Rising demand for greener approaches creates an imperative for the industry to seize the moment, adopt new mindsets, and set standards for the transition to a greener future.

In April 2022, McKinsey published the report Net-zero steel in construction: The way forward, a collaborative effort by Pedro Assunção, Brodie Boland, Trevor Burns, Emanuele D’Avolio, Alasdair Graham, Focko Imhorst, Ingrid Koester, Carl Kühl, Rory Sullivan, and Alex Ulanov, representing views from McKinsey’s Metals & Mining and Sustainability Practices and the Energy Transitions Commission.

The following article is an edited overview of the report’s key findings.

As the world transitions to lower greenhouse gas (GHG) emissions, construction companies have a major role to play. In making the green buildings of the future, they have a chance to tap into demand that spans geographies and architectures. Indeed, greener business models are potential magnets for trillions of dollars earmarked for sustainable investment.

The decisions made by construction executives now will determine how they are positioned for this transition over the coming decade. Those who prepare astutely are likely to seek out emerging pockets of innovation and increase their investment in sustainable technologies and capabilities. New materials such as green steel are more expensive, and will therefore demand a new pricing model. However, they can significantly reduce embodied carbon in commercial buildings by up to 70 percent by 2030.

Amid tight industry margins, a priority for decision makers will be to ensure there is a solid business case for change. The key will be to establish a market position while adjusting to a new cost base. Decision makers must also ensure that greener business models are aligned with demand that will rise at an uncertain pace over time.

Construction industry emissions

From houses to bridges, hospitals, and skyscrapers, the construction industry is responsible for approximately 25 percent of global GHG emissions. A third of emissions are associated with materials and the construction process—“embodied carbon.”1 One reason for the industry’s high emissions is that it is a voracious consumer of steel, accounting for more than 50 percent of global demand.2 Due to the energy required for its production, steel is a carbon megaproducer, responsible for about a quarter of emissions in the construction process.3

Given these metrics, decision makers in both steel and construction need to plot a realistic path toward a lower climate goal. Massive changes are required to align with pathways established under the Paris Agreement, but by shifting from high-emissions steel to near-zero-emissions steel, the industry could take a significant step forward.

Decarbonizing steel

Partial steel decarbonization is possible through wider use of modern furnace technologies in steel production. The most efficient furnaces are powered by natural gas and use energy-efficient direct reduced iron or hot briquetted iron (DRI/HBI). These emit much less GHG than traditional coke-fueled blast furnaces or basic oxygen furnaces (BF/BOFs), which account for approximately 73 percent of global production and are dominant in Europe and China.4
Another route to lower-CO2 steel would be to retrofit BF/BOFs for carbon capture and storage (CCS) or carbon capture and utilization (CCU). If these approaches scale successfully, they could theoretically enable sequestration of about 85 percent of CO2 emissions from coke feedstock. Ideally, producers would be able to scale hydrogen-reduced DRI/HBI electric-arc furnaces (EAFs) powered with renewable energy. With this combination, producers could make steel with a carbon intensity of less than 0.2 tCO2 per metric ton of steel, compared with a global average of 1.8 tCO2 with today’s cleanest technologies. High costs would require steel to command a “green premium” of 20 to 25 percent over 20 years to fund the construction of new facilities, not including capital expenditure for hydrogen production, transport, and storage (Exhibit 1).

Navigating hurdles

Beyond technical challenges, companies face significant commercial and structural barriers. The sector’s generally low margins could certainly dampen producers’ appetites for green technologies.6 Established approaches produce steel for approximately $400 to $500 per metric ton at the slab level. Near-zero-emissions steel is more expensive, albeit with significant variations based on technology, location, and project.

Another barrier to adoption is that individual developers do not routinely count emissions from the steel they consume,7 and no certification or grading system has been widely adopted to date.8 Furthermore, the steel industry services a highly fragmented construction landscape, making effective change at scale more difficult to achieve (Exhibit 2).

