: “Global collaboration must be expanded for low-carbon steel production process development and carbon reduction”

Visited the onshore gas field group company, Senex Energy… Inspected the global energy value chain business, including natural gas development

POSCO Group Chairman In-hwa Chang embarked on a three-day global management tour to Australia starting April 7 to strengthen steel business competitiveness and energy value chains.

Chairman Chang attended the World Steel Association’s first-half regular meeting in Sydney, Australia, and met with global steel company representatives to discuss international steel business issues, including the integrated steel mill in India and technological development cooperation plans. He then moved to Senex Energy’s gas field in Queensland to inspect the natural gas upstream business site.

At the World Steel Association Executive Committee meeting held on April 7, Chairman Chang represented the Korean steel industry in discussions about major issues facing the global steel industry, including carbon reduction. He suggested development directions for key agenda items of this executive committee meeting, including △ environmental improvement effects of low-carbon processes and △ global standardization of carbon emission measurement criteria.

The World Steel Association is a global organization established with the goal of mutual understanding and development in the steel industry, with a total of 157 member companies, including steel companies worldwide, regional steel associations, and research institutes.

That day, Chairman Chang emphasized the need to expand global cooperation at the association level in the field of low-carbon processes, stating, “As global steel companies are pursuing the development of various carbon reduction technologies, we must expand collaboration among global steel companies for the development of low-carbon steel production processes, carbon reduction, and expansion of future demand.”

In particular, Chairman Chang also sought new opportunities by meeting with CEOs of global steel companies to overcome the uncertain global steel industry environment and to cooperate on joint ventures and technology development. He had multifaceted discussions with Jayant Acharya, President of India’s JSW Steel, about integrated steel mill joint ventures. He consulted with Liu Jian, Co-President of China’s Hesteel Group, on ways to strengthen cooperation for joint ventures currently operating in China.

▲POSCO was selected as a Sustainability Champion for the fourth consecutive year. From left: Edwin Basson, Secretary General of the World Steel Association; In-hwa Chang, Chairman of POSCO Group; Narendran, Chairman of the World Steel Association and Chairman of Tata Steel.

At the World Steel Association members’ meeting held the next day, POSCO was selected as a Sustainability Champion for the fourth consecutive year. With this award, POSCO once again solidified its position as a leading company in the ESG field in the global steel industry.

▲POSCO Group Chairman In-hwa Chang (second from left) inspects operations at Senex Energy’s gas field in Queensland, Australia, on April 9.

Subsequently, Chairman Chang visited the Senex Energy gas field site in Queensland, Australia, on the 9th. Senex Energy is an onshore gas field representing the upstream portion of POSCO Group’s natural gas business, which was acquired by POSCO International in 2022 for 442.42 million Australian dollars (approximately 400 billion won).

Senex Energy is pursuing a project to expand natural gas production from an annual 20PJ (petajoules) to 60PJ (equivalent to approximately 1.2 million tons of LNG) by 2026. Once the production expansion is completed, it is expected to supply 10% of eastern Australia’s domestic natural gas demand.

Meanwhile, as Chairman of the Korea-Australia Economic Cooperation Committee, Chairman Chang contributes to close economic cooperation and industrial competitiveness enhancement between the two countries, beyond traditional resource sectors such as minerals and energy, to future business areas.

Recognized for efforts to transition to a low-carbon system, including the introduction of electric arc furnaces and the operation of a sustainability management council

POSCO was selected as the Sustainability Champion for the third consecutive year at the semi-annual member meeting of the World Steel Association, which was held in London, UK, on April 9 (local time).

▲Logo of the World Steel Association Sustainability Champion.

The World Steel Association has been awarding the title of Sustainability Champion since 2018 to member companies leading the steel industry in carbon neutrality and ESG initiatives. This year, 11 companies achieved this distinction, with POSCO earning the honor three times in a row since its first award in 2022.

To be named a Sustainability Champion, companies must fulfill four critical criteria: signatory to the Sustainable Development Charter, finalist in the Steelie Awards or the Safety & Health Recognition, publication of a sustainability report, and submission of sustainability data including Life Cycle Inventory (LCI) emissions data for materials and processes. Companies that meet these requirements are recognized as exemplary leaders in global ESG management.

