OTS - Study: Stainless steel circular economy significantly reduces the risk of climate change in Thailand (part 1)
2024. March 27. 09:00
Bangkok/Thailand, 27 March, 2024 (APA/OTS) - C02 savings correspond
to the annual CO2 footprint of almost the inhabitants of the Muang
Chachoengsao district - Thailand particularly affected by
climate change: 9th place in the global long-term climate change
risk index - Policymakers should create good framework conditions
for a professional circular economy and thus climate protection
Increased recycling of stainless steel can make a noticeable
contribution to mitigate climate change in Thailand and globally.
This is the result of a recent joint study by a number of
prestigious Thai and German scientists, on behalf of Oryx Stainless
(Thailand) Co., Ltd., which looked at the social welfare benefits
of recycling stainless steel in Thailand. The Fraunhofer Center for
International Management and Knowledge Economy IMW from Leipzig,
Germany, planned and coordinated the study with the support of the
German Embassy. For every ton of stainless steel scrap used to
produce new stainless steel, 6.71 tons of CO2 are saved compared to
the use of primary raw materials. This was the result of the
scientific analysis conducted by Fraunhofer UMSICHT using the
example of the recycling processes at Oryx Stainless in Thailand.
Oryx Stainless is one of the world's leading suppliers of recycled
stainless steel with five sites in Asia and Europe. Based on the
stainless steel scrap handled by Oryx Stainless in Thailand in the
reference year of the study (2021), the scientists calculate CO2
savings of 556,000 tons. This approximately corresponds to the
annual CO2 footprint of the inhabitants of the Muang Chachoengsao
district which is close to the Thai location of Oryx Stainless or
1.45 percent of the total greenhouse gas emissions from all
industrial processes in the country. The potential for Thailand and
the climate becomes clear when one sees that almost 3.6 million
tons of CO2 were saved within the entire Oryx Stainless Group in
the reference year.
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The fight against climate change is of particular importance
for Thailand, as the country is already suffering greatly from the
effects of global warming. Thailand ranks 9th in the global
long-term climate change risk index, which covers the years 2000 to
2019. Thailand is highly exposed to natural hazards such as heat
waves, droughts, floods, cyclones and storm surges. Floods pose the
greatest threat to Thailand in terms of frequency and damage. The
country is already one of the ten most flood-affected countries in
the world.
In terms of the economic costs caused by climate change, the
volume of stainless steel scrap that Oryx Stainless Thailand Co.,
Ltd. put back into the production cycle saved around 1.9 billion
Thai baht equivalating more than 50 million US dollars, according
to calculations by Thai and German scientists. This corresponds to
the combined national average annual income of around 7.000 Thais.
The calculation is based on the "Scrap Bonus" indicator
developed by the Fraunhofer Center for International Management and
Knowledge Economy IMW, which was individually adapted to Thai
conditions by the international research team for the study. The
indicator is calculated in two steps. In the first step, the
environmental impact avoided by using one ton of stainless steel
scrap in steel production is quantified. In the second step,
various economic estimates and price references from emissions
trading systems are used to convert the avoided environmental
impact into Thai baht. In other words, a price is assigned to the
(avoided) pollution.
"This study shows that the smart use of recycling raw materials
such as stainless steel scrap and their use in the production of
new products can make a tangible contribution to the fight against
climate change. Stainless steel scrap is a particularly valuable
secondary raw material due to its very high recyclability.
Stainless steel can be recycled without any loss of quality.
Worldwide, 95% of stainless steel is recycled at the end of its
lifespan. 70% is recycled as stainless steel. Scrap currently
accounts for around 48% of raw materials for stainless steel
production worldwide. In Europe, leading stainless steel producers
go to the limits of what is technically feasible and use up to 95%
secondary raw material blends for the production of new stainless
steel," says Sirichai Tempoomsuk/CFO, Oryx Stainless (Thailand),
Co., Ltd.
Stainless steel producer Southeast Asia: growth market
With a stainless steel production of 7.79 million tons in 2023,
Asia (excluding China and South Korea) is already a major player.
The Southeast Asian steel industry, including the stainless steel
sector, is expected to increase its production capacities
significantly in the coming years, with countries such as Malaysia
and Indonesia building up millions of tons of new capacity.
Thailand produced around 366,000 tons of stainless steel in 2022
and is, simultaneously, the second largest consumer of stainless
steel in Southeast Asia. (continues)