Aluminium International Today January February 2022 by Quartz Business Media

INDUSTRY NEWS

FAF REVIEW

DIGITAL MANUFACTURING

GREEN ALUMINIUM

www.aluminiumtoday.com January/February 2022—Vol.35 No.1

THE JOURNAL OF ALUMINIUM PRODUCTION AND PROCESSING

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CONTENTS 1

www.aluminiumtoday.com

Volume 35 No. 1 – January/February 2022 Editorial Editor: Nadine Bloxsome Tel: +44 (0) 1737 855115 nadinebloxsome@quartzltd.com

COVER

Editorial Assistant: Zahra Awan Tel: +44 (0) 1737 855038 zahraawan@quartzltd.com

LEADER

NEWS FAF REVIEW

Production Editor: Annie Baker

Sales

International Sales Manager: Nathan Jupp nathanjupp@quartzltd.com Tel: +44 (0)1737 855027

Forum

Sales Director: Ken Clark kenclark@quartzltd.com Tel: +44 (0)1737 855117

IAI ANNIVERSARY 11

Advertisement Production Production Executive: Martin Lawrence Managing Director: Tony Crinion CEO: Steve Diprose

Fifty years and still on a roll

DIGITAL MANUFACTURING

Circulation/subscriptions Jack Homewood Tel +44 (0) 1737 855028 Fax +44 (0) 1737 855034 email subscriptions@quartzltd.com Annual subscription: UK £257, all other countries £278. For two year subscription: UK £485, all other countries £501. Airmail prices on request. Single copies £47

Highlights from the Future Aluminium

Cover picture courtesy of GRANCO CLARK

Smelter of the future

Digital solutions to complex challenges in modern aluminium smelters

Predictive digital twins help foil industry challenges

Supporters of Aluminium International Today

The digital smelter: Why data management is imperative for digital transformation success

THE ALUMINA CHRONICLES 29 ALUMINIUM INTERNATIONAL TODAY is published six times a year by Quartz Business Media Ltd, Quartz House, 20 Clarendon Road, Redhill, Surrey, RH1 1QX, UK. Tel: +44 (0) 1737 855000 Fax: +44 (0) 1737 855034 Email: aluminium@quartzltd.com Aluminium International Today (USO No; 022-344) is published bi-monthly by Quartz Business Ltd and distributed in the US by DSW, 75 Aberdeen Road, Emigsville, PA 17318-0437. Periodicals postage paid at Emigsville, PA. POSTMASTER: send address changes to Aluminium International c/o PO Box 437, Emigsville, PA 17318-0437. Printed in the UK by: Pensord, Tram Road, Pontlanfraith, Blackwood, Gwent, NP12 2YA, UK © Quartz Business Media Ltd 2022

between the USA and Europe

ALTERNATIVE ENERGY

38 34

Aluminium International Today

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The renewables race

GREEN ALUMINIUM 38

The time for green aluminium companies to scale is now - let’s embrace it

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ANTI-CORRUPTION 42

ISSN1475-455X

A closer look at Trade Agreements

Following the MTI, a leading anti-corruption Collective Action initiative January/February 2022

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2 COMMENT

TOP STORIES

Novelis to build $365 million recycling centre

Here’s to 2022 I’m not one to set New Year’s Resolutions, but I always try and check off the obligatory things in January like exercising more and trying to eat healthier than I did over the Christmas period, when eating my ‘five-a-day’ just meant that I’d opened a selection box of chocolates... However, this year already feels like things are starting to get moving again and our lives and schedules are filling up, so one thing I want to make sure I do is not take certain things for granted again. I’m already eye-ing up the opportunities to travel again and meet with friends and colleagues at industry events. I think it was clear from any events that were able to go ahead last year, just how important these face-toface interactions are, not only for conducting business, but also for our general well-being and social selves. If you’ve got a brand new 2022 diary that you’d like to start filling up, then look no further than the Events Diary on page 4. As always, this issue has a mix of articles and features from across the aluminium value chain. The feature on digital manufacturing covers some of the highlights from the recent Future Aluminium Forum, with a look at digital solutions to complex challenges in modern aluminium smelters and why data management is imperative for digital transformation success. There’s also an interview with the Metals Technology Initiative (MTI) and we find out which companies are leading the way with anti-corruption practices. I hope you enjoy the issue! nadinebloxsome@quartzltd.com

January/February 2022

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Novelis Inc. will invest $365 million to build a highly advanced recycling centre for automotive in North America. With an annual casting capacity of 240kt of sheet ingot, the facility is expected to reduce the company’s carbon emissions by more than one million tons each year. The new recycling facility will be built adjacent to Novelis’ existing automotive finishing plant in Guthrie, Kentucky. The centre will enable Novelis to grow its closed-loop-recycling programs with more automotive customers in North America. Through

closed-loop recycling, the company takes back the aluminium remaining after automotive parts are stamped from sheets and remakes it into the same product for new vehicle production. The centre will also have the capability to process aluminium from vehicles at the end of their lifecycle. Using recycled aluminium as input material requires only 5% of the energy used to make primary aluminium, thus avoiding 95% of the carbon emissions associated with production. “Novelis aims to be the world’s leading provider of low-carbon,

sustainable aluminium solutions that advance our business, industry and society toward the benefits of a circular economy,” said Steve Fisher, President and CEO of Novelis, Inc. “Through this investment, we will continue to increase the amount of recycled content in our products, reducing our CO2 emissions and moving us closer to carbon neutrality.” The centre will be equipped with advanced shredding and sorting technology to support the sustainability goal to reduce energy intensity by 10% by 2026.

RUSAL opens new low-carbon aluminium smelter

The smelter claims to be one of the greenest in the world, operating on clean energy from Siberian hydroelectric power plants, which together with modern gas cleaning equipment and a closed water circulation system, has a low level impact on the environment. Full scope CO2 emissions will be one of the lowest in the industry. Pre-operation verifications and testing will begin today.

TaAZ is the third low-carbon aluminium smelter to be built by RUSAL, with an overall cost of more than $1.69 bn, creating over 1,000 local jobs. Once fully operational, the smelter is expected to produce 428.5 thousand tons of low-carbon aluminium per year during its first phase and will play a critical role in the town’s overall social and economic development, with

RUSAL fully committed to supporting local communities. Sales of the low-carbon aluminium produced in Taishet will be focused towards the extrusion and rolled products segments, helping to meet the high demand for low-carbon aluminium worldwide. Approximately one quarter of production will serve the domestic Russian market.

Hydro to produce first near-zero carbon aluminium in 2022 Hydro has announced its intention to deliver its first commercial volumes of near-zero carbon aluminium in 2022. “The world needs a green transition to fight climate change. This is both our most important challenge and our biggest opportunity. The world must reduce its carbon emissions and I am excited to announce Hydro’s ambition to deliver the first commercial volumes of near-zero carbon aluminium already in 2022,” says President and CEO Hilde Merete Aasheim.

The ambition to deliver near-zero carbon aluminium in 2022 will come from the use of more recycled post-consumer aluminium scrap. The ambition is to deliver first commercial volumes of alu-

minium with 0.5-1 kg CO2/kg aluminium, through the value chain, already next year. This is a significant improvement, compared with the current 2.3 kg CO2/kg aluminium in Hydro CIRCAL extrusion ingot with 75% post-consumer aluminium scrap. One main pathway suited for greenfield smelters is the HalZero technology. Hydro has been working on lab-scale development for 5 years and has developed a roadmap for piloting this to industrial scale before 2030. Aluminium International Today

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Alba sets all-time production record in 2021

NEWS 3 NEWS IN BRIEF Hazelett joins EBNER Group

Aluminium Bahrain B.S.C. (Alba) has set an operational record of 1,561,222 metric tonnes in 2021 as it completes its golden jubilee of operations. In addition, Alba hits a Safety milestone by closing 2021 with more than 20 million safe-working hours without LTI – a first in the Company’s 50 years of commer-

cial operations. Commenting on these achievements, Alba’s Chief Executive Officer Ali Al Baqali said: “Despite all odds, we closed 2021 with an exceptional performance by hitting new highs in our production - 1,561,222 metric tonnes and besting 2020 production record of 1,548, 500 metric tonnes. What

makes this milestone even more important for us is that we have nailed it without any single Lost Time Injury (LTI). “I take the opportunity to thank our employees and contractors’ personnel for raising the bar and taking Alba to new heights thanks to their dedication and commitment.”

Hazelett Strip-Casting Corporation has become a member of the EBNER Group through the acquisition by EBNER. Together with Mino, the EBNER Group will be able to offer complete process lines to the aluminium ﬂat rolled products industry featuring Hazelett twin-belt continuous casting technology.

