Energy Consumption

The Group has always invested in reducing the energy consumption of production processes. In fact, efficiency and production cost reduction have always been among the main drivers for the AFV Beltrame Group to be competitive. We want to continue in this direction, which is why the production efficiency strategy has been strengthened to further reduce energy consumption and increase supply from renewable sources.

For example, dedicated contracts have been established for the supply of green energy, participation in a European project regarding the use of hydrogen in the reheating furnaces of rolling mills has been initiated, and proprietary plants for the self-production of electricity are being developed. As evidence of its commitment to reducing energy consumption, the Group has set two targets, one for steel mills and one for rolling mills, with a 5-year time horizon, as early as 2022:

• Reduction of specific energy consumption per ton of steel produced related to EAF (steel mill) furnaces by 1% for 5 years, taking the weighted average (tons of steel produced/energy consumption per ton) of the three-year period 2019-2021 as the starting baseline
• Reduction in specific natural gas (methane) consumption per ton of rolled steel processed by 1% for 5 years, taking the weighted average (tons of rolled steel processed/ natural gas (methane) consumption per ton of rolled steel) of the three-year period 2019-2021 as the starting baseline

In addition, the Group is planning investments to achieve two ambitious goals by 2030: the use of energy from renewable sources of at least 40 percent of total supply for AFV Acciaierie Beltrame (Italy) and Donalam-Calarasi (Romania) and a significant increase in the amount of fossil-free energy sources for LME (France) and SG (Switzerland).

Major projects for achieving the goals related to this Pillar include:

• Development of photovoltaic plants for self-generation of electricity
• Drawing up PPA (Power Purchasing Agreement) contracts for the supply of green energy
• Participation in projects related to the use of hydrogen