SteelOnTheNet Insights Podcast

Introduction (00:00-01:30)

Welcome back to SteelOnTheNet podcasts. I'm Dr Andrzej M Kotas and today is Tuesday 10th February 2026.

In our previous episodes, we've explored scrap supply chains, profit improvement programs, and how to extract hidden value from EAF by-products. Today, we're tackling something that ties all of this together - the European Commission's Best Available Techniques, or BAT.

Now, I know what some of you are thinking. "BAT? That sounds like regulatory compliance paperwork." And yes, there's a compliance angle. But here's what matters to your bottom line: BAT is actually a comprehensive toolkit of proven technologies that real steel mills are using right now to cut costs, reduce energy consumption, and improve yields.

We're going to walk through what BAT actually means, where to find these techniques, and then dive deep into one specific example - scrap preheating. I'll show you how mills are turning waste heat that's literally going up the stack into five and six-figure annual savings.

Let's get into it.

What Are BAT? (01:30-03:30)

So, what exactly are Best Available Techniques?

BAT are defined under the EU Industrial Emissions Directive. Let me break down what each word actually means, because this isn't just bureaucratic jargon.

"Best" means most effective at achieving high levels of environmental protection. We're talking about the techniques that deliver the lowest emissions, highest efficiency, and best resource utilisation currently achievable in the industry.

"Available" means these technologies are technically and economically viable. They're not laboratory concepts or theoretical possibilities. These are systems you can purchase, install, and operate profitably in a commercial steel mill. The economics have to work.

"Techniques" covers both hardware and management. It's the technology itself - the equipment, the processes - but also how you operate and manage that technology. Sometimes the best technique isn't buying new equipment; it's optimising what you already have.

Here's the critical point: BAT are not theoretical. Every single technique listed in the BAT reference documents is based on technologies operating successfully in real mills. When the European Commission lists something as BAT, it means multiple facilities have proven it works commercially.

And these aren't static documents. BAT get updated regularly - typically every eight to ten years - to reflect technological progress. What was cutting-edge in 2010 might be standard practice today, and tomorrow's BAT are being developed in mills right now.

Where Are BAT Published? (03:30-05:00)

The official source for BAT is the EU BAT Reference Documents, called BREFs. These are comprehensive technical documents - we're talking hundreds of pages covering every aspect of steel production.

Now, BREFs are thorough, but they're not exactly light reading. If you want to dig into the full technical detail, you can find them on the European IPPC Bureau website.

But here's what we've done at SteelOnTheNet: we've posted a practical, organised checklist online that breaks down all the steel sector BAT in a format you can actually use. You'll find it at steelonthenet.com/resources/kb/steel-sector-bat-checklist.html.

The techniques are organised by process area - coke making, iron making, steel making, and so on. Each BAT includes a brief description. The checklist is designed so you can quickly scan through, identify what's relevant to your operation.

Think of it as your roadmap. The full BREFs are your detailed engineering specifications. The checklist is your strategic overview.

What's the Scope? (05:00-06:30)

So what does BAT actually cover? In short: everything.

If you're running an integrated steel mill, BAT covers your entire production chain. That's coke making, ore preparation, sintering and pelletising, iron making in the blast furnace, steel making in the BOF, continuous casting, and both hot and cold rolling.

If you're operating a mini-mill with an electric arc furnace, BAT covers EAF operations, scrap handling and preparation, casting, and rolling.

But it goes beyond the core production processes. BAT also addresses supporting systems: energy management, water treatment and recycling, handling of dusts and sludges, slag processing, emissions abatement systems.

In total, the steel sector BREF catalogues over forty specific BAT techniques. Some are broadly applicable across the industry. Others are specific to particular process routes - there are BAT specific to blast furnaces that obviously don't apply if you're running an EAF-based operation.

The point is comprehensiveness. This isn't a cherry-picked list of nice-to-have improvements. It's a systematic framework covering every significant environmental and efficiency opportunity in steel production.

Why Are BAT Important? (06:30-08:00)

Let me give you three reasons why BAT matter, and I'm going to put the business case first because that's what drives decisions in the real world.

First: cost savings and efficiency. Almost every BAT technique reduces consumption of something - energy, water, raw materials, or additives. Lower consumption means lower operating costs. Yes, there's usually a capital investment required, but many BAT deliver returns of fifteen to twenty percent. That's competitive with almost any other use of your capital.

Second: emissions reduction. Environmental regulations are tightening globally, and that trend isn't reversing. BAT give you a proven pathway to meet increasingly stringent emission limits. Implementing BAT isn't just about current compliance - it's about staying ahead of the next round of regulatory requirements. And in regions with carbon pricing or emissions trading, lower emissions directly impact your cost structure.

