How much power does replacing an arc furnace with a medium frequency induction furnace save?
A medium frequency induction furnace saves about 120 kWh per tonne melted in BEE's Punjab foundry report: 720 kWh per tonne of cast iron in the arc furnace against 600. At 2,250 t a year that is 270 MWh, about 182 t CO2 on today's grid factor. Payback 2.23 years at 2011 prices.
The numbers in BEE's report
- 250 melting days and 2,250 t a year.
- Electricity for melting: 1,620 MWh a year in the arc furnace, 1,350 MWh in the medium frequency furnace.
- Saving: 270 MWh and Rs 13.50 lakh a year at Rs 5 per kWh.
- Project cost Rs 30.08 lakh: power unit Rs 16.75 lakh, melting furnace Rs 8.00 lakh, the rest options, duties and taxes. Downtime 14 days.
- The report's 219 t of CO2 used an older grid factor. At 0.675 kg per kWh it is about 182 t.
Where the arc furnace wastes power
An arc furnace melts cold charge efficiently, but once the metal is down its heat efficiency during superheating is less than half an induction furnace's. A medium frequency furnace starts from cold without a molten heel, stirs the bath by itself and melts cleaner.
Check these on your own floor
- kWh per tonne from a meter on the furnace itself, over at least a month of melts, divided by tonnes tapped.
- Whether your sanctioned load and contract demand cover the new power unit.
- Power factor and harmonics the supplier guarantees, since your electricity bill will show both.
Per tonne and per year at 2,250 t
- Arc furnace: 720 kWh x 0.675 = 486 kg CO2 per tonne
- Medium frequency: 600 kWh x 0.675 = 405 kg CO2 per tonne
- Saved: 81 kg CO2 per tonne
- Year: 270,000 kWh x 0.675 = 182 t CO2
Grid factor is CEA's for FY 2025-26, an estimate. Use your own kWh per tonne in place of the report's.
What Senseible does here
Senseible reads your electricity bills into monthly kWh and CO2, each linked to its bill, which is the before and after record a lender asks for on a furnace loan. Start with the green loan check.
- Green loan readiness check
- Mains or medium frequency furnace
- Finance for an induction furnace upgrade
- Cupola or induction furnace
Sources: BEE, Detailed project report: replacement of arc furnace with medium frequency induction furnace, Batala, Jalandhar and Ludhiana foundry cluster (2011, SAMEEEKSHA), CEA CO2 Baseline Database, version 22.0
Last reviewed 2026-10-31. Report figures are from a BEE SME programme project report; costs and paybacks are at the report year's prices. Check today's fuel and power prices before you rely on the payback.