How Energy Design Makes Sustainability Profitable

In the metals and steel industry, sustainability often gets a bad reputation as a costly endeavour that hinders profitability. Yet, as Alexander Hzer, CEO of TTSPHWP, explains in a recent interview, this mindset couldn’t be further from the truth. By embracing sustainability as an opportunity rather than a challenge, businesses can turn constraints into innovation, reduce costs, and boost long-term profitability.

This article unpacks Hzer’s transformative insights into energy design, sustainability, and leadership, offering actionable lessons for production managers, quality engineers, and operations directors eager to modernise their operations.

Rethinking Sustainability: From Expense to Opportunity

For many leaders in the metals and steel industry, sustainability is perceived as an unavoidable expense, driven by regulatory compliance or public relations. Hzer challenges this assumption head-on: “Sustainability can actually be very profitable from day one”, he asserts.

The key lies in reframing sustainability efforts as a driver of efficiency and innovation. For example, integrating renewable energy and efficient design systems into industrial operations can reduce operational costs and improve energy usage effectiveness - core metrics for profitability in high-energy-consumption industries.

Insight for leaders: By focusing on total cost of ownership rather than upfront expenses, sustainability investments can deliver measurable returns. For instance, using AI-powered cooling systems or renewable energy solutions can reduce long-term costs while boosting eco-compliance.

The Energy Grid Conundrum: A Catalyst for Innovation

European markets, especially key industrial hubs such as Frankfurt, London, Amsterdam, and Paris, are grappling with energy grid constraints. These regions frequently struggle to meet rising energy demands, driven by industries like metals and steel as well as data centres. While grid shortages may seem like obstacles, Hzer views them as opportunities for smarter strategies.

He explains, “In most of these locations, there simply is no power anymore, which leads to different strategies to deal with it.” Companies are innovating by:

• Designing microgrids to integrate renewable energy sources like solar and wind.
• Exploring new locations outside urban areas where power availability is higher.
• Collaborating with local governments to optimise zoning and infrastructure.

Practical example: Some projects are linking data centres with solar parks and battery storage to create “energy centres”, where renewable power sources work seamlessly alongside traditional grids. These systems not only lower costs but also reduce strain on overburdened infrastructure.

Sustainability in Practice: A Story of Synergy

One of the most compelling insights from Hzer’s interview is the potential for synergy between energy producers and energy-intensive industries. For instance, he describes a collaboration with a solar park operator who faced penalties for producing excess electricity during summer. At the same time, data centres required maximum energy for cooling during these hot months.

By co-locating the solar park and data centre, both sides benefited:

• The solar park avoided penalties by supplying energy directly to the data centre.
• The data centre gained access to cost-free or low-cost energy during peak demand.

This partnership illustrates how sustainability initiatives can simultaneously deliver financial and environmental advantages, debunking the myth that eco-friendly practices are inherently unprofitable.

Transforming Leadership through Constraints

It’s not just technical or financial systems that need innovation; leadership mindsets also play a crucial role. Hzer emphasises resilience and adaptability as critical traits for leaders navigating constraints. “Every imperfection has an opportunity”, he says.

Rather than accepting limitations at face value, Hzer encourages leaders to take a 360-degree view of challenges, seeking creative ways to turn barriers into benefits. For example:

• Collaborating across industries to share knowledge and resources.
• Engaging local governments and stakeholders to develop mutually beneficial solutions.
• Exploring emerging technologies like AI to optimise operations.

Leadership, Hzer argues, requires patience, persistence, and a long-term vision. By adopting these qualities, executives can unlock innovative opportunities and drive meaningful change.

Redefining the Future: From Data Centres to “Energy Centres”

One of the most forward-looking ideas Hzer introduces is the evolution of data centres into “energy centres.” With the rise of AI and other energy-intensive applications, the focus is shifting from just housing data to managing massive amounts of energy.

For industries like metals and steel, which similarly rely on high energy consumption, the concept of energy centres offers a roadmap for the future. By investing in systems that prioritise energy efficiency and sustainability, businesses can stay ahead of regulatory pressures and market trends while improving profitability.

Key takeaway: The future of industry is not just about managing processes - it’s about managing energy. Leaders who understand this shift will position their organisations for long-term success.

Key Takeaways

1. Sustainability drives profitability: Energy-efficient systems and renewable integration can lower operational costs.
2. Turn constraints into innovation: Grid challenges can lead to creative solutions like microgrids and energy centres.
3. Synergy creates value: Collaborations between energy producers and high-consumption industries can yield mutual benefits.
4. Leadership requires resilience: Adopt a mindset that rejects “impossible” and seeks opportunities in every challenge.
5. Focus on total cost of ownership: Investments in sustainable technologies may increase upfront costs but deliver significant long-term savings.
6. Energy is the key resource: Industries should prepare to manage energy as strategically as they manage production.
7. AI enables efficiency: Use AI and automation to optimise energy use and streamline operations.
8. Engage stakeholders early: Building relationships with governments, communities, and partners can accelerate project timelines and ensure alignment.

Conclusion

Alexander Hzer’s insights offer a powerful roadmap for leaders in the metals and steel industry who are eager to embrace sustainability without compromising profitability. By seeing energy design as an untapped opportunity, businesses can innovate, cut costs, and meet sustainability goals simultaneously.

The path forward requires not just technical innovation but also bold leadership and strategic thinking. By focusing on energy management, collaboration, and long-term vision, industry leaders can turn today’s constraints into tomorrow’s competitive advantages.

For the forward-thinking manager, engineer, or director, the message is clear: sustainability is not an obstacle - it’s a tool for transformation.

Source: “Why sustainability can be profitable from day one” - The CEO Magazine, YouTube, Jan 21, 2026 - https://www.youtube.com/watch?v=XXlhL9vC6RQ