Manufacturing News South Africa

Evraz Highveld mulls over the economics of cogeneration

According to Engineering News, steel and vanadium producer Evraz Highveld is pursuing a range of initiatives, including cogeneration, designed to reduce its fast-rising power-related costs. In only five years, the JSE-listed group's electricity bill has doubled - surging from 10% of total costs to nearly 20%.
Evraz Highveld mulls over the economics of cogeneration

According to Engineering News, the energy-savings initiatives form part of a larger cost-savings drive that aims to shave 15% off the company's fixed costs by the end of 2012, says CEO Mike Garcia. With South African power prices rising at a rate of 25% a year between 2010 and 2013 and with prospects of yet more increases thereafter, Garcia says the economics of cogeneration are becoming increasingly appealing.

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