Third: regulatory requirement. In the EU, if you're operating under an integrated pollution prevention and control permit, you're required to demonstrate that you're using BAT or explain why specific techniques aren't applicable to your operation. This isn't optional. The BAT conclusions published in the Official Journal of the European Union set legally binding emission limit values.

But here's what makes BAT powerful: these three factors align. You're not trading off economics against environment. The techniques that reduce emissions also reduce costs. Mills that implement BAT comprehensively often outperform competitors on both environmental metrics and cost structure.

Deep Dive Example - Scrap Preheating (08:00-14:00)

Let me illustrate this with a specific example: scrap preheating in electric arc furnaces.

The Problem

Here's the situation in a conventional EAF operation. You're melting scrap using electrical energy. Massive electric arcs generate temperatures around 1,600 to 1,700 degrees Celsius. That's hot enough to melt steel, obviously.

But here's what's also happening: exhaust gas is leaving your furnace at 1,400 to 1,600 degrees Celsius. Think about that. You've got a gas stream at temperatures hot enough to melt aluminium, and you're venting it to atmosphere after some basic treatment.

You are literally burning money. That heat represents electrical energy you've already paid for, and it's going up the stack.

The BAT Solution

Scrap preheating captures that waste heat and uses it to preheat your scrap charge before it enters the furnace.

In a conventional operation, scrap enters the EAF at ambient temperature - twenty, maybe thirty degrees Celsius if it's been sitting in the scrap yard. With preheating, that same scrap enters at anywhere from 400 to 800 degrees Celsius, depending on the specific technology you're using.

What does this do? It reduces the electrical energy you need to melt the scrap. You're not starting from ambient temperature anymore. You've already put significant thermal energy into the scrap using waste heat that would otherwise be lost.

Technologies Available

There are two main mature technologies for scrap preheating, and both are proven BAT.

The first is the Consteel system. This is a continuous feeding process. Scrap is conveyed through a sealed, refractory-lined tunnel. Exhaust gas from the EAF flows through this tunnel in counter-current to the scrap movement. The scrap gradually heats up as it moves toward the furnace, and it enters the EAF as a continuous stream of hot scrap.

Consteel is widely deployed - you'll find these systems operating in mills across Europe, North America, and increasingly in other regions.

The second technology is the Fuchs shaft furnace. This is a batch process approach. You have a vertical shaft positioned above your EAF. Scrap is loaded into this shaft in batches. Exhaust gas from the EAF rises up through the shaft, heating the scrap. When the batch is sufficiently preheated, it's discharged into the furnace.

Both technologies are mature. Both work. The choice between them often comes down to your specific operational requirements, scrap handling logistics, and whether continuous or batch processing better fits your production rhythm.

Business Case - The Negatives

Now, let's talk economics, and I'm going to give you both sides because this is a real investment decision.

On the negative side: this requires capital. For a mid-sized EAF - let's say 150 tonne heat size - you're looking at somewhere between eight and fifteen million euros for a scrap preheating installation. That's not trivial.

You also need emission control systems. When you're burning off volatiles from the scrap in the preheating process, you need post-combustion and bag filters to manage the emissions. That adds to both capital cost and operating complexity.

Scrap quality matters. You cannot run heavily oiled scrap or scrap with significant organic contamination through these systems without creating serious emissions issues. So you need either clean scrap or you need to segregate your scrap grades and only preheat the clean material.

And operationally, you've added complexity. More equipment, more maintenance, more things that can go wrong.

Business Case - The Positives

Here's the other side of the ledger.

Energy savings: sixty to one hundred kilowatt-hours per tonne. Let me put that in context. That's a fifteen to twenty percent reduction in your electrical energy consumption.

After scrap itself, electricity is the single largest cost component in EAF steel making. You're cutting your second-biggest cost by fifteen to twenty percent.

Let's put some numbers on this. Assume you're running a 500,000 tonne per year operation. Electricity cost is twelve cents per kilowatt-hour - that's typical for Southern Europe. Saving eighty kilowatt-hours per tonne means you're saving nine euros sixty per tonne. Multiply that by 500,000 tonnes, and you're looking at 4.8 million euros per year in energy cost savings alone.

But there's more. Scrap preheating often improves yield by one to two percent. Why? Because you get better heat distribution in the furnace, less thermal shock, more controlled melting. That yield improvement, on a 500,000 tonne operation, is worth another few hundred thousand euros annually.

