Power-oriented Industries

Introduction What is a power-oriented industry? An industry which needs to locate near the power resources because of the large demand for abundant energy supply with cheap transport cost of energy can be regarded as a power-oriented industry.

Features of power-oriented industries High energy consumption in production processes Requiring reliable and consistent energy supply for smoothening the manufacturing processes

Case Study - Aluminium Industries in Australia Alcoa, the largest aluminium producer in the world, operates 2 aluminium smelters in Australia.

Smelting is the process of extracting aluminum metal from aluminum oxide (alumina) through electrolytic reduction. The fundamental component of a smelting operation is the electrolytic cell, or "pot" in which this reaction takes place. During smelting, large amounts of current pass through molten alumina dissolved in a 920 - 980°C cryolite bath. This process separates out aluminum metal for removal and casting. Smelters typically operate hundreds of pots, linked electrically in configurations called potlines. Aluminium smelter of Alcoa in Australia

Aluminium Smelting Process

Why is it considered as power-oriented industry?

Evidence 1. Using power resources intensively It requires on average 15.7kWh of electricity to produce 1 kg of aluminium to produce 1 kg of aluminium. In comparison, for iron and steel industry, about 7 kWh of electricity is needed to produce same amount of output. A large amount of energy is needed

2. Energy cost : Larger % of production cost Compare to other industries, the aluminium industry spends a much larger portion of its production cost on energy. Energy cost as a large portion of production cost Source: Department of Commerce, 1999

3. Non-stop operation Smelting process has to be continuous, otherwise: Cooling down of alumina More energy for reheating Higher total energy cost the nearer to the power resources, the more stable power supply. The need of a reliable power resources

Conclusion Power-oriented A large demand for power resources Need for reliable and stable energy supply Power-oriented

∴ near HEP plants Smelting is an electricity-intensive process Cost of electricity is a key component of the cost of aluminum Alcoa’s smelting facilities are usually closely allied with power generation systems. In the cases, Alcoa operates its own hydroelectric or coal-fired power plants that provide power both for smelting and for municipal use.

What affects the influence of energy on location?

Technology advancement ＊cables and pylons are used to transmit electricity it is mobile ∴ energy can be generated everywhere ∴ free from power sources

↑Energy Efficiency Methods ceramic fiber AIM (Advanced Industrial Materials) Combustion ∴ Old production system replaced by new equipments more convenient and more productive amount of energy used in manufacturing processes decreases steadily

↑Energy Efficiency E.g. in aluminium industry, in 1950’s, it took about 21 kWh of electricity to make 1 kg of aluminium from aluminium oxide; today, only 14 kWh of electricity is needed. 25 20 Aluminium needed (kWh) 15 10 5 1950‘s present

More substitutes Development of different dominant types of energy 18th century -Charcoal, Motive power 19th to 20th century -Coal, Oil Mid-20th century -Petroleum, Natural gas, HEP, Nuclear power, Biofuels, Wind power, Solar energy Decrease in locational effect

Conclusion The technology advancements reduce the pull of energy.  Energy becomes a less important locational factor influencing on the industrial location. According to the recent trend, we can predict that with the use of more and more new forms of energy resources which are easier to be transported or ubiquitous in nature, the role of power supply in the location of industries become less and less important.