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