Return on investment? Typically fifteen to twenty percent. That translates to a five to six year payback. In high electricity cost regions - and if you're in a region with higher electricity costs, the payback can be even shorter.

This is why scrap preheating is BAT. The economics work.

Beyond Scrap Preheating (14:00-15:30)

Now, scrap preheating is just one of over forty BAT techniques. Let me give you one more quick example to illustrate the breadth here.

Hot charging. This is another powerful BAT, and it applies to integrated mills and some mini-mills with rolling operations.

The concept: you transfer steel from continuous casting to the reheat furnace and then to rolling while the steel is still hot. Instead of casting, cooling to ambient, then reheating back up to rolling temperature, you maintain the thermal energy through the process chain.

Done right, you can eliminate reheating energy almost entirely. We're talking savings of 300 to 500 kilowatt-hours per tonne of rolled product. The capital requirement is primarily in logistics - covered transfer systems, insulated storage if you need buffer capacity - but the energy economics are compelling.

We've actually written a detailed insights article on hot charging. You'll find it at steelonthenet.com/insights/hot-charging.html. Our report walks through the technologies, the operational requirements, and the business case.

The point is this: whether it's scrap preheating, hot charging, slag heat recovery, dust recycling for zinc, water recycling systems, waste gas utilisation for power generation - there are proven techniques for almost every aspect of your operation.

The Technical Audit Recommendation (15:30-18:00)

This brings me to the strategic recommendation I want to leave you with.

Don't approach BAT in a piecemeal fashion. Don't just pick one or two techniques because they sound interesting or because you've heard about them at a conference.

Commission a comprehensive technical audit of your operations against all forty-plus BAT techniques.

Here's what that looks like. You systematically review your current operations against the BAT benchmarks. For each technique, you ask: Do we have this? If we don't have it, why not? Is it applicable to our process route? What would it take to implement it?

You end up with a gap analysis. A clear picture of where you stand relative to BAT, and more importantly, where the opportunities are.

Then you prioritise. Not everything will make sense for your specific situation. Some BAT might not be applicable to your process route. Some might not deliver adequate returns given your local cost structure or your specific scrap quality or product mix.

But you'll identify the top candidates - usually three to five techniques that have strong business cases and strategic fit. For those, you prepare pre-feasibility studies. You get more detailed. You talk to technology suppliers. You visit reference installations. You refine your cost and benefit estimates.

This approach accomplishes several things. First, you avoid cherry-picking based on incomplete information. Second, you understand the interdependencies. Some BAT work better in combination. Third, you can build a multi-year investment roadmap that sequences projects logically. And fourth, you de-risk your major capital decisions by doing the analysis upfront.

The SteelOnTheNet team conducts exactly these kinds of BAT gap analysis audits. We bring an independent perspective - we see things that internal teams, who live with the operation every day, might overlook. We've seen what works across different mill configurations, different markets, different cost structures. Contact us for further information.

Conclusion (18:00-20:00)

Let me pull this together.

Best Available Techniques are not theoretical exercises. They're not regulatory paperwork. They're a comprehensive toolkit of proven technologies that real mills are using profitably right now.

The techniques are documented in the EU BREFs. We've made them accessible through the BAT checklist posted on SteelOnTheNet. They cover the entire steel production value chain from coke making through rolling, and all the supporting systems.

And they deliver a triple benefit: efficiency improvements, emissions reductions, and economic returns. These things align. You're not trading off environment against economics.

Here's what I'd recommend you do. First, download our BAT checklist. Scan through it. Get a sense of what's listed and what might be relevant to your operations.

Second, read our hot charging insights article - that's at steelonthenet.com/insights/hot-charging.html. It's another example of BAT in action with real business cases.

Third, consider commissioning a technical audit. A systematic review of your operations against all the BAT techniques. Identify your gaps, your opportunities, your priority projects.

And if you want to discuss your specific situation, reach out to the SteelOnTheNet team. We can visit your plant, and get the process started.

Looking ahead, BAT requirements are only going to tighten. Performance benchmarks will become more stringent. Emission limits will come down. The mills that move early gain competitive advantage. The mills that wait find themselves forced into rapid, less optimal implementation.

Technology continues to improve. What's cutting-edge today becomes standard practice tomorrow. Stay current. Benchmark continuously. And use the BAT framework as your roadmap.

Until next time, this is Dr Andrzej M Kotas reminding you that in steel, best practices aren't just about compliance - they're about profitability.

You'll find links to all the resources we discussed in the end notes.

Thanks for listening.