CANPACK renewable pledge

IAI marks Golden Anniversary The International Aluminium Institute (IAI) is marking the 50th anniversary of its founding and its role in representing the global primary aluminium industry on a sustainable journey. As part of the celebrations, the IAI will put the spotlight on the industry’s people, products and defining moments of the last 50 years w h i l e looking ahead to the future. The IAI was established

in 1972 to primarily foster industry collaboration with a focus on collecting and publishing statistical data – and this remains one of the IAI’s core priorities. During the past 50 years, the IAI has been a leading voice for the global aluminium industry, providing reliable statistical data, which is widely acknowledged as credible and robust, with statistical and analytical expertise honed over several decades. Miles Prosser, Secretary General of the IAI said: “Celebrating 50 years is a unique opportunity to look back into our past and forward to the future. The evolution of our association reﬂects that of our industry too. As the world’s

population continues to grow, one thing is certain that the aluminium industry will continue to have a vital role to play in transport, aviation, packaging, infrastructure, and energy. Aluminium is one of the most used metals in the world and has the potential to stay that way for the next fifty years and more.” As part of the celebrations, the IAI has lined up a series of activities to showcase the growth of the industry and the opportunities that lie ahead. Turn to page...for the first article in a three-part series, which explores how the IAI has provided data that assists the industry in making informed decisions on key issues.

CANPACK Group has announced that starting in 2022 all of its plants across the globe will be powered using 100% renewable electricity where available, and where not available the company will purchase Energy Attribute Certificates or comparable certificates. In doing so, CANPACK believes it has become the first global can maker to make such a far-reaching commitment.

New wharf in port of Kitimat

Alcoa: Agreement on future of San Ciprián Smelter The agreement, which was signed on December 29, 2021, calls for a two-year curtailment of the smelter’s 228,000 metric tons of annual capacity, and a commitment by the Company to begin the restart of the smelter in January 2024. Alcoa Corporation and the workers’ representatives at the Company’s San Ciprián aluminium plant in Spain have reached an agreement aimed at resolving ongoing chalAluminium International Today

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lenges that stem from exorbitant energy prices. “With this agreement, we now have a path to resolve the significant challenges that the facility has faced and can begin to build a stronger smelter in two years,” said Roy Harvey, Alcoa President and CEO. Curtailment activities began on January 1, 2022, with the goal of completion before the end of January 2022. During the curtailment

period, Alcoa will seek to secure as soon as possible long-term power purchase agreements, beginning from 2024. Also, the Company has committed $68 million for capital investments and $35 million for restart costs. As part of the agreement, workers will immediately cease a strike action that has affected both the aluminium smelter and the alumina refinery.

Rio Tinto and LNG Canada have opened a newly extended wharf that will increase the capacity of Rio Tinto’s port facilities in Kitimat and support economic diversification in Northern British Columbia. Rio Tinto will use the new wharf for imports of alumina, anodes and other supplies for its operations, and exports of lowcarbon aluminium made at its BC Works smelter. January/February 2022

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4 NEWS

www.aluminiumtoday.com

Aluminium beverage can recycling remains at a 76% high A new report by Metal Packaging Europe and European Aluminium shows that the overall recycling rate for aluminium beverage cans in the European Union, Switzerland, Norway and Iceland remained stable in 2019 at 76% (75.8%). Increased consumption in 2019 led to record number of 36.5 billion cans being recycled, or 488,000 tons of aluminium, saving 4 million tonnes CO2. Can manufacturers (members of Metal Packaging Europe) and their aluminium suppliers (members of European Aluminium)

welcomed the new result but say that with some extra effort, the recycling rates could go even higher. In March 2021, the two industry associations launched their joint Roadmap towards 100% can recycling by the year 2030. This ambitious target can only be reached if existing packaging collection systems in Europe are further improved or replaced by well-designed deposit return systems for beverage cans and other relevant beverage containers. “With an increasing demand

for fully circular packaging systems, the aluminium beverage can, which is made from an endlessly recyclable material, is the ideal alternative to less sustainable packaging options,... We now need to work together to make sure that even more used cans are correctly disposed of and recycled so that we reach our ambitious 2030 goal. We are confident that the credentials highlighted in our Metal Recycles Forever logo will incite consumers to do just that,” said Léonie Knox-Peebles, CEO of Metal Packaging Europe.

Sortera Alloys announces funding Sortera Alloys has announced $10M in funding led by Breakthrough Energy Ventures. This builds on earlier funding from Chrysalix and the Department of Energy Advanced Research Projects Agency-Energy (ARPA-E). The funding will be used to scale operations and grow the team, with initial efforts targeted at high-quality industrial metal recycling from automobiles. Sortera Alloys brings advanced artificial intelligence (A.I.)-powered image, data analytics and sensors to the industrial reuse industry. The company’s first prod-

ucts include sorted aluminium alloy feedstock, which is a $10B+ market. Sortera operates from a 10-acre facility in Fort Wayne, IN and its first mass production plant is under development and will be operational in 2022. The company has been shipping trial truckloads of aluminium feedstock - cast, sheet and extrusions - for the past few months from its pilot scale plant. Sortera’s technology drives new opportunities for multiple industries by generating new high purity recycling products through advanced industrial scale sor-

tation methods. Creating novel high purity recycled (and up-cycled) metal feedstocks from existing scrap streams enables ready for use supply of metals and alloys for high quality domestic manufacturing. Sortera’s A.I. powered sorters have the capability to both upgrade feedstock streams and also remove unwanted contaminants. The upgraded streams can then be used to make new products in markets ranging from automotive cast and ﬂat-roll products, building and construction, aerospace and consumer packaging.

Trilateral Partnership to address NonMarket Policies and Practices The aluminium associations of the United States, Europe, Canada and Japan have welcomed the commitment of Ministers to “... renew their Trilateral partnership to address the global challenges posed by non-market policies and practices of third countries that undermine and negatively affect our workers and businesses.” In a joint statement, Ambassador Katherine Tai, United States Trade Representative, Mr. Hagiuda Koichi, Minister of Economy, January/February 2022

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Trade and Industry of Japan, and Mr. Valdis Dombrovskis, Executive Vice President of the European Commission, agreed to focus their efforts on identifying problems due to non-market practices, gaps in existing enforcement tools, and areas where further work is needed to develop rules to address non-market practices. In welcoming the renewal of the Trilateral partnership, Gerd Götz, Director General of European Aluminium, Ryan Olsen, Vice President for Market Growth

& Development of The Aluminum Association, Jean Simard, President & CEO of the Aluminium Association of Canada and Yasushi Noto, Executive Director of the Japan Aluminium Association said: “We fully support this partnership and stand ready to contribute to its success. The aluminium industry across our regions is already working together to ensure that we have the best available information on the sources and the impacts of international market distortions.”

2022 DIARY February 2022 27th - 3rd March TMS 2022 The TMS Annual Meeting & Exhibition brings together more than 4,000 engineers, scientists, business leaders, and other professionals in the minerals, metals, and materials fields for a comprehensive, cross-disciplinary exchange of technical knowledge. Held in California, USA www.tms.org

March 3rd - 5th Aluexpo Leading local aluminium producers and global supplier companies will showcase their products and technologies to the visitors. Held in Istanbul, Turkey www.aluexpo.com

May 3rd - 5th ET 2022 The Aluminum Extruders Council (AEC) and the ET Foundation have announced the rescheduled dates and location for the Twelfth International Aluminum Extrusion Technology Seminar, previously postponed due to the coronavirus pandemic. Held in Florida, USA www.ET-21.org

June 7th - 9th Harbor’s 14th Aluminium Summit The 14th Harbor Aluminium Summit offers the opportunity of networking with +700 metal suppliers, clients, brokers & industry players and connecting with decision makers from +360 companies across the value chain. Held in Chicago, USA. 28th - 29th Sustainable Industrial Manufacturing (SIM) Europe Hosting leaders from the worlds of science, innovation, government, industry, and investment, SIM Europe will provide an opportunity for those at the frontier of energy intensive industrial manufacturing to collaborate and deliver real change. Held in Brussels, Belgium www.sustainableindustrial manufacturing.com For a full listing visit www.aluminiumtoday.com/ events Aluminium International Today

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6 FUTURE ALUMINIUM FORUM

Highlights from the Future Aluminium Forum The Future Aluminium Forum opened its two-day online event on Wednesday 1st December, 2021 with more than 200 attendees. The event provided its delegates with a detailed platform, which contained a full conference program, exhibition centre, networking centre, resources and more. Opened by Nadine Bloxsome, Programme Director and Head Editor of the Aluminium International Today magazine, she noted that the digital event hopefully marks the end of the hardships presented by COVID-19 as there is hope of holding the event live and in person in 2022. The first presentation of the conference was given by the keynote speaker André Barten, President and CEO of Achenbach Buschhütten GmbH &Co. KG. Representing the company, which was founded in 1452, Mr Barten discussed the steps the company take towards a more productive, efficient production. Introducing the ‘Green, Lean, Digital’ concept, he stated that by ‘saving emissions [you in turn] save resources and save money.’ This concept was followed by data analysis proving, as an example, that a faster rolling speed is more productive as it uses less energy, less time, whilst producing more material with lower Carbon footprint. Mr Barten also introduced listeners to the companies Optilink Systems which is designed to optimise production as previously discussed. Following Mr Barten were two Hatch speakers, Thessy Moodley, Regional Director – Digital AEM and Daniel Richard, Subject Matter Expert – Aluminium processing. Discussing the role of Artificial intelligence in the new Hatch Blast Furnace Digital Twin and its potential in other areas. The two focused on the integration of intelligent technology from a cellular level through to the end product, analysing data collected to better understand the changes and its effects. After a Networking break, where delegates were able to interact from across the globe – from Turkey to Norway, Singapore, Austria and Dorset, Johann Reps, Global Technology Manger for Digital Innovation, Connected Worker and Automation, spoke on behalf of Alcoa. Starting off with an introduction to the company, which has 25 manufacturing facilities globally and employs around 14,000 people, Mr Reps introduced listeners to the importance digitalisation when connecting the global January/February 2022

