Energy

• Rolling Mill Department I - Cold Rolled Products participated in the "2025 MOEA Energy Saving Leadership Awards" and won the "Group A Gold Award"
• According to regulatory requirements, energy users must achieve an annual electricity saving rate and an average annual electricity saving rate of at least 1.5% from 2025 to 2028. CSC currently achieved a completed electricity saving rate of 2.77% for the year 2025, significantly outperforming the legal requirements.
• In line with the government's green energy policy, CSC has installed a total of 529 kW of solar power generation systems for self-use, with self-generated and self-consumed green electricity reaching approximately 480,000 kWh in 2025. Furthermore, CSC has been procuring green electricity since 2023, obtaining approximately 28.59 million kWh of metered green electricity in 2025.
• With the continuous promotion of District Energy Integration in Linhai Industrial Park, CSC sold 1.369 million tonnes of steam produced from district energy integration in 2025, which can reduce approximately 329,000 tonnes of CO2e in greenhouse gas emissions.
• In 2025, CSC's energy target was set at 22.89 GJ/tCS (5,466 MCal/tCS). The actual energy consumption was 22.70 GJ/tCS (5,421 MCal/tCS), meeting the target.
• The fourth Energy Saving Action Plan (2021 to 2025) has been successfully completed. From 2021 to 2025, CSC achieved a cumulative energy savings of 7.789 million GJ, representing a target achievement rate of 295% and fully accomplishing the predefined goals.

Policy or Commitment

CSC mainly implements energy management through the Energy Conservation Committee and control of the energy management system (ISO 50001) to achieve the goals of energy conservation, carbon reduction and continual improvement. The Committee was formed and chaired by VP of Production Division. The Committee has three teams be responsible for energy saving and emission reduction in CSC's plants. The Committee also regularly holds meetings to review the achievement of current targets, share information on energy conservation projects, communicate relevant important topics, bring up appeals or consultations, propose interim motions, and publicize the records of the meeting. The energy policies are approved by the Chairman of the Board and updated when necessary.

Furthermore, the latest version of the Energy Policy was updated on September 5, 2025; through this policy, CSC commits to "continuous improvement, regulatory compliance, risk management, energy conservation and carbon reduction, and training and communication." CSC continues to improve energy performance with the ISO 50001 energy management system PDCA spirit, enhance energy efficiency (such as the installation of CDQ1/2 dry quenching waste heat recovery systems and the Power Plant I equipment decommissioning and upgrade project), and promote district energy integration and development of green energy to reduce environmental impacts.

Energy management system

To enhance energy performance, CSC successfully passed the ISO 50001 verification in 2011 after an external assessment by the British Standards Institution (BSI). Furthermore, CSC completed the transition to the ISO 50001:2018 standard in 2019, securing the updated certification. In 2025, ISO 50001:2018 passed the verification by the BSI. The certificate is valid until July 7, 2028.

• Energy audits to identify opportunities for improving energy performance

  To enhance energy efficiency and management performance, CSC conducts annual energy reviews to identify and manage significant energy-using equipment, establish energy performance indicators, uncover improvement opportunities, and formulate specific energy-conservation programs. Additionally, to prevent energy waste, CSC performs regular on-site inspections to rectify inefficient energy use and schedules annual internal audits to ensure the continuous effectiveness of the energy management system. To deepen the institutionalized operation of energy management, CSC continues to undergo certification by external verification institutions every year. Through the oversight of the management system and the initiatives of the Energy Conservation Committee, CSC achieves its goals of energy saving, carbon reduction, and continuous improvement.

• Quantitative goals for energy conservation

  In order to improve energy efficiency and achieve continuous improvement, CSC sets the energy intensity target (Mcal/tCS) according to the annual production plan and energy saving goals every year, as the energy performance indicator. The energy intensity target for 2026 is ≤5,466 Mcal/tCS (22.89 GJ/tCS).

  Energy intensity target

  Project (Unit)	2023	2024	2025	2026
  Energy intensity target for crude steel (Mcal/tCS)	≦5,436Note	≦5,475	≦5,466	≦5,466
  Energy intensity target for crude steel (GJ/tCS)	≦22.76	≦22.92	≦22.89	≦22.89
  Actual energy intensity for crude steel (Mcal/tCS)	5,504	5,461	5,421
  Actual energy intensity for crude steel (GJ/tCS)	23.04	22.86	22.70
  Achievement Status	FailedNote	Achieved	Achieved

  The energy intensity target for crude steel is pragmatically formulated based on the production capacity and equipment maintenance schedules of the current year. In 2023, the target was not met because the actual crude steel output fell below the production volume planned in the operating budget.

• Actions to reduce energy use

  In 2025, CSC completed a total of 204 energy-conservation projects, achieving a total energy saving of 949,000 GJ and reducing energy costs by 861 million TWD. Key initiatives included the schedule optimization of the billet mill, among others.

  Energy Efficiency Initiatives

  category	2023		2024		2025
  	projects	achievements (GJ)	projects	achievements (GJ)	projects	achievements (GJ)
  Electricity	151	734,192	129	290,839	141	378,022
  Fuel Gas	25	258,237	21	555,707	15	499,246
  Industrial Gas	7	19,508	8	38,287	3	20,889
  Steam	11	250,005	2	24,033	5	12,105
  Water System	139	24,833	20	1,438	26	29,714
  Other	25	1,976,739	13	498,041	14	9,108
  Total	358	3,263,514	193	1,408,345	204	949,084

• Evaluating energy consumption reduction progress

  In order to achieve energy conservation and carbon reduction and respond to mandatory greenhouse gas reductions in advance, CSC started the "Energy Saving Action Plan" in 2005. To date, four phases of the five-year plan have been completed, with each phase successfully achieving its total targets. During the fourth phase (2021-2025), CSC completed 1,308 energy-conservation projects, reaching 295% of the phase's total target. The fifth phase (2026-2030) of the plan will continue to be promoted. Furthermore, the 2025 annual achieved electricity saving rate reached 2.77%, exceeding the requirement of the Energy Administration, MOEA, that "energy users shall achieve an annual and average annual electricity saving rate of at least 1.5% for the period 2025-2028."

