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S2E1 - Material Circularity Indicators w/ Steve Porter
19 Plays16 days ago
Welcome back to Infrastructure Connections, the podcast where we explore what makes sustainable infrastructure work, brought to you by the Infrastructure Sustainability Council. I'm your host, Seth Scott. And hooray! We made it into Season 2.
This season we're exploring Circularity and the role it plays in infrastructure. What better way to start off than by looking at the circularity metrics of steel, a product that is virtually 100% recyclable. Nearly half of all steel is used in the infrastructure and construction industry, things like bridge beams and reinforcing bars and mesh, and much of the rest is used on what uses infrastructure, the planes, trains and automobiles. So today we'll be talking about steel with Steve Porter of Infrabuild.
Steve is Head of Sustainability, Innovation & Trade at InfraBuild Australia, Australia's largest integrated manufacturer and supplier of steel long products. He's spent most of his career as a General Manager in the steel industry, and he is committed to shaping a sustainable, low-carbon future in energy intensive environments.
We discuss circularity initiatives in the steel industry, initiatives like the Electric Arc Furnace which allows phenomenal recycling of scrap metal using renewable energy. We also look at how Material Circularity Indicators (MCI) can enhance EPDs for customers.
For even more information, InfraBuild collaborated on the ISC Impact Notes on the Circular Economy, which you can find here: https://www.iscouncil.org/wp-content/uploads/2024/02/Circular-Economy-Impact-Note_Final-for-Publication.pdf
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Transcript
Introduction to Season 2 and Circularity in Infrastructure
00:00:00
Speaker
ah we're expecting to drop our emissions profile by close to 84%. So it's a huge amount, um very achievable. And more importantly, what it does do is it enables us to deliver lower scope three outcomes for our customers.
00:00:23
Speaker
Welcome back to Infrastructure Connections, the podcast where we explore what makes infrastructure work. I'm your host, Seth Scott, and hooray, we made it to season two. This season, we're going to be looking at circularity and the role it plays in infrastructure.
The Role of Steel in Sustainable Infrastructure
00:00:39
Speaker
What better way to start off than by looking at the circularity metrics of steel, something that's almost 100% recyclable. Did you know that half of all steel is used in the infrastructure and building industry, and the other half of it is used for things that use infrastructure, things like planes, trains, and automobiles?
00:00:58
Speaker
So today, we'll be talking about steel with Steve Porter of InfraBuild. Steve is head of sustainability, innovation and trade at InfraBuild Australia, Australia's largest integrated manufacturer and supplier of steel long products.
00:01:13
Speaker
He spent most of his career as a general manager in the steel industry, and he is committed to shaping a sustainable, low carbon future in energy intensive environments. Well, Steve, welcome to the show.
00:01:25
Speaker
Yeah, thanks a lot, Seth. And yeah, thanks for inviting me, really yeah looking forward to this next period of time to together. So you've been working in the steel industry for 30 years now.
Steve Porter's Journey in Sustainability
00:01:36
Speaker
what ah What was it about steel that attracted you in the first place and what's kept you in that industry all these years?
00:01:42
Speaker
Why steel? Look, it's a good question. Certainly it wasn't by design. I sort of just fell into it after finishing university and over time it's just gradually made its way into the bloodstream.
00:01:54
Speaker
What have you seen in the industry that's changed over the years? I know I'm sure 30 years ago sustainability was very different I think um particularly around sustainability, um you know, and as a building manufacturer, products manufacturer, you know, we have seen the emergence of sustainability for some time over that period.
00:02:12
Speaker
I would say, however, that like prior to COVID, it appeared to be more what I'd sort of describe as an intangible benefit to our customers. We've seen noticeable change post that COVID period.
InfraBuild's Decarbonization and Efficiency Initiatives
00:02:24
Speaker
And now what's actually happening is our customers right across the built environment, you know from single dwelling housing right through tier one construction to major infrastructure projects, um now essentially demanding lower embodied carbon construction solutions um you know together with improved circularity credentials as well.