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company. Noting that each country will have various cultural difference when it comes to work, Alcoa aims to ‘create a uniform integrated working method, whilst respecting cultural differences.’ Introducing a digitalised recording and monitoring system, whereby workers can log and keep up to date with the workplaces developments and needs, Alcoa provided a platform which improved communication between departments, increased the completion of planned work and saved 40 minutes- 1 hour in time with assignment prioritisation. Mr Reps presented his audience with an example of how Industry 4.0 is also essential to optimising humans in the production line, and how it is designed to improve human performance rather than replace it. Next was Fives representative Sébastian Gauguier, CEO of Fives Aluminium sector. Mr Gauguier discussed the digital tools designed by Fives: � Process Optimisation � Equipment Health Monitoring � Advanced Control Sensors � Tracking Systems With

these

digital

tools

and

implementations, Mr Gauguier stated that the ‘digital solutions allow for factual data-based designs.’ Fives’ digital tools aim to provide a tailored design for each customer, where their products are ‘personalised in response to our deep understanding of our costumers’ needs’, Mr Gauguier explained. He continued, ‘we have access to billions of data sets which can be used to update and customise our product to draw the efficiency from their smelters…[we aim to] create additional value with digital solutions.’ Hans Erik Vatne, Chief Technology Officer and Interim head of Battery Technology at Norsk Hydro, presented next on the’ Digital experiences in Hydro.’ Discussing three key categories of Industry 4.0: Automation, Digital Twins and Creating Value from Data. Automisation covered the successes and targets for the automisation of practices and robotisation. One example presented by Hydro was their ‘digital maintenance toolbox which improved the lifespan and reduced the risk for workers’. Moving onto the Digital twins, Mr Vatne emphasised the importance of hybrid intelligence: Using both automated and human Aluminium International Today

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FUTURE ALUMINIUM FORUM 7

knowledge as previously noted by Johann Reps. Mr Vatne stated, ‘data science is not the solution to everything, we need a combination of artificial intelligence with our own human competence’. This then moved onto the final topic of creating value from data. In conclusion, ‘digital tools amplify learning’, I Robot has taught us of the threats trusting technology. To conclude day one of the Future Aluminium Forum, Jonathan Silvestre, Systems Engineer at AVEVA spoke on ‘How a Data Platform Powers Digital Transformation in the Aluminium

Industry’. Mr Silvestre stated that, from research on aluminium producers, ‘looking forward, 74% of respondents believe that a Data Platform, AI and Machine Learning will have the biggest impact in the next 12 months… but this will come with challenges.’ Using digital transformation, AVEVA presents a method of digital transformation where it requires the ‘consolidation and organisation of data to allow advanced analytics and visualisation’. With this, a data platform can become available where it can be analysed and integrated. Mr Silvestre

“Prediction is very difficult, especially if it is about the future” Niels Bohr

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emphasises that the digital transformation of the industry is a journey. Opening the second day of the event was Juliana Bruwer, Solution Management and Sustainability Expert, Mills Products and Mining Industry Business Unit at SAP. Ms Bruwer quoted SPA CEO Christian Klein that, despite the industries infamous contribution to global emissions, ‘together as intelligent enterprises, we can turn the worlds biggest challenge into our greatest opportunities.’ SAP aims to assist companies with end-to-end sustainability using digitalisation and technology to utilise the best of the industry. One example being the evaluation of global recourse shortages using digital analytics and connecting the world to bridge any gaps and create transparency. Ms Brewer went on to explain the ‘Three Zero’ approach taken by SAP, whereby all aspects of sustainability are considered: � Zero Emissions (climate action) � Zero Waste (circular economy) � Zero Inequality (social representation) However, she also emphasised the companies understanding that ‘not one size fits all.’ With this in mind, the company aims to adapt and personalise their product to each customer, similar to Fives. Moving on, Craig Phasey, solutions from EnergyFlex, presented on ‘Dynamic Control for Carbon Neutral Industries.’ In his presentation he discussed the benefits of Variable energy Systems. Mr Phasey cover several topics mentioning the benefits of a Hybrid Twin (also noted by Mr Vatne), and the use of digital operations which, he states ‘[provides] operators with what did happen, is happening and what will happen’. Mr Phasey went onto emphasise that the adoption of variable energy is key to the aluminium industries transition to sustainability. ‘Green aluminium will underpin renewable energy’’ Speaking next was David D’Aoust from PyroGenesis. He began his presentation with a global overview on the climate crisis and emission levels, his figures stated that the industry sector contributes to 21% of global emission, which he believes PyroGenesis can reduce as a part of their ‘ethical duty.’ Having presented previously at the Future of Furnace event which took place in September 2021; Mr D’Aoust discussed the benefits of the company’s product, the plasma torch. The plasma torch has zero combustion, therefore reducing the emissions to zero. With this PyroGenesis urge the entire industry to convert to the more sustainable and efficient heating method over traditional fossil fuels. Mr D’Aoust went on to discuss how companies can utilise the waste product, Dross, whereby January/February 2022

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8 FUTURE ALUMINIUM FORUM

“RiA Cast House is helping make industry 4.0 possible.” Mark Bumford, Sales Director at RiA Cast House 2-10% of production is lost. PyroGenesis aims to have a closed loop production, including Dross into the production line. One example of this in place was at the UAE smelter, Ma’aden. To conclude, Mr D’Aoust summarised that the industry must decarbonise primary and secondary production of aluminium and eliminate waste stream landfills. After a brief networking break, where there were over 60 delegates online and interacting, Polina Gurnane, data analyst and Hilbrand Kuiken, CEO for Quantillion gave their presentation on ‘implementing Automated Guided Vehicles (AGVs) with Quantillion’s Traffic Management System (TMS): Automated Anode Transport.’ Quantillion aims to ‘connect all assets of a plant into a unified dynamic data system and implement intelligent algorithms over the systems using AI.’ A key issue that they deal with, for example, is safety of workers. Replacing people with technology reduces health and safety risks dramatically. This, however, creates a secondary issue of a barrier between humans and understanding the technology efficiently. ‘With technology improving, humans are unable to analyse data’, meaning the technological solutions are not long term. This is where Quantillion bring TMS. With TMS, AGVs can be integrated withing the system whist also being presented in a way understandable to humans. Quantillion enables ‘collaborative intelligence’ between humans and AI. Following the two Quantillion speakers was Thore Hauptmann, Key Account Director, Visavi. Presenting the audience January/February 2022

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with Visavi’s solution to improving a company’s operational efficiency, Mr Hauptmann introduced the digital tool designed to improve human performance. With the use of the digital tool, clients found a ’25% increase in tool time’ and a ‘utilisation of 30% increase in floor staff’ as well as an ‘increase of plan attainment by 80%.’ Mr Hauptmann stated that Visavi ‘aim to present the whole picture, to use the resources available to their full extent.’ The tool is designed to make plans realistic, tackling issues in real time by the intervention of digital technology and smart systems. With ‘500-1000 changes to planned activities taking place per day at a medium to large plant’; where plans often scheduled by multiple people with different agendas and from different teams are then unable to come together to replan in a efficient manner, the digital tool is designed to make plans come together in the fastest way. The system provides a solution, prioritising optimising resources to operate smarted and meet requirements. ‘Prediction is very difficult, especially if it is about the future’ – Niels Bohr. Gunther Schober, Sales Manager at PSI Metals Non-Ferrous, started his presentation on ‘predicting the future is a matter of trust’ quoting Niels Bohr, Nobel Laureate in Physics. Looking at the complexities of prediction when looking at the stages of aluminium production, Mr Schober states that machine learning is the key to resolving the complexity of prediction. Using ‘machine learning interpretability’ where the acquisition of

data is then revalued and retrained to explore defects. However, reiterating a common theme across the forum, ‘we do not trust data we do not understand.’ With this in mind, PSI have ensures a detailed breakdown of predictions to allow communication between intelligent software and humans. The penultimate presentation of the event was presented by speaker Steffen Zendler, Asset Performance Management for Metals at Rockwell Automation. Mr Zendler presented a tool designed to bridge the gap between the automated technology and human intelligence, regarding a more efficient outlook on the maintenance of machinery. ‘Maintenance cost takes between 10-15% of a total production cost’, but with the use of digitalisation provided by Rockwell automation these costs can be reduced. The Reliability- Centred Maintenance (RCM) tool is designed to monitor the performance of machinery, to ensure ultimate optimisation and efficiency. By implementing ‘predictive and protective actions’ companies can optimise and prevent run to failure of their technology. With these implementations, ‘downtime can be reduced to 20-40% and reduction to maintenance to 15-30%.’ Mr Zendler finishes with the statement that ‘[the] more information and integration a RCM has today, the better the performance will be in the future.’ Closing the event was surprise speaker Mark Bumford, Sales Director at RiA Cast House. Discussing the benefits of an infurnace camera, first implemented by RiA Cast house in 2014, which was designed to ‘remove operators from risky stages of the melting process.’ From this safety concept, the camera has become an integral piece enabling the transition to an Industry 4.0 production. Developing the cameras from just giving an image, now paired with Furnace Monitoring Systems they can measure, create data, and respond to data by completing tasks, without risk to humans.The cameras allow for an optimal melt cycle, provide lasers that reduce short length reject and accurately measure for data sets as well as the furnace monitoring systems providing trouble shooting and diagnostic. Mr Bumford ended with the statement, ‘RiA Cast House is helping make Industry 4.0 possible.’ The Future Aluminium Forum provided the industry with a platform to keep connected. Using technology to keep us connected during the difficult times presented by Covid- 19; we can now hope for a brighter future, where we hold in-person conferences and where the technology enabling the transition to Industry 4.0 production develops further. Together we can make the future possible. � Aluminium International Today

