(1)
Recycling
A pure bonus
Roland Scharf-BergmannHead of Recycling
• Recycling
• Market Outlook
• Recycling in Hydro
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2
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• Recycling
• Market Outlook
• Recycling in Hydro
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2
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Recycling – a pure bonus
(4)
75%still in use
5%of initial energy
to recycle
Utilizing aluminium as an energy bank
Aluminium recycling, a viable business
High rates of recycling
• 95% Transport
• 95% Buildings
• 55% Packaging (64% Cans)
Long lifetime for aluminium in use
• 15-20 years for vehicles
• 40-50 years for buildings
(5)
RECYCLING GLOSSARY
Pre-consumer scrapprocess scrap generated before the product‘s use phase
Post-consumer scrapproduct scrap from used products at end of product life
Primary aluminiumaluminium generated from bauxite ore, via alumina refining and electrolysis
Recycled aluminiumaluminium generated from scrap sources
Remelterrecycling plant producing extrusion and rolling ingot
Refinerrecycling plant producing foundry alloys
3 types of scrap are created in the regional aluminium flow
(6)
BauxiteAl₂O₃
Primary production
Primary shapes
(EI,SI,PFA,WR,IN)
Trade
Remelt shapes
(EI,SI,SFA)
Casthouse
shapes
Semis
ShipmentsFinal
products
Casthouse shapes
Trade (primary and remelt)
Semis
trade
Final product
trade
End-of-life product
trade
End-of-life
products
Unable to collect
Clean
process
scrapPCS
Melt loss
Fabrication
scrap
Clean
process
scrap
Total consumed
products in use
Post-consumed (PCS), fabrication scrap and clean process scrap (CPS)
Various scrap sorting techniques & technologies
(7)
Shredding
• Cutting scrap in
pieces without
separating various
metals
• Taking out some easy
parts before
shredding e.g.
Wheels and engines
from cars is usual
• The shredded metal
can then go on to be
sold as shredded
scrap or be treated by
sorting techniques to
increase its value
Magnetic &
Eddy current
• Magnets separating
ferrous and non-
ferrous metal scrap
• Heavy metals like
steel and iron is
sorted out
• Used extensively for
Secondary production
• Eddy Current: Rotor
with magnets to throw
scrap at different
distances in relation
to their eddy current
• Utilizing the different
conductivities of
various metals
Steel, Fe
Air seperation
• Using air to separate
scrap streams
• Also called
windsifting, air-knives,
elutriation, winnowing
and air columns
• Conveyor belt system
with air flows pushing
away light weight
materials like e.g.
plastics
• This technique could
result in loss of light
and small aluminium
scrap such as UBC
scrap
Plastics, foam
Sink float
• Separates scrap in
various baths with
various specific
gravities
• Possible to sort based
on the various metal’s
density, but also
based on alloy (Scrap
will sink or float based
on density)
• Separating heavy and
light materials from
the wrought and
casting aluminium
scrap
Mg, Cu, Zn, Pb
Hot crush
• Thermal-mechanical
separation method
• Successfully
separates wrought
and casting alloys by
looking at the eutectic
temp. as castings has
a lower melting temp
(because of higher Si
content)
• First warm, then
crush to separate
whether the metal
breaks or not
• 96% effective in
separating the scrap
Wrought vs Casting
Color sorting
• Hand sorting based
on different colors of
metals. Can also sort
wrought vs. casting
alloys
• Only possible with
low labor costs. 99%
accuracy estimated
for China
• Can also be done by
a computer, can sort
by alloy when using
etching chemicals
making alloys stand
out in color
• Environmental and
economic barrier
Metals & alloys
Spectroscopy
• X-ray, neutron flux or
pulse laser detectors
scan the metal (must
be free of lubricants,
paint and coating)
• The metal returns
various emissions when
hit by the detector
source. The differing
emissions are read and
forms the basis for the
scrap sorting
• The system can then
direct the piece of scrap
to an appropriate bin
using a mechanical arm
or air flow
• Recently possible at
high speeds
Metals & alloys
Source: Improving aluminum recycling: A survey of sorting and impurity removal technologies (Gabrielle Gaustad et. Al.)
• Recycling
• Market
• Recycling in Hydro
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Europe is the world leader in recycling
• 10,5 million mt recycling production in 2014.
