Energy efficiency is the key to the energy issue of the future

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1 Edition 6 FOCUS ON Energy efficiency is the key to the energy issue of the future Dipl.-Ing. Erik Míček is Managing Director at LOI Thermprocess GmbH in Essen, Germany. In this interview with heat processing* he talks about the future of the energy industry and technological challenges, revealing his own personal energy-saving achievement. The energy mix of the future: Are you prepared to risk a prediction? Míček: That would depend on the time horizon. Over the course of time, there will certainly be a growing shift to renewable energy sources. However, fossil fuels and nuclear power will play a major role throughout the world for much longer than we hope today. Germany in 2020: How will people s everyday life have changed as a result of changes in the energy industry? What fuel will they use in their cars? How will they heat their homes? How will they generate light? Risk a scenario! Míček: For 2020, I do not expect that there will be significant changes in Germany compared with today. There will be more hybrid vehicles on the road but people will still be using diesel, petrol and possibly hydrogen in their cars. The main fuel used for heating will be natural gas as many oil-fuelled heating systems are still being replaced by condensing boilers now. Electro-mobility and decentralized power storage in electric cars owned by individual households is an attractive idea but it will probably only be relevant from 2030 onwards. Sun, wind, water, geothermal, etc.: Which renewable energy source do you consider to have the greatest future? Míček: In Germany, I would bet on wind power. For Europe as a whole, I find the DESERTEC approach very attractive. This concept could be interesting throughout the world but perhaps via hydrogen production and transport instead of large DC power lines. Which of the technologies currently emerging would you invest in today on that basis? Míček: There are certainly some really interesting approaches. However, I prefer investments that bring dividends rather than growth. How do you assess the future importance of fossil fuels such as oil, coal and gas? Míček: I can only recommend you to read Ausgebrannt, a novel by Andreas Eschbach. On this basis, we cannot really afford to burn oil and gas but should use them solely for the production of essential chemicals. As I have already mentioned, I am convinced that fossil fuels will remain the most important energy sources for many decades. And nuclear power? What effect do you expect in view of Germany s current position? Míček: The effects are already there. We can do without nuclear power Made in Germany, but this will cost more and represent a considerable burden for German industry. Throughout the world, countries will not be able to do without nuclear power for decades for a variety of reasons. It will be interesting to see what effect this division of the world will have. The energy transition: What changes will be necessary at the political (including the global political), the social and the ecological level to enable us to talk realistically of a transition? Míček: The transition has been initiated by the departure from nuclear power. This departure was hurried and will therefore certainly lead to illogical developments. How long it will take for politicians to adopt a reasonable approach and develop a sustainable concept is a very good question. And your wishes from the federal government in this context? Míček: The government should be open about the consequences of the energy transition! There are at least two problems with renewable energy sources: the lack of infrastructure, and the continuing and persistent concentration of established * Interview conducted by Stephan Schalm, managing editor heat processing 115

2 FOCUS ON Edition 6 companies on conventional forms of energy. Will this change in the foreseeable future? Míček: In my opinion, it is unlikely that this situation will change in the short term. Irrespective of the form of energy and the technology used, many consider the term energy efficiency to be the key to the energy questions of the future. How do you view this subject? What do you consider to be the most important development in this field in the thermal processing technology industry? Míček: For all our products, energy efficiency has been the key issue for several years. As energy prices continue to rise, it will soon become important in less energy-intensive areas. It is one of the keys to the energy questions of the future. The main thing will be to develop appropriate awareness of this issue. In your opinion, what benefits do electrical processes offer in the process heat field? Míček: In the process heat field, the share of electrical processes is very low. Depending on the application they tend to have technical rather than energy advantages. As long as most power is generated using fossil fuels, there is not likely to be much change in the situation. What is your attitude to the heat treatment field? Míček: We offer heat treatment plants for steel and aluminium and continue to be fascinated by the applications that can be developed using appropriate heat treatment for these materials. We predict a tremendous future for the heat treatment of metals. How do you view developments in the improvement of energy efficiency? Míček: Energy efficiency improvements have always been taken into consideration in the development of our products. However, over the past three to five years, we have implemented very comprehensive and complex energy efficiency approaches for some of our customers. Globally, there are still considerable differences between countries in this respect. In your opinion, how will energy consumption change? Míček: As the world population continues to grow, so will energy consumption, despite all the efforts made to improve energy efficiency. What role does your company currently play on the energy market? Míček: In industry, industrial furnaces are among the major users of fossil fuels. According to recent studies it would be possible to save several hundred TWh of energy per year in Europe alone if all industrial furnaces were in accordance with the state of the art. We see it as our task to offer the most advanced and efficient industrial furnace plants possible and to make appropriate modifications to older plants. What role will your company be playing on the energy market in twenty years time? Míček: Most industrial furnace plants have a service life of many decades. The tasks are therefore likely to remain similar, while statutory requirements will become more stringent and the technical challenges we face will grow. "For all our products, energy efficiency has been the key issue for several years." 116 heat processing