00:02:45
Speaker
It's interesting you mentioned that I noticed the same thing across industries was that I guess it was the threat of a global event that really woke everyone up to the idea that this was a reality and that climate change was something that they could they could act on. So yeah, I did notice that. It's interesting to see that in the steel industry.
00:03:03
Speaker
So how has InfraBuild been implementing the circularity and what does that look like for infrastructure? Look, from an InfraBuild perspective, really our sustainability efforts are focused on two core activities.
00:03:17
Speaker
The first is really around the decarbonisation of our manufacturing process. um The second really is focused on enhancing our um material efficiency through through innovation.
00:03:27
Speaker
So if I sort of just go and talk a little bit about the decarb, um strategy. Decarbonisation strategy really is focused around um the transition to 100% renewable electricity for for us.
00:03:40
Speaker
um Equally, the substitution of coke and our steel making process with sustainable biochar. And we're also looking for an alternate energy source to natural gas, which we use in our reheat furnaces.
Electric Arc Furnaces and Recycling at InfraBuild
00:03:52
Speaker
An example of that might be biomethane. So we're looking at that as one of our options. When we actually look at the concept of embracing material efficiency, however, essentially what we're really looking to do there is providing ah an equivalent or a superior design solution for our customers but using less material.
00:04:13
Speaker
um A really good example of that is our new Sense 600 reinforcing bar product, which we introduced the market about 18 months ago So really the combination of these two pathways really enables us to deliver embodied carbon construction solutions for major infrastructure projects, using less material, optimising available raw material feed that we have, and equally at the same time improving circularity efficiency and subsequently decreasing the environmental impacts as well.
00:04:48
Speaker
You already have two electric arc furnaces online, which is putting you quite a bit ahead of the rest of the industry. um Do you have plans for more? And what was the process like getting those in place?
00:05:00
Speaker
Look, at some point, capacity constraint versus the the growing market here in Australia will become a point for us. um At the moment, we are actually looking at ways that we can increase our EIF capacity.
00:05:13
Speaker
um That might be ah through a greenfield site or otherwise um looking at our existing facilities at the moment and and looking at ways that we can increase capacity through through those facilities.
00:05:25
Speaker
We do have options there and we are actually investing um at the moment to increase capacity through those facilities.
00:05:34
Speaker
So your current model, rather than using virgin materials, uses recycled materials. I understand, I've seen the video, you're shredding cars and washing machines and trains. It's pretty cool.
00:05:45
Speaker
ah How do you manage to recycle out 90% of those recoverable materials and how does that process work exactly? Yeah, there's probably a couple of things here and maybe I'll just sort of mention because were talking about our EIFs and the difference between under the way that maybe we process as a secondary steel maker or what's called secondary versus primary.
00:06:08
Speaker
um We've actually had electric art furnaces here in Australia operating for over 40 years. So it is certainly a ah method of producing steel that's very attractive for the moment as the world's trying to decarbonise.
00:06:19
Speaker
So we're in a strong position in the fact we do actually have these assets and they've been operating here for an extended period of time. In terms of the scrap, we we look, we do collect a lot of scrap. We actually process through our EIFs approximately about 1.4 million ton of scrap steel per annum.
00:06:37
Speaker
And so really in terms of that process, what we actually do is we collect scrap ourselves through our own internal business um and also some external third party um scrap collectors as well.
00:06:50
Speaker
And then really, once we've collected the scrap, um it runs through a pretty simple process around segregation into different grades and sizes. um Some are shredded through a large shredding machine.
00:07:02
Speaker
And this also enables the removal of impurities like non-ferrous metals, rubber, plastics, et cetera, ensuring that we have the appropriate quality mix of scrap for repurposing in our electric car furnaces.
00:07:18
Speaker
um through the EAF process, like i'll mentioned before, it's sort of turned to secondary steel making process. um So what does that mean? It means that it's really using, it's recycling scrap steel versus using virgin resources such as iron ore and coke and coal.