• An increase of 6,1% from the year before,
• Primary production in Europe fell by 3,0%
There are more than 220 plants in 24 countries in Europe
29%
15%
9%7%
11%
7%
7%
7%
5%3%
Germany Italy France
UK Eastern Europe Austria/Switzerland
Scandinavia BeNeLux Spain/Portugal
Other Countries
Source: EEA
89% of scrap is used in Europe (EU27+EFTA)
Scrap consumption in Europe
European scrap exports
11% of the scrap generated in Europe in 2014 was exported
19%
17%
53%
11%
Use of scrap
Pre consumer casting alloys Post consumed casting alloys
Pre consumer wrought alloys Post consumed wrought alloys
~7 million mt
Source: EAA
Advanced modelling reveals long term supply growth
(12)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
5.5
6.0
2010 2015 2020 2025 2030
Alu
min
ium
in m
illio
n t
onnes
Old Scrap Collected (Europe)
Rolling Extrusion Casting
Available post-consumed scrap expected to increase.
(13)
2
22
20
34
30
4
28
36
26
24
38
10
32
8
18
0
14
12
16
6
Other Asia
North America
Europe
+5%
Other
+5%
20252005 20202010 201520001990 2030
South America
+5%
+5%Middle East
Japan
China
Other
Producing
Countries
1995
Region 10-15 15-20 20-25 25-30
Other
(Residual)7 % 6 % 5 % 4 %
Other Producing
Countries-1 % 2 % 2 % 2 %
Other Asia 6 % 7 % 7 % 7 %
North America 3 % 2 % 1 % 3 %
Middle East 8 % 8 % 6 % 6 %
South America 6 % 5 % 4 % 4 %
Japan 2 % 1 % 2 % 2 %
Europe 4 % 3 % 2 % 2 %
China 12 % 11 % 10 % 8 %
CAGR:GARC: Global old scrap to scrap market (Before trade and remelt loss)
Source: IAI
Figures in million tonnes (mio.t)
China as main source of old scrap generation growth
Current scrap trade levels not sustainable due to shrinking Chinese imports
(14)
3 000
1 000
1 500
500
2 000
0
2 500
2005
2011
-5%
USA
2008
2007
2013
2009
Hong Kong
Malaysia
2004
2001
2003
Others
2002
2010
Australia
2012
+26%
2006
2014
Source: UN COMTRADE: 7602 Aluminium waste and scrap
China scrap importFigures in kt
US scrap exportFigures in kt
1 000
2 000
0
2 500
1 500
500
3 000
-2%
2004
2013
Korea
2011
Others
2010
2009
China
Canada
2012
2007
2003
2002
2001
Mexico
2014
+17%
2006
2008
2005
Declining US exports as an effect of this
€ 700
€ 900
€ 1,100
€ 1,300
€ 1,500
€ 1,700
€ 1,900
€ 2,100
€ 2,300
€ 2,500
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN Feb Mar Apr
2013 2014 2015
LME in € DIN 226 LME + billet premium LME + ingot premium postconsumed profiles (ACL + WAZ) High grade FA
Scrap and alloy prices principally follow LME
(15)
Price development in € 2013 - April 2015
Time-lags for scrap may cause imbalances
• Recycling
• Market (UBC)
• Recycling in Hydro
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UBC scrap market in Europe
(17)
Kerbside collection
Deposit based
Bring system
Residual Waste Sorting
280 kmt of UBC are collected in Europe from a variety
of collection systems based on EAA figures.
Volumes from different collection systems
(18)
Hydro
UBC
processing
line
Deposit
based system
Residual Waste
Sorting
(RWS)
Kerbside
collection
separated
Bring system
Waste treatment
plantSorting facility Sorting facility
Non-ferrous
metal
concentrateExport
DowngradingMetal
treatment plant
Competitors
77 kmt (28%)44 kmt (15%) 96 kmt (35%)
60 kmt (22%)
Estimated annual volume based on EAA data
Annual volumes:
Cleanliness of scrap
Added value from sorting
More than 80% of European UBC come from return systems
with elevated levels of mix up and contamination.