In addition to meeting all four conditions, POSCO was recognized for its low-carbon transition efforts, including the introduction of electric arc furnaces and investments in Hydrogen Reduction Ironmaking Technology (HyREX), as well as new initiatives such as the establishment of a group safety council and a supply chain management council. These achievements have solidified POSCO’s status as a Sustainability Champion for the third consecutive year.

Furthermore, POSCO has been ranked as the most competitive steelmaker in the world by World Steel Dynamics for 14 consecutive years and continues to spearhead the global steel industry’s transition to carbon neutrality with innovations like its proprietary HyREX technology and the application of low-carbon bridge technologies.

▲ Jeong-Woo Choi, Chairman of the World Steel Association, is making an address at the member company’s meeting of the World Steel Association which was held in Vienna, Austria on April 18 (local time).

▲ Jeong-Woo, Choi, Chairman of the World Steel Association is presiding over the member company’s meeting of the World Steel Association which was held in Vienna, Austria on April 18 (local time).

▲ Jeong-Woo, Choi, Chairman of the World Steel Association is presiding over the member company’s meeting of the World Steel Association which was held in Vienna, Austria on April 18 (local time).

SteelChallenge takes place over two rounds – the Regional and then, the World Championship. To compete in the World Championship, contestants must first pass the regional round that takes place in four regions: North & South America; Europe, CIS, Middle East & Africa; Asia & Oceania, excluding China; and China.

The Regional Championship takes place online. Participants can access the competition from the steelUniversity website and have 24 hours to record at least three successful runs of the basic oxygen steelmaking and secondary steelmaking simulations.

On November last year, Yong-Tae Kim of POSCO advanced to the final World Championship as the regional winner of Asia. In the World Championship in Madrid, he competed with four other regional winners for two hours, finally taking home the winning trophy. How did Kim prepare for the competition and what was his key to success in steelChallenge? Find out at POSCO Newsroom.

 l “Precision, Precision, and Precision.”

Q: What is steelChallenge World Championship, and how did you get to participate?
A: SteelChallenge is every steel engineer’s dream stage. Even though the competition is individual-based, I personally felt it would mean more to me if I participated with the company affiliation. I wanted to let the whole world know how proud I am to be part of the company.

Q: How did you prepare for the steelChallenge World Championship?
A: Ever since joining POSCO in 2010, I tried to learn as much as possible from the previous participants who also work in my department. Quite a few POSCO employees had already experienced the competition which was helpful. I also tried horning my skills by participating in steelUniversity Korea challenge – in fact, I became the winner in 2010, the year when I joined POSCO. Since then, I was busy focusing on the work at POSCO so I held off participating in the World Championship. Nevertheless, I was still rooting for my colleagues who challenged themselves for the competition. I always studied with them and prepared for the competition thinking I would participate one day.

Q: What was the mission challenge for the steelChallenge-13 World Championship, and how did you come up with the solution?
A: This year, the task was to produce a specific engineering steel grade at the lowest cost using steelUniversity’s Basic Oxygen Steelmaking and Secondary Steelmaking simulators. This meant we had to build billets into which ferroalloy is inserted. As a cost-cutting measure, I maximized the use of low-cost ferroalloy and focused on reducing intermediary costs. I analyzed the stats of every simulation to come up with an accurate forecast model.

Q: What was your top priority going into the competition?
A: Precision, precision, and precision. I believed the key to winning the challenge was a meticulous calculation. Through the forecasting model and multiple simulations, I worked on perfecting the model. In the actual competition, I simply crunched in the data required for the challenge question, coming up with the best numbers in the end.

 l Racing towards the Top – in Ten Minutes

Q: Can you tell us about the other contestants? What were they like?
A: The other contestants came from Brazil, Netherland, and China – our academic background ranged from computer science, mechanical engineering, to industrial engineering, and some even participated with steelChallenge team uniform. Their energy and vibes were all very infectious and inspiring.