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18/01/2022 14:06:38

IAI ANNIVERSARY 11

Fifty years and still on a roll The International Aluminium Institute (IAI) has been key to bringing the industry together on shared purpose over the last 50 years. In celebration of its 50th Anniversary, Aluminium International Today will share a series of articles, looking at the establishment of the IAI and the past and future challenges still faced by its members. In this first article, we explore how the IAI has provided data that assists the industry in making informed decisions on key issues and the role environmental stewardship played from day one. By Nadine Bloxsome*

While preparing for this article, I enjoyed reading minutes of the past IAI AGMs and Board Meetings from the last 50 years. They made for fascinating reading and most notably, at the first Board meeting, it was agreed that ‘a Statistics Committee be set up to study the possibility of producing stats for primary aluminium’. Stats and facts Over the years that have followed, IAI

members and other aluminium sector representatives have been given access to these credible and robust statistics, datasets and modelling, which form the backbone of messages used for the global industry and enable the audience to make informed decisions. These statistics have evolved over the years to include many more energy and Greenhouse Gas (GHG) datasets and modelling, which continue to underpin

the work of the IAI. The way in which data has been reported has also seen a huge amount of change since the 70s. Nadine Faldo, Manager – Finance & Statistical Reporting, is the longest-serving member of the IAI Secretariat (nearly 29 years) and works closely with sources to ensure that production data is reliable and regularly published: “The IAI statistical collection has always relied on the voluntary contribution of data by Member

* Editor, Aluminium International Today Aluminium International Today

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January/February 2022

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12 IAI ANNIVERSARY

and Non-Member producing companies. I am grateful to all the reporters that have provided data, some of whom I have corresponded with every month for many years. Without their co-operation and prompt responses, there would be no data to publish.” “The most significant change is how we collect and communicate the stats to the world,” continues Nadine. “In the 70’s and 80’s we relied on international mail and a telex machine that took two full days to type and send messages to our Members and Reporters. At 11 am on a publication day we would have a queue of couriers waiting at the door to bike the latest data to agencies such as Reuters and Bloomberg at their offices in London. Early in the 90’s we progressed to a fax machine, which cut labour time sending the data to one full working day feeding sheets into a machine. We still mailed published data at this time. Then came computers and the ability to email in the early 90’s and labour time was reduced to seconds and mailing costs reduced to zero. Today we email our figures to approximately 200 people, the data is available on our website at 11am on a publication day and we share on social media platforms.” More recently, those of us who are avid followers on LinkedIn will have also seen the weekly ‘Monday Stats Post’, which is published by the IAI’s Director – Scenarios & Forecasts, Marlen Bertram, and highlights how technology has also

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played a valuable part in helping to share information not only with members but also to a wider audience from across the sector in an easily digestible format. With online statistics now the norm, the new, updated IAI website is also home to a host of statistics and reports, which are made available for members and interested parties. These are updated regularly and in order to see just how these are welcomed by the industry and the essential role the IAI plays, I spoke to a few familiar faces… An essential forum “The IAI is the only forum where the global aluminium industry can collaborate to address issues that impact reputation and performance at a whole-of-industry level,” says Miles Prosser, the current Secretary General of the IAI. “This has been essential on issues that are specific to the aluminium industry – such as the management and utilisation of bauxite residue; but also on broader issues where the aluminium industry must demonstrate it is playing its part – such as reducing greenhouse gas emissions.” One of the strengths of the aluminium industry is the rigorous and scientific approach to issues, which as Miles highlights, enables the sector to “take a confident and transparent approach in comparisons to competing materials.” Developing data “The IAI has adapted to the changing landscapes of the industry and one of the

best examples it gives here is developing data to respond to challenges,” says Eirik Nordheim, Manager Aluminium REACH Consortium, European Aluminium. Eirik has been involved in the industry since 1970, with an EHS role from 1978. He supports the IAI in handling and interpreting data and proposal for data collection. “I think a memorable moment was how the Health Committee decided to tackle the suggested cancer risk for employees in the early 1980’s and managed to get a top international scientist to help with collecting and interpreting data on cancer risk and communicating this,” he continued. The ‘go-to’ for data As well as forming the basis for investigations and projects, the IAI has worked to provide relevant and up-todate industry data that can be applied across key areas. Marghanita Johnson, Chief Executive Officer of the Australian Aluminium Council Ltd, speaks fondly of the IAI and how it has helped shape other organisations and associations. “The IAI data has always been my ‘goto’ for industry data – from when I was a young graduate to now, looking at the IAI’s modelling of a beyond two degrees 2050 net zero pathway for the industry,” says Marghanita. “The level of sophistication has grown from being data collection and reporting

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historic industry level, to the long term flow models we see today. The work the IAI has done on global pathways has helped inform the work the Council has recently completed on what the Australian decarbonisation pathways look like.” Hilde Merete Aasheim, who was the first female Chair of the IAI Board, also supports the importance behind the IAI’s findings. “The IAI’s data is among the best in the industry, as they cover a large part of the aluminium production and an extra advantage is that the data is consistent over time,” says Hilde. “This is important and useful for the industry itself, but also for political decision makers, NGOs, financial markets and other stakeholders. I would say that the role of providing credible fact-based knowledge is one of IAI’s most important and successful contributions.” What you do with data As Marghanita notes, the work of the IAI forms the framework for a number of industry projects and pathways, but it is important to also ensure this data and information is utilised in the best way possible. John Hannagan, Chairman, Rusal Australia, says: “The IAI can be a useful archive of information and data which may assist companies in making informed decisions.” John also commented on the importance of data and research in a health and safety capacity, similar to the memorable Aluminium International Today

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moment mentioned by Eirik. “One of the most important functions of the IAI from very early in its history has been the focus on health and safety,” he continues. “Messaging on both health and safety is probably the most difficult task that confronts communicators within companies and regulatory agencies, so having an industry wide approach with a focus on data and research was welcomed.” Daily data The data and what we do with it can also filter into our daily lives, as Pernelle Nunez, Deputy Secretary General/Director – Sustainability, IAI says: “I actually think the data goes far beyond assisting just the industry! Having reliable data is vital to so many stakeholders – from users of aluminium to specifiers to financiers – there’s a long list.” “I’ve even used some of our data when making decisions in my own dayto-day life from choosing aluminium packaged goods over other materials for its recyclability, to choosing aluminium windows as part of my recent home renovation because of their longevity and low maintenance. The data really serves many, many purposes!” Adapting to challenges It was also agreed at the first Board meeting ‘to establish an Environment Committee to consider national regulations with regards to the constraints

imposed in primary aluminium smelting and measures to address this’. The issue of red mud disposal was highlighted at this meeting and continues to be a topic for discussion in the present day. “One of the biggest challenges faced by the sector over the last 50 years is dealing with red mud/bauxite residue and SPL in a society which is growingly negative on pollution and focussing more on ESG issues,” says Ken Evans, who is also celebrating an anniversary of his own after 50 years working on aluminium/alumina research at the British Aluminium Research Division, which then became Alcan, then Rio Tinto Alcan, and now just Rio Tinto. Ken provides expertise and direction to the Bauxite and Alumina Committee area of the IAI and is still actively involved with the industry. “I have lived through all the changes in the industry since 1971,” he continued. “One key area of change which the IAI have spearheaded is how red mud has been viewed. In the 1970s, no one considered it worthy of consideration, it was that dreadful red stuff left at the end of the process which you tried to forget about, since you produce nearly three tonnes for every tonne of aluminium, that is a huge volume so could only be hidden for so long. “Today we produce about 160 million tonnes a year globally, but there is a huge focus and desire to find uses for red mud, or bauxite residue as we now prefer to call it. The IAI has been involved in several projects looking at best practices for its January/February 2022

