Energy

• Rolling Mill Department III - Cold Rolled Products participated in the "2024 MOEA Energy Saving Leadership Awards" and won the "Group A Gold Award“
• According to regulatory requirements, energy users are required to save at least 1% of electricity on average between 2015 and 2024. CSC has currently saved up to 2.14% of electricity on average from 2015 to 2024, which is higher than required by law.
• In line with the government's green energy policy, CSC installed a total of 529 kW of solar power generation systems for self-use. In 2024, 394,936 kWh was generated for self-use in the plants, and CSC obtained 23 renewable energy certificates. Furthermore, CSC initiated renewable-energy direct supply and wheeling in 2023, resulted in 33.86 GWh of green energy and 33,861 renewable energy certificates in 2024.
• With the continuous promotion of District Energy Integration in Linhai Industrial Park, CSC sold 1.380 million tonnes of steam produced from district energy integration in 2024, which can reduce approximately 331,000 tonnes of CO₂e in greenhouse gas emissions.
• In 2024, CSC's energy target was set at 22.92 GJ/tCS (5,475 MCal/tCS). The actual energy consumption was 22.86 GJ/tCS (5,461 MCal/tCS), meeting the target.
• The fourth Energy Saving Action Plan (2021 to 2025) has a target of saving 2.64 million GJ. From 2021 to 2024, CSC has saved up to 6.839 million GJ of energy, which accounted for 259% of the aforesaid target, thereby achieving its target for the year. The amount of energy saved was equivalent to a reduction of 660,000 tonnes of CO₂e in carbon emissions.

The Energy Conservation Committee

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.

Policy or Commitment

The energy policies are approved by the Chairman of the Board and updated when necessary. The latest version of the Energy Policy is committed to continuous improvement, compliance with regulations, performance management, energy conservation, carbon reduction, and knowledge advancement.

Energy Intensity Target

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 2025 is ≦5,466 Mcal/tCS (22.89 GJ/tCS).

The target of Energy Intensity is set based on production capacity and equipment maintenance that year. In 2023, the target was not met due to actual crude steel production being lower than the production volume planned in the business budget.

Action Plan

ISO formally announced ISO 50001 in June 2011. In order to improve the performance of energy conservation, CSC introduced ISO 50001 in February 2011 along with consultation from Industrial Technology Research Institute (ITRI), and received the certificate of ISO 50001 from BSI on December 1st of the same year. CSC is the first steel company to implement ISO 50001 in Taiwan, and obtained ISO 50001:2018 certification in 2019. CSC continues to pass verifications by third party institutions each year, and achieves energy conservation, carbon reduction, and continuous improvement goals through its management system and the Energy Conservation Committee.

Five-year Energy Saving Action Plan and Targets

In order to achieve energy conservation and carbon reduction and respond to mandatory Greenhouse Gas (GHG) reductions in advance, CSC started the “Five-year Energy Saving Action Plan” in 2005, and has successively promoted three phases and every phase has reached the targets of the action plan. 1,104 energy-saving projects were completed in 2021-2024, contributing to 259% of the “Energy Saving Action Plan-Phase IV” target, which is equivalent to a reduction in carbon emissions of 660,000 tonnes CO₂e^Note. At the same time, CSC adheres to the government's energy saving targets and regulations “The average annual power-saving rate of energy user shall reach 1% or more from 2015 to 2024”. Currently, CSC has achieved a power-saving rate of 2.14% from 2015 to 2024.

The calculation coefficients are partially quoted from the CO₂ emission factors of the GHG inventory in the previous year, and the rest are calculated based on CSC's energy equipment efficiency coefficient in 2014 x previous year's electricity emission coefficient from Energy Administration, Ministry of Economic Affairs.

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.

Energy Management Programs

In order to improve the performance of energy conservation, CSC established ISO 50001 successfully in 2011 and obtained the ISO 50001:2018 certification in 2019.