Opportunities for the commercial sector

Despite many challenges, economically feasible progress is possible.9 Analysis shows it would be possible to reduce an office building’s embodied carbon by about 1,250 metric tons (or 70 percent) through alternative technologies, materials, and steel production methods that we expect to be widely commercially available by 2030.10
To achieve these reductions, producers should prioritize efficiency in construction materials and design, as well as migrating to lower-CO2 steel, concrete, flooring, and tiling and replacing structural steel and concrete with glulam beams, cross-laminated timber (CLT), and timber.11 Companies could also embrace electrification of on-site equipment such as generators and machines.

To meet abatement goals, the construction sector should start moving toward greener technologies, planning for realistic economic scenarios, and standardizing measurements, labeling systems, and methodologies to track levels of embodied carbon. This would enable decision makers to set targets more confidently and plot decarbonization pathways.

To unlock demand, developers, operators, owners, and large occupiers could form buyer’s clubs to aggregate purchase commitments. In addition, they could commit to offtake agreements with near-zero-emissions mills and seek out dedicated green funding. Financers could facilitate that process by setting up systems to track and report on funding and by leveraging environmental product declarations and life cycle assessments to support quantification.

Through this range of efforts, greener technologies could enable a significant reduction in steel industry emissions, and therefore create a more sustainable construction industry. In the context of a fast-warming planet, the imperatives for decision makers should be to seize the moment, adopt a radical mindset, and take concrete steps to transition to a greener future.

Source : mckinsey

Involving 11 substations of up to 132 KV, the 270-MW projects executed by Hartek Power included a 150-MW project in Muktsar district of Punjab, a 70-MW project in Mahoba district of Uttar Pradesh and a 50-MW project in Ittagi district of Karnataka. The scope of work of these projects, which were completed in just five months, included complete turnkey solutions of post-inverter works covering the design, engineering, supply, installation, automation and commissioning of the power plant electrification. Hailing the achievement, Hartek Group Chairman and Managing Director (CMD) Hartek Singh said, “The power systems business unit of the Hartek Group has done incredibly well. We owe our success to our unflinching commitment to quality and timely execution of projects. We have won the trust of key developers by creating immense value for them in terms of unmatched expertise and services. These are the factors that have enabled us to emerge as one of the fastest growing EPC companies in the Indian solar space.”

A pan-India company with presence in 18 states which ventured into the solar power systems domain just three years ago, Hartek Power is focusing on South India and new geographies like Jharkhand to consolidate its position. “At the same time, we are strengthening our hold in states like Punjab where we have traditionally been doing well. In fact, out of the 500-MW solar projects awarded by the Punjab government in the Phase 3 auction, Hartek Power has bagged orders for 200-MW projects, which comes to 40%,” said the Hartek Group CMD. India’s installed solar generation capacity has gone up by four times from 2.5 GW to 10 GW in less than three years, offering huge opportunities for growth to firms like Hartek Power.

PVGuard 2.3 also allows operators to store high-resolution data from metering devices and the power plant controller for up to six months in a database, thereby enabling long-term, in-depth analysis of system performance. Version 2.3 is now optimized for use in 64-bit environments, especially with Windows 10 and Java 8.“Customer satisfaction is our first priority,” said Hendrik Hoffmann, Director Software, Service and O&M at skytron energy. “Our aim is to develop new products and improve existing ones. The PVGuard® Supervision Platform is the heart of our monitoring technology. The new 2.3 version makes it easier for owners to handle the most varied data from the PV plant and simplifies recurring processes like sending reports and emails.”

Global Leader in PV Monitoring
skytron energy is also celebrating the fact that it has retained its position as the world’s top provider of monitoring systems for utility-scale PV plants, according to GTM Research. GTM’s ‘Global PV Monitoring 2016-2020: Markets, Trends and Leading Players’ report compared 26 companies and awarded skytron energy the top position in the utility-scale segment, a position it has held since 2014.

“We’re pleased to have, once again, retained our leadership position in the prestigious GTM Research rankings. We see the 6,600 MW of global installed capacity that is optimized by PVGuard, as a reflection of the confidence that plant owners and investors have in our technology,” said Lino Garcia, Director Business Development and Sales at skytron energy. “The fact that we’ve retained the top position demonstrates just how much value our customers place in the differentiated services we’re able to provide. What truly sets us apart from the competition is our ability to deliver high quality analytics that provide the granular views that asset owners and operators need, when they need it.”