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management and opportunities for use. Last year, the IAI published a technology roadmap on maximising the use of bauxite residue in cement. The increased corporate focus by major companies on ESG goals and the drive to the circular economy to save global resources should mean that some of the promising ideas will now come to fruition.” This example given by Ken demonstrates that the IAI has provided a forum to address environmental issues from the very start and it remains on the agenda, especially as more and more areas of the industry are accountable for their actions. The green transition challenge The IAI is strong where industry is united and naturally has a challenge on issues where members have different interests – but also a role in bringing the industry together on difficult matters. “I see the green transition and adapting our industry to the zero-emissions society as the most important issue for the aluminium industry, and I see a key role for IAI in guiding in this transition,” says Hilde Merete Aasheim. “The IAI has brought member companies together to discuss how the industry can reduce emissions and to understand the pathways needed to reduce the emissions from our industry. Well before 2050 all aluminium should be produced on renewable energy and with no direct emissions, and all companies have different and difficult paths to pursue this ambition. Here I see a crucial role for the IAI to unite the industry with all its different challenges and opportunities.” Greenhouse Gas Pathways More recently, the IAI has ramped up its work towards a more sustainable aluminium supply chain and in March 2021, a new report was released: ‘Aluminium Sector Greenhouse Gas Pathways to 2050’, which sets out three credible and realistic approaches to emissions reductions for the aluminium industry, in line with the International Energy Agency’s Beyond 2 Degree Scenario. The pathways are based on the IAI’s unrivalled data and leading analysis of the global aluminium industry. January/February 2022

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The IAI continues to progress this work by providing a forum for open discussion and transparency as the global sector works together for a better tomorrow. “The biggest challenge the industry has faced and will continue to face for some time to come is how to decarbonise an inherently carbon intensive process from mine to market,” adds Marghanita. “The first part of this journey was the control of perfluorocarbons (PFCs) which started more than 30 years ago, but the challenge is now to reach net zero. I also see that over time, we will become more aware of social impacts of the industry.” It is these social impacts that are also being translated through the IAI’s messaging and reports like this one offer members and the whole sector a chance to see how best changes can be made and the efforts that are needed to make a real difference when reaching decarbonisation targets. “Continuing to meet the growing demand for aluminium while mitigating the impacts of production is also going to be important for the next 50 years,” adds Pernelle. “Aluminium products can provide solutions to some significant global challenges such as climate change and sustainable development, but it is important that we as an industry make sure that overall we have a positive impact on the environment, the communities in which we operate and broader society.” Industry standards It was back in 2016 that the IAI and the

Aluminium Stewardship Initiative (ASI) signed a Memorandum of Understanding (MoU) to collaborate in their respective efforts to support continuous improvement in the performance of the global aluminium industry and the sustainable use and recycling of its products. This was another step in the right direction for the ‘Environment Committee’ proposal from the first Board meeting and saw the IAI join forces to support common approaches where relevant, and pool collective experience and knowledge. If we’ve learnt anything over recent years, when it comes to decarbonisation, we need a collaborative approach! “The IAI and ASI have both developed to address emerging challenges. IAI was incorporated in response to the increasing globalisation of the aluminium sector, emerging out of the energy crises of the early 1970s. ASI developed more recently in the context of a more complex, postglobalised world with a broader set of stakeholders,” says Dr Fiona Solomon, Chief Executive Officer, ASI. “The longevity of IAI is a testament to how it has adapted to emerging risks, and its positive engagement with ASI shows it continues to step up to sustainability challenges for the industry after five decades,” Fiona continues. “We have enjoyed positive working relationships between our two Secretariats over many years through to present day. In 2022, we are looking forward to collaborating on two important technical projects: One on a 1.5°C-aligned sectoral decarbonisation approach for the global aluminium industry, and another on climate-related health and safety risks. Working with ASI and broader stakeholders, IAI is creating a valuable forum to convene this work and enhance consistency across multiple initiatives.” Given the green light The challenges in the aluminium industry landscape over the years have always been addressed by the IAI and as John Hannagan quite rightly comments: “The role of the IAI is to provide a forum for the exchange of ideas. Leadership and change must and can only come from the Aluminium International Today

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industry and its members.” “A challenge which still has a very long journey, both at a political level and technology is that of decarbonising the industry so that aluminium can continue to play its fundamental role in the building and renewal of society’s needs including packaging, housing, transport, energy and communications,” he continues. “The IAI established a member driven greenhouse working group to develop a pathway to net zero emissions by 2050. This working group has been the most productive and engaged of any committee that I have been part of in 35 years. It is a very tangible demonstration of the commitment of the industry to meet society’s needs in a sustainable manner.” Organisations like the IAI are also critical to building trust among members and the general industry, as Pernelle adds: “Bringing industry together with their diverging views and differing priorities can be challenging but in order to work collaboratively, trust is vital. Organisations like the IAI also help to build expertise and focus resources and efforts to move industry issues forward as efficiently and effectively as possible. Even though many of our members are direct competitors, through the IAI they have found a way to work together towards a shared vision.” Message Pillars Returning to the vast pages of minutes that I have to hand, the second Board Meeting in 1972 continued to set out the pillars on which the IAI would form its strength. Other early focuses include: ‘To develop data on present supply and demand for total aluminium metal and economic factors affecting future demand’; ‘Priority is given to the preparation of authoritative survey of national and local legislation and regulations for the control of emissions of fluorine and its derivatives. Committee to report on the adequacy of the methods at present to measure emissions’. As the IAI moves into its 50th year, these key pillars have been renewed and refreshed along with a new tagline that will be used not only throughout the celebrations and communication activities in 2022, but beyond. The tagline draws from the three message pillars:

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VOICES FROM THE PAST This excerpt was drafted by his Son, John Martyn, and emanates from his ‘correspondence’ when he entered into post retirement. “I had a wonderful time at the helm of the IPAI for nearly 20 years. It was not without its challenges at the start, but my training as an aeronautical engineer, ﬁve years in the Royal Navy in WWII followed by being called to the Bar during my 27 years at British Aluminium, gave me the technical, commercial, diplomatic and ambassadorial skills necessary to try and bring a worldwide aluminium community together.

Peter Martin was the ﬁrst Secretary General from 1972 - 1989.

It was a privilege working with so many members of the Institute, be they chairmen, chief executives, directors, owners and other trade institutions such as the London Metal Exchange. I even appeared on Bahrain’s national TV station and it was an honour to meet Sheikhs from that nation and business leaders from many others, some of whom became ﬁrm friends.

lawyers and the like. We played our part in helping to largely rid the industry of asbestos and analysing and remedying where possible the environmental impact of bauxite mining. Furthermore, some member companies harnessed and utilised the excess energy created in producing primary aluminium such as the desalination plants in Dubai.

However, the Institute wasn’t merely a compiler of statistics. Even then, environmental concerns were developing, but my task was made ever easier with the help of experienced colleagues, distinguished academics, medical professors, epidemiologists,

I feel I have left the Institute in good hands and I hope it will continue its good works long after I have gone.”

Demand by sector 2050 % scenario 1

Postscript: In celebrating its 50th Birthday, the Institute clearly has. Many Happy Returns.

Consumer Other durables 13% 5% Electrical 10%

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Building & Construction 25%

Packaging 12% Transportation 27%

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Aluminium, shaping a better tomorrow The three pillars cover Product, People and Progress and each has two aspects: � Product – looks at how aluminium is essential to everyday life and how it contributes to a more sustainable society; � People – humanised aspect to it, which demonstrates the diversity of the industry’s workforce around the world and how the sector creates employment and economic opportunity wherever it operates; � Progress – demonstrates how the industry is progressing its own sustainability supported by the IAI who through unrivalled data modelling, industry-wide cooperation and advocacy, helps its members to achieve the change the world needs. Looking to the future In speaking to these influential industry figures, it is very clear that the IAI plays an essential role for the industry, by bringing

a diversity of voices together to tackle the big issues in a united way. Tolga Egrilmezer, VP Aluminium Sales and Marketing for Rio Tinto, and Vice Chairman on the IAI Board sums it up very nicely: “The Institute’s work to articulate the value of aluminium as a material of choice in our modern world is invaluable and is a focus we look forward to seeing continue. It’s in the interests of all in the industry to have a strong, intelligent advocacy position on the benefits Process emissions of aluminium against competing materials.” “The IAI provides a critical forum for sharing robust data and best practices to encourage on-going improvements in safety and sustainability across the industry,” he continues. It was also very interesting to hear how the IAI has played a more personal role and has developed over the years with an inclusive look at industry challenges and

those of the people working within. As Hilde Merete Aasheim comments, “I remember many good discussions and meetings in IAI. But, if I had to pick one – it would be the first meeting as the first female chairing IAI.” With the supporting members and a strong team leading the charge, the IAI looks set to continue shaping the aluminium sector for the next 50 years and beyond. “While all companies understand, and are active, in demonstrating the sustainability of production and the benefits of their products; the IAI remains the only forum where the industry can collaborate and demonstrate those benefits compared to competing materials,” concludes Miles. “It is only through activities such as this that the overall market for aluminium and the advantages to consumers can be enhanced.” �

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The smelter of the future Interview with Hilbrand Kuiken, CEO of Quantillion Technologies As reported by AlCircle in 2019, only 11% of interviewed aluminium specialists were already deploying Industry 4.0 projects in their plants. Even in 2021, many plants are still in the research and planning phases of this transformation. Year by year the number of new technologies is growing as is the number of suppliers, it is becoming increasingly complex for smelters to interconnect all those solutions and parties into a clear path towards the successful implementation of Industry 4.0. However, with the technology on the rise and growing demand for aluminium,

leveraging the technology of Industry 4.0 is fast becoming the only way for the producers to remain competitive in the future world of smart manufacturing. Only by embracing the idea of collaborative intelligence smelters can realise the full benefits of new technologies and become autonomous in their processes. They need to start thinking how their existing processes can be redesigned to support this collaborative intelligence. The world where each task is being executed by an available machine at that moment according to a sequence in a

predefined schedule is the world of the past. What smelters should strive for is the world where each task is distributed in such a way that a set of machines will work together best way possible to finish the schedule and where humans interact with a group of machines instead of one machine. In this interview Hilbrand Kuiken, CEO of Quantillion Technologies, uncovers why collaborative intelligence is the key to making full use of smelter’s equipment and what to expect on this quest to position oneself as the ‘smelter of the future’.