Q: During the competition, what did actually go on? Any anecdotes to share about the result, or speculations about possible winners?
A: For the past two years, China’s HBIS Group took the World Championship, so the expectation was in the air that this result will reciprocate. For the World Championship final challenge, the contestants had two hours to finish their assignment. Right until the 15-minute cutoff time, all contestants’ records were shared. As soon as the clock started, I became number one in 10 minutes’ time – other contestants caught up after about 30 minutes into the competition. After the challenge ended, I found out I won by a landslide – there was a significant gap between my record and that of the next runner-up. When asked about the secret to this success, I simply had to say, “doing one’s best,” – the rest was confidential (chuckles).

Q: Was there any fun story to share?
A: In the World Championship, everything is decided within a matter of two hours which is why I was so tensed up. Then, I had a brief encounter with our CEO Jeong-Woo Choi. He was attending the general assembly for the worldsteel, and he said something that completely helped me decompress. It was actually a compliment – and something I’ve never heard elsewhere. (chuckle). He really helped me unwind, and I was able to compete in the best mindset.

Q: What about your work at POSCO? Is there any connection between your work and the techniques involved in the competition?
A: In the steelmaking department where I work, we’re currently developing a temperature forecast model. Managing temperature is so important for quality steel, so my work was definitely helpful for the competition.

l Teamwork: The Secret Sauce Behind POSCO’s Winning Streaks

Q: So some of your colleagues are also past winners of the steelChallenge?
A: Yes. At Pohang’s steelmaking department, there are altogether two world champions and three regional champions. Jin-Hong Park and Sung-Jin Kim started all this back in 2006. At that time, the competition was team-based – from 2014, the steelChallenge became an individual competition, and this is the first victory since then. Because of the work of my predecessors, we were able to take home the victory.

▲ Past winners of the steelChallenge from POSCO including 2006 World Champions Sung-Jin Kim (second from the right) and Jin-Hong Park (far right)

Q: Any words of advice from the previous winners?
A: Yes. it was, in fact, Sung-Jin Park who first introduced me to the steelChallenge. For the past few years, I have been studying for the competition with my colleagues. Until I learned about the competition eligibility, I went through actual simulations with my colleagues who participated in the challenge. Preparing for steelChallenge takes years – for the World Championship especially, the years of working experience at POSCO helped get my foot in the door.

Q: Multiple winners in just one department? How?
A: I have to attribute the credits to the senior leadership in our department. They helped us organize the team to prepare for the competition – also coaching our studies. They provided the best environment for us to prepare. The steelChallenge itself is one of the hottest events for the whole department, so it was especially motivating.

Q: Do you have any words of advice for the next contestants?
A: Before the competition begins, prospective participants are given two months to study a simulation program. It is critical for them to understand the simulation program fully in order to come up with calculations on various problems – after of which, through countless practice, you horn and perfect your skills finding anything that is overlooked and minimizing errors.

Q: Now that you are the final winner, any plans for the future?
A: The actual steelmaking process involved in the field has more variations than in the competition, making precise prediction quite challenging. However, through persistent analysis of the field operation, I will support improving and automating the steelmaking process. Through the automation process, we will minimize the variants, boost quality and reduce costs, helping the company move forward.

What’s ahead for the steelChallenge 2019? Will Yong-Tae Kim’s infectious energy help bring home the victory yet again? The clock is ticking for the next steelChallenge Regional Championship – which is set to take place this coming November.

World Steel Association has drawn up a global campaign namely, “#LOVESTEEL” an annual initiative to promote the usage and adoption of steel. This year, steel beverage cans are in the limelight. Using the appealing pink symbols that will represent steel cans in future local stores, the #LOVESTEEL campaign not only aims to increase consumer and manufacturer awareness of its compelling qualities, it also intends to cultivate public understanding of the major shift in the steel technology that enabled the advancement and adoption of steel as beverage packaging material.

Although most cans were made from aluminum for decades, many of the can manufacturers in Europe and Asia have converted to steel, a trend which their steel producers expect to continue. POSCO Global Newsroom introduces this World Steel Association’s #LOVESTEEL campaign’s motives in promoting this growing trend— adoption of a material that is so familiar and common in our lives for commendable reasons. Let’s go into a deeper dive.