“We are proud to provide this sustainable and innovative outage management software solution that will improve power security for the people of New York and Massachusetts” said Claudio Facchin, President of ABB’s Power Grids division. “A key element of our Next Level Strategy is leveraging our software portfolio to help utilities improve reliability and ensure safe and clean energy delivery to their customers utilizing the Internet of Things, Services and People.”ABB’s outage management software solution facilitates real-time monitoring and control, network analysis, network optimization, outage management and business analytics capabilities in an integrated software platform, which enables utilities to enhance system reliability, improve customer satisfaction and reduce total cost of ownership, both today and into the future.

“National Grid is on the front lines of one of the world’s greatest challenges – delivering clean energy to support our world now and long into the future,” said John Spink, VP Operations, National Grid. “The ABB software solutions we have put in place provide a platform for the future and position us for leadership in meeting the challenges utilities around the world are facing – deeper penetration of renewable energy resources such as wind and solar and wider deployment of distributed energy resources while ensuring reliable, safe and affordable electricity supplies.”ABB (www.abb.com) is a leading global technology company in power and automation that enables utility, industry, and transport & infrastructure customers to improve their performance while lowering environmental impact. The ABB Group of companies operates in roughly 100 countries and employs about 135,000 people.

Only one installer is required to build the system
“Our new substructure is suitable for smaller ground-mounted solar installations with an output of approximately three to 20 kilowatts peak. There are currently very few mounting systems with modular extension kits on the market for freestanding installations of this size. And those available often require heavy machinery to anchor the system posts into the ground,” reports Lars vom Stein, product manager at Renusol. “This is why we have developed a solution which is simply fixed to concrete foundations. Its design allows the system to be put together by one installer working alone.”

Brackets are integrated into the rails, enabling the installer to easily hook and secure the module’s upper edge into place without the need for any clamps. The lower edge of the module is then fixed using two adjustable clamps. In contrast, conventional mounting solutions demand four clamps to fasten each module, which increases installation time and requires two installers, one to position the module and the other to attach it.

Modular extensions
The system comprises three components: sigma posts, top chords and purlins. The base kit attaches twelve modules and it can be extended in accordance with the desired size of the solar installation thanks to the mounting system’s modular design.

Margin for errors
The new mounting solution leaves room for small errors during installation. If, for example, the posts are not accurately fitted to the concrete foundations at a 90 degree angle, the joint on the mounting posts compensates for a discrepancy of several degrees. Distance deviations between the posts are tolerated due to slotted holes in the purlins.

Suitable for use on any type of subsoil
Since the MGS substructure is fitted onto concrete foundations, it can be positioned on any type of soil, from sandy to solid soil. The system’s design does not call for pile-driving or ground-screw equipment nor does it require the costly excavation work usually needed to insert posts into the ground. Integrated cable ducts also prevent the installer from having to perform the laborious task of laying underground cables.

The MGS mounting system is on show at the Ecobuild exhibition in London until 10 March 2016 and commercially available shortly.

Yamuna Sports Complex (YSC) has tied up with Jakson Engineers Ltd. (JEL) to install 400 kW solar power plant on its metal roof without piecing it. For this JEL came up with the innovative idea of using Klip Lock Solar mounting system which will serve the purpose of YSC. The plant is commissioned under RESCO model. YSC will only pay for the electricity consumed from the solar plant, rest is taken care of by Jakson which includes capital investment and O&M for 25 years.

Yamuna Sports Complex is a sports complex located in New Delhi, India which is owned by Delhi Development Authority (DDA). It was a venue for the 2010 Commonwealth Games. YSC buildings posed a challenge of metal roofing which was easily overcome by Jakson’s creativity. The plant consist of 1600 modules of 250 Wp capacity which generates approximately 5.84 lakh units per year. Bi-directional meters are installed for sale of power to the grid in case of surplus.

