Energy

• 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 1.95% of electricity on average from 2015 to 2023, which is higher than required by law.
• 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 58,554 kWh of self-owned green electricity in 2023, and obtained 25 renewable energy certificates. In addition, CSC has started Renewable-Energy Direct Supply and Wheeling since 2023, and in 2023 it obtained 28,809,461 kWh of green electricity and 28,793 renewable energy certificates.
• With the continuous promotion of District Energy Integration in Linhai Industrial Park, CSC sold 1.325 million tonnes of steam produced from district energy integration in 2023, which can reduce approximately 318,000 tonnes of CO₂e in greenhouse gas emissions.
• The energy target in 2023 was 22.76 GJ/tCS (5,436 Mcal/tCS), and the actual performance was 23.04 GJ/tCS (5,504 Mcal/tCS), which fell short of the target because the actual crude steel production was lower than the production plan.If the Energy Baseline method is adopted, the energy intensity target (Mcal/tCS) value is calculated based on actual production conditions. The calculated target value is 5,531 Mcal/tCS (=23.16 GJ/tCS), and the target is achieved.
• The fourth Energy Saving Action Plan (2021 to 2025) has a target of saving 2.64 million GJ. From 2021 to 2023, CSC has saved up to 5.436 million GJ of energy, which accounted for 206% of the aforesaid target, thereby achieving its target for the year. The amount of energy saved was equivalent to a reduction of 542,000 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 2024 is≦5,475 Mcal/tCS (22.92 GJ/tCS ).

The target of Energy Intensity is set based on production capacity and equipment maintenance that year. The energy target in 2023 was 22.76 GJ/tCS (5,436 Mcal/tCS), and the actual performance was 23.04 GJ/tCS (5,504 Mcal/tCS), which fell short of the target because the actual crude steel production was lower than the production plan.If the Energy Baseline method is adopted, the energy intensity target (Mcal/tCS) value is calculated based on actual production conditions. The calculated target value is 5,531 Mcal/tCS(=23.16 GJ/tCS), and the target is achieved.

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. 908 energy-saving projects were completed in 2021-2023, contributing to 206% of the “Energy Saving Action Plan-Phase IV” target, which is equivalent to a reduction in carbon emissions of 542,000 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 1.95% from 2015 to 2023.

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 the Bureau of Energy.

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 2023.

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:

  CSC received the certificate of ISO 50001 from BSI on December 1st of 2021, making CSC the first steel company to implement ISO 50001 in Taiwan, and CSC also obtained ISO 50001:2018 certification in 2019. CSC undergoes third-party verifications annually, and achieves energy savings, carbon reduction, and continuous improvement through the control of management system and 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 2024 is≦5,475 Mcal/tCS (22.92 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 2023, CSC completed a total of 358 energy saving projects, which saved a total of 3.264 million GJ, reduced carbon emissions by 368,000 tons CO₂e, and saved energy cost by 1,810 million TWD, main projects include Power Plant "revamping the turbine blower," and etc.

• Evaluation of progress in reducing energy consumption

  In 2021-2023, 908 energy-saving projects were completed, which saved a total of 5.436 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 542,000 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 1.95% from 2015 to 2023.

• 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 58,554 kWh of self-owned green electricity in 2023, and obtained 25 renewable energy certificates. In addition, CSC has started Renewable-Energy Direct Supply and Wheeling since 2023, and in 2023 it obtained 28,809,461 kWh of green electricity and 28,793 renewable energy certificates.

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

  CSC applied to the Department of Industrial Technology of the Ministry of Economic Affairs for the A+ Industrial Innovative R&D program with the theme of "Development of Low-Energy Carbon Capture and Utilization Technology for Steel Mills." It passed the review and completed contract signing at the end of December 2023. This project combines efficient carbon capture from flue gas and waste heat recovery technology to reduce the energy consumption of carbon capture, and converts CO₂ into CO using quiet basic oxygen furnace, achieving cyclical carbon use in the plant. The project will enhance the Company's technical capabilities for the path to carbon neutrality and carbon capture and storage plans. It will also increase the production capacity of co-production between steel and petrochemical plants, which is related to more than 10 million tons of carbon reduction in the future. The plan mainly consists of three sub-items:

  • (1)The "efficient carbon capture" sub-item establishes a pilot plant that captures 500 tons of CO₂ per year as a R&D platform for developing long-lasting absorbents, in order to reduce operating costs.
  • (2)The "process energy-saving" sub-project develops energy-saving technology for carbon capture processes to reduce energy consumption, and developed sintering heat recovery technology to supply the heat energy required for carbon capture, reducing the demand on external energy and carbon emissions.
  • (3)The "Conversion of CO₂ to CO by basic oxygen furnace" sub-project develops reaction control technology, and achieves optimal CO₂ conversion while taking into consideration the quality of liquid steel and the service life of refractory materials.

