Interview “Krone” – Tyrolean company shows ways to get out of the energy crisis

Tiroler Rohre GmbH (TRM) in Hall. A parade industrial company with 220 employees. A company with a long tradition and high energy requirements. This is calculated in megawatts and gigawatts. Pipe and mast systems are made from scrap and exported all over the world. And now the energy crisis, worries about the gas supply freeze, skyrocketing prices. What does that mean for a traditional Tyrolean company of this size? The “Tiroler Krone” visited the factory and spoke with director Max Kloger about developments that threatened the survival of the company and the way out of energy dependence.

„krone“:Mr. Kloger, your company also has blast furnaces. They symbolize the enormous energy demand in the industry. How high is this in your case?
Max Kloger: Yes, we have a high energy requirement, need electricity, gas and coke to melt the scrap. Before inflation, we spent a million euros every year on electricity and gas. For the latter, the price is now three times higher, soon perhaps six times higher, if predictions are to be believed. As a company you have to do that in such a short time.

Add to this the sharply rising raw material prices.
In our case that is the scrap price. We work 100% with scrap iron. Last year the scrap price was 300 euros per ton, at the beginning of this year it was 600 euros and now it is another 200 euros more. With a requirement of 40,000 tons, anyone can easily calculate the extra effort. What makes the whole thing even more difficult: the suppliers hardly give any more price guarantees.

Is that still possible or do you have to reduce production soon?
There are already companies that have had to stop parts of production. And this despite the fact that the order books are full. That works out well for us, because we have been investing in energy efficiency for years. Without it, we would probably be faced with an existential situation today, like so many other companies. For the economy, energy efficiency is no longer just an environmental issue, but an economic necessity.

How could Tiroler Rohre become more independent from price turbulence in the energy market?
By not only consuming energy, but also generating it. Six years ago, we installed what was then the largest photovoltaic installation in Western Austria on our company buildings. 9,000 square meters, supplying nearly 300 households in the region. We also use the residual heat in the foundry. The liquid iron comes out of the furnace at 1500 degrees – that’s a lot of energy. We supply the residual heat to the regional district heating network. This supplies 650 households in the area and also saves a total of 3100 tons of CO₂ on an annual basis.

Is it realistic for the Tyrol economy to become completely independent from gas?
It is possible, but the process takes time. In the case of our company, it is now realistic. In Tyrol we have an excellent alternative with hydropower. I see a lot of potential for hydrogen, but too little movement. The rise in energy prices in Europe is not only the result of the crisis, but also of the insufficient expansion of alternative energy generation. This shortage prompts speculators to plan.

What exactly does the state need?
I too am in favor of faster procedures for new hydroelectric power stations. With them we come closer to energy independence. But switching completely to electricity will not be the solution. We also need to discuss other options: Tyrol, for example, supplies its waste to other federal states and has them generate energy from it. Why? It is also crucial that we make energy saving a main goal.