How Ivaco Rolling Mills used incentives to support innovative solutions
A world-class producer of hot rolled wire rod and continuous cast steel billets, Ivaco Rolling Mills is located on the banks of the Ottawa River in L’Orignal, Ontario. Ivaco stands out for its commitment to health and safety, conservation and environmental protection. With the help of Save on Energy incentives, they upgraded multiple industrial systems for nearly $1.5 million per year in projected cost savings.
In energy-intensive industries, there are no quick fixes. Upgrade projects often involve complex feats of engineering and millions of dollars in capital.
This is where energy managers come in as experts at creating strategies, budgets and business cases for energy-efficiency improvements. They also help industrial customers liaise with Save on Energy to access financial incentives, training and more.
“The biggest challenge for these projects is getting the capital and the buy-in,” said Francois Abdelnour, Energy Director at Ivaco Rolling Mills.
- Francois Abdelnour, Energy Director, Ivaco Rolling Mills
Rewriting the playbook with innovative solutions
Ivaco’s main project involved recovering heat from furnace off-gases and using it to preheat scrap metal on Consteel®, a continuous pre-heating conveyor system. Preheated scrap requires less electrical input to melt, leading to huge gains in energy efficiency.
As well, the addition of variable frequency drives (VFDs) boosted the efficiency of a new, higher-capacity baghouse system for collecting dust. Because the VFD motors only run as needed and adjust automatically based on predetermined setpoints, they save energy, tune furnace combustion and control emissions.
Reaching new heights in emission control
“From an engineering standpoint, there’s no precedent for a solution like this,” said Abbas Gholipour, Energy Manager at Ivaco Rolling Mills. “Since then, we’ve seen others in the industry take our emission control system and implement it at their own plants. It was a true team effort and we’re very proud of what we’ve achieved.”
Other energy-saving upgrades included swapping old lighting fixtures for LEDs, adding VFDs to melt shop compressors and participating in a demand response program by ramping down production when demand on the grid is high.
- Abbas Gholipour, Certified Energy Manager, Ivaco Rolling Mills
Ready to start a retrofit project for your business?
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By the numbers
Consteel® scrap pre-heating
$4,988,000
Total incentive
21,700 MWh
Total annual electricity savings
2.2 MW
Total annual demand savings
$1 million
Expected total annual cost savings
8 years
Expected project payback
Baghouse fans VFDs
$549,000
Total incentive
3,100 MWh
Total annual electricity savings
$150,000
Expected total annual cost savings
2.5 years
Expected project payback
Melt shop compressor VFDs
$180,000
Total incentive
1,600 MWh
Total annual electricity savings
$90,000
Expected total annual cost savings
3 years
Expected project payback
LED lighting conversion
$179,000
Total incentive
3,600 MWh
Total annual electricity savings
$175,000
Expected total annual cost savings
2.5 years
Expected project payback