• 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-consuming equipment, establish energy performance indicators, identify opportunities for improvement, and develop concrete energy-saving plans. In addition, to prevent the improper use of energy, CSC regularly performs on-site inspections to correct any unreasonable energy usage and conducts annual internal audits to ensure the continued effectiveness of its energy management system. CSC adopts the Plan-Do-Check-Act (PDCA) cycle in alignment with the ISO 50001 Energy Management System framework to drive continuous improvement in energy performance. To institutionalize and further advance its energy management practices, CSC received the certificate of ISO 50001 from BSI on December 1st 2011. CSC is the first steel company to implement ISO 50001 in Taiwan, and obtained ISO 50001:2018 certification in 2019. CSC continues to pass verifications by external institutions each year, and achieves the purpose of energy conservation, carbon reduction, and continuous improvement goals through the control by management system and the implementation of the Energy Conservation Committee.

• Quantified targets to address energy savings

  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 2025 is≦5,466 Mcal/tCS (22.89 GJ/tCS ).
  In order to achieve energy conservation and carbon reduction and respond to mandatory Greenhouse Gas (GHG) reductions in advance, CSC started the “Five-year Energy Saving Action Plan” in 2005, and has successively promoted three phases and every phase has reached the targets of the action plan, and continue to promote the fourth phase. The fourth Energy Saving Action Plan (2021 to 2025) has a target of saving 2.64 million GJ. At the same time, CSC adheres to the government's energy saving targets and regulations “The average annual power-saving rate of energy user shall reach 1% or more from 2015 to 2024”

• Actions to reduce the amount of energy use

  In 2024, CSC completed a total of 193 energy saving projects, which saved a total of 1.408 million GJ, reduced carbon emissions by 118,000 tons CO₂e, and saved energy cost by 487 million TWD, main projects include Rolling Mill Department III developing an AI-based "intelligent combustion monitoring system," and etc.

• Evaluation of progress in reducing energy consumption

  In 2021-2024, 1,104 energy-saving projects were completed, which saved a total of 6.839 million GJ, and contributing to 206% of the “Energy Saving Action Plan-Phase IV” target, which is equivalent to a reduction in carbon emissions of 660,000 tons CO₂e. At the same time, CSC adheres to the government's energy saving targets and regulations “The average annual power-saving rate of energy user shall reach 1% or more from 2015 to 2024”. Currently, CSC has achieved a power-saving rate of 2.14% from 2015 to 2024.

• Use of clean or green energy

  CSC has been using green electricity since 2019, and has installed a total of 529kW of its own solar power generation systems, generated a total of 394,936 kWh of self-owned green electricity in 2024, and obtained 23 renewable energy certificates. In addition, CSC has started Renewable-Energy Direct Supply and Wheeling since 2023, and in 2024 it obtained 33,860 MWh of green electricity and 33,861 renewable energy certificates.

• Investments in innovation or R&D to decrease energy consumption

  • (1) In order to ensure product quality and production stability, the hot rolling process must concentrate steel types and roll them according to complicated scheduling rules. In addition to consuming energy to reheat the steel billet to the rolling temperature, it also leads to problems such as longer product delivery time and increased costs.
  • (2) The Company has established an independent plate shape program-controlled setting system, which utilizes four key technologies, namely, virtual-real integration of finishing rolling, collaborative model of physics and machine learning, intelligent decision-making on plate shape, and simultaneous production capacity of refining and rolling. This system breaks the constraints of the progressive scheduling that has been followed for more than 40 years, enables direct delivery of hot billets from continuous casting to hot rolling production, reduces fuel consumption and carbon emissions in heating furnaces, reduces the amount of billets to be prepared in the storage area, and increases production scheduling flexibility.
  • (3) This technology currently accounts for 70% of the hot steel billets supplied for steelmaking. It can effectively increase the temperature of steel billets entering the furnace and reduce the rejection of abnormal quality steel billets, thereby achieving energy conservation and carbon reduction while ensuring product quality.
  • (4) The development of direct-loading production technology for smelting and rolling has increased the temperature of steel billets entering the furnace to above 850°C. Based on the fuel consumption of 281.4 Mcal/ton in 2023, the fuel consumption in 2024 was reduced to 269.9 Mcal/ton and improving productivity. The annual benefits reached TWD 100 million and the carbon reduction reached 12,800 tons. The technology has been successfully extended to other hot rolling production lines of the Group.

