Ad Hoc Group 3 - Competitiveness Alessandro
Profili
DEFINITION OF ENERGY INTENSIVE INDUSTRIES
Electrolytical process, Hall Hérault (early ‘900) Extremely high amperage (300kA) 24/365 operation:
Anodes
CathodeBath
How aluminium is made
Primary Aluminium is the most power intensive industrial process
Primary aluminum production has the highest electric energy intensity and impact on operating costs among metals
Electric power is a raw material of the process
Price and availability of electric power are the main drivers of economic performance of existing smelters and location of new ones
4,5
0,20,5
3,5
15
0
2
4
6
8
10
12
14
16
Al Zn Chlorine Steel Copper
Mwh/ton
Operating cost
Energy Alumina Labour
Anode Others
Aluminium – An integrated industry
Why is it so important to keep an aluminium industry in Europe?
Our industry would depend on imports to produce aeroplanes,
Why is it so important to keep an aluminium industry?
Our industry would depend on imports to produce power cables,
Why is it so important to keep an aluminium industry?
Our industry would depend on imports to lightweight automobiles …. to meet Kyoto objectives
… and Europe would lose its current lead in innovative applications
Why is it so important to keep an aluminium industry?
Our industry would depend on imports to stimulate its creativity in many areas like,
buildings
transports
packaging
design and much more
Europe is a World leader in technology
About 80% of the new smelters built worldwide over the last 15 years are based on European technology.
Europe amongst most environmentally efficient
operations both in KWh/kg and C02/tonne
A World leader in technology and equipment supply for the semi-
fabrication industry
The strong position of the European aluminium industry has allowed equipment manufacturers to reach a leading position in rolling, foil and extrusion technology supply
A World leader in environment friendly recycling processes
The European aluminium recycling industry is using advanced technologies in response to the EU demanding environmental legislation
European smelters world leaders in scrap utilization
Definition of Energy IntensiveElectric Power Intensity MWh/t
4,5
0,20,5
3,5
15
0
2
4
6
8
10
12
14
16
Al Zn Chlorine Steel Copper
Mwh/ton
Aluminium is a Leading Indicator
Solutions
Correct the current electricity market distortions to restore balance between suppliers and consumers. This must lead to a competitive market that will make it attractive for producers to enter into competitive long term contracts with base-load consumers.
Find interim solutions : establish a parallel market for energy intensive industries
Recognising that electricity is a raw material for energy intensive industry, all environmental taxes and other burdens must be removed as they will only cause further relocation to outside the Kyoto area with no benefit to the global environment.
Possible Energy Intensity Criteria
Belonging to an Energy Intensive sector - ListConsuming a (very) large amount of
electricityPower representing a large proportion of total
costs (or of value added)Specific consumption pattern – min total
hours/year or min ratio off-peak to total consumption
Competing on global markets