The $54M Energy Challenge
MetalWorks Steel faced an energy crisis as power costs reached $54M annually—32% of total operating expenses. With energy-intensive processes like electric arc furnaces and rolling mills, inefficient power management was destroying profitability. Peak demand charges alone cost $12M yearly, while uncoordinated production scheduling created massive energy spikes during high-rate periods.
The Challenge: Energy-Intensive Operations
Steel production is inherently energy-intensive, but MetalWorks discovered their energy consumption patterns were creating unnecessary costs and environmental impact. Without coordinated energy management, they were paying premium rates while missing optimization opportunities.
Energy Consumption Challenges
$12M annually in peak demand charges during high-rate periods
Production units operating independently causing energy spikes
Aging furnaces and motors operating below optimal efficiency
Low power factor causing additional utility penalties
Waste heat from furnaces not being captured and reused
No predictive energy planning or load balancing
AI-Driven Energy Management System
The solution implemented an integrated AI platform that optimized energy consumption across all production processes while maintaining quality and throughput requirements. The system balanced load scheduling, predicted demand patterns, and automated energy-intensive equipment coordination.
Predictive Scheduling
AI algorithms optimizing production schedules based on energy rates and demand forecasts
Load Balancing
Real-time load distribution preventing peak demand spikes and optimizing power factor
Heat Recovery
Automated waste heat capture and redistribution for preheating and auxiliary processes
Energy Optimization Framework
| Process Area | Optimization Strategy | Energy Reduction | Annual Savings |
|---|---|---|---|
| Electric Arc Furnaces | Predictive melt scheduling, power factor optimization | 18% | $3.2M |
| Rolling Mills | Load coordination, motor efficiency tuning | 12% | $1.8M |
| Auxiliary Systems | Waste heat recovery, smart HVAC control | 22% | $1.6M |
| Utilities | Peak shaving, demand response programs | 25% | $1.6M |