Steeling the Beverage Can Market

As a direct comparison to older steel cans, today’s cans can be described as state of the art—It is now stronger, lighter, and thinner than ever and great for keeping beverages cool. What is more is its ability to be shaped and decorated with different designs and colors making beverage packages more appealing to the consumers.

By how far and how much has steel transformed in its thickness, weight, and strength? Let’s quantify. During the last ten years, the average weight of steel cans was reported to be reduced by 30%, and so has the thickness. Development of ultra-fine steel materials has optimized strength and lightweighting in comparison to aluminum. Compared to aluminum, it is 30% higher crush resistance, 40% greater performance in strength, 20% higher denting resistant making steel a both efficient and highly sought after material.

With such awareness to current design technology, the growing trend in the application of steel beverage cans is not a surprise. Steel cans in Europe and Asia for example, leads the market by 55% while 45% is aluminum.

Cultivating Environmental Awareness with Eco-friendly Steel

Even with such benefits, the environmental effects of adopting steel cans offer further blessings. Aluminum cans were popularly commercialized for decades, yet has been contributing to high CO2 emissions, and waste of energy and resources.

At the other end of the spectrum, steel’s recyclability saves considerable amount of energy amounting up to 62% and 1.5 tons of CO2. As steel is a 100% recyclable material, its magnetic property allows easy separation and assembling of steel. In other words, the steel cans we recycle today can be a medical equipment, your neighbor’s bike, or a toaster tomorrow. How amazing is that? The campaign video makes inspiring comparisons of such energy conservation over a single recycled steel can:

Global Initiatives Highlight Steel Can Competency

Considering such eco-friendly, reliable, and even fashionable nature of steel cans, worldwide steelmaking companies such as POSCO, Tata Steel, British Steel, and manufacturers alike have supported the usage of steel cans by distinguishing it in the post-market stage as well.

While POSCO is one of the major members of World Steel Association, this #LOVESTEEL campaign is of great significance especially due to POSCO’s supply of BP(Black Plate) for the majority of domestic steel cans.

Tata Steel has emphasized to the manufacturers of the steel-can-making efficiency that enables fast production and reduced damage rate while achieving cost efficiency.

Competing against the aluminum market, Ecotop, is an invention by British Steel to penetrate the aluminum market. The steel top enables convenient can opening without the need to pull with an aluminum ring. Two instant pushes will create an opening resolving difficulty in can opening along with pressure resistance.

Even individual beverage brands such as Coca Cola and Carling Black Label have switched to steel due to its ability for enhanced decoration and use of more colors.

Coca Cola was one of the early adopters of steel soda cans. (Source: Coca Cola)

Observing from the myriad ways in which steel adds value to the economy and the environment, the only small trick to push this movement ahead may be for us to simply choose the soon-to-be ubiquitous beverage that prints the vivid #LOVESTEEL mark. Your future hunt to quench thirst at a grocery store or by a vending machine may just be that big break.

“Vote with your mouth” is the catchphrase for consumers. (Source: World Steel Association)

POSCO hosts 50th global technology convention ‘World Steel Association Technology Committee (TECO)

TECO is a global convention in which global steel companies share their current status of technology development and discuss the current issues that the steel industry is facing. POSCO hosted the 50th TECO for a second time following its first hosting of TECO back in 2010, to celebrate its 50th anniversary this year.

At this convention, more than 60 experts from steel and related industries such as ArcelorMittal, NSSMC, Tata Steel and Voestalpine and also Secretary-General of the World Steel Association joined to shine the conventions. This convention held in Gyeongju, South Korea from April 23rd to April 26th.

Since sustainability has become main global issue, the main focus of the convention was carbon dioxide emissions and energy. The participants in the convention expressed their own perspectives related to the development of iron and steel manufacturing, rolling process technology and development of innovative products and digitalization that lead positive impacts on environment.

Wonderful opportunity to spread POSCO’s world premium technology

POSCO’s own technology that may shine in the convention is ‘high-manganese product and manufacturing technology that is invented first in the world. This unique technology was one of the driving forces of POSCO become world leading company.

