ArcelorMittal South Africa, the largest steel producer in sub-Saharan Africa and part of the global ArcelorMittal Group, has teamed up with Energy LED, a leading provider of energy-efficient lighting solutions, to introduce Lighting as a Service (LaaS).
From left: Gary Roebuck (Installation), Louis Bosch (AMSA Energy Manager), Andrew Winstone (CEO Energy LED).
The initiative is aimed at reducing energy consumption significantly, cutting carbon emissions, and lowering operational costs across ArcelorMittal South Africa’s facilities.
Phase One energy savings
The first phase of the project has already delivered valuable results, demonstrating the potential of this collaboration.
- Carbon footprint reduction: A reduction of 5 285 tonnes 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 CO₂ by 50 000 tonnes, a further contribution to global sustainability goals.
The energy savings and consequent reduction in CO₂ are estimated to result in savings of more than R140 million over the project’s five- to 10-year term, marking a substantial financial benefit alongside the environmental impact. Energy LED suggests that 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, said, “At ArcelorMittal South Africa, we are committed to sustainability and this partnership with Energy LED is a reflection of that commitment. The implementation of energy-efficient LED lighting reduces our energy consumption by over 60%, and it aligns with our broader carbon reduction goals. Through this project, we are improving operational efficiency and 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 for ArcelorMittal South Africa and for the industrial sector in Africa. With 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 energy costs and carbon footprints in industry 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. The partnership serves as a powerful example of how industries can integrate sustainability into their core operations and reap significant financial rewards.
For more information visit: https://energy-led.co.za/
