Dell & Algoma: Innovation for Steel Sustainability
The steel industry produces nearly three billion tonnes of CO2 per year, but this material plays a fundamental role in modern society.
Construction, transportation and manufacturing all heavily rely on steel and its adaptable properties.
Despite the emissions, steel is infinitely recyclable and already playing a role in the circular economy.
Steel manufacturer Algoma has partnered with Dell to use new technologies in its steel production.
“Leading technology is critical for ensuring that we have reliability and meet environmental controls,” says Marc Disano, Manager of IT Infrastructure at Algoma Steel.
Dell Technologies: Helping customers meet their goals
Dell is a multinational technology company headquartered in Texas, US.
The company was founded as a result of a merger between Dell Inc and EMC Corporation eight years ago and, as of 2023, had revenue of US$102bn.
Dell makes a range of products including computer software, network security services, personal computers, servers and monitors.
“Sustainability and ESG commitments are now widely recognised as business imperatives that impact everything from supplier decisions to business strategy,” says Michael Dell, Chairman and CEO at Dell Technologies.
“At Dell, we're both meeting our goals and helping customers meet theirs.”
Algoma Steel: Committed to ESG
Algoma Steel is an integrated steel producer based in Ontario, Canada.
Founded in 1901, the company claims to produce some of the cleanest, most consistent light gauge steel in North America.
Algoma has a raw steel production capacity of approximately 2.5 million tonnes per year and achieved revenue of US$534m in 2023.
Michael Garcia, CEO at Algoma, says: “Given the significance ESG plays in the global steel industry, Algoma is committed to incorporating ESG factors into our core strategic objectives to ensure we're generating value for our investors, employees, local communities and suppliers and prioritising long-term sustainability.”
Steel production
The two main methods of steel production are the blast furnace-basic oxygen furnace (BF-BOF) route and the electric arc furnace (EAF) route.
The BF-BOF method, which uses iron ore and coal, is more energy-intensive and produces higher CO2 emissions.
However, the steel industry has made substantial progress in reducing its environmental footprint.
Since 1990, there has been a 35% reduction in energy intensity and a 37% reduction in greenhouse gas intensity in steel production.
The EAF method, which primarily uses recycled steel scrap, is generally more sustainable.
Steel's infinite recyclability is a key factor in its sustainability, as it can be reused without loss of quality.
Dell Technology Rotation
Algoma is using Dell Technology Rotation to realise financial, operational and sustainability benefits.
Technology Rotation is a smart business strategy that enables organisations to maintain liquidity, take advantage of technology and contribute to the circular economy.
The solution provides organisations with servers and storage at a lower total lifecycle cost than usual, then retrieves used equipment at the end of a term.
Dell says this solution gives a 60% cost advantage over six years compared to owning storage and helps organisations to use technology sustainably.
Sustainability in Dell’s partnership with Algoma
Dell Technology Rotation refurbishes hardware at the end of the term and, in 2023, 95% of all systems returned to Dell were refurbished and reused.
The remaining hardware was recycled in adherence with applicable laws and conventions.
Dell remarkets hardware after data sanitisation, giving it a second life.
The company also recycles all hardware in a secure and environmentally conscious manner.
The Technology Rotation helps to overcome sustainability issues caused by a lack of funding or difficulties finding an effective strategy.
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