  The project is expected to reduce absorbent consumption by 15%, energy consumption of carbon capture by 5%, and achieve a CO₂ conversion rate exceeding 70%. The project is a three-year project with total funding of 259 million TWD, in which 118 million TWD is subsidized by the Ministry of Economic Affairs. This is a high subsidy ratio (45.6%) that is rarely seen, and shows that the Ministry of Economic Affairs attaches great importance to and supports this issue. This project also shows the Company's positive attitude and efforts in carbon reduction R&D. The Company's internal specialists collaborated with an external consulting team. This project will integrate R&D and professional capabilities inside and outside the plant, consolidate technologies for carbon capture from flue gas with low energy consumption and basic oxygen furnace reaction control, and enhance the competitiveness of the Company's future low-carbon products.

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

  In 2023, a total of 564 people received education and training related to energy conservation, energy use and energy efficiency, in order to improve employees' awareness of energy conservation, 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. Then with the assistant of the integrated-Energy Management System (iEMS), UDC can execute dynamic dispatching in order to keep energy balancing in CSC and to minimize by-product gas emissions. 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.

• Renewable energy usage

  Following the installation of solar power systems in line with government policies since 2011, CSC’s solar power installed capacity has reached 62.0 MW (including self-built and provided places) in 2023. CSC has installed a total of 529kW of its own solar power generation systems, generated a total of 58,554 kWh of self-owned green electricity in 2023, and obtained 25 renewable energy certificates. In addition, CSC has started Renewable-Energy Direct Supply and Wheeling since 2023, and in 2023 it obtained 28,809,461 kWh of green electricity and 28,793 renewable energy certificates.

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 2023, 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 2023, CSC's average power saving rate is currently 1.95%, 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 2023, the targeted total energy consumption is 55,000,000 MWh, and the estimated production volume of CS is 8.7 million tonnes. The energy intensity target of 2023 of steel manufacturing process is 5,436 Mcal/tCS (=6.321 MWh/tCS). The actual energy intensity was 5,504 Mcal/tCS (=6.400 MWh/tCS) which fell short of the target because the actual crude steel production was about 0.9 million tonnes lower than the estimation. However, the total energy consumption target was achieved.
• Renewable energy
  CSC Solar Co. had set up a total of 97.9MW PV system in CSC Group from 2017 to 2023, which is responded to CSC’s Energy Policy, which says “Carbon Reduction and development of green energy.” As of the end of 2023, the cumulative power generation reached 540 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 58,554 kWh of self-owned green electricity in 2023, and obtained 25 renewable energy certificates. In addition, CSC has started Renewable-Energy Direct Supply and Wheeling since 2023, and in 2023 it obtained 28,809,461 kWh of green electricity and 28,793 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.

Primary Energy consumption and Secondary Energy consumption were verified by DNV in CSC’s annual GHG inventory. Energy consumption for each type of energy source each year is determined by calculating the product of annual consumption and average heating value in CSC’s annual test each year.

Consumptions of natural gas, low-sulfur oil, and purchased electricity were higher in 2023 and 2022 than in 2021 due chiefly to the cessation of coal combustion in boilers at CSC's power houses in August 2021, which eventually led to higher consumption of purchased electricity within the company and increased use of natural gas and low-sulfur oil at the company's power houses.

Coal in 2021 includes metallurgical coal and steam coal; coal in 2022 and 2023 only includes metallurgical coal.

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 2023 was 1.325 million tonnes, saving 3.94 million GJ (equivalent to 102,000 kL of low-sulphur oil.) In terms of reducing GHG emissions and improving air pollution, it reduced 318,000 tCO₂e of GHG, 968 tonnes of SOx, 672 tonnes of NOx, and 96 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 2023, CSC completed a total of 358 energy saving projects, which saved a total of 3.264 million GJ, reduced carbon emissions by 368,000 tons CO₂e, and saved energy cost by 1,810 million TWD, main projects include Power Plant "Revamping the turbine blower," and etc.