Additionally, participants had a great opportunity to experience Pohang Steel Works, the FINEX plant, smart factory and rolling system and then visit POSTECH to see world’s 3rd 4G synchrotron accelerator.

* 4G synchrotron accelerator: ‘Ultra-high-performance gigantic microscope’ that observes the microscopic structures and reaction of materials using synchrotron radiation when accelerating electrons at the speed of light.

The World Steel Association, founded in 1967, is the most authoritative organization in the steel industry, which promotes the understanding and interests of the steel industry. Currently, as many as 170 steel companies, related associations and laboratories around the world are listed as members. The World Steel Association and the Technology Committee shares the technologies developed by individual steel companies in every year to propose joint research on steel technology and encouragement of cooperation.

Scientists predict 2018 may be a tumultuous year for earthquakes. (Source: Take Two)

As structural damage is the leading cause of injury and deaths during an earthquake, architects, engineers and builders need to make sure buildings are built with the right materials and design.  

SEE ALSO: What it Takes to Build a Natural-Disaster-Proof House

The Materials

The most dangerous type of earthquakes are ones that trigger horizontal movements, because tall buildings are better at resisting vertical loads than horizontal ones. These ground motions can damage building foundations in a matter of minutes, causing severe injuries and deaths. Building a structure to withstand seismic waves starts with the right materials with the right properties, and steel is by far the most widely used material for building earthquake-resistant buildings.

According to the World Steel Association, ductile buildings are safer as they dissipate energy from seismic waves. A building will typically have ductile parts that can undergo plastic deformations without complete structural failure during an earthquake. Steel is the most common type of material for such parts.

Moreover, due to the law of inertia, the lighter the building, the less force seismic waves will exert on the building. That’s why it’s important, especially for taller buildings, to be made of light and flexible materials such as steel that can “bend” with the movement of earthquakes. On average, multi-story steel buildings are 60 to 70 percent lighter and 10 times stronger than concrete-framed buildings of the same size.

The Design

With steel, builders can add vital designs and reinforcements to keep the structure standing through an earthquake. Here’s some of the most widely-used measures.

Cross braces transfer the force of an earthquake to the ground. (Source: Earthquakes in India)

The structural integrity of buildings can be reinforced with steel cross braces that frame the exterior of a building in an x-shape. Ultimately cross braces can transfer the force of seismic waves back down to the ground, instead of letting the building take the hit. Builders can also reinforce the walls of buildings with additional vertical walls, or shear walls, that add stiffness to the frame of the building, allowing it to resist swaying or horizontal movements.

Base isolators absorb much of the shock of seismic waves. (Source: Embelton)

Base isolation involves separating the building from the foundation so that the isolators to absorb shock from the earthquake. The isolators allow the building to move at a slower pace because they dissolve a large part of the shock. Moment-resisting frames also effectively dissipate energy from floors and roofs to the building’s foundation and the stiff yet flexible frames can change shape during an earthquake. Although more costly, moment-resisting frames enable buildings to withstand an earthquake with excessive horizontal movement.

Putting it into practice with POSCO’s Steel House

In September 2017, Young Bae Kim’s home in Gyeongju province, Korea was hit with a 5.8 magnitude earthquake, just 8.9 km from where the earthquake started. Surprisingly, Kim’s home was unscathed. “I could feel the ground shake, but the house was completely under control.” Kim expressed.

Kim lives in one of the Steel Houses built by POSCO employees who volunteer to build homes and bridges for communities in need. Each Steel House is made with POSCO’s lightweight structural steel known for its durability, fire resistance and vibration resistance. The homes also incorporate PosMAC, a specialized galvanized steel that is 5 to 10 times more corrosion-resistant than standard steel and is more durable and affordable.

POSCO Employees volunteer their time to build steel houses in rural communities.

Because all the Steel Houses survived the Gyeongju earthquake while other homes were damaged, more and more people in Korea are choosing steel for their homes over traditional building materials such as wood and concrete. The same trend can be observed in Japan, where earthquakes are much more frequent. In order to build more earthquake-resistant buildings, steel is still the best solution available.

