Published
2024-07-02
Categories

In a world facing environmental challenges, the importance of dependable partners with sustainable practices becomes crucial. That’s why Alleima is committed to advancing sustainable practices and is actively seeking to reduce carbon emissions.

Responding to the increasing demand for detailed information, Alleima is expanding the Life Cycle Assessment (LCA) initiative by delivering product-specific reviewed carbon footprint data on solid bar products. LCA is a well-established method to bring transparency to a company’s sustainable practices, with the calculated carbon footprint revealing remarkably low values compared to global average data.

Committed to drive the sustainable shift

Alleima is committed to integrating sustainability into its business practices and operations to create a positive impact on the environment and society. As a natural step in its strategy, the company has decided to supply transparent life cycle assessments together with our high-quality products.

Last year, Alleima received a silver medal from EcoVadis for its sustainability performance. EcoVadis is a leading provider of corporate sustainability assessments and an important tool for Alleima when evaluating sustainability aspects among suppliers in the value chain. The result placed Alleima in the 91st percentile, meaning the result ranks the company better than 91% of the organizations assessed by EcoVadis.

Carbon Border Adjustment Mechanism requirement

To remain competitive and compliant, steel producers need to meet the European Union’s Carbon Border Adjustment Mechanism (CBAM) requirements. With the European Union placing a price on the carbon footprint of certain imported goods in its entirety from 2026, producers need to start implementing carbon reduction measures throughout production processes.

This underscores the increasing significance of LCA practices. By analyzing the environmental impacts associated with products, Alleima delivers accurate and third-party reviewed carbon footprint data to customers. This assurance alleviates all concerns regarding CBAM for Alleima's steel purchasers, instilling confidence and trust. Embracing LCA practices will not only help Alleima meet regulatory requirements but also enhance its competitiveness by demonstrating a commitment to sustainability and environmental responsibility.

Benefits to the industry

There is a growing demand from consumers and industries to understand the carbon footprint of final products. End users are increasingly placing pressure on material distributors to provide LCA. Alleima’s LCA process includes accurate scope 3 emissions, which users can incorporate into their modeling of final carbon footprint data. Looking ahead, complete carbon footprint data for all industrial products will become a standard requirement, with data serving as the foundation for further calculations.

Alleima’s LCA exercise can facilitate comparisons with data from other material suppliers, enabling informed decisions to minimize total carbon emissions of final products. However, a significant challenge in making accurate comparisons is the absence of definitive standards for comparing different calculations. Therefore, it is crucial to understand the basis of calculations and to trust the third-party agency that reviews the LCA model and calculations. By engaging IVL - Swedish Environmental Research Institute - an esteemed and independent institute known for its expertise in sustainability, Alleima ensures its calculations are reviewed, providing customers with the confidence they need to trust the data.

Learn more about the LCA practices

Learn more about the LCA practices

How did we achieve this?

To do an LCA, large amounts of data are required. Everything added to the steel grades that is estimated to affect the carbon footprint of the final product, should be assessed. This places great demands on the documentation and data management. Further, the subsequent processes that follows the steel mill must be investigated, specifically any inputs and outputs to the processes needs to be mapped and any significant contributors to the product carbon footprint should be assessed in the analysis.

The manufacturing of solid round bars involves several production routes, where the complexity and number of operations vary by material grade, dimensions and choice of methods - all with the object of having as efficient processes as possible. From the careful choice of raw material, making of the steel grade and casting, through the hot working to set dimensions and final properties. And last, finishing to delivery condition.

The production routes are far more complicated than how the final products appear.

Magnus Brink
Technical Marketing Specialist at Alleima

The importance of having recycled steel

Stainless steel is 100% recyclable. A study of stainless steel stocks and flows was recently carried out by the Karlsruhe Institute of Technology, suggesting that the global average recycled content of stainless steel, known as the scrap ratio, is 48% (2019). Scrap ratios vary heavily according to the stainless steel production process. For instance, the electric arc furnace (EAF) route, which is used by Alleima, usually has high ratios. Alleima 316L stainless steel contains an average 95,6% recycled steel, while the traditional blast furnace route operating on primary resources such as iron ore, have lower ratios. The scrap ratio is directly reflected on the product carbon footprint, with the emissions to the atmosphere estimated to be approximately four times lower for the EAF route compared to the iron ore based blast furnace.

Analysis of impact – by operation

By going through the included operations it is possible to define how much they contribute to the total CO2 emissions given these operations consume more or less energy, and furthermore how environmentally friendly the used energy actually is (in CO2e). For example, 60-80% of the carbon emissions in stainless steels originate from the mining and processing of alloying elements, like nickel, chrome and molybdenum.

Calculations showing remarkably low carbon footprint

The extensive mapping of the production showed that many of the processes have a very low carbon footprint, since the energy they operate on is 100% Swedish fossil-free electricity. It also showed that the processes with the highest carbon emissions in production were the ones operating on fuels. However, in the recent years, Alleima has been purchasing biogas to partly replace conventional fuels, such as natural gas. This has shown to reduce the footprint of the solid bar products produced at the production site in Sandviken, Sweden.

Alleima conducted an in-depth analysis for one of the Solid bar products, Sanmac 316L. By comparing the carbon footprint using precise supplier data and estimated global average data of 6t CO2/t*, an 81% reduction in carbon footprint was uncovered. The Sanmac 316L showed a low carbon footprint of 1.150t CO2e/t, demonstrating that Alleima is in the forefront for sustainable practices.

* Data from Worldstainless The Global Life Cycle of Stainless Steels (worldstainless.org)

Transparent and sustainable solutions

Alleima is dedicated to transparency and actively reports its LCA results and sustainability efforts to strengthen trust among customers and stakeholders. By collaborating with customers and implementing sustainable solutions, the company contributes to making greener choices for the industry, with LCA being one of the answers to contributing to a sustainable future.

By providing third-party reviewed LCA, we help our customers to achieve their climate goals and promote a sustainable future.

Nicole Holmgren
LCA Specialist at Alleima