Modern integration strategy supporting Outokumpu’s energy efficiency management

Nortal introduces an API-based solution to enable more efficient energy management to support Outokumpu’s ambitious sustainability goals.

Outokumpu is the global leader in sustainable stainless steel. Stainless steel operations are energy intensive, so Outokumpu uses the best available technology, electric arc furnaces, and continuously strives to make its production operations more energy efficient. In fact, Outokumpu’s biggest plant, located in Tornio, Finland, is the biggest single energy user in the Nordics. In general, to produce a ton of stainless steel in an electric arc furnace requires about 440 kilowatt-hours of electricity, enough to power hundreds of homes for an entire month.

This is to say that when a company like Outokumpu turns its attention to saving energy, it is more than just a gesture—it is of global significance. By the end of 2024, the company’s goal is to improve energy efficiency by eight percent compared to a similar period two years prior. This will equate to an energy saving of around 600,000 megawatt hours, enough to power 15,000 households.

Part of what makes this possible is Nortal helping Outokumpu feed the right data to their energy management system (EMS).

Harnessing the power of data

The problem is that data systems are many and diverse, with various downstream locations for data needed in the EMS. Data from manufacturing execution systems and other factory floor systems, such as maintenance breaks and production planning are needed for efficient energy management. Nortal created an API that combines the data sources and channels it to the EMS in close to real-time. Harnessing multiple sources of data, creating a harmonized API layer, and doing it fast, means the savings can be staggering for a company that purchases energy on the spot market.

“Outokumpu’s sustainability strategy aims at decarbonization and supporting customers to reduce their supply chain emissions,” says Harri Salo, Outokumpu’s Manager – Energy, Electrical and Crane Services. “Integration of the energy management system greatly supports this strategy. It enables us to measure electricity consumption, providing data that enables the possibility to adjust and optimize electricity usage. Additionally, this capability improves the accuracy of energy consumption forecasts and allows us to enhance our cost efficiency in production.”

Beyond cost savings

Energy and cost savings are of course important, but Outokumpu has even bigger aspirations. “Yes, EMS is a major scalable solution, which will save energy,” says Junhui Wang, Outokumpu’s Head of Data Platforms & Integrations. “But it’s much more than that. The EMS leverages our API strategy. It’s one of the enablers of our sustainability strategy, the cornerstone in our API strategy and governance.”

What this means is that the solution is scalable and can be taken beyond the Tornio plant. It also supports the production of Outokumpu’s spearhead climate solution, Outokumpu Circle Green®, a product line with up to 93 percent lower carbon footprint compared to the global industry average*. Outokumpu calculates that if all stainless steel was produced in a same way, then global carbon emissions from the entire stainless steel value chain could be reduced by 364 million tons per year, or roughly 900 million one-way flights of a passenger from London to New York.

“Outokumpu’s aim is to remain as the global leader in sustainable stainless steel,” says Harri Salo. “And we’re committed to keep the global warming at 1.5 ºC according to the Science-Based Targets Initiative”.

*) Global average CO₂ emissions (2023): 7 kg CO₂e per kg of stainless steel (Outokumpu’s calculation based on data provided by CRU, worldstainless and Kobolde & Partners AB). Outokumpu Circle Green CO₂ emissions: down to 0.5 kilos of CO₂e per kg of stainless steel. 

Strategic partnership

Helping to pave the way for advances in steel industry digitalization is Nortal, who has worked in the metals sector for almost 40 years, much of that time with Outokumpu.

“EMS is an excellent example of a solution that drives our customer’s high-level enterprise architecture and integration strategy forward while introducing clear business benefits”, says Jarkko Enden, CTO of Nortal Finland. “Long strategic partnerships, such as the one we have with Outokumpu, are a unique trait of Nortal Finland that we’re especially proud of.”

– Junhui Wang, Head of Data Platforms & Integrations, Outokumpu

Nortal has been a pivotal partner for Outokumpu, providing significant support in implementing our integration and API strategy over the past years. Our integration landscape, characterized by a diverse array of technologies and tools, has been complex. With Nortal's expertise, we are now on the right path towards achieving our North Star Integration Architecture.