Cover photo courtesy of CNN.

Last year, California experienced the worst wildfires to date. (Source: Live Science)

It wasn’t just wildfires. The fire that broke out in Grenfell Tower in West London last June claimed 71 lives and sparked a public outcry for stricter building regulations around fire safety. The material used as cladding to wrap the outer part of the building came under scrutiny as it was extremely flammable and contributed to the rapid spread of the flames.

To prevent further disasters, architects, builders and policymakers need to reexamine the materials that go into building people’s homes, workplaces and public facilities.

Materials Matter

Steel is one of the most popular materials for construction as it is 100 percent recyclable, cost-effective and easy to work with. Moreover, World Steel Association’s Steel Construction Fact Sheet shows that steel is the most-researched and best-understood construction material available today. Its inherent characteristics and widely-available reinforcement options make steel the safest construction material for fire resistance.

eel is one of the strongest construction materials under high heat. (Source: CIC)

Fire resistance refers to the duration of time a building can withstand the load of the building, limit the passage of flames and gases and insulate the building against rising temperatures during a fire.

Steel is considered to be a fire-resistant material because it can retain all of its strength in temperatures up to 370ºC (700ºF). At 500ºC (930ºF), it loses 30 percent of its strength and at temperatures above 538ºC (1000ºF), unprotected steel loses close to half of its strength.

To put things into perspective, aluminum starts to decrease in strength when temperatures rise above 100ºC (212ºF), and at 204ºC (400ºF), aluminum loses 60 percent of its strength. Copper also loses 25 percent of its strength at 204ºC (400ºF).

Putting Materials to the Test

Darchem Engineering conducted the first-ever fire-resistance test in 1990 comparing galvanized steel, stainless steel, aluminum and fiberglass. Each material was exposed to temperatures from 1000 to 1050ºC (1832 to 1922ºF) for a period of 5 minutes. Both types of steel passed with minimal damage, while aluminum collapsed after 26 seconds, and fiberglass collapsed almost immediately.

Fire-resistance tests show that stainless steel is one of the most fire-resistant materials available. (Source: Applus)

They also conducted a 2-hour test with the same materials exposed to temperatures from 552 to 555ºC (1026 to 1032ºF). For stainless steel, the testing time was extended to 3 hours and it still had the least amount of damage out of all the materials. Galvanized steel passed the 2-hour mark, but did produce some molten zinc. Aluminum failed after 12 minutes, while fiberglass gave out in 6 minutes.

The results showed that steel, especially stainless steel, is the most fire-resistant material. However, one can never be safe enough when it comes to fire safety, and there are several ways to increase the fire resistance of steel that fall into 3 major categories.

Passive Fire Protection

Passive fire protection methods include boards, sprays and films that insulate the steel surface or structure against high temperatures. Fire protection boards are the most common type of passive fire protection as they can be customized and designed to fit the interior of the building. However, they are quite labor-intensive and costly compared to other options.

Boards are the most common types of passive fire protection. (Source: IPCOM)

Active Fire Protection

Active fire protection refers to any automatic or manual measure that can be taken to detect or fight fires. These include water sprinkler systems, alarms, smoke detectors, first responders and more. With advancements in AI and smart sensors, active fire protection will see vast improvements in the years to come and software systems will likely play a great role in fire prevention and protection.

The majority of active fire protection measures will become automated. (Source: Frontier Fire)

Intumescent fire protection

Intumescent fire protection includes paint-like substances that swell up in high temperatures and act as insulation against the heat. Typically, the intumescent substance will become 50 times thicker than its original state at about 200-250°C, well before steel undergoes any structural damage. Recently, intumescent paints have become much more prominent than passive types of fire protection as they are cost-effective, and can be applied on and off-site saving builders time and money.

Most recently, scientists and engineers from Nanyang Technological University (NTU) and national industrial developer JTC Corporation came up with a new intumescent fire protection paint called Firoshield. It is much cheaper than other types of intumescent paint and takes half the time to apply. The innovation will allow steel buildings to maintain its structural integrity for 2 hours with only 5 layers of paint, compared to the 15 layers required by other paints. 