• Energy efficiency training provided to employees to raise awareness of energy consumption reduction

  In 2024, a total of 609 people received education and training related to energy conservation, energy use and energy efficiency. The training covered personnel responsible for the operation and maintenance of significant energy-consuming equipment, focusing on energy-saving practices and operational controls. Additionally, energy management personnel received instruction on the implementation and application of energy management systems. Regular meetings were also held to promote energy management guidelines and share energy-saving case studies, thereby achieving the purpose of increasing energy efficiency and continuously improving it.

On-plant Energy Saving

• Set up Utilities Dispatching Center (UDC)

  CSC established the UDC since factory completed and put into production. The UDC centrally monitors all energy sources, such as gas, electricity, steam, O₂, N₂, Ar, H₂, plant air, compressed air, etc., and also production plans. The center integrates production planning and scheduling information, and is supported by an integrated-Energy Management System (iEMS) and a self-developed AI-powered electricity demand forecasting module. By combining these with a cogeneration boiler load optimization algorithm, dynamic energy dispatch is achieved, which effectively improves overall power usage efficiency across the plant, reduces energy costs, and minimizes the emission of by-product gases. UDC also manages the electricity load in CSC to avoid violating the contract with Taiwan Power Corp. (Taipower), and actively participates in the Taipower Demand Bidding Program. Furthermore, it compares the power generation cost of different fuels with Taipower tariff to adjust the self-generation amount to minimize the usage of high-priced fuels, such as low-sulfur oil and natural gas.

• Best Available Techniques (BAT)

  In order to improve energy-saving performance, CSC has intensively contacted with steel-making companies in Japan, South Korea and China in recent years. We had collected BAT for energy-saving from other companies and completed the “Best Available Technical Manual for Energy Saving and Emission Reduction of Steel Plants” in July 2011.

• Guidelines of Energy Conservation

  Energy-saving begins with design. CSC adds the “Guidelines of Energy Conservation” section to CSC Design Standard and indicates energy efficiency requirements of air conditioning, lighting, shifting mechanisms, water supply systems, etc. New plants should follow the design standard to choose equipment that is high efficiency, energy saving with long-term benefits. To promote energy conservation design standards, energy conservation examples are periodically shared during energy and environment meetings of the Energy Conservation Committee and CSC Group, in hopes of further improving energy conservation results.

• Enhancing energy resilience and installing energy storage systems

  CSC completed its first 1.8 MWh energy storage system to participate in Taipower's Energy Trading Platform, providing frequency stabilization through Taipower's mechanical dispatch. The second 2.2 MWh and third 7.0 MWh energy storage systems are used for load shifting, peak cutting, and strengthening the power system resilience of important processes.

• Utilization of Renewable 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 its own solar power generation systems, generated a total of 394,936 kWh of self-owned green electricity in 2024, and obtained 23 renewable energy certificates. Furthermore, CSC initiated renewable-energy direct supply and wheeling in 2023, resulting in 33,860 MWh of green energy and 33,861 renewable energy certificates in 2024.
  In 2024, renewable energy accounted for 1.3% of CSC's purchased electricity. In alignment with national policies, the company will continue to expand its use of renewable energy to enhance energy conservation, reduce carbon emissions, and lower costs.

