the european emission trading and the aluminium sector · the european emission trading and the...
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![Page 1: The European Emission Trading and the Aluminium sector · The European Emission Trading and the Aluminium sector Alessandro Profili IEA Workshop Paris, September 2005](https://reader033.vdocuments.mx/reader033/viewer/2022051509/5ae651427f8b9a6d4f8c916d/html5/thumbnails/1.jpg)
The European Emission Tradingand the Aluminium sector
Alessandro Profili
IEA Workshop Paris, September 2005
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Aluminium and ETS
•Is the European ETS achieving its goals ??
•Is it impacting sectors not included in the Directive ??
•What is the best way of including other sectors ??
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Aluminium Offers…
Innovative products
Innovative processes
While contributing to a sustainable progress !
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How aluminium is madeFirst Bauxite extraction (Guinea Boké)
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Mining and reforestation
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How aluminium is made
4 kg
2 kg
1 kg
Bauxite
Alumina
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How aluminium is madeSecond, Alumina production (San Ciprián)
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How aluminium is made
4 kgBauxite
2 kg 1 kg
mud waterAlumina
1 kg
Aluminium1 kg
CO2
1 kg
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How aluminium is madeThird, Aluminium smelting (Porto Vesme)
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How aluminium is made
• Electrolytical process, Hall Hérault (early ‘900):
Anodes
CathodeBath
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Cathode Block
Alumina Hopper
Molten Aluminium
Feeder
Gases
Fluoride Hopper
Anode
Electrolyte
Alumina Production1.0 - 1.5 t of CO2eq
Anode Carbon2.7 - 3.1 t of CO2eq
Electricity Production0 - 20.8 t of CO2eq
PFC Generation0.3 - 10.8 t of CO2eq
Fabrication
0.6 - 1.3 t of CO2eqTotal 4.3 - 37.5 t of CO2eq
GHG Emission Sources
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Aluminium and ETS
•As all non-ferrous metals, Alu currently not included in European ETS, but affected by indirect cost
•Can be considered a good “leading indicator”
•Aluminium smelting is the most electricity intensive industrial process; 15 kW/hrs needed per kilo of aluminium; 5 kW/hrs for zinc
•Electricity represents up to 40% of production costs•Global commodity submitted to strong competitive
pressure – no passing on of costs
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46
oct/04
nov/04
déc/04
janv/05
févr/05
mars/05
avr/05
mai/05
juin/05
juil/05
6
10
14
18
22
26
30
Price Power Baseload Supply (in €/MWh)
CO2 certificate price (in €/t)
CO2 certificate trade increases power price, despite free of charge allocation
Source: EEX / VIK
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14Very Strong Correlation - 95%
Regression analysis between EEX Cal 2006 and ETS
y = 0,5686x + 29,297R2 = 0,9466
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34
36
38
40
42
44
46
6 11 16 21 26EUR/t
EUR
/MW
h
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The Aluminium Industry has identified 3 main paths to reduce its Climate Change Impact
1. Reducing emissions per ton of primary metal produced through:
a) investment in modern technology;
b) attention to good operating practices.
2. Maximising the potential for aluminium recycling.
3. Encouraging applications of aluminium in transport which
reduce weight and GHG emissions from transport, a sector
responsible for a third of GHG emissions globally.
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1) Significant Reduction of Electricity Consumption for Smelters
Reduced electricity consumption at the electrolysis stage
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2) Aluminium Recycling
100%
5%
0%
20%
40%
60%
80%
100%
New Aluminum Recycled Aluminum
Recycling only needs 5% of the energy
Recycling emits 95 % less greenhouse gases
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World aluminium usage and recycling 1950-2002
05
10152025303540
1950 1960 1970 1980 1990 2000 2002
Mill
ion
tonn
es
Primary Production Used Scrap Recovery Total Usage
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Global Aluminium Supply Mix
05
1015202530354045
1960 1980 2000 2020
RecycledMetal %
% Old & New Scrap to Total Metal Consumed
Modeling indicates that the industry’s average metal supply from old & new scrap:
• has increased from 17% in 1960 to over 33% today;
• is predicted to increase to 39% by 2020.