  Phase	I Energy Saving Action Plan	II Energy Saving Action Plan	III Energy Saving Action PlanNote	IV Energy Saving Action PlanNote
  Schedule	2005~2010	2011～2015	2016～2020	2021～2025
  Energy-saving Target (GJ)	8,666,676	9,043,488	3,784,624	2,637,684
  Number of Projects	372	658	662	1,308
  Performances (GJ)	8,930,444	12,623,202	6,253,473	7,788,868
  Achieving Rate	103%	139%	165%	295%

  Due to the diminishing energy-saving potential, the targets of Phase III and IV Energy Saving Action Plans are less than previous years. The number of projects, energy-saving performances and achieving rate are calculated until 2024.

• Use clean or green energy

  Since 2011, CSC has started to install solar power generation systems adhering to governmental policies. By the end of 2024, the total installed capacity has reached 62.0 MW (including self-installed and locations provided). CSC has installed a total of 529 kW of self-use solar power generation systems; in 2025, the total self-use green electricity and certificates reached 483,834 kWh (with some sites issuing certificates starting from February 19, 2025). In addition, CSC began purchasing green power in 2023, and obtained a total of 28.59 million kWh of green electricity and certificates in 2025.

  In 2024, renewable energy accounted for 1.36% of CSC's purchased electricity; in 2025, renewable energy accounted for 1.19% of its purchased electricity. In alignment with national policies, CSC will continue to expand its use of renewable energy to enhance energy conservation, reduce carbon emissions, and lower costs.

• Invest in innovation or R&D to reduce energy consumption

  Smart low-carbon burdening: Development of carbon reduction technologies for blast furnaces
  The ironmaking process is the primary source of CSC's carbon emissions, and the hot metal produced by blast furnaces serves as the core raw material for the steelmaking process. To address this, CSC is actively developing four key innovative technologies focused on reducing emissions within the blast furnace process. By effectively lowering overall carbon emissions at the source, these initiatives drive the realization of CSC's carbon reduction goals.
  • (1) Sinter basicity optimization: Establishing sinter specifications to mitigate blast furnace risks
  • (2) Blast furnace burden composition softening-melting test: Determining optimal burdening conditions
  • (3) Blast furnace burden particle flow and distribution simulation: Proposing optimal burden distribution solutions
  • (4) Smart burdening system: Achieving rapid and precise calculations to overcome material variation constraints

  Upon completion, this action project is expected to reduce carbon emissions by approximately 1.3 million tonnes per year, resulting in annual carbon fee savings of 400 million TWD and a reduction in hot metal costs of 1.7 billion TWD, demonstrating significant results.

• Providing employees with energy efficiency training and education to cultivate and enhance energy conservation awareness

  In 2025, a total of 697 participants attended education and training sessions related to energy conservation, energy consumption, and energy efficiency. The training was targeted at operators and maintenance personnel of Significant Energy Use (SEU) equipment, focusing on energy-saving operations and operational controls. Furthermore, CSC provided management system orientations for energy management personnel and regularly promoted energy guidelines and shared energy-saving case studies through various meetings. These initiatives aim to enhance employees' energy conservation awareness, thereby achieving the objectives of energy efficiency optimization and continuous improvement.

Energy consumption

The coking coal in the steelmaking process transforms into by-product gases which can be used as fuel in steelmaking and in cogeneration power plants to generate steam and power. Oil and natural gas can also be used in power plants while the excess power demand is met by purchased electricity from Taipower.

Internal fuel consumption (A) Purchased electricity consumption (B) Self-generated renewable electricity consumption (C) Self-generated energy sold (D)

District Energy Integration

CSC is situated in Kaohsiung LinHai Industrial Park, a major industrial cluster comprising numerous petrochemical and steel manufacturing plants. For many years, CSC has utilized steam produced from combined heat and power (CHP) and waste heat recovery as well as industrial gases produced from oxygen plants to share excess energy with neighboring plants. By leveraging complementary uses of steam, oxygen, nitrogen, argon, plant air, coke oven gas, etc., energy and resources in the district has been efficiently integrated. Participating facilities can shut down less efficient units with higher GHG emissions or avoid redundant investments in low-efficiency. This enables improvements in energy utilization efficiency, reductions in resource consumption, and significant decreases in pollutant and GHG emissions—ultimately mitigating environmental impact and improve environmental quality.

As of 2024, a total of 14 manufacturers, including CSC, have participated in the District Energy Integration. The energy that CSC sells includes steam and oxygen, nitrogen and argon produced by the Oxygen Plant. Among them, steam is the main item. The amount of steam sold in 2025 was 1.369 million tonnes, saving 4.159 million GJ (equivalent to 105,000 kL of low-sulphur oil.) In terms of reducing GHG emissions and improving air pollution, it reduced 329,000 tCO₂e of GHG, 1,001 tonnes of SOx, 694 tonnes of NOx, and 99 tonnes of particles Note, creating a multi-win situation for CSC, customers, and the environment.