Measurement Instrumentation

Turning Waste Heat into Usable Energy | Metals & Mining

April 1, 2026

How a steel manufacturer converted excess waste energy into on-site power generation, delivering significant cost savings and avoiding up to $1M USD in shutdown and downtime costs during implementation.

A major steel producer was looking for ways to reduce energy costs while making better use of excess fuels generated during operations. With access to government incentive programs and existing plant infrastructure, the organization identified an opportunity to convert waste energy into usable power while minimizing capital investment.

The Challenge

The site had excess fuels that were routinely flared, representing both wasted energy and missed financial opportunity. While the organization had long considered energy recovery projects, previous proposals could not meet internal payback requirements.

At the same time, electricity costs continued to rise due to Ontario Power Authority Global Adjustment charges. The challenge was to deliver an energy solution that reduced operating costs, met return targets, and leveraged existing assets.

What was at Risk?

Ongoing high electricity and Global Adjustment costs
Continued flaring of excess fuels with no operational benefit
Inability to justify energy recovery projects due to payback constraints
Lost opportunity to leverage government incentives
Production downtime during implementation

A cost-effective way to convert excess waste energy into usable power
Minimal disruption to existing plant operations
Integration with modern control systems for reliable operation
Strong financial performance, including payback and return targets
Alignment with energy efficiency and sustainability goals

A modern DeltaV control system with CHARMs technology was implemented to integrate the turbogenerator into plant operations, providing reliable control, flexibility, and visibility. By efficiently burning waste gases and recovering energy that would otherwise be lost, the site was able to produce electricity internally and significantly reduce its reliance on grid power.

The Result

On-site power generation producing 9.5 MW, exceeding the original 7.5 MW target
Avoided electricity and global adjustment costs, saving millions annually
Internal rate of return exceeded initial project goals
Avoided up to $1M USD in shutdown and downtime costs during implementation
Rapid success led to the addition of a second unit and commissioning of a larger 20 MW system

By transforming waste energy into a reliable power source, the facility improved operational efficiency, reduced environmental impact, and strengthened long-term cost control. The success of the initial project created momentum for further expansion, reinforcing the value of energy recovery as a strategic asset.

Why Lakeside

The customer partnered with Lakeside for its ability to deliver practical, results-driven energy solutions. Lakeside combined deep process knowledge, control system expertise, and an understanding of regulatory and incentive landscapes to help the customer turn a complex challenge into a high-impact success.