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Global Product Inventory by Market
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
1980 1985 1990 1995 2000 2005 2010 2015 2020
000
Met
ric T
ons
Other (ex destructive Uses)Consumer DurablesElectrical - OtherElectrical - CableMachinery & EquipmentPackaging - Other (Foil)Packaging - CansTrans - OtherTrans - AerospaceTrans - Auto & Lt TruckBldg & Const
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3 – Aluminium in Transport
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22A380 – New Solutions for a Super-sized Aircraft
New alloys and solutions for very large parts
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Europe’s New Generation of Mass Transport
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Moving towards the all-alu car
The Audi A8 Spaceframe
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Innovative breakthrough to support dieselization
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Light Weighting for Performance and Energy Saving
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Aluminium Light-weighting: Impact on CO2 Emissions
1 Tonneof Aluminum
20 Tonnesof C02
Emissions
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23 21 52 17 25 29 17 66 790
10
20
30
40
50
60
70
80
Car(gasoline)
Car (diesel) City bus Longdistance bus
Average lighttruck
Averagelight-duty
vehicle
Articulatedtruck
Light dutydelivery truck
Urban lightduty vehicle
Ton CO2 Saved Per
Ton Weight Reduction Study 2003 "Energy savings by light-weighting"
Additional vehicles 2004
Life-time CO2 Savings for Road Vehicles
Light duty commercial delivery vehicles show highest relative savings
Confirmed Today’s“20 to 1” Message
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Total CO2 Savings Potential by Transport Market
0
20
40
60
80
100
120
PassengerCars
Light-dutyvehicles
Mediumtrucks
Heavy trucks Buses Short-distance
passengertrains
Long-distance
passengertrains
Long-distance
freight trains
Aircraft InternalNavigation
InternationalMarine
Bunkers
Global – Million Metric tons of CO2
Nor
thA
mer
ica
Euro
pePa
cific
OEC
D
non-OECD
Rail vehicles
Road vehicles
Ships
Air
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In summary
Despite emission reductions, total emissions would still increase due to growth in production
GHG Emissions
402
355
327
258
200
250
300
350
400
450
1990 2000 2010 2020
Millions of tons of CO2
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Aluminum Production Movement to “Today’s Best Practice”
Millions of tonnesof CO2
327 337 333345 339
200
250
300
350
400
450
2000 2005 2010 2015 2020
GHG EmissionsBest Scenario
Full Industry Adoption of “Today’s Best Practice” Could Stabilize Growth of Global Production GHG Emissions
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Millions of tons
of CO2-e
Potential Emissions Savings From Transport Growing Faster
than Al Production Emissions
Potential Magnitude of Transport Savings
202
242
290
345
411
200
250
300
350
400
450
2000 2005 2010 2015 2020
GHG EmissionsTransport Savings
Potential for Al Industry to be “Climate Neutral” By 2020
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Best Practice and Transport Savings
Millions of tons
of CO2-e
202
242
290
345
411
327 337 333345 339
200
250
300
350
400
450
2000 2005 2010 2015 2020
GHG EmissionsTransport SavingsBest Practice
Potential for Al Industry to be “Climate Neutral” By 2015 by accelerating movement toward today’s best practice
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The STORY!
The Aluminium Industry may be able to demonstrate, on the basis of GHGs, that the
net impact on society of the use of aluminum as a material is a positive contribution to the
challenge of Global Climate Change.
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The Aluminium Industry and the European ETS
1. Climate Change can only be resolved globally:
a) Not by delocalising industry away from Europe;
b) Global sector approach.
2. Maximising the recovery for aluminium recycling.
3. Encouraging the use of aluminium in transport, a sector
responsible for a third of GHG emissions globally.
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The Aluminium Industry and the European ETS revision
1. Solve the non-functioning of the Electricity market
2. Before adding new sectors:
a) must evaluate cost of abatement;
b) Must evaluate capability to pass along costs.
3. Include all gases.
4. Eliminate distortions and harmonise definitions.