Yuktix weather stations collect meteorological information such as temperature, humidity, rain, wind speed every 15 seconds and up to 12 samples are taken for each transmitted reading. They provide data parameterized to conform to standards set by the Indian Meteorological Department (IMD) and the World Meteorological Organization. The station was designed with enough flexibility to be used as an air quality or water quality-measuring device simply by adding the pertinent sensors. The stations can serve as ready-to-deploy templates for smart cities and urban monitoring.

The GL865, selected by Yuktix, is a member of the popular and widely adopted GL865 product family based on the latest Intel single-chip, 65nm process CMOS technology and slated to be available and cost-controlled for many years out. The selected variant operates with 1.8V GPIOs, minimizing power consumption and making it ideally suited for solar or battery powered devices like the Yuktix weather stations.

“Weselected the Telit GL865 because of its excellent performance under test conditions. The module demonstrated the most optimized resultsin its class and availability; and the Python engine provided us with a good way to process asynchronous events via SMS,” said Yuktix founder Rajeev Jha. “It is very competitive in technical and commercial terms; and tests showed that it was able to establish a more stable cellular connection than competitor products.”

Ashish Gulati, Head of Telit India added, “Our IoT modules are ideal for the Indian market in all critical technical, regulatory and economic dimensions. Our longstanding presence and experience in this region add a unique value proposition to the stable and robust products we bring to this growing market. We see this device launch with the experts of Yuktix Technologies as the start of a strategic and enduring partnership.”

“NEXTracker is thrilled to be supporting customers and their projects in Mexico by manufacturing and installing hundreds of MW’s of solar trackers locally,” said NEXTracker CEO Dan Shugar. “Our trackers are particularly well-suited to Mexico; NX Horizon is optimized for integration into the growing number of utility scale projects being deployed. Our relationship with Mexican-based manufacturing enables us to secure high quality components, reduce material lead times – and accelerate project completion.”

NEXTracker’s first project in Mexico, with Buenavista Renewables (BVR), was the 16MW Los Santos solar power plant. NEXTracker is seeing the benefits of a fortified supply chain extend throughout North America, as evidenced by DEPCOM Power’s recent projects using NX Horizon. These U.S. systems were deployed in record time thanks to NEXTracker’s added manufacturing capacity in Mexico.

“We’re very impressed with NEXTracker’s ability to shorten the construction timeline due to their supply chain strategy – having quality product readily available through suppliers with a strong Mexico and U.S. presence,” said DEPCOM Power CEO Jim Lamon. “Partnering with NEXTracker on U.S. projects in Georgia and Idaho, we know they’re committed to excellence in product, service and support.”

The Flex plant in Guadalajara, Mexico manufactures NEXTracker’s self-powered controller. Additional components are supplied by partners in Coahuila and Tijuana. All facilities are ISO 9001 certified.

The new solution for monitoring on string level “string.bloxx All-in-one” recognizes design and production errors with high resolution down to PV module level. It combines DC measurement, fuses, overvoltage protection and communication, leading to an improved ROI and a cost reduction of 30 per cent compared with standard concepts. The significant reduction of interfaces leads to reduced risk and faster plant installation time.Gantner Instruments will also be presenting the Q.reader control unit at the summit, which is a compact solution for logging and controlling, as well as its independent real-time analysis platform for data acquisition and effective O&M activities, the gantner.webportal. In addition to data acquisition, the portal is also a platform for storage and control, which offers investors solid and reliable information enabling them to evaluate their PV portfolio performance and develop preventive maintenance strategies.

“The need for accurate PV testing to maximize the yield, reduce the risks and deliver supportive functions to contribute to grid stability is growing worldwide”, says Juergen Sutterlueti, Head of Energy Segment and Business Development at Gantner Instruments. He adds: “It is our aim to be the best partner for cost effective renewable energy generation, and to provide the best solutions for monitoring and controlling utility scale projects worldwide.”

