Steelmaking is the lifeblood of an industrial economy, providing the raw material for the construction industry and infrastructure development as well as generating employment and stimulating economic activity.
It is also one of the most energy intensive industries, contributing 8% of global CO2 emissions.
Rider Steel, Ghana’s largest steel manufacturer, shows that steel production can be sustainable.
Sustainability is at the core of Rider Steel’s business model, as it recycles scrap metal into steel instead of using iron ore.
The leadership at Rider Steel wasn’t stopping there: it wanted to lower its dependence on fossil fuels in its energy mix.
Last year, Rider Steel commissioned a 4.3MW solar plant at its new steel factory outside of Kumasi, one of the largest captive solar installations in the country.
Here is Rider Steel’s story.
Integrating solar into a recycling plant’s energy mix
With financial backing from the International Finance Corporation(IFC), Rider Steel set out to build the largest steel recycling plant in Ghana.
Rider Steel also set ambitious renewable energy targets: the company aims to generate 20% of the new plant's 40 MW energy consumption from renewable sources.
Given the emphasis on sustainable practices in its production processes, Rider Steel was also motivated to reduce its CO2 emissions further by utilising green energy.
As Walid Al Alami, Managing Director of Rider Steel explains, “Scrap is a low-value item. To add value, we need to be environmentally conscious. If we are dependent on fossil fuels to recycle scrap material, it defeats the purpose.”
Before partnering with Daystar Power, Rider Steel spent 30% of its operating costs on electricity which was exclusively supplied by the grid.
Occasional power cuts would also ground the factory's operations.
Integrating solar into its energy mix offered a way to reduce power costs, secure energy security and improve sustainability.
In 2015, Rider Steel worked with Daystar Power to install a 1.1MW solar system at its first factory in Tema. Since the project was completed successfully without Rider Steel needing to invest any upfront costs, the company reached out to Daystar once again. This time it was for help with installing a 4.3MW solar system at its new site outside of Kumasi.
Speaking on Rider Steel's decision to go with solar and Daystar's services, Al Alami says, “From a commercial point of view, recycling factories last 50 years and we had the leverage of time. Daystar came in with their business model: a complete BOT proposal with no upfront payments, inclusive of regular maintenance, off site monitoring and a whole support team.”
“For the project finance, Daystar agreed to finance the project and we would make a monthly payment for the next 15 years. We ran the numbers and looked at the previous project we had completed with Daystar and decided to immediately start the project. We had our doubts when we signed the agreement, but hoped to complete the project in one year.”
The impact of solar adoption on Rider Steel’s operations
Adopting solar has yielded benefits such as increased sustainability and lower energy costs.
It has also led to some surprising outcomes.
Reduction in CO2 emissions
With Daystar's solar system generating up to 13% of Rider Steel's energy needs, the company has achieved more than half of its 20% target for sustainable energy usage. The system is poised to offset 1,000 MT of carbon emissions this year, equivalent to planting 1,200 trees.
The use of solar also fits into the company's broader mission and ethos of being a steel manufacturer that reuses and recycles scrap metal and minimises fossil fuel consumption in its production process.
Significant power cost savings
The move to solar has also allowed Rider Steel to cut down on power costs—one of its biggest line items—by using cheaper solar energy for daytime operations instead of grid power.
Improved production planning
Before, Rider Steel would start production at 3 or 4 AM and then wind down at 7 PM. Now, it starts operations at 5:30 AM in anticipation of sunrise at 6 AM and continues production until 6 PM when the sun sets and it has to switch to grid power.
Using the solar system's network operations portal, Rider Steel gained insights into how much load the factory was consuming and the periods when power wasn’t needed. With this visibility, the operations team is able to optimise production planning to take advantage of output from the solar system.
Prolonged factory roof life
Incorporating solar also brought some surprising benefits like extending the lifespan of the factory's roof. Ordinarily, the roofing sheets need replacement every 3-4 years. However, because they are now covered and protected by solar panels they are set to last for 15 years.
“You put in the solar and you can create a benefit out of nothing—you’re prolonging the life of your factory roof,” says Al Walid, stressing the value of this unexpected outcome for the factory.
Seamless solar integration
Rider Steel had glowing words about its partnership with DaystarPower.
For Al Alami, the clarity of Daystar's solar-as-a-service offerings and the care it took in explaining how the system worked were key factors in the company’s decision to partner with Daystar on its solar installation.
The professional customer service and timely project delivery also impressed the Rider Steel leadership.
“Given the location of our factory, frequent power outages and poor network reception, we could not believe Daystar would not only deliver the project as promised but was 15 days ahead of our deadline.”
With lower energy costs, enhanced production processes, and a shrinking carbon footprint, Rider Steel is already reaping the ROI of integrating solar into its factory's power system.
Are you interested in adopting solar at your factory?
Schedule a consultation with Daystar to discover the right solar solution for your needs.
