It would be absurd if transformers made of gray steel were used in the transmission and distribution networks that are supposed to transport green electricity, for example, to decarbonize the steel industry.”
I have firmly resolved not to have to tell my children in twenty years: ‘We didn't manage climate protection because it was too complicated and too expensive for us’. That can't be it.”
We are “The future of electrical steel is green"
Typically thyssenkrupp – that's the people who work here. We are introducing our #GENERATIONTK in a series. This time: Marcel Hilgers. Hilgers is working on establishing and expanding a market for CO2-reduced electrical steel at thyssenkrupp Electrical Steel, and thus supporting the energy transition.
What is it about?
Grain-oriented electrical steel is an important component in transformers that regulate the voltage in power grids. More and more often, transformer manufacturers are using CO2-reduced steel from thyssenkrupp Electrical Steel for this purpose.
What's the point?
thyssenkrupp is gradually decarbonizing its steel production. The bluemint® powercore® steel grades already produce up to 50 percent fewer CO2 emissions.
What's the benefit?
The expansion of the power grid for the green energy transition is increasing demand for transformers and thus for electrical steel. With its bluemint® products, Electrical Steel is not only able to keep pace with this growth, but also to shape it sustainably.
When Marcel Hilgers talks about a cool product, he's not necessarily talking about a smartwatch or one of those trendy coffee machines with their own grinder. When Hilgers thinks of a cool product, he thinks of steel, or more specifically, a very special alloy of iron and silicon: electrical steel. The grain-oriented version of electrical steel is used in transformers, for example. Transformers are installed in the power grid, for example, where they serve to convert voltage. There they connect the different voltage levels and thus make an important contribution to a smooth power supply – thanks to electrical steel. “It is an absolutely unique product,” says Hilgers.
Marcel Hilgers' enthusiasm for electrical steel is not surprising: he is Vice President Customers, Markets & Technology at thyssenkrupp Electrical Steel. He has been associated with the company – and the material – for twenty years, with a few interruptions. “We manufacture the highest quality products,” says Hilgers. “With our grain-oriented electrical steel, we are pioneers in the industry and are at the heart of the energy transition,” he says. “Our product, called powercore®, sets standards in terms of efficiency and sustainability.” As a component of transformers, electrical steel also plays an important role in the energy transition.
Marcel Hilgers is committed to the greenest possible production of electrical steel.
Hilgers began his career at thyssenkrupp in the Materials Services segment in 2000. “Back then, I worked in trading and traveled the world trading materials,” he says, adding with a wink, “I felt a bit like a pirate on the high seas, but one of the good guys, of course.” In 2005, he joined Electrical Steel as a key account manager, switching to the stainless steel division and a thyssenkrupp subsidiary in Italy in between, before returning to his current position in 2017. “I hesitated at first,” Hilgers reports. “In my view, what was needed back then was investment to produce more efficient products and, above all, a stronger customer focus. I was preaching to the converted when I spoke to management.” And his hesitation turned into the conviction that they could overcome the challenges together.
Above all, efficiency increases are an important topic for electrical steel. The aim is to minimize the energy losses that occur during the transformation process. Producers and consumers benefit equally when as much of the electricity fed in as possible arrives where it is consumed. This saves resources and costs. “Grain-oriented electrical steel from Electrical Steel can increase the energy efficiency of transformers by up to 40 percent,” says Hilgers. Thin steel made from grain-oriented electrical steel, often no thicker than 0.23 millimeters, is used in the transformers. As a rule, the thinner the strip and the more precise the highly complex production, the more efficient the voltage transformation.
Grain-oriented electrical steel is used in transformers, such as those found in substations.
“The production process for grain-oriented electrical steel is extremely complex,” says Hilgers. In several steps, the sheet is rolled, annealed for more than a week, and even laser-treated so that the iron crystals align in a specific direction. This gives the electrical steel a higher magnetic conductivity, and the magnetic reversal losses are significantly lower when used in transformers.
In addition to efficiency, sustainability is playing an increasingly important role. “This has been an important topic for us for quite some time,” says Marcel Hilgers. Electrical steel is therefore increasingly made from bluemint® powercore®, a material with reduced CO2 emissions. The result: up to 50 percent fewer CO2 emissions can be recorded in the end product.
bluemint® steel grades produce around 50 percent lower CO2 emissions.
Marcel Hilgers is convinced that the future lies with green steel and green electrical steel if the energy transition is to succeed. “The expansion of the grid will significantly grow the market for transformers and thus for electrical steel in the coming years.” Hilgers expects demand to increase from the current four million tons per year worldwide to nine to ten million tons. “And it would be absurd if transformers made of gray steel were used in the transmission and distribution grids that are supposed to transport green electricity,” says Hilgers. He believes that the switch to green electrical steel for new transformers must happen as quickly as possible. ”What is ordered and installed now will be in use for at least 40 years.”
Marcel Hilgers' colleagues are spreading the word about CO2-reduced steel all over the world.
That is why education is needed – for grid operators and political decision-makers. “Many companies believe that green products are significantly more expensive than conventional ones,” says Hilgers. “But that is not true. According to our calculations, the price difference for green transformers is just one to three percent.” Hilgers advocates developing a lead market for green steel. He believes that politicians also have a role to play here. Together with other companies, Electrical Steel has set up a working group for this purpose [FC1] – initial talks have already taken place at the Federal Ministry for Economic Affairs. “We have met with a positive response and the most important players in the market are actively involved,” reports Hilgers.
Marcel Hilgers likes to relax in nature.
Listening to him speak, it is clear that Marcel Hilgers, who enjoys hiking with his family in his free time, is passionate about sustainability. He says that since becoming a father, the question has become even more pressing for him. “Do we want to tell our children in twenty years: ‘We couldn't manage climate protection because it was too complicated and too expensive for us’? That can't be it.”
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