The specific energy consumption of a modem integrated steel plant (using the BOF-route) and the potential and costs to improve the energy efficiency are studied in this paper. The output of the plant is defined as 25% slabs, 45% hot rolled product and 30% cold rolled product. The net energy consumption for this plant is at present 17.6 GJ of fuel/ton product and 0.85 GJ electricity/ton product (19.7 GJ primary fuel/ton product). On basis of an energy analysis 13 energy conservation measures are identified. The total technical conservation potential of the measures amounts to 2.9 GJ/ton product (primary energy), or 15% savings, reducing the specific energy consumption to 16.8 primary GJ/ton product. Restricting the potential to measures with a simple payback period of less than seven years 0.6 GJ/ton product (or 3%) can be saved. Implementing a carbon tax of 140 US$/ton C or an investment grant of 40% would increase the savings to 10% and 8% respectively. In the long term a larger potential for energy conservation exists, estimated at a minimum of 3 GJ extra compared to the technical potential savings in the year 2000, reducing the specific energy consumption to approximately 14 GJ/ton (30% savings compared to the present level).