Total Energy consumption

• To achieve the target of low carbon operations, energy consumption indicator has been embraced by CSC to mitigate GHG emissions and reduce fuel consumption. Various approaches of climate change mitigation and energy saving have regularly been implemented by CSC to achieve the target of low carbon operation. In addition, to improve performances in energy conservation and emission reduction, we began implementing the ISO 50001 Energy Management System (EnMS) in February 2011.
• CSC's short-term goal is to achieve an average power saving rate of more than 1% from 2015 to 2024, and the medium-term goal is to achieve an average power saving rate of more than 1.05% from 2015 to 2025, in line with the national energy saving target (the average power saving rate of energy users in 2015-2024 shall exceed 1%). As of 2024, CSC's average power saving rate is currently 2.14%, which is greatly superior to the regulatory standards.
  The electricity-saving rate = electricity-saving / (electricity saving + electricity consumption).
• In order to improve energy efficiency and achieve continuous improvement, CSC sets the energy intensity target (Mcal/tCS) of steel manufacturing process according to the annual production plan and energy saving goals every year, as the energy performance indicator. The energy intensity target=the Total Energy Consumption Target/the Estimated Production Volume of Crude Steel (CS), while the Total Energy Consumption Target= (Primary Energy + Secondary Energy)-(Self-Produced Secondary Energy sold + Energy Dissipation). In 2024, the targeted total energy consumption is 50,900,000 MWh, and the estimated production volume of CS is 8.0 million tonnes. The energy intensity target of 2024 of steel manufacturing process is 5,475 Mcal/tCS (=6.366 MWh/tCS). The actual energy intensity was 5,461 Mcal/tCS (=6.350 MWh/tCS) which reached the target in 2024.
• Renewable energy
  CSC Solar Co. had set up a total of 100.6MW PV system in CSC Group from 2017 to 2024, which is responded to CSC's Energy Policy, which says “Carbon Reduction and development of green energy.” As of the end of 2024, the cumulative power generation reached 650 million kWh.
• In line with the government's green energy policy, CSC has installed a total of 529kW of its own solar power generation systems, generated a total of 394,936 kWh of self-owned green electricity in 2024, and obtained 23 renewable energy certificates. In addition, CSC has started Renewable-Energy Direct Supply and Wheeling since 2023, and in 2024 it obtained 33,860 kWh of green electricity and 33,861 renewable energy certificates.
• The data of non-renewable energy consumption in the above table and Sustainability Report have been checked by the BSI verification company during the annual GHG inventory checkup. However, the energy unit in the CSR report is GJ, and the energy unit in the above table is MWH, also the non-renewable energy sold has been deducted. The formula of the above table is (fossil fuel consumption + purchased electricity consumption – non-renewable energy sold). As for renewable energy consumption in above table, the data is currently recorded by meters. The PV generation equipment had received to T-REC, and it will be possible to report according to the number of T-RECs obtained.
• The coverage of energy consumption is 100% production of CSC.
• The above data has been verified in terms of ISO 14064-1 by the following organization: DNV.

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.

District Energy Integration

CSC is located in Kaohsiung LinHai Industrial Park, surrounded by a number of petrochemical and steel plants. CSC has long utilized steam produced from combined heat and power (CHP) and waste heat recovery as well as industrial gases produced from oxygen plant to share excess energy with neighboring plants. With the complementary uses of steam, oxygen, nitrogen, argon, plant air, coke oven gas, etc., energy and resources in the district is efficiently integrated. Users can turn off existing facilities with lower efficiency and higher GHG emissions or terminate new investments with lower efficiency and at same time achieve the objectives of improving energy utilization efficiency, reducing resource consumption, and lowering pollutant and GHG emissions to effectively mitigate environmental impact and improve environmental quality.

At present, a total of 14 manufacturers, including CSC, have joined the District Energy Integration. The energy that CSC sells include steam and oxygen, nitrogen and argon produced by the Oxygen Plant. Among them, steam is the main item. The amount of steam sold in 2024 was 1.38 million tonnes, saving 4.20 million GJ (equivalent to 106,000 kL of low-sulphur oil.) In terms of reducing GHG emissions and improving air pollution, it reduced 331,000 tCO₂e of GHG, 1,009 tonnes of SOx, 700 tonnes of NOx, and 99 tonnes of particles^(I)(II)(III), creating a multi-wins situation for CSC, customers, and the environment.

Performance of Energy Saving and Carbon Reduction

In 2024, CSC completed a total of 193 energy saving projects, which saved a total of 1.408 million GJ, reduced carbon emissions by 118,000 tons CO₂e, and saved energy cost by 487 million TWD, main projects include Rolling Mill Department III " The development of Intelligent combustion monitoring system " and so on.