Industry 4.0

Hilbrand Kuiken CEO, Quantillion Technologies

Collaborative Intelligence

Industry 4.0 is currently one of the most talked about topics in the aluminium industry, with such elements as automation, robotics, IIoT, ML, AI and AR leading the way towards the ‘smelters of the future’. While most smelters embrace this transformation by adding individual solutions to their existing processes, only a few, if any at all, are focused on integrating these technologies together and transforming themselves into the socalled smart factories.

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Quantillion builds innovative technology for the heavy industry that lets every worker, every machine and every plant use data on a (near) real-time basis to continuously and autonomously improve safety, quality, output, and at the same time reduce the ecological footprint.

Collaborative intelligence combines individual intelligences of people, vehicles and equipment into a unified problem solving network where they all work together towards a common goal. In such a set up, based on advanced AI, connected equipment is able to autonomously make critical decisions in real time. Through fostering humanmachine collaboration smelter can enable most optimal, flexible, and future proof operations.

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Why is it all about collectiveness/collaboration and not about individual potential of certain technologies? Aluminium plants have a lot of different equipment from various suppliers. There is no doubt that those suppliers are capable of improving their equipment. But what we cannot expect from them is the integration of all of the equipment into a unified system. Without this integration equipment is not fully utilised. As a result, smelters often see that their spent capital is not taken full advantage of. With collective intelligence all equipment works together in the most optimal way allowing smelters to fully utilise their equipment through a completely new way of planning and scheduling. It allows for selective use of equipment (no need to use it all at the same time!) and gives the ability to handle peaks and unexpected events in a smarter way. Hopping on the trend of total connectedness, is exactly what smelters need to go beyond the rigid automation!

What are the necessary steps to get to that state of full collaboration? We recommend following a step-by-step approach, which begins with focusing on the transformation of more simple, repetitive tasks (e.g. transport). Our experience has shown that successful business case at first is exactly in those repetitive simple tasks. Once the plant has the initial experience with enhancing simple processes with advanced technologies and understand

the basics of collaborative responsive intelligence, it is time to move to the automation of more difficult tasks (e.g. autonomous tapping). Equipment suppliers are not able yet to automate complex tasks, so it is much harder to find business cases at this stage of the process. However, with the ongoing research and development we can expect the prices for these technologies to go

down in the future. In the third step, the plant can build the overarching (equipment) control layer that distributes tasks and interconnects humans and machines via the same interface. And the last step on this journey is complete plant transformation where all the processes at a smelter are not only equipped with the relevant technologies but also interconnected.

What are the challenges on this journey? No journey is easy, especially the one that leads you to become the ‘Smelter of the Future’. Based on our experience the main challenges lie in the following: 1. Having the data structure ready to fit the needs of the future changes

2. Aligning all the different sides of the operations and staff (there needs to be a collaboration between different stakeholders) 3. Change management - people have to change and it takes time

Keeping up with the fast changing world of technologies - it is extremely difficult to decide when is it a good time to make a move toward autonomous operations.

Where does Quantillion come in on this journey? Quantillion originally started with automating transport logistics within primary aluminium. Since then we have grown to be a strong integration provider acting as a key link between the smelters and their numerous equipment suppliers. The journey that we go through with the smelters consists of the following main steps: 1. Simulation of the current environment and future processes 2. Preparation for IT integration of multiple types of equipment and manufacturing execution system 3. Roll out and deployment of autonomous Traffic Management System 4. Further connection of other equipment

If you would like to know what collaborative intelligence can mean for your plant and how to get there reach out to Quantillion! info@quantillion.io +31 85 060 52 88 www.quantillion.io Aluminium International Today

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Digital solutions to complex challenges in modern aluminium smelters Lessons learnt in deploying digital solutions in adjacent heavy industries By Daniel Richard*, Thessy Moodley** and Yale Zhang*** Recent market conditions are driving aluminium smelter operators to produce more metal. With more than a century of industrialisation, aluminium smelters have become large optimised and integrated capital-intensive facilities with longer potlines, higher amperage, mechanised operations, and computer control of cells and key equipment. Historically, amperage creep has been the most economical way to drive value in smelters by maximising the existing infrastructure and equipment, and minimising the investment required to increase production. For a lot of smelters, the “easy creep” has been realised by now and further intensification often leads to bottlenecks in the interfaces between areas. While new technologies are looming, the Hall-Héroult process is still the only commercial route to producing aluminium and it seems likely that modern smelters as we know them will continue to operate for a long time and will be under pressure to maintain and improve their profitability. There is an opportunity for smelters to unlock value through the intelligent combination of automation, information technology, connectivity, and process expertise. Addressing these challenges means moving beyond the data-driven process twin The combination of automation, information technology, connectivity, and

process expertise can be brought to life with the various capabilities of the digital twin or decision support applications. These types of applications increase data transparency and user engagement, convert data into actionable intelligence, and improve decisionmaking through scenario analysis. Together, these features can bring significant benefits to operations. When we think about what enables the next generation of decision making, we like to think in terms of the three I’s: integration, intelligence, and interaction. � Integration focuses on data connectivity to orchestrate OT/IT data from various sources to establish a single version of truth. � Intelligence focuses on knowledge connectivity, where various modeling technologies are driven by real-time data to draw actionable insights and provide recommendations. � Interaction is adding values by effective interaction with humans. For example, integration with IOC to support collaborative decision making and remote expert support or augmented training.

optimise operational decision-making. It’s here that we stress the importance of first principles physics, chemistry, and metallurgy to develop meaningful twins in concert with data-driven modelling techniques. Twins that not only speak to a single reaction unit, but to an integrated value chain.

Future applications in the intelligence group for aluminium smelting cell process twins At the cell level, the amount of available data is limited. The cell voltage is in fact the only continuous Daniel Richard signal used for control. Principles developed since the 1960s enable computer control of alumina feeding, anode-cathode distance, management of operational events like anode change, metal tapping, and anode beam raising, and detection and treatment of process upsets including anode effects and instability, with excellent results. However, thermal regulation of the cells, i.e., control of the heat balance, bath chemistry, and temperature, is based on discrete measurements with inherent variations in time and space during normal operation. Most smelters experience relatively larger variations in For the aluminium industry, the focus bath chemistry and temperature than is on the “intelligence” to support and what is achieved by the pot controller on

*Subject Matter Expert – Aluminium Processing **Regional Director – Digital, AEM ***Global Director - Analytics and Decision Solutions, HATCH Aluminium International Today

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1. Managing logistics to the furnaces voltage and feeding, which is consistent 2. Remelt and holding furnaces not with the lack of process information. In line with our experience in adjacent being loaded efficiently 3. Insufficient material available for industries, the use of “big data” approaches trying to infer cell operations from this slab casting 4. Insufficient slab production to meet limited set of data is doomed to fail. A significant amount of instrumentation rolling mill demand would need to be installed on every cell to We believe that increased slab production feed the machine-learning algorithms. We have had much better success with digital is possible through effective coordination of vehicles, crucibles, furnaces, and twins based on first principles physics. The process twin kernel includes casting equipment. Advances in data science have allowed for dynamic heat and mass mathematical optimisation balance, and tracks state to assist the production variables that are either Thessy Moodley planner in the creation of difficult, expensive, or even schedules that consider impossible to measure. equipment availability Soft sensors can be derived and capacity, downstream from these state variables system demand, and raw and used in advanced material availability. analytics to trigger actions Our recent experience in from the control system. value chain coordination Comparison of the twin in the metals processing estimates, measurements, industry has shown that and process information effective coordination can also be used for the enabled by optimisationearly detection of process based decision support upsets. Although not yet software can improve commercially available, this type of twin is being piloted in the throughput by 15%. industry. Simulation opportunities in a typical smelter process flow Integrating reduction cell process Looking at the complete smelter, operations twins into potline twins Further optimisation may be achieved face the challenge of running a complex by aggregating cell process twins into and tightly integrated facility at higher and a potline twin and adding in connected higher levels of productivity. It has been critical equipment data (e.g., pot tending our experience that management and machines). Beyond informing dashboards, planning of production are often done in this information could be used at the silos and that plant debottlenecking entails potline level to support decision-making static spreadsheets and interpretation around planning and scheduling work in of equipment and systems utilisation the potrooms. Possible applications include factors, sometimes triggering detailed input into the selective tapping algorithm calculations and logistics modeling to to capture high-purity metal, proactive identify bottlenecks. We believe that a digital plant model management of bath level, and prioritisation that would calculate a dynamic mass and support for late work catch up. This integration has not yet been energy balance throughout the smelter attempted in a potline. However, some would be a valuable and efficient tool efforts were made downstream of for running simulations with different the potrooms, including in advanced production scenarios. From our experience operations planning and scheduling for in adjacent industries, we envision a first principles-based tool incorporating liquid metal to semi-finished products. reduced order models for critical process steps and reactors, simplified logistics, area Optimisation-based planning work schedules, maintenance schedules, and scheduling to downstream reliability information, and tracking of equipment One of the core elements of a digitalised buffer inventories between areas. The impact on the whole plant of aluminium smelter is effective production scheduling. Understanding how the changes to basic operating parameters various components of the smelter can be simulated, allowing identification value chain interact with each other has of bottlenecks and areas of concern. traditionally been the role of a production Solutions can be assessed by looking at planner. However, our past studies have equipment and systems capacity, changes shown that effective planning in an to logistics or work schedules, or process integrated smelter does come with several reactor upgrades. A typical rendering of the digital plant challenges, e.g.: January/February 2022

