Alcoa Europe Extended EC Meeting Divonne June 2002 WEC European Roundtable Alcoa Case Jürg Furrer

a Outline l Who is Alcoa l Knowledge Management accross the corporation l Energy in the Al industry  Smelting Energy  Non-smelting Energy l Energy Efficiency  Process  Example

a Alcoa at a Glance l World’s leading producer of:  Primary aluminum  Fabricated aluminum  Alumina l Active in all major segments of the industry:  Technology  Mining  Refining  Smelting  Fabricating  Recycling

a Alcoa at a Glance l 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

a Extrusion Primary  FRP ABSS Today: A Pan-European Company AFLWorld Chemicals CSI  Flexible Packaging Forgings AMP  Automotive Struct/Cast Elkem Industrial Components (Huck /Howmet)  BCS  Consumer Products                  Alcoa Europe Other Bu’s       

a EHS Challenge l Culture l Languages l Different businesses

a EHS Organization Alcoa Europe EHS Lead Team

a EHS Organization l EHS Lead Team l BU EHS Directors l Location EHS Organizations l Country Networks l Issues Networks l ……. l European EHS Shared Services (newly created; 25 people)

a Sustainable Development is the basis for the Alcoa Environmental Strategy... Sustainable Development is the basis for the 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 Wastes VOCs 50% REDUCTION TODAY 10,910 tons ,480 tons NO x 30% REDUCTION TODAY 56,300 tons ,770 tons MERCURY 80% REDUCTION TODAY 2,990 kgs kgs SO 2 60% REDUCTION TODAY 287,000 tons ,700 tons 75% with inert anodes

a Plans to reduce wastes to landfills by 50% by on the way to elimination of land filled wastes by 2015 Plans to reduce process water use by 60% by on the way to achieving zero process water discharge and “near zero” storm water discharge by 2015

a Alcoa’s Greenhouse Gas Reduction Targets 25% REDUCTION 50% REDUCTION With inert anode M tons TODAY M tons 2010 (projected) M tons 2010 (projected) M tons

a Aluminium production and life cyle

a Aluminium Production Electrolytic reaction l 2Al 2 O 3 + 3C  4Al + 3CO 2  Takes place in molten cryolite/aluminum fluoride mixture  Reaction temperature 960°C (1760F)  Formation of aluminum occurs at cathode  Formation of CO 2 occurs at anode

a Aluminium Production

a Aluminium Production : GHG Emissions

a Sustainable processes: “Inert Anode” Cathode Block Molten Aluminium Feeder Gases Anode Electrolyte  GHG from Primary Aluminium Production Two PFC (perfluorocarbon compounds - CF 4 and C 2 F 6 ) contribute about 48% of primary aluminium GHG emissions Anode Carbon 1.7 tonnes of CO 2 eq/t Al Electricity Input MWh/t Al PFC Emissions 1.6 tonnes of CO 2 eq/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 l Distribution of an “Energy Efficiency A ssessment” for the facilities to fill out l The Assessments are screened for areas that indicate potential use reduction opportunities l 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 l 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) l 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 l Facility reports are shared with other facilities to increase the knowledge transfer

a Energy Efficiency Potential Areas of Assessment l Energy use assessment  Power and fuel consumption survey and analysis l Electric power demand study  Demand characterization  Demand management and control  Load shedding study l Compressed air system

a Energy Efficiency Potential Areas of Assessment l Kiln operations  Combustion optimization  Refractory investigation  Heat recovery l Annealing system analysis l Hot rolling mill preheat system l Boiler house and steam system improvements l Lighting

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

a Target Areas For Assessment l Production Units  Extrusion  Anodizing  Painting l Energy Systems  Compressed air  Furnaces  Boilers  Extrusion pumps  Cooling  HVAC  Lighting

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 Pumps Furnace Fans Stretchers Run-Out Table Saws Lights Cranes Annual Cost € 1,000,000 Extrusion Electricity Usage

a Combined Heat and Power OpportunitySavings( €/Yr) Investment ( €) Install a gas engine in anodizing plant 70,00085,000

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 Nm 3 /hour of gas) Electrical Power 250 kW Gas Engine

a Air Compressors – Extrusion OpportunitySavings( €/Yr) Investment ( €) Compressor management 13,000None Leak management Maintenance practice

a Furnaces OpportunitySavings( €/Yr) Investment ( €) Billet Furnaces (Recuperation potential on one) 3,000Significant Ageing Furnace (Recuperation potential on three) 3,000Significant

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