Global Aluminum Industry Response to Energy and Climate Change

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Global Aluminum Industry Response to Energy and
Climate Change

• CSD 14
• Business and Energy
• Tuesday 9 May 2006
• Jerry Marks
• International Aluminium Institute

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The Approach

• Industry initiative organized through the
  International Aluminium Institute
• Climate change addressed as part of a
  comprehensive sustainable development initiative
• Specific objectives formulated along with a
  monitoring program and roadmap to achieve
  objectives

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IAI Global Sustainability Initiative12
Voluntary objectives covering key environmental,
social, and economic indicators

• Voluntary Objective 1
• An 80 reduction in Perfluorocarbon (PFC)
  greenhouse gas emissions per tonne of aluminium
  produced for the industry as a whole by 2010
  versus 1990 levels.

• Voluntary Objective 3
• A 10 reduction in average smelting energy usage
  by IAI Member Companies per tonne of aluminium
  produced by 2010 versus 1990.

• Voluntary Objective 7
• The industry will monitor annually aluminium
  shipments for use in transport in order to track
  aluminium's contribution through light-weighting
  to reducing greenhouse gas (GHG) emissions from
  road, rail and sea transport.

• Voluntary Objective 8
• The IAI has developed a mass flow model to
  identify future recycling flows. The industry
  will report annually on its global recycling
  performance.

• Voluntary Objective 11 New
• The IAI Member Companies will seek to reduce GHG
  emissions from the production of alumina per
  tonne of alumina produced.

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IAI Initiatives to Reduce GHG Emissions

• Whats being done
• Benchmarking on industry performance on key
  performance criteria (Anode effects for PFCs,
  Energy utilization, carbon consumption)
• Annual published progress reports and briefings
  of all IAI Directors/CEOs
• Coded Benchmarking Graphs Facility measurements
  Training Sharing best environmental operating
  practices
• Technical papers on anode effects and PFC
  emissions
• Greenhouse Gas Protocol to ensure common
  methodology
• Cooperation with international bodies OECD,
  IPCC, UNFCCC, Asia Pacific Initiative and WBCSD
  and national regulatory agencies.

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For example, PFC emissions per tonne aluminum
produced have been cut 74 since 1990
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For example, The electrical energy required to
produce a tonne of aluminium has been reduced by
6 since 1990
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Where do we go next?

• Expand data collection and benchmarking to
  additional areas
• Expand process areas for additional energy and
  emissions savings
• Strong emphasis on product use and recycling.

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For example - Lightweighting in transportation

• 6-8 fuel savings can be realized for every 10
  reduction in weight.
• The typical aluminium part is 40-50 lighter than
  a comparable steel part.
• 1 kg aluminium replacing conventional material
  has the potential to save 20 kg CO2 over the
  typical vehicle life
• Increased use of aluminium in road transportation
  has the potential to save enough CO2 emissions
  through improved fuel efficiency to totally
  offset the emissions from aluminium production

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• Incentives to Reduce GHG Emissions
• Stewardship of Environment
• Business Case
• Improved operational efficiency
• Competition with other materials
• Major customers interests
• Barriers
• Large capital base of legacy production
• Materials technology
• Availability of information about product fate

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Government and Other Stakeholders

• Government Roles
• Dialogue with business on solutions
• Global competitiveness issues
• Look for solutions with the broadest possible
  view
• Other Stakeholders
• Understand that business is part of the solution
• Consumer education

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Thank you for your attention