• Recycling
• Market Outlook
• Recycling in Hydro
1
2
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The industry’s most ambitious climate strategy: Carbon-neutral by 2020
(20)
Reduce emissions,
increase efficiency
Maximize user-
phase benefits
Increase recycling,
back to the loop
Energy and
primary production
Aluminium in use
‘End-of-life’
Supported by the three pillars of Hydro’s technology strategy
Hydro’s recycling facilities
(21)
Deeside, UK • 2014 production: 51,000 tonnes
Azuqueca, Spain • 2014 production: 75,000 tonnes
Texas and Kentucky, USA • Commerce, 2014 production: 104,000 tonnes
• Henderson, 2014 production: 79,000 tonnes
Neuss (Alunorf), Germany• 2014 production: 347, 000 tonnes
Rackwitz, Germany • 2014 production: 87,000 tonnes
Hamburg, Germany• 2014 production: 104,000 tonnes
Neuss (Rheinwerk), Germany• 2014 production: 87,000 tonnes
Lucé, France• 2014 production: 52,000 tonnes
Clervaux, Luxembourg • 2014 production: 90,000 tonnes
WMR, Dormagen, Germany • 2014 production: 30,000 tonnes
Holmestrand, Norway• 2014 production: 47,000 tonnes
Karmøy, Norway• 2014 production, 23,000 tonnes
Cisterna di Latina, Italy• 2014 production: 44,000 tonnes
Technology
Hydro has developed leading scrap capabilities the last years
Scrap processing:
Shredding, magn.
& EC separation,
X-ray sorting
Continuous
delacquering
& hot transfer
Furnace concept:
Cont. feeding,
submerged melting,
electromagn. stirring
Tools
Scrap portalSystem optimization
long term
Charge optimization
on batch level
Scrap Receival & SamplingBest practices for receival and sampling, supplier evaluation, chemistry and recovery database
Material Flow AnalysisScrap availability modelling based on dynamic stock analyses and growth scenarios
Hydro in-house developed tools are
differentiating elements
Leading competence
in furnace operation
Significant scrap processing competence
built last years
Hydro leading in state-of-the-art scrap
flow model development
Best practice sharing across plants on
scrap receival and sampling
Key elements in scrap procurement and handling
Our Recycling Strategy – in short
(23)
Strategic Objectives• Better (improved margins)
• Bigger (increased capacity utilization)
• Greener (Recycling/RFA)
Establish cooperation models for scrap sourcing and processing, possibly with asset ownership
Enablers• Access to processing capacity for post
consumed and difficult scrap
• Increased sales of Recycling Friendly
Alloys (RFA)
Build on leading remelt capability to expand use of post consumed and lower priced scrap
Alt 4: Hydro investing in own
processing capabilitiesrecyclersource processor
(by recycler)collector extruder
Increased
used of post
consumed
scrap
Mixed End of Life
scrap
eddy current separator
fines
plastics,
minerals
ferrous metals
shredder
screen
(size split approx 40mm)
magnetic separator
heavy metals
cast alloysx-ray sorter
eddy current separatorplastics,
organics
bunker
decoating kiln
melting furnace
sieve fines
casting furnace
DC casting
billet / sheet ingot
Flow-sheet post-consumed scrap recycling
(25)
Strengthening of recycling position through UBC* recycling line
Establishing strong recycling position
• Fulfilling customer needs and strengthening beverage
can market position
• € 45 million investment
• Start of production end 2015
• Contribution towards 2020 carbon neutrality target
* UBC: Used beverage can
(26)
UBC shredder unit
Overview
Shredding the cans for optimal sorting
• contamination such as "plastic widgets" in special
beer cans must be exposed by the shredding
(Guinness / bitter beer)
Shredding the cans for optimal delacquering
• both sides of the aluminium can (inside / outside)
must be open
• target grain size: 50mm
Technical challenge
• scrap composition
• shape and density of scrap bales and packages
Bale braker and hammer mill
(27)
Sorting line, furnace and delaquering
(28)
Acquisition of WMR Recycling GmbH
Two-stage scrap processing
Step 1:
• Scrap shear
• Hammer mill
• Magnetic & eddie-current-sorting, sieving
• Particle size 150 – 250 mm
Step 2:
• 2 parallel cutting mills
• X-ray transmission sorting
• eddie-current-sorting, sieving
• Particle size 30 – 80 mm
Throughput (extrusion & sheet scrap)
• 12 t/h input
• Particle weight 15 – 40 g
• Sorting of 1,000 particles per second
(29)
Superior patented shredding & sorting technology
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