Green Supply Chains for the Transformer Industry: From Raw Materials to Real Impact

With climate targets tightening and regulatory pressure increasing, every industry is being asked: What are you doing to cut your carbon footprint?
For the transformer sector, which relies heavily on steel, copper, oil, and aluminium, the answer lies not just in greener factories—but in building green supply chains.

Let’s explore the full picture.

1. Lifecycle Emissions: Where the Real Impact Lies

A transformer’s lifecycle emissions can be broken down into three stages:

  • Raw materials: 100 (baseline index)

  • Production: 2

  • Operation: 8,000

Yes, you read that right. Operation over 40 years creates the overwhelming majority of emissions—mainly due to load and no-load losses.

2. Raw Materials: Focus Areas for Supply Chain Decarbonization

🔩 Steel (60–70% of raw material emissions)

  • 1 ton of steel = 2 tons of CO₂

  • Most emissions come from blast furnace technology

  • Greener alternatives (e.g., electric arc furnaces, hydrogen reduction) are emerging, but adoption is still limited

Key initiatives:

  • SSAB HYBRIT (Sweden) – fossil-free hydrogen steel by 2026

  • ThyssenKrupp bluemint® – low-emission GOES now available

  • ArcelorMittal, Salzgitter, Nippon Steel – investing in DRI and hydrogen

⚙️ Copper (20–25% of raw material emissions)

  • Mining emits 2.3–2.5 t CO₂/t; smelting adds 1.65 t CO₂/t

  • Green alternatives:

    • Boliden (Sweden): <1.5 kg CO₂/kg (including recycled copper)

    • Elcowire: 1.7 kg CO₂/kg, now used by ASTA for low-carbon CTC

🧯 Aluminium (highest CO₂/kg among all)

  • Primary aluminium = up to 16–20 tons CO₂/ton

  • Hydro REDUXA: 4 t CO₂/t

  • Hydro CIRCAL: recycled aluminium with 2.3 t CO₂/t

🛢️ Insulating Fluids

  • Mineral oil: 1.21 t CO₂/t and not biodegradable

  • Bio-based options now include:

    • Cargill FR3, Shell Diala S5 BD, Nynas Nytro Bio, and others

    • Recycled oils now available commercially (e.g. Nynas RR 900X)

3. Transport: The Silent Contributor

  • Transportation = up to 25% of raw material emissions for LPTs

  • Modes by emissions:

    • Sea & Air: 8×

    • Rail: 4×

    • Road: 1×

Switching to optimized logistics and shorter supply chains can make a real difference.

4. Production: Small Footprint, Big Opportunities

Factory processes only contribute ~2% of total lifecycle emissions—but they still matter.

Focus areas:

  • Switching to renewable energy (Scope 2 reduction)

  • Reducing scrap, especially conductors

  • Recycling:

    • 80–90% less CO₂ for copper

    • 95% less for aluminium

5. Operation: The Biggest Lever for Emission Reduction

Transformer operation = the biggest CO₂ contributor over 40 years.

What influences it?

  • No-load losses: determined by electrical steel grade (e.g., M5 vs. 0.65 W/kg)

  • Load losses: depends on conductor (aluminium vs. copper)

Encouraging customers to focus on TCO (Total Cost of Ownership) and higher efficiency pays off—for them and the planet.

Final Thoughts

The path to sustainability in transformer manufacturing lies not just in the factory, but in collaboration across the value chain—from raw material suppliers to end users.

✅ Greener material options exist today
✅ Procurement and specification decisions matter
✅ Emissions can be reduced by 30–40% with smarter designs

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