Such innovations are expected to reinforce the safety of steel buildings, giving people more time for evacuation and limiting the spread of smoke and flames. On a final note, the fire-resistant qualities of steel should be taken into consideration not only for building frames and exteriors, but also for staircases, doors and other parts of a building that must stay intact for safe evacuations as well as for the safety of first responders.

India

India’s government is incentivizing the use of steel by providing construction grants for regions that need revitalization. This government money is fueling growth and increasing steel consumption in regions across the country. Some predict that India will increase its rank and surpass China as the top consumer of steel in 2018. This is because India has not yet achieved the level of development China has. In China, the economy is shifting. For years, much of China’s economy was made up of companies in the manufacturing industry, but with a growing upper and middle class, many of China’s industries are going from factories to office spaces. Services are expected to increase in China and lead to a decrease in the need for supplies like steel.

Indian steel consumption is rising thanks to new development projects. (Source: Quora)

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

ASEAN (Association of Southeast Asian Nations)

Vietnam and the Philippines have been named two countries to watch in the ASEAN region. Unlike China and Japan, which have relatively more established economies, Vietnam and the Philippines are still in the development phase. Their rapid development is due in part to the growth of e-commerce. As the Vietnamese and Filipino governments race to build stronger countries, they’ll need steel to make improvements in the country’s infrastructure. Many of the cities in the region are outdated and in need of a total remodel. From creating a solid infrastructure to building offices and housing, steel will be in high demand in Vietnam and the Philippines in 2018.

Many ASEAN cities like Ho Chi Minh City pictured above is ripe for growth and development. (Source: Visa2Vietnam)

CIS (Commonwealth of Independent States)

CIS, also known as the Russian Commonwealth, is a confederation of 11 states made up of Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine and Uzbekistan. While Russia is the biggest and most powerful member state, the developing states are eager to catch up. CIS countries will undergo development projects including major infrastructure construction. Such state-level projects will require large amounts of steel and CIS countries will have to vamp up its own production as well as meet its needs through imports. As CIS countries develop, their citizens quality of life will likely increase, and they are expected to consume more goods such as cars and appliances made of steel as well.  

CIS member states are ripe for development and steel consumption in 2018. (Source: The Kremlin)

Japan

In the summer of 2020, Japan is set to host the biggest global summer games event. The government is investing significantly in this effort to build new sports facilities and other structures to accommodate the global event. A new stadium itself is said to have a budget of over USD 2 billion, and most of the construction will require steel. Japan already has some of the best infrastructure in the world. But it will need to adapt in order to accommodate the large number of visitors Tokyo will host over the three-week event.

Japan will need to build many sports venues such as its new stadium pictured above for 2020. (Source: CNN)

The United States

In the United States, the steel market is consumer-driven, and steel is a USD 113 billion industry. The U.S. is already the largest importer of steel by a wide margin. But the U.S. demand for steel is expected to increase. Steel is used for construction, infrastructure, energy, production, packaging, appliances and manufacturing. Many cities in the U.S. are expanding and improving their infrastructure. Cities like New York and San Francisco have aging buildings and transportation systems that need to be revitalized. Steel construction is also a way of creating more energy efficiency. As U.S. cities move to become more conservative with their natural resources, steel is one of the ways to reduce energy use. Things like steel reinforcements, steel roofs and other upgrades make buildings more efficient. Many household appliances and automobiles are also made of steel. As U.S. consumers purchase household appliances, cars and buildings, the U.S. demand for steel will continue to grow in 2018.

While 2018 will not likely see 2017 rates of growth, the steel industry will continue to grow as demand for steel-based goods increases. As developing countries become more dependent on modernized infrastructure, housing and conveniences, the steel industry will continue to show growth for the foreseeable future. Even in China, where manufacturing is beginning to slow down, there is a great demand for steel. In developing smart cities, for example, steel and technology work together to create more efficient cities for all citizens. Steel infrastructure will play a major role in the improvement of cities across the globe for years to come.

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.