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model interface for a smelter would include a view of the main material flow, inventory of the buffers between areas, critical equipment availability, and userdefined dashboards. The model would allow for improved production, inventory, abnormal conditions, and upgrades to planning visibility. Lessons learned in the development of digital twins in metallurgical applications A clear and measurable value proposition is required at the beginning of digital twin development to avoid project failure. It is important for plant personnel to see the direct benefits of a digital twin’s performance in a KPI dashboard. The dashboard will help to ensure that operators adhere to standard operating procedures and data-driven guidelines for consistent operation, which will result in improvements in key operating parameters. Accelerate your time-to-value by adopting a low-code digital twin platform Developing a digital twin requires connection of real-time data, orchestration of various models, and customised user interface to support both data visualisation and user interactions. Adopting a lowcode digital twin platform can accelerate your time to value significantly. Key features or characteristics of a lowcode digital twin platform to look out for are: � A modern technology platform � History of online implementations � Flexible deployment options � Open and customisable – extensibility and scalability are key Adopt an agile, incremental development approach Digital twins are always evolving, so as the development approaches, be agile. In many cases, you cannot foresee a development issue. Developing the model auto-tuning function will make sure the digital twin is always the true representation of its physical twin through consistent self-learning. Extracting more value from an already mechanised and partially automated large industrial complex will require investment in digital technology, particularly in the context of labor shortage and the retirement of many experienced workers. First principles-based models – Twins – are useful tools to improve process controls, reduce upsets, plan and schedule increased production throughputs, and support planning of production levels and required CAPEX. � Aluminium International Today

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24 DIGITAL MANUFACTURING

Predictive digital twins help foil industry challenges Digital twins and predictive simulation can solve several issues that are critical for managing change in manufacturing processes. This includes factory floor layouts, the selection and sourcing of materials, line management of staff and processes and the reconfiguration of supply chain and logistics. This article from Oliver Bird* at Lanner explores how digital twins, which create a virtual factory scenario, are evolving to incorporate artificial intelligence to fully answer the ‘what if’ questions in manufacturing processes. Supply chain disruption, labour shortages, rising demand and spiralling costs have all played havoc with the global aluminium industry in recent times. Brexit, Covid, inflation and rocketing energy prices – along with shipping bottlenecks and the UK’s shortage of lorry drivers – have all conspired to create a ‘perfect storm’ which shows no sign of abating. With aluminium prices shooting up by around 50% to reach a 13-year high this year, it is forecast that difficulties will continue throughout 2022 and some are predicting that it may take up to five years to resolve the issues plaguing the industry. The knock-on effects have of course impacted other sectors, from Coca-Cola facing a UK shortage of aluminium cans to British pie makers being told to reuse foil tins in response to supply chain problems. Amidst this uncertainty is the growing knowledge that companies must become more agile to survive such volatile market conditions. Decisions need to be properly informed, based on data and facts. But, without a crystal ball to foretell the next turn of events, it may seem impossible to plan for the future. However, combining existing data with predictive simulation technology allows companies to get ahead of the game and be prepared for all eventualities. A case in point – no more manufacturing guesswork for OneWeb Satellites OneWeb Satellites is a joint venture between Airbus and OneWeb. Its mission is to mass-produce a satellite constellation that will provide high-speed internet access worldwide. Satellites have traditionally always been manufactured manually on a small scale.

However, OneWeb Satellite’s vision is to produce hundreds of satellites a year an output that has never been seen on this scale before. To do this, a factory was commissioned to deliver the high production rate, while accounting for the complex assembly process and supply chain by taking advantage of new Industry 4.0 technologies. Lanner provided the digital tools OneWeb Satellites needed to help them plan their satellite production and underpin their Industry 4.0 strategy. They particularly wanted assurance that the systems they were looking to implement would enable them to deliver their satellites on time. Lanner’s WITNESS Horizon software was used to model the future production operations to ensure the satellites products would be produced and delivered for their launch dates. OneWeb Satellites’ predictive digital twin provided them with the insight to understand how production, automation, quality

assurance and supply chain factors would all impact their throughput. And it also meant they could account for a learning curve, as the first satellites would take them longer to make than the 400th one.

Olivier Bird

A and B. Digital twins and predictive simulation offer answers to the most fundamental or innovative ‘what if?’ questions to allow smarter business decisions, with little risk.

*Business Development Director, Lanner (pictured above) January/February 2022

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OneWeb Satellites have gone on to use WITNESS Horizon to design two factories, one in Toulouse, and the other, in Florida. During this time, hundreds of scenarios have been run, with OneWeb Satellites being provided with absolute clarity on their forward schedule and assembly requirements. They can also accurately calculate the right level of buffer stock for on-time delivery too. Keen to build upon this initial success, OneWeb Satellites is looking to integrate WITNESS into their real-time operational decision making, which will enable them to tap into the benefits of their Industry 4.0 strategy and streamline production as demand undoubtedly grows. Smarter business decisions Static modelling has helped many businesses achieve increased profits and improved efficiency while responding to changing demand. But, with the arrival of digital twins and predictive simulation software, companies can more easily model all stages of the production process and downstream operations to provide unprecedented insight. Being able to test and make assumptions

and decisions in a virtual, risk-free world can provide clarity across areas such as capital investments, resource planning, process design or even service policies. It enables important business decisions to be reached quickly, without impacting production or supply chain delivery. Digital twins and predictive simulation offer answers to the most fundamental or innovative ‘what if?’ questions to allow smarter business decisions, with little risk. Lanner’s digital twins have given companies all over the world crucial insights into how to mitigate risk and

operate their businesses most effectively and efficiently. Clearly, this cutting-edge technology can help companies respond rapidly to a constantly changing operating environment during our uncertain times. So, as we all seek to navigate the ‘perfect storm’ facing our industry, digital twins may offer a solution which gives us some clarity and certainty. Ultimately, it should allow us to make sounder decisions which maximise return on investment and provide some degree of future-proofing for our business. �

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26 DIGITAL MANUFACTURING

The digital smelter: Why data management is imperative for digital transformation success Every day, mining and metals operations face numerous operational challenges, and aluminum smelters are no exception. Plants contain hundreds or thousands of assets, all varying in age, function, and location. Processes are often antiquated and manual, making it difficult for plant personnel to ensure all pieces of equipment are functioning at optimal levels. In addition, the aluminum industry is expected to grow at a 4.7% compound annual growth rate between 2021 and 2027. These challenges, combined with the increased pressure on production, make operational efficiency and asset optimisation critical to any smelter’s success. While operational efficiency is certainly a top priority, a 2020 survey of 192 mining and metals executives from 56 different countries revealed other pressures: 92% of metals and mining executives consider the health and safety of the work environment one of the most important challenges January/February 2022

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they face, and the 2021 survey revealed that 36% of executives now view climate change as their number one challenge. To overcome ever-changing challenges while prioritising climate change and safety, many smelters are turning to digital transformation strategies, such as advanced analytics, machine learning, and digital twins. Digital transformation initiatives have the potential to increase visibility, efficiency, environmental compliance, and safety, enabling teams to tackle numerous hurdles using datadriven information. However, although digital transformation is a priority, only 16% of digital transformation projects succeeded in improving performance and equipping companies to sustain changes in the long term. Aluminum smelters all over the world are investing in Industry 4.0, IIoT, advanced analytics, machine learning, and more, but many aren’t seeing return on investment because successful digital transformation requires

the right operational data management foundation. Smelters must turn data into operational intelligence, and failing to lay this foundation can prevent any organisation—not just smelters—from realising value from digital investments. By evolving data management strategies, smelters can turn current challenges into digital transformation opportunities. Moving beyond data collection Operational data is nothing new for many smelters. Every day, smelters collect massive amounts of data, but that data is often sitting in disparate systems. Typically, every asset comes with its own control system, and each plant may contain hundreds of assets, creating hundreds, if not thousands, of data silos. The sheer number of disparate control systems makes it difficult to combine all collected data into one platform and to give teams a complete view of the smelter Aluminium International Today