BIG SUN Group is continuously committed to the development and promotion of their dual-axis iPV Tracker. They have obtained numerous international patents for their dual-axis solar tracking system. Its universal axis and cable driven mechanism allows for 360 degrees horizontal tilt for optimal sun tracking angle. Compared to fixed-tilted PV systems, the annual power generation output of the iPV Tracker may go up by 30-50%, depending on location, while only increasing cost by 8-10%. “But, we are still not satisfied,” stated Big Sun Group’s Chairman Summer Luo. “We continuously strive for excellence in our iPV Tracker with an aim to contribute positively to the global green energy environment.”

As a global leader in solar tracking systems, the BIG SUN Group is constantly improving and innovating, which has enabled the dual-axis iPV Tracker to be recognized for many achievements including the Industry Innovation Award (2013) presented by Taiwan’s Ministry of Economic Affairs and the Top 10 Highlights Award (2015) at the SNEC PV Expo. This year, the iPV Tracker has undergone new design changes in wind resistance, weight bearing capacity, and stability, while at the same time, effectively reducing cost, simplifying operation and maintenance. With these improvements, the ROI rate of the iPV Tracker may be 3.3 times, which addresses a main concern for PV power plant investors.

BIG SUN Group and Chailease Finance Co., Ltd. have jointly developed the world’s largest rooftop dual-axis solar tracking system at 840 kW in Pingtung, Taiwan. The annual power efficiency increase compared to fixed-tilted PV systems, within 5km of the same area, is expected to exceed 35%. Recently, the government issued an initiative releasing 3,800 hectare for agriculture and solar use. This initiative will be a great opportunity for iPV Tracker to extend its feature by increasing power generation capability, integrating agriculture and animal husbandry, bringing multiple incomes from three different industries.

BIG SUN Group has set their sights on expanding the global deployment of the iPV Tracker. The company has recently signed an agreement to install a 5-MW project in Japan. Furthermore, over half of China’s ten largest green energy groups are in various stages of evaluating the iPV Tracker, most notably, the TBEA demonstration site in Xinjiang, China. With the distribution network laid out in Japan and several international strategic agreements in place, next year is forecasted to experience an exponential volume of orders from Japan, China, India, Europe, and the USA.

UET is a startup founded in 2012 by two researchers who developed a next-generation vanadium electrolyte while working at the U.S. Department of Energy’s Pacific Northwest National Laboratory (PNNL). UET is licensing the vanadium electrolyte technology from PNNL under a long-term competitive agreement. The next-generation vanadium redox flow battery (VRB) commercialized into a utility-class system by UET can be left charged for long periods of time, easily accommodates large capacities, and is long-lasting compared to existing energy storage technologies. By significantly increasing the energy density and operating temperature of the electrolyte, UET has also succeeded in reducing the VRB’s installation space, a drawback from the previous VRB technologies.

An integrated manufacturer of vanadium energy storage systems based in Dalian, China took note of UET’s technological capabilities and has held a stake in the startup since its founding. Now, ORIX is joining as an investor through a sale of shares aimed at business expansion. Besides working to expand sales in the U.S. market, UET also has its sights set on future expansion in the Chinese and Japanese markets with the partnership of its shareholders.

In the U.S., renewable power generation has been growing due to public investment and regulatory policy. As a result, large-scale energy storage systems are increasingly being installed to stabilize and make more resilient power supplies which can be affected by factors such as renewable intermittency, weather disruptions, and other electric grid events. There is also an intensifying drive among large energy consumers like commercial buildings to lower their electricity bills by using large-scale energy storage systems to reduce demand charges billed based on peak energy usage. Against this backdrop, the U.S. market for large-scale energy storage systems is projected to exceed 1 billion dollar in 2019, a nearly eightfold increase from 2014 .

“Working in coordination with the Georgia Public Service Commission, and through strong relationships with organizations such as UGA, we have positioned Georgia as a national solar leader,” said Paul Bowers, chairman, president and CEO of Georgia Power. “Now more than ever, it’s essential that we continue to invest in the research and development of new technologies to make solar, and all generation sources, as reliable, efficient and cost-effective for our customers as possible.”

