Alcoa Europe Extended EC Meeting Divonne June 2002

WEC European RoundtableAlcoa Case

Jürg Furrer

a

Outline

Who is Alcoa Knowledge Management accross the

corporation Energy in the Al industry

Smelting Energy Non-smelting Energy

Energy Efficiency Process Example

a

Alcoa at a Glance

World’s leading producer of: Primary aluminum Fabricated aluminum Alumina

Active in all major segments of the industry: Technology Mining Refining Smelting Fabricating Recycling

a

Alcoa at a Glance

Alcoa’s aluminum products and components are used worldwide in:

Aircraft Automobiles Beverage cans Buildings Chemicals Sports and recreation Wide variety of industrial and consumer applications

Alcoa wheels Reynolds Wrap® aluminum foil Baco® household wraps

a

10 Years of Growth

Alcoa KAlcoa Kööfémfém

1992

1996

Alcoa ItaliaAlcoa Italia

Alcoa InespalAlcoa Inespal

1998

CastelsarrasinCastelsarrasin

1999

2000

Reynolds

Huck International

2000

Alumax Alumax 1998

Howmet

2000

Baco Baco ConsumerConsumer

2000

British British AluminiumAluminium

2000

AFL (Siemens)

2001

IVEX

2002

IrurzunIrurzun

1999

a

ExtrusionExtrusion

PrimaryPrimary FRPFRP

ABSSABSS

Today: A Pan-European Company

AFL World Chemicals

CSI

Flexible PackagingForgingsAMP Automotive Struct/Cast

Elkem

Industrial ComponentsIndustrial Components(Huck /Howmet)(Huck /Howmet)

BCSBCS

Consumer Products

Alcoa Europe

Other Bu’s

a

EHS Challenge

Culture Languages Different businesses

a

EHS Organization Alcoa Europe

PRESIDENTALCOA EUROPE

Ricardo Belda

DIRECTOR EHSALCOA EUROPE

Juerg Furrer

DIRECTOR EHSPRIMARY

Claudio Munforti

DIRECTOR EHSEEP

Chip Brown

DIRECTOR EHSFRP

Oscar de Haan

DIRECTOR EHSBCS

Erwin Heijnsbroek

DIRECTOR EHSSERVICES EUROPE

John Millett

EHS Lead Team

a

EHS Organization

EHS Lead Team BU EHS Directors Location EHS Organizations

Country Networks Issues Networks …….

European EHS Shared Services (newly created; 25 people)

a

Sustainable Development is the basis for the Sustainable Development is the basis for the Alcoa Environmental Strategy . . .Alcoa Environmental Strategy . . .

Respect for our neighbors and respect for the generations that will follow

Elimination of All Waste

Products Designed for the Environment

Integration of Environment with Manufacturing

Incident-Free Workplace

Environment as a Core Value

Reputation

a

Elimination of WastesElimination of Wastes

VOCs

50% REDUCTION TODAY 10,910 tons

2008 5,480 tons

NOx

30% REDUCTION

TODAY 56,300 tons

2007 47,770 tons

MERCURY

80% REDUCTION TODAY 2,990 kgs

2008 620 kgs

SO2

60% REDUCTION

TODAY 287,000 tons

2010 108,700 tons

75% with inert anodes

a

Plans to reduce wastes to landfills by 50% by 2007 Plans to reduce wastes to landfills by 50% by 2007 . . . . . . on the way to elimination of land filled wastes by 2015on the way to elimination of land filled wastes by 2015

Plans to reduce process water use by 60% by 2008 Plans to reduce process water use by 60% by 2008 . . .. . . on the way to achieving zero process water discharge on the way to achieving zero process water discharge

and “near zero” storm water discharge by 2015 and “near zero” storm water discharge by 2015

a

Alcoa’s Greenhouse Gas Reduction TargetsAlcoa’s Greenhouse Gas Reduction Targets

25% REDUCTION

50% REDUCTIONWith inert anode

1990 48.056 M tons

TODAY 37.222 M tons

2010 (projected) 35.950 M tons

2010 (projected) 23.191 M tons

a

Aluminium production and life cyle

a

Aluminium Production

Electrolytic reaction 2Al2O3 + 3C 4Al + 3CO2

Takes place in molten cryolite/aluminum fluoride mixture

Reaction temperature 960°C (1760F)