00:07:34
Speaker
so So give a really simplified version of the EAS steel making process. Essentially what it does is it melts scrap steel. So that involves us putting scrap steel, charging that into the furnace, um melting the steel with ah electric arcs, um then refining that melt with alloys to achieve the desired grade or qualities that we're actually after. And then the products actually cast into what we call or we term semi-finished shapes.
00:08:02
Speaker
These are then go onto to our rolling mills and from that um in the rolling mills are actually rolled into the final shape that goes to market.
00:08:13
Speaker
um Now in terms of what we're actually producing at the moment, the primary product is actually reinforcing bar as well as wire rod that goes into steel mesh used in construction as well.
00:08:26
Speaker
The other thing which is probably really important to mention around the EIF technology that we're using, look, it's it's ah it is a very intensive energy consuming process.
00:08:39
Speaker
So really the focus here is the majority of that are energy source is coming from electricity, in which we get off the grid.
Emission Reduction Goals and Renewable Energy Use
00:08:46
Speaker
So um well the one advantage but versus traditional blast furnace steel making process is that it actually has an emissions profile which is around about 70% lower. So it's it's a significant difference.
00:09:02
Speaker
And as InfraBuild actually transitions um in its decarbonisation strategy to 100% renewable electrons coming into the business, we expect that gap to grow even further.
00:09:18
Speaker
um In fact, when you actually look at our scope one and two emissions profile between 2020 and 2030, but we're expecting to drop emissions profile by close to 84%. So it's a huge amount, um very achievable, and more importantly, what it does do is it enables us to deliver lower scope three outcomes for our customers.
00:09:42
Speaker
That's fantastic. That's a big difference. And that goal is by 2030? Yeah, by 2030. So I mentioned sort of those three principal areas of focus in terms of the transition to renewable energy.
00:09:54
Speaker
electricity substitute for our coke and we we actually do have a project which we're um about to embark on in terms commercialisation of that substitute product for the sustainable biochar and yeah we're still working with the government and other people in in market around that substitute for natural gas.
00:10:14
Speaker
Do you use power purchase agreements for renewable electricity? Yeah PPA is a big um a big part of the success in terms of transitioning. But though it's quite complex for us, we're a very large consumer and it does mean that we need to have multiple PPAs and marry off our mar hour offtake with um those new developments that are coming to the fore.
00:10:42
Speaker
Since the steel that comes out of your factory is really basically 100% recyclable, ah do you have any end of life agreements with um the end users of this for it to make its way back to you in 50 years or whenever it reaches that end of life?
00:10:58
Speaker
Look, we don't, but look that's certainly something that sits in front of us in terms of a market offer and and working with all parties within the economy to do so. But look, um at the moment, obviously, we are able to collect in excess of, you know, or approximately 1.4 million tonne per annum.
00:11:18
Speaker
um There is a lot of export, it's still scrap as well, but into the future as us i think domestic demand increases, are probably less of that going offshore. But yeah, look, things like that certainly are being talked about now and we're having interest from parties around how could that actually work.
Enhancing Circularity and Material Efficiency at InfraBuild
00:11:38
Speaker
So circularity isn't just recycling, though that's a big part of what you do and it makes sense that because you can with your particular product, how do you promote circularity in other areas of the business? Yeah, well, I did mention around before two of the areas around in sustainability we're focused on. So its obviously, decarb, the other being material efficiency. So um in terms of you know the ah embracing the concept of material efficiency,
00:12:03
Speaker
um Really, in terms of what that actually means, it means our ah market offer to the infrastructure projects benefits from using less steel, um obviously having the lower embodied carbon, but it also enables us to lower our consumption of key material and energy inputs such as steel scrap, alloys, coke, electricity, per saleable unit.