Research will be conducted under a two-year collaboration with UGA researchers, spearheaded by the College of Engineering, to study solar forecasting and the effects of solar panel soiling versus performance. Data analysis and performance reporting will occur through a Georgia Power partnership with the Electric Power Research Institute (EPRI). The new solar project will demonstrate optimal orientation and tracking technology suited for Georgia’s climate and energy demand with project partners studying the performance and reliability of various fixed and tracking configurations of five separate sub-arrays.

Georgia Power owns and will operate the facility under a 20-year lease agreement with UGA. Energy produced by the facility will flow to the state’s electric grid to serve customers. UGA will receive the renewable energy credits, or RECs.”The complex problems facing our world today, such as the need to expand our sources of energy, require not only interdisciplinary efforts but also multi-institutional efforts that involve higher education, private industry, and government,” said UGA President Jere W. Morehead. “The Solar Tracking Demonstration Project is a perfect example of this type of broad collaboration, and the University of Georgia is pleased to be part of this exciting endeavor.”

“We are continually improving and expanding our technologies and associated services to drive value for our clients,” said Steve Daniel, Executive Vice President of Sales and Marketing. “The TDP Turnkey Tracker is the result of our systematic, in-field testing and collaboration with our clients. It’s the culmination of our extensive experience incorporated in an innovative, tracker solution that delivers an optimized product coupled with best-in-class services and support. The TDP addresses a critical need for services which will be essential to support the expected increase in demand in 2016.”

From a solar installation’s preliminary layout and plans, through construction and life of system, the Solar FlexRack TDP Turnkey Tracker provides a reliable solution that reduces installation time and long-term maintenance. The TDP Turnkey Tracker puts the company’s years of PV experience at the customers’ fingertips with this comprehensive services offering:

– Sizing and layouts
– In-house geologist and geotechnical engineers
– Pull-testing
– Structural analysis and foundation design
– Project management
– Post driving, tracker installation, and panel mounting
– Commissioning
– Full-service support

“Our robust parent company has almost half a century of experience in metal fabrication and services. We’ve been able to leverage that extensive expertise and long-term stability to deliver bankable mounting solutions customers can rely on. With the potential expiration of the ITC, we have the commitment and the capacity to deliver product, help customers solve problems, and provide support services for the long run,” said Thomas J. Meola, President and CEO of Solar FlexRack.

Solar FlexRack’s TDP Tracker offers a flexible design that allows for close packing on odd-shaped lots and maximizes land usage. The TDP solution is supported by an in-house team of experts that includes mechanical, structural, civil, electrical and geotechnical engineers and geologists. The solution is also backed by an industry-leading warranty.

“We created NX Fusion to enable solar developers, utilities, and EPC customers to increase project velocity and profit.  The pre-engineered solution of best-in-class components accelerates each step of design, permitting, and construction,” said NEXTracker CEO Dan Shugar.  “NX Fusion eliminates additional DC electrical design work and UPS backup systems which makes project installation quicker and easier.  We incorporated customer feedback into the configuration of NX Fusion, and have received terrific feedback on initial projects.  NX Fusion furthers our vision of taking PV systems manufacturing to the next level for the benefit of customers and mainstreaming solar.”

NX Fusion also includes on-site weather stations that can guide the array to safe stowing positions within seconds of detecting increasing wind speeds. Quick fixes and diagnoses can now be conducted remotely via sophisticated monitoring systems in addition to locally or on-site, eliminating delays and loss of revenue for mission critical solar power plants. A robust blend of best in class components, NX Fusion supports both crystalline modules and thin film PV technologies.

NX Horizon, the highest performing, most reliable, standardized and optimized solar tracker for both utility-scale and distributed generation projects — is now being deployed in PV installations around the world at a rate of over 100MW per week. NEXTracker’s NX Horizon has fewer foundations and assembly points to help mitigate geotechnical risk and accelerate project construction schedules.  With independent rows and high slope tolerance, NX Horizon minimizes site preparation costs while enabling industry-leading power density. NX Horizon’s self-grounding and self-powered design provides valuable savings in labor and materials, while its wide rotational range enables PV systems to take full advantage of high irradiance environments.