3 Edition 6 Powered by FOCUS ON RESUME Dipl.-Ing. Erik Míček Date of birth: 23 rd of March 1968 Current job: Managing Director, LOI Thermprocess GmbH, Germany INTERNATIONAL THERM PROCESS SUMMIT Studies: : TU Bergakademie Freiberg (Freiberg Technical University), major: heat technology, specializing in industrial furnace design with advanced specialization in electronic data processing and automation engineering 21 February 1991: Graduated as Diplom-Ingenieur (Diploma in Engineering) Career: : Member of the Central Research and Development Department, LOI Thermprocess GmbH : Member of the Process Engineering Department, LOI Thermprocess GmbH : Project and Sales Engineer for bell-type furnaces and steel strip furnaces LOI Thermprocess GmbH : Head of Department: Bell-type annealing furnaces for wire and non-ferrous metals, LOI Thermprocess GmbH : Head of Department: Process engineering for steel strip, LOI Thermprocess GmbH : Director, heat treatment furnaces for steel strip, LOI Thermprocess GmbH 2010-now: Managing Director, LOI Thermprocess GmbH Organized by The Key Event for Thermo Process Technology Congress Center Düsseldorf, Germany July heat processing 117

4 FOCUS ON Edition 6 What will be your company s most important innovation or project? Míček: We develop complex plants to make heat treatment even more controlled and efficient and to comply even more precisely with product specifications. Currently, this concerns new developments in the field of air or atmosphere gas and water cooling in the transport sector (e.g. wheels for high-speed trains) and the automobile industry (e.g. aluminium structural components). What challenges do you see approaching you (economic, technological, social, etc.)? Míček: In connection with many major projects, our customers report financing problems with the banks. This results in unnecessary delay or even the postponement of many products, leading to increasing complexity. Technologically, we have been able to successfully defend our leading position and are trying to improve our technological edge. How do the expansion of the EU and globalization affect your company and its business? Míček: Industrial furnace production is a global business. We have been successful in international business for decades and were one of the first Western furnace suppliers to be active in China. Globally, we are ideally positioned as an integral part of the Tenova and Techint Group. How important is a brand name for the success of products in the industrial sector? Míček: We believe that our brand name is very important. Our customers throughout the world not only know us under our current name of LOI but can still remember the brand names of the companies that joined forces to form LOI many years ago such as Nassheuer and Schmitz & Apelt. I hope that the relatively new brand name of our group Tenova will become just as widely accepted over the years. Have you been unable to pursue developments in Germany, or have developments been delayed, as a result of the lack of specialist personnel? Míček: You have raised an important point. Not as many young engineers as we would need are willing to study and work in the field of industrial furnace design. We ve adjusted to the situation with our own training, further training at the Tenova Academy and other advanced training measures. Does a management team need greater media capabilities in order to convince investors? Míček: The Techint Group, of which LOI Italimpianti / Tenova forms part, is a company with more than 50,000 employees throughout the world privately owned by the Rocca family. We are therefore fortunate to be able to speak 118 heat processing

5 Edition 6 FOCUS ON to our shareholders at least every three months in person and highly appreciate this possibility. What would you like to change in your company? Míček: We will continue to develop. Within the Tenova Group, new companies have been continuously acquired and integrated into the group. This offers our company additional opportunities both with regard to our product portfolio and with regard to our geographical presence. What do you think the people around you particularly appreciate about you? Míček: Probably my absolute dedication to LOI as a company. You can ask our employees yourselves. How important is expansion in other countries for your company? Míček: Our shareholders strongly support the growth of the Tenova Group, especially in growing markets. Last year alone, the Tenova Group grew by several thousand employees as a result of acquisitions. Is your company receptive to renewable energy? Míček: Most industrial furnaces are heated by natural gas or coke oven gas firing systems. For technical reasons, induction heating systems are used in some of our plants. We also offer plants with a purely electric heating systems to some of our customers. We can therefore only use renew-able energy sources indirectly, if the power for these plants is generated from renewable sources. Does your company already use renewable energies? Míček: We are purely an engineering company without any major power-consuming equipment. I would have to check to find out the share of renewable energies used by our power supplier. How receptive is your company to new technologies? Míček: Our business model is based on the development of new technologies and the application of existing technologies in new areas. We need to be highly receptive to new technologies in order to maintain our lead over competitors, especially from Asia. It is always very exciting to do something new. What has been your greatest energy-saving achievement in your private life? Míček: Over the past two years, we have invested in new roof insulation and new windows. We also use energy-saving lamps and are very thorough in switching off electrical appliances and in other small items like that. How would you assess your dealings with employees? Míček: I deal with my employees in a very open and cooperative way. What moral values are particularly topical for you? Míček: Honesty and open dealings with each other. How do you manage to find some time for yourself, and not always have to deal with internal and external challenges? "We need to be highly receptive to new technologies." Míček: To date, I have only been successful to a limited extent at least, that s the way my family sees it. Did you or do you have any models? Míček: I have been fortunate in getting to know many interesting personalities from different countries. But I do not have a real model. Everyone has to go his own way. How were you brought up and educated? Míček: My parents made it possible for me to have a very pleasant childhood with a lot of freedom and understanding. I cannot thank them enough for it. How should children be brought up today? Míček: To be cosmopolitan and responsible heat processing 119

6 FOCUS ON Edition 6 What do you wish for the new generation? Míček: Democracy and peace. You can develop everything else yourself. What is your motto in life? Míček: Even the worst experience, change or event has its good sides. In your opinion what was the most important invention of the 20 th century? Míček: The Internet, what else? What personal characteristics are most important to you? Míček: Tolerance and openness. When do you not think about your work? Míček: Only during sport. What is your personal tip for the next generations? Míček: You can do anything if you really want to. What can you absolutely not do without? Míček: My family. What do you wish for the world? Míček: Please be reasonable! Thank you for this interview. 120 heat processing