ISAL and the ISAL Production Upgrade
description
Transcript of ISAL and the ISAL Production Upgrade
Velkomin til ISAL 1
ISALand the ISAL Production Upgrade
2
ISAL – General Information
• Founded in 1966
• Production started in 1969 with capacity of 33,000
tons (120 pots)
• Major expansions:
– 1972 (2nd potroom)
– 1997 (3rd potroom)
• Designed for 150,000 tons
• Production in 2011 >185,000 tons
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National Aluminium Production
Century Norðurál
ISAL
Alcoa Fjarðarál
Century - Helguvik
Alcoa - Bakki
Aluminium production in Iceland
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100.000
200.000
300.000
400.000
500.000
600.000
700.000
800.000
1995 2007 2008 plan
ton
s
1995 2007 2009
• Current share:Alcoa: 41%
Century: 33%
RTA: 26%
• Best estimate: ca. 40% of viable hydro power already harnessed
National production
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National Electricity Use
• Total production in 2008: 16,488 GWh
• Thereof three aluminium plants: 70%
RTA; 2924; 18%
Alcoa; 4572; 28%
Century; 4053; 25%
Elkem; 885; 5%
All others; 2794; 17%
Households; 860; 5%
Distr. losses; 400; 2%
Source: National Energy Institute of Iceland (2009)
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National Electricity UseHeavy Industries vs.Rest
• Share of heavy industries has risen to 80% of national production
– three aluminium smelters + Elkem
2008
Source: National Energy Institute of Iceland (2009)
Note the increase since 2006
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The Production Process
4 tons of bauxite 2 tons of alumina
1 ton of aluminium
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Our Products
• Sheet ingots for rolling mills
• 200 different types of products
• A specialized casthouse adds to the
possibilities of value creation
• Our metal is used for:
– Cladding in construction
– Packaging (food, medicine)
– Automotive
Constellium Singen rolling mill
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Raw Materials
• Power from Landsvirkjun, the
National Power Company
• Alumina from Brazil
• Anodes from Holland
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Hydro Energy = Less Total Emission
1,52,0
9,8
14,4
0,0
2,0
4,0
6,0
8,0
10,0
12,0
14,0
16,0
ISAL Average sized smelterusing hydro energy
Average sized smelterusing energy derived
from natural gas
Average sized smelterusing energy derived
from coal
CO2
eq (t
/t A
l)
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GHG emissions: dramatic reduction
• Absolute emissions reduced by 50% since 1990 in spite of 100% production
increase
• PFC (strong greenhouse gas) almost eliminated: industry leading
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1000
2000
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4000
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7000
1990
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YT
D
kg/t
Al
Series2 Series3 Series4
In 1990: 6,5 t/t Al
In 2010: 1,6 t/t Al
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YT
D
kg/t
Al
Series2 Series3 Series4
In 1990: 6,5 t/t Al
In 2010: 1,6 t/t Al
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2000
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YT
D
kg/t
Al
Series2 Series3 Series4
In 1990: 6,5 t/t Al
In 2010: 1,6 t/t Al
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1000
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YT
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kg/t
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Series2 Series3 Series4
In 1990: 6,5 t/t Al
In 2010: 1,6 t/t Al
Fossil fuel PFC From anodes
EnvironmentWorld’s best PFC performance
• International Aluminium Institute’s 2008 report:
ISAL no.1 world-wide with respect to PFC
emissions @ 23 kg/t Al
• World average: 700 kg/t Al
• If ISAL was at the world average the plant would
annually emit an additional 130kt of CO2eq
• ISAL has managed to maintain this success
• 2008: 23 kg/t Al (no. 1 world-wide)
• 2009: 17 kg/t Al
• 2010: 20 kg/t Al
• 2011: 37 kg/t Al
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Fluoride Emission
0,00
0,20
0,40
0,60
0,80
1,00
1,20
2004
2005
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YT
D
kg/t
Al
Limit in the operating licence = 1,0 kg/t Al
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Measured for 40 years
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5
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35
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196
81
969
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971
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973
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975
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977
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007
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Flu
or
[pp
m]
Fluorine in vegetation2-3 km from the plant
Grass and hay Limit
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Talented People
• Almost 500 employees
– 20% women
– 80% men
• Average turnover rate: 3,5%
• Average tenure: >13 years• Gender equality policy
• Equal wages for same work• Diverse background:
– University degree; engineering, technology, business administration, psychology etc.
– Craftsmen; electricians, mechanics, auto mechanics, painters etc.
– Unskilled workers
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Education: ISAL school
• Started in 1998
• School for unskilled workers
• One of the keys to increased productivity
• Courses tought by both ISAL and outside specialists
• 206 graduates to date
• Advanced program for graduates– 35 graduates to date
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Safety
• Chief Executive Safety Award in 2010
• 6 million work-hours without a serious accident (December 2011)
• 6 years without a serious accident achieved in January 2012
– 2012 YTD: Two serious accidents
Serious Accidents (LT)per 200.000 work-hours
00,20,40,60,8
11,21,41,6
Rate 0,94 1,42 0,47 0,24 0 0,23 0 0 0 0 0 1,4
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
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Emphasis on Employees’ Health
• No Smoking work area
• Monitoring of key factors, such as:
– Air quality
– Noise mapping
• Health risk analysis of tasks
• “Bicycle to Work”:
– National competition
– Gold-medal winners eight years
in row!
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Community and CSR
• ISAL Community Fund– USD 200,000 to diverse projects
and causes
• Local youth sports
• Sponsor of annual cultural award
• Cooling water provided to neighbouring golf-course
• Wetland restoration– Agricultural University
Velkomin til ISAL 19
New power contract &Production increase
New power contract$347M investment
470 man-years20% production increase
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New power contract (2010)
• Runs until 2036
• Previous contract ran until 2014– with 10 year extension option
• Crucial to ISAL’s future
• Current power (335MW) +
75MW additional power
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IPU: Production increase (“creep”)
Three objectives:
1. Reliability– prevent 2006 failure
2. Compliance– upgrade gas treatment
center
3. Increase production by
20%, to 230 kta– within current buildings
– complicated and
challenging project
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2006-failure: Loss of USD 35m
• 19 June: Explosion due to ferro-resonance destroys all six 33 kV potential
transformers, disabling a whole rectifier station
• Result: All 160 pots freeze in Potline 3
• 15 July: First pot restarted
• 31 August: All pots restarted
– Restart accomplished in record time and without serious accidents
• Loss: USD 35m
– mainly pot recovery costs and production loss
• Substation is still exposed to single-mode failure
• Further risk mitigation only possible with investment in alternative DC power
routes
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Scope
• Investment: $347M
• Man-years: 470
• Scheduled completion of works
is December of this year
• Creep scheduled to be
completed in H1 of 2013
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Casthouse conversion
$140M investment150 man-years
From sheet ingots to billets
• Production of sheet ingots will
cease; will produce billets instead
• More valuable product
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What are billets for?
• Used to make profiles
• Construction, automotive etc.
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Scope and schedule
• Investment: $140M
• Man-years: 150
• Casthouse expanded
– considerable construction
• Height of project was summer 2011
– 150 workers on site
• First billet production: this summer
• Will continue to produce 50% ingots for
2 years
• Full conversion to billets before year-end
2014
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Thank you