The production of 1 ton of steel in Iran requires 800 kilowatt hours of electricity, which is 62% higher than the global average.
Based on data from academic studies, the average power consumption to manufacture 1 ton of steel in countries like China, Turkey, India and Russia is approximately 494 kWh that is 306 kWh less than the power used in Iran’s steel mills, Barq News reported.
In other words, close to 300 kWh of electricity go to waste for producing each ton of steel as power optimization techniques in the key industry is ignored in Iran and the production methods and technologies are outdated.
Iran’s annual steel output is around 78 million tons, which means approximately 23 billion kWh of power are annually wasted in the steel sector. This can be avoided if energy efficiency plans are implemented.
Electricity deficit in Iran was about 7 billion kWh in 2021. In other words, total power waste in steel industry is three times more than the country’s annual electricity deficit.
The steel industry is critical to Iran’s economy, as it is the material of choice for construction, transportation, manufacturing and consumer goods production. It is the backbone of bridges, skyscrapers, railroads, automobiles and appliances.
Globally, energy use in the steel industry has been declining. A 10-year historical trend (1991-2002) indicates that the steel industry has witnessed a 38% decline in energy consumption, but this is not the case in Iran.
Electricity consumption nationwide jumped to 54,000 MW on Monday. Of the total consumption, 6,000 MW were consumed by industries.
“If peak demand exceeds 62 GW, power cuts will become inevitable,” Iran Power Generation, Distribution and Transmission Company warned.
Water-Guzzling Industry
The lucrative steel industry also gobbles up huge amounts of water in a country where every drop should count, as it has long been suffering from droughts.
Iran wants to become the world’s sixth largest steelmaker by 2025 and development plans to this effect are underway across the country.
So far, so good. However, policy- and decision-makers seem to be oblivious of the fact that water-intensive steel plants like Chadormalu, Mobarakeh and Golgohar are located in the most arid provinces, namely Yazd, Isfahan and Kerman, where annual precipitation does not exceed 60 millimeters.
According to Parviz Kardovani, the late eremologist and faculty member of Tehran University, such development projects can be a recipe for disaster as they wipe out limited water resources in the arid and desert regions.
"It is not an honor to be the world’s 10th largest steelmaker … The success has come at a high cost," he said, noting that the production of 1 cubic meter of steel requires at least 20 cubic meters of water.
The professor believes that those who intend to expand steel plants far from coastal areas are betraying the country.
"Importing steel is better than importing food," he said, asserting that there will be no water left for farming if expansion of steel mills in the drought-stricken central plateau continues.
The attitude of “developing industries come what may” will lead to irreparable losses, he warned.
“These industries should be built in coastal regions with ample access to seawater. If officials really care about people’s lives in Yazd [in central Iran], they need to move toward less water-intensive industries to meet their industrialization goals,” Kardovani said.
The no-nonsense conservationist called for rewriting macro industrial policies, namely those related to and dependent on water like the steel sector.
"I really wonder how officials keep inaugurating dozens of factories in Yazd and Isfahan without pondering over the implications of such unsustainable development," he said, adding that such plants need colossal volumes of water to operate while people's access to potable water remains limited.
