Arcelormittal SA And Energy Led Partner To Bring Energy Efficiency With Laas

ArcelorMittal South Africa, the world's leading steel company, has teamed up with Energy LED, South Africa’s leading energy-efficient lighting provider, to introduce an innovative Lighting as a Service (LaaS) initiative. This landmark project aims to significantly reduce energy consumption, cut carbon emissions, and lower operational costs across ArcelorMittal South Africa’s facilities.

Phase One Energy Savings

The first phase of the project has already delivered impressive results, showcasing the potential of this collaboration:

• Carbon Footprint Reduction: A reduction of 5,285 tons of CO₂ annually, contributing to ArcelorMittal South Africa’s sustainability targets.
• Total Project Lifetime Savings: Over the entire project lifespan, the savings are expected to reach 50 MWh in energy and reduce 50,000 tons of CO₂, further aligning with global sustainability goals.

These energy savings are estimated to result in savings exceeding R140 million over the project’s five to 10-year term, marking a substantial financial benefit alongside the environmental impact. Subsequent phases could leverage these savings up by more than five times. 

Louis Bosch, Senior Specialist of Energy Reliability Technology Core Support Services at ArcelorMittal SA, expressed, “At ArcelorMittal South Africa, we are committed to sustainability, and this partnership with Energy LED is a tangible reflection of that commitment. The implementation of energy-efficient LED lighting not only reduces our energy consumption by over 60%, but it also aligns with our broader carbon reduction goals. Through this project, we are not only improving operational efficiency but also contributing to a cleaner, more sustainable future for the steel industry in Africa and beyond.”

Andrew Winstone, CEO of Energy LED, added, “This partnership marks a significant step forward not only for ArcelorMittal South Africa but for the entire industrial sector in Africa. By introducing our LaaS model, we are demonstrating how energy efficiency can be achieved without upfront costs, while generating carbon credits that further enhance sustainability efforts. This project sets a powerful precedent for reducing both energy costs and carbon footprints, and we’re proud to be leading this transformation alongside ArcelorMittal South Africa.”

The Benefits of LaaS

The LaaS model offers ArcelorMittal South Africa a zero-capital investment opportunity to upgrade its lighting infrastructure, funded by the energy savings that the new LED systems generate. 

This model brings several key advantages:

• Cost Efficiency: Energy savings of 69% in Phase One directly translate into reduced electricity costs, lowering operational expenses.
• Sustainability: With significant CO₂ reductions, ArcelorMittal South Africa is actively contributing to reducing its carbon footprint, helping to meet corporate sustainability goals.
• Longer Life and Lower Maintenance: LED lighting has a longer lifespan than traditional systems, reducing maintenance and replacement costs over time.
• Operational Flexibility: Spanning five to 10 years, the project allows for flexibility without the need for capital expenditure upfront.

Looking Ahead

ArcelorMittal South Africa and Energy LED are committed to continuing this successful collaboration, with further phases planned that will expand the energy efficiency and carbon credit generation initiatives. This partnership serves as a powerful example of how industries can integrate sustainability into their core operations while reaping significant financial rewards.

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