00:12:27
Speaker
So in essence, what it's doing is it's making our available resource our available resources stretch further. Speaking of that, one of the cool things I saw that you do is you end up with slag as a byproduct of your process. And then you've used that as aggregate in the Albert Park circuit, which is the Formula One Grand Prix course. That's pretty cool. How did you end up using it that way? And what other projects are you using it for other projects in a similar way? Each approach aims to reduce our contribution to landfills.
00:12:56
Speaker
um and really either that or providing useful raw materials for for other industries. An example of that is we have a byproduct called EAF dust. Now the EAF dust contains valuable metals such as zinc and iron units.
00:13:14
Speaker
So we actually collect this through the steelmaking process. where It's then sent to a third party recycling facility and then they run a process that recovers both the zinc and iron for reuse.
00:13:26
Speaker
um Another example is through our rolling mills, we actually collect mill scale and that is collected and repurposed for this use as fine aggregate in in cement manufacture as well.
00:13:39
Speaker
And looking finally, there's another, you know, there's a range of other sort of waste areas waste management for us. And in those at the moment, we continue to invest in existing technology solutions, R&D, as well as working with government. and And on the government side, that's really a focus on public policy and regulation, for example, all aimed to minimise our waste streams.
00:14:08
Speaker
That's fantastic that you have it pretty much centered in your strategy, the use ah the reuse of existing materials and then the the management of your waste as well. um How does that work out for your bottom line? I assume that means you've produced value from that waste.
00:14:24
Speaker
Look, certainly. So, you know, I think that people can turn them either as waste or byproducts. I think it really depends on your frame mind within your organization about how you actually assess those. But um The other thing also for us is twofold.
00:14:40
Speaker
it's a two far One, we have a social responsibility to manage our waste and particularly in terms of minimising that in terms of any environmental impacts. That's that's the first part of it. But secondly, in most cases, there is an economic impact as well and particularly if anything's going to landfill. Landfill is not cheap and it's only getting more expensive. So it's an it's also an economic incentive to find ways to repurpose
00:15:11
Speaker
um any of these by-product or waste streams and ensure that we're not putting as much into landfill. So I understand one of the best ways to measure that is the material circularity ah indicator, which was developed by the Ellen MacArthur Foundation and is used by most organisations now. How does that process work?
00:15:31
Speaker
What does the MCI do for you and what are the results? Well, I think
Understanding MCI and Its Impact on Sustainability
00:15:36
Speaker
the good thing about the MCI indicator is that really it really provides a clear metric for circularity.
00:15:43
Speaker
So, and it helps companies or support companies in terms of making strategic informed decisions on how to reduce waste and improve our resource efficiency.
00:15:55
Speaker
Now, obviously there's some detail that goes into the calculation of that. So there are several steps in terms of um calculation of MCI value. um First, obviously, there's the amount of primary and secondary materials used in the product that are measured.
00:16:10
Speaker
And then also measured is the product's lifespan and the efficiency of its recycling process. So these two factors are combined together to reduce the MCI value, and that is what quantifies the product's circularity.
00:16:28
Speaker
Now essentially that quantification is the awarding of an MCI value. Now that is between 0.1 and 1. So the important thing here is that high the higher the MCI value, um the greater the product is aligned with circular economy principles.
00:16:47
Speaker
Now if I can use the InfraBjord's new Cent600 reinforcing bar as an example, this actually achieves a MCI value of 0.915. point nine one five So in other words, it's highly circular.
00:16:59
Speaker
And ah that's ah probably a luxury of steel, but I think that's the goal of most material manufacturers. So um steel is a big part of any infrastructure project, obviously. Circularity impacts several of the credits that the IS rating is currently using, including resource efficiency and sustainable procurement, as well as leadership and management, of course.
00:17:20
Speaker
So how does InfraBuilds work on MCIs and your use of them and your EPDs help customers with their IS rating?
Customer Benefits from MCI Data
00:17:28
Speaker
Well, I think from a customer's perspective, the the MCI helps them understand the life cycle of our products.
