Fero Labs, a New York City-based manufacturing software company, is utilizing generative artificial intelligence (AI) to revolutionize steel recycling and reduce emissions and costs. Steel factories are notorious for being resource-intensive and generating significant waste, making steel recycling a challenging task. However, Fero Labs’ AI technology is paving the way for more efficient and sustainable steel recycling processes.
Traditional steel recycling involves melting scrap steel, but the unique chemical composition of each batch diminishes the strength of the resulting steel. To meet industry standards, factories often add newly mined materials to the mix, turning it into an alloy. However, this process is expensive and complex, leading manufacturers to add more material than necessary, resulting in increased emissions.
Fero Labs’ software platform harnesses the power of generative AI to help manufacturing engineers tackle this problem. The AI technology builds virtual replicas of steel manufacturing processes, analyzes historical data, and recommends optimal practices. By using the Bayesian machine learning approach, the software determines the appropriate amount of additional material to be added to each batch of recycled steel. It interacts directly with the production processes, identifying areas for improvement and minimizing waste, thus maximizing efficiency while reducing the risk of human error.
The software also provides real-time instructions, enabling manufacturers to pursue their sustainability goals without compromising profitability or quality. Fero Labs’ machine learning algorithms have significantly enhanced the capabilities of steel engineers in the five factories where the software has been implemented. Processes that used to take months of dedicated work can now be accomplished within minutes, optimizing performance, reducing costs, and cutting emissions.
According to Berk Birand, co-founder and CEO of Fero Labs, their AI models have tripled the productivity of in-house steel engineers and enabled them to tackle more complex problems. Through the integration of AI, Fero Labs’ customers have achieved impressive results. The implementation of the software has led to over $20 million in savings, a reduction of more than 100,000 tons of carbon emissions, and the preservation of one million pounds of raw materials. This is particularly significant as the steel industry is responsible for 11% of global carbon emissions.
Fero Labs’ software not only enhances efficiency and sustainability but also has the potential to minimize the use of mined ingredients in steel production by up to 34%. A report by the Global Partnership on Artificial Intelligence indicates that this approach has already prevented an estimated 450,000 tons of carbon emissions per year. If adopted on a larger scale, it could prevent a staggering 11.9 million tons of carbon emissions per year in the United States alone. This would be equivalent to a quarter of New York City’s yearly emissions.
Fero Labs is at the forefront of leveraging AI to revolutionize the steel recycling industry, reducing emissions, and cutting costs. By providing manufacturing engineers with powerful software that optimizes steel recycling processes, the company is spearheading a more sustainable and efficient approach to steel production. With the potential for significant environmental benefits, Fero Labs’ AI technology is set to play a vital role in shaping the future of the steel industry.