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DIGITAL MANUFACTURING 27

supply chain. While data collection is important for understanding asset performance, smelters must first centralise those collection efforts to enable meaningful insights. Streamlining this data into a single data management platform is an imperative first step. From there, smelters can enable automatic data capture. Even a single pump can generate over 100 data streams at frequencies from milliseconds to hours, creating massive data volume that can’t be managed manually. Once data is centralised and automatic data capture enabled, teams will have access to real-time information from numerous assets and disparate data sources, gain a single view of operations, and create a foundation from which to deploy other tools or data science initiatives. After teams centralise data collection, they must add context to enable users to pinpoint assets, locations, measurements, and units – and allow that data to be used across the organisation. Raw data requires context to be useful, and that context standardises the data structure in a single location to ensure data integrity and scalability across the enterprise. Users can add context by defining asset hierarchies, creating tag naming conventions, establishing relationships in the data, and providing important metadata based on

history and observations. Data with context means better decision-making Contextualisation also takes into consideration the events that happen during asset lifecycles and failure points. Was the pot operating normally? Was the sow caster stopped for maintenance? Not only does contextualisation allow smelters to capture team member expertise and operations teams to visualise and analyse data, users from across the enterprise can consume that information in a simple, digestible manner. Once teams centralise data collection is centralised and add context, users can easily implement real-time condition monitoring to make better decisions anytime and anywhere. Remote access to operations data enables workforces to glean insights from the plant ﬂoor from any location, giving users the tools they need to continually monitor process productivity and consumption, enact condition-based maintenance strategies, and use existing analyses to find conditions that lead to failure. Digital twins simulate operations for process optimisation The data foundation also creates the digital structure that enables digital representations of assets, or digital twins, as well as advanced analytics tools. Digital twins allow process engineers to simulate operating conditions and make changes upstream of certain assets to identify parameters, settings, and factors that can improve reliability, efficiency, and compliance; reduce energy usage; and more. Advanced tools give teams the visibility they need to identify new areas for improvement and predict outcomes to mitigate unplanned downtime, improve environmental compliance, or optimise process efficiency. At the heart of every digital transformation strategy is centralised, contextualised, and accessible operational data. By focusing on data management strategies, smelters can ensure real-time, quality insights that allow users to not just overcome challenges, but optimise assets and processes to increase efficiency and productivity across the plant. Laying this data foundation will ultimately enable smelters to reap return on advanced tool investment and pave the path for digital transformation success. �

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28 ADVERTORIAL: MÖSSNER

Mössner supplies fully automatic slab saw to Gränges August Mössner GmbH + Co. KG delivered a fully automatic slab saw to Gränges Konin, Poland, in spring 2021. The slab saw from Mössner is characterised by solid steel construction, precise cutting and long band saw life. In the fully automated process, an average of six slabs per hour are sawn. Turnkey delivery The set-up and commissioning took place as a turnkey project with Mössner’s experienced employees in the fields of mechanics, electrics and software. After successful final acceptance, the Gränges sawing system was handed over for the start of series production. Fig 1. Equipped with fully automatic test disc manipulator The aluminium slabs are fed vertically to the system with a crane and aligned horizontally using the turning-down unit. The slab is transported by a shuttle from the storage area to other buffer areas with integrated scales. After weighing, the slab is placed by the shuttle on the roller table of the sawing system. To ensure the high cutting tolerances of the customer Gränges, the slab is centred and fine positioned by two clamps. Fully automatic sawing process After reaching the sawing position, the first step is to make the head cut by the Mössner high-performance band saw. Due to the stable design of the saw and the wheel bearing, the saw cut is low in vibration. This has a positive effect on the saw blade life. The customer benefits from the savings in tool and maintenance costs.

Another advantage is the anti-pinch protection developed by Mössner, which is integrated in the saw table. This prevents the band saw blade from getting trapped between the cut section and slabs. Seamless removal of sawed sections The sawed section is transported by the slab to a transfer position. The scrap slider pushes the sawed section onto the belt conveyor in the scrap area. Integrated buffer spaces allow the head and foot pieces to be cut seamlessly without unnecessarily interrupting the sawing process. Test discs are sawn out of the aluminium slab at regular intervals. The test disc is removed by the fully automatic test disc manipulator newly developed by Mössner. This ensures seamless and automated quality control. Weighing and marking The net weight of the bar is determined by load cells integrated in the output area. Subsequently, both long sides of the slab are marked with heat-resistant paint. The front side is marked by a needle embosser at the end of the output roller conveyor. Different marking and fonts, characters and codes are possible. The bar is transported by the output shuttle to the storage area and picked up there with a forklift. Mössner sawing systems in use worldwide Mössner develops and builds special solutions in the fields of mechanical engineering, automation technology and robotics. The focus of the portfolio is, among other things, in the field of aluminium technology. Mössner offers precise sawing and milling systems for primary and secondary aluminium production. � Vertical saws � Horizontal saws � Saws for the aerospace industry � Saws for T-bars, rolling ingots, plates, blocks, billets � Contour saws � Blank saws to produce aluminium circuits � Ultrasonic testing � Conductivity test � Marking systems � Plate measurement by laser � Slab milling machine � Handling, transport systems and turning units These enable the machining of rolling ingots, T-bars, contours, blanks, samples, ingots and plates. � www.moessner-kg.de

Fig. 1 Input area und operators cabin at Gränges

Fig .2 Sawing machine at Mössner

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The corporate headquarters of Norsk Hydro ASA is located in Vækerø in Oslo, Norway. (The photograph was produced by Anders Vindegg and provided courtesy of Norsk Hydro ASA, 16 October 2020.)

A closer look at Trade Agreements between the USA and Europe By Richard McDonough* The United States of America (USA) and the European Union (EU) agreed to new arrangements on trade of aluminium between the two transatlantic partners. The announcement was made on 31 October 2021. Arrangements dealing with the trade of steel were also announced at the same time. These new arrangements will replace tariffs implemented by the USA on the importation of aluminium and steel products from the EU into the USA on 1 June 2018. Collectively, these tariffs are known as “Section 232 tariffs.” The name of these aluminium and steel tariffs comes from the “Section 232” of the Trade Expansion Act of 1962 passed by the US Congress and signed into law by President John Kennedy. Whilst these Section 232 tariffs were implemented by US President Donald Trump, the subsequent administration of President Joseph Biden continued to

collect tariffs on aluminium and steel products imported into the US from the EU. Negotiations to end these tariffs began in the months after President Biden took office. On 17 May 2021, officials from both the EU and the U S issued a “Joint United States – European Union Statement on Addressing Global Steel and Aluminium Excess Capacity.” In the autumn of 2021, those negotiations resulted in the new trading arrangements. Individual businesses – from operations of major global companies to firms with one manufacturing plant – have been dealing with the impacts of the negotiations between the two major trading partners. “This announcement shows the BidenHarris Administration’s commitment to preserving the long-term viability of our critical industries, protecting American jobs, and meeting the economic and environmental goals shared by the United

States and European Union by tackling the carbon intensity of those products,” according to a news statement issued by the US Department of Commerce. (The Vice President of the USA is Kamala Harris.) “The United States and EU are likeminded partners with shared democratic values and similar economic and security interests. Recognising the importance of the transatlantic relationship, the United States will adjust the tariffs on steel and aluminium to allow duty-free trade at a sustainable historic level and the EU will suspend its retaliatory tariffs.” Executive Vice-President and Commissioner for Trade Valdis Dombrovskis said, “We have today agreed to hit the pause button on our steel and aluminium trade dispute, whilst hitting the start button on cooperating on a new Global Arrangement on Sustainable Steel and Aluminium. This is another significant step in the wider reset of

*Do you have questions about the aluminium industry? Governmental regulations? Company operations? Your questions may be used in a future news column. Contact Richard McDonough at aluminachronicles@gmail.com. © 2022 Richard McDonough Aluminium International Today

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30 THE ALUMINA CHRONICLES

Image 1. Among the officials active in the negotiations between the USA and the EU were, from left, Katherine Tai, U S Trade Representative; Gina Raimondo, U S Secretary of Commerce; Antony Blinken, U S Secretary of State; Valdis Dombrovskis, Executive Vice-President for An Economy that Works for People, European Commission; and Margrethe Vestager, Executive Vice-President for A Europe Fit for the Digital Age and Competition, European Commission. (The photograph was produced by Ron Przysucha and provided courtesy of the US Department of State, 29 September 2021.)

transatlantic relations. The USA decision to restore past trading volumes of EU steel and aluminium exports means we can move on from a major irritant with the USA. It gives us breathing space to work on a comprehensive solution to tackle global overcapacity. The EU will therefore reciprocate this de-escalation by suspending our own rebalancing measures. We can now focus on a more forward-looking transatlantic trade agenda, whilst also working on a final, lasting outcome to this issue.” According to the US Department of Commerce, five principles will form the foundation of future cooperation between the USA and the