00:17:35
Speaker
That's obviously from the raw material extraction to end of life opportunities and helps them to identify how to improve the circularity of these materials. Now, that could be by keeping them in use for as long as possible, as well as including them through recycling.
00:17:53
Speaker
Now, the advantage of publishing these in our EPDs is that it also gives credibility to the value. So I mentioned the the number of 0.915 for the cent six hundred The fact that it's in our EPDs, EPDs are actually registered, are published by third-party certifiers, and they're based on verified data.
00:18:12
Speaker
So that becomes really important. but think um The thing which is really important around MCIs then in terms of how customers use major infrastructure projects is um the MCI value obviously provides a really good guide or a better guide for customers around the circularity of a product versus just the recycled content.
00:18:33
Speaker
um Obviously, that's because it takes them to that that full lifecycle of the product. Now, if you're looking at specifically the IAS version 2.1 rating tool,
00:18:43
Speaker
um this actually rewards the use of products in projects that have an MCI. So therefore, you know, by the inclusion of MCI data and for us also the inclusion of global warming potential numbers in our EPDs,
00:18:57
Speaker
It actually enables um you know the design and sustainability professionals um who may be working on major infrastructure projects to make informed decisions regarding material choices, to maximise circularity and and model the projects embody carbon profile, for example.
00:19:18
Speaker
So EPDs are not a small amount of work. There's a lot of data that has to be gathered, and it's almost a marketing department marketing object at this point. um And there's a lot of paperwork involved, of course, in that and in the rest of your circularity calculations.
00:19:32
Speaker
What makes all of that worthwhile for InfraBuild?
The Need for Transparent Data in Sustainability
00:19:35
Speaker
Because we do hear a lot of companies say, well, it's too much paperwork. But obviously, at the end of the day, it must be worth something to you.
00:19:44
Speaker
Seth, right at the start of this conversation, you asked me about what changes I've seen over time in the industry with respect to sustainability. And mentioned that shift from intangible benefit to tangible benefit.
00:19:57
Speaker
Now, this is really important recognise because today many of our customers now value transparent, traceable data on key sustainability attributes.
00:20:08
Speaker
um Obviously, to help them achieve their their own decarbonisation and circularity objectives, as well as those of their clients. So for InfraBuild as a major building product supplier um to the Australian construction market, it's critical that our market offers value and it remains relevant. So um if you consider that, it's a really worthy investment.
00:20:31
Speaker
Where do you see that circular economy happening over the next 20 years? So you said you had EAS furnaces already in place 40 years ago in some parts of the market. And now we see that adopting throughout more steel making.
00:20:43
Speaker
What other kinds of projects and and processes do you see coming online over the next 20 years?
Envisioning a Circular Economy and Intelligent Design
00:20:49
Speaker
i do think that in terms of circularity, it will require a paradigm shift.
00:20:55
Speaker
And that paradigm shifts to one that prioritises prevention, um you know, product longevity and also the inclusion of intelligent design.
00:21:07
Speaker
You know maybe another way of describing that would be, you know, a shift from the, I suppose what we'd probably term today the linear take, make, dispose model. And that would be moving to a more sort of restorative, regenerative type model system.
00:21:24
Speaker
Now, what would that look like? um you know That would obviously involve around minimising waste, know maximising resource utilisation through reuse, recycling and regeneration.
00:21:35
Speaker
Then I think we could expect to see a rethinking of design and production. yeah Once again, what could you consider to be part of that? So, you know, I would assume this would include things like products being designed for longevity, ease of repair, um ease of disassembly, end of life for repurposing.
00:21:59
Speaker
A much greater use of modular design. I think that's certainly going to be prevalent. um A greater focus on material selection. um And this is really to emphasise the use of recycled and or recyclable materials.
00:22:13
Speaker
And think the other thing also would be elimination waste. So that's really designing out waste from the beginning of the product life cycle. So i think that they'll be actually key and we'll see that into the future.
