Ad Hoc Group 3 Competitiveness Alessandro Profili

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Ad Hoc Group 3 - Competitiveness Alessandro
Profili
DEFINITION OF ENERGY INTENSIVE INDUSTRIES
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How aluminium is made

• Electrolytical process, Hall Hérault (early
  900)
• Extremely high amperage (300kA) 24/365
  operation

Anodes
Bath
Cathode
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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

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Aluminium An integrated industry
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Why is it so important to keep an aluminium
industry in Europe?
Our industry would depend on imports to produce
aeroplanes,
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Why is it so important to keep an aluminium
industry?
Our industry would depend on imports to produce
power cables,
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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
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Why is it so important to keep an aluminium
industry?
Our industry would depend on imports to stimulate
its creativity in many areas like,
packaging
transports
buildings
design and much more
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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
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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

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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
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Definition of Energy IntensiveElectric Power
Intensity MWh/t
Aluminium is a Leading Indicator
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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.

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Possible Energy Intensity Criteria

• Belonging to an Energy Intensive sector - List
• Consuming a (very) large amount of electricity
• Power 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