Solar power is likely to “… revolutionise electric arc furnace-based steelmaking in the next 20 years thanks to its cost-saving and carbon emissions reduction," according to SoftBank Energy executive chairman Manoj Kohli.

The affordability of solar energy has improved 85% in the last five years, with solar tariffs ranging from $0.018/kWh in Saudi Arabia to $0.024 in United Arab Emirates, $0.029 in Chile and $0.038 in India, according to Kohli.

The popularity of EAF steelmaking is growing as it consumes less energy and emits around 50% less CO2 than basic oxygen furnace-based production, meaning it will help meet stricter sustainability targets. Solar plants can easily be integrated with EAF mills and provide CO2 emissions reduction by at least a further 25%, as well as a 35% reduction in operational expenditure.

The cost of solar storage has fallen and is set for significant further reductions in the next five years, enabling round-the-clock operation – whatever energy is not used during daytime can be stored overnight. Storage costs today are $0.058-0.07/kWh and are seen falling to $0.009-0.012/kWh in 2030. This will give a rated average cost for day and night of $0.015//kWh, according to Kohli.

Constructing a solar plant is also a relatively quick process. It begins with a technical feasibility study that lasts 8-10 weeks; next comes the land and grid assessment, approaching lenders and finally the structuring.

“Approval may take time depending on which government you’re dealing with,” Kohli said at the worldsteel conference in Brussels attended by Kallanish on Tuesday. “But we’re clear we’d like to do this (plant construction) within 12 months.” Maintenance of the solar panels is completely automated using robots and drones, he added.

“Not only will the solar sector reduce costs but it will also be a major customer of the steel sector,” Kohli observed. The mounting structure for each solar panel is made from steel. Kohli estimates 3 million tonnes of steel is required for every 1GW of solar energy. Considering the world consumes 20,000GW of energy and could need 30,000GW by 2030, potential steel requirement amounts to 90 billion tonnes, he said.