00:22:25
Speaker
I think the other thing in parallel for that really is I see a shift in sort of consumer or end-user behaviour. um as well So we are already starting to see some of that change today in terms of behaviour around circular consumption.
00:22:42
Speaker
You know, we see this in the rise of sharing, renting, leasing practices for many products. You this coupled with improved awareness and ah education and also the emergence of um product stewardship.
00:22:55
Speaker
In fact, product stewardship, I think, has the potential to play major role as the responsibility for end-of-life management to producers um because it actually incentivises into ah innovation.
00:23:08
Speaker
Now, innovation will certainly play a key role and part of that will be obviously greater use of advanced recycling, to um the development, I should say, of advanced recycling technologies, digital technologies and and also um biomimicry as well. I think think all these things will be really instrumental in optimising resource flows, you to enhancing product lifecycle management and drawing on the insights from natural systems, you know, so as to design circular solutions and processes.
00:23:45
Speaker
It's interesting how you've mentioned designing waste out of the system, but actually in some cases, as in your case, the waste can actually become another product and part of the system.
Advice on Promoting a Circular Economy
00:23:56
Speaker
And that's that's essentially designing waste out of the system by using it as a product. So that's helpful.
00:24:02
Speaker
what's you What's one thing that you think our listeners can do to really help promote a circular economy, especially um if it's not necessarily currently part of their their practice?
00:24:13
Speaker
I'd encourage listeners to spend more time thinking about the role of systems. Now, what I mean by that, for example, is taking a more holistic approach um you with a focus on understanding a interconnectedness of the various elements of the circular economy.
00:24:31
Speaker
So, you know, this would include collaborations and partnerships between businesses, governments and communities, and also taking a long-term perspective and including things like scenario planning and as well as backcasting as well. So I think if listeners can sort of embrace that type of approach, then I think we can really see big improvement in terms of the circular economy and the fact that the circular economy can then become a really powerful tool for achieving a more sustainable built environment.
00:25:09
Speaker
Sounds like to that end, you must work very closely with your customers as well. um What is your relationship working with customers and how is that dialogue improving when it comes to promoting that awareness around circularity?
Collaborations for Sustainability Goals
00:25:21
Speaker
In recent years, the relationship and the conversations of um have really been improved um because of really everyone trying to achieve improved sustainability outcomes.
00:25:34
Speaker
I'd probably term it a safe conversation. It's a very safe space to have conversations with customers. um Typically, the past is maybe be a little bit more focused on the economics. um But this is, ah as I mentioned, it's a safe space. Everyone's trying to work their way through it.
00:25:50
Speaker
And I think the reason recognition right through the value chain within the construction industry that people do need to work together um to get to these outcomes. So um particularly when we're looking at things like I talked before around traceability, um et cetera, et cetera, a lot of that comes into digitizing the digitalization of information, the security of that information, et cetera, et cetera. So once again, there's a lot of there's a lot of work that we're doing with customers all the way through the value chain in that area as well.
00:26:23
Speaker
Now that also brings productivity benefits and a whole class of other things as well. So think people are starting to realize that by working together around sustainability can deliver a lot of other economic value to the organization as well.
00:26:38
Speaker
It's very positive. It's good to hear that kind of a positive vibe that's happening out in the industry.
Closing Remarks and Engagement Invitation
00:26:43
Speaker
And it's good to see an industry like yours that's really in adopted circularity, really made it a major part of the way you operate and had such fantastic results come out of it.
00:26:54
Speaker
That's great to hear. Well, I really appreciate listening to this. This has been great. Thanks so much, Steve. Once again, really appreciate out the time and the opportunity to spend the time with it
00:27:08
Speaker
Thank you for listening to Infrastructure Connections. Please take a moment to follow us or subscribe wherever you get your podcasts and tell a friend. And hey, we want to know what you think. Drop us a comment down below to let us know what you think about sustainability, circularity, or steel.
00:27:23
Speaker
Until then, stay tuned for the next episode of Infrastructure Connections.