Formation of aluminum occurs at cathode

Formation of CO2 occurs at anode

a

Aluminium Production

a

Aluminium Production : GHG Emissions

a

Sustainable processes: “Inert Anode”

Cathode Block

Molten Aluminium

Feeder

GasesAnode

Electrolyte

GHG from Primary Aluminium Production

Two PFC (perfluorocarbon compounds - CF4 and C2F6) contribute about 48% of primary aluminium GHG emissions

Anode Carbon

1.7 tonnes of

CO2eq/t AlElectricity Input

14.4-15.6 MWh/t Al

PFC Emissions

1.6 tonnes of CO2eq/t Al

a

ENERGY EFFICIENCY

KNOWLEDGE SHARING

(Non smelting energy)

a

Alcoa Europe Energy Program

Energy Use Reduction

Data Collection and Reporting

Energy Risk Management

Physical Procurement

Energy Strategic Plan

a

Alcoa Europe Energy Program

Energy Use Reduction

Energy Strategic Plan

“Best Practices”

screening at all facilities

Facilitate sharing of use

reduction strategies

between sites

Perform facility walk-

through – share plant

energy expertise

Provide analysis of payback/return for use

reduction capital projects

Coordinate supply side/use side strategies

a

Energy Efficiency Program – Steps in the Process

Distribution of an “Energy Efficiency Assessment” for the facilities to fill out

The Assessments are screened for areas that indicate potential use reduction opportunities

We also use the Assessments and the evaluation of the opportunities to select sites at which to conduct on-site assessments

a

Energy Efficiency Program – Steps in the Process

On-site assessments are done by a team of technical consultants including energy experts from other facilities (strong enabler to knowledge sharing and knowledge transfer)

Following the on-site visit, a report is delivered to the site identifying specific energy efficiency projects, capital costs, estimated savings, payback periods and implementation steps

Facility reports are shared with other facilities to increase the knowledge transfer

a

Energy Efficiency Potential Areas of Assessment

Energy use assessment Power and fuel consumption survey and analysis

Electric power demand study Demand characterization Demand management and control Load shedding study

Compressed air system

a

Energy Efficiency Potential Areas of Assessment

Kiln operations Combustion optimization Refractory investigation Heat recovery

Annealing system analysis

Hot rolling mill preheat system

Boiler house and steam system improvements

Lighting

a

An Example of One of the Findings from a European Energy Assessment

at a Location

a

Target Areas For Assessment

Production UnitsExtrusionAnodizingPainting

Energy SystemsCompressed airFurnacesBoilersExtrusion pumpsCoolingHVACLighting

a

Site Energy Profile

Annual Cost

€ 700,000

Natural Gas Usage

a

Site Energy Profile

Annual Cost

€ 1,200,000

Electricity Usage

a

Site Energy Profile

Other:Press Auxiliary PumpsFurnace FansStretchersRun-Out TableSawsLightsCranes

Annual Cost

€ 1,000,000

Extrusion Electricity Usage

a

Combined Heat and Power

Opportunity Savings(€/Yr) Investment (€)

Install a gas engine in anodizing plant

70,000 85,000

a

Combined Heat and Power

Generator

Fuel

Exhaust gases 350°F

Engine coolant 180°F to 250°F (Heat to anodizing bath)

Heated water for anodizing bath(displaces 39 Nm3/hour of gas)

Electrical Power250 kW

Gas Engine

a

Air Compressors – Extrusion

Opportunity Savings(€/Yr) Investment (€)

Compressor management

13,000 None

Leak management

Maintenance practice

a

Furnaces

Opportunity Savings(€/Yr) Investment (€)

Billet Furnaces (Recuperation potential on one)

3,000 Significant

Ageing Furnace(Recuperation potential on three)

3,000 Significant

a

Alcoa Europe Site Assessment Approach

Consulting Swat Team

Site 4

Specialists

Compressed Air

Steam System

Motors

Furnaces

HVAC

Site 1

Site 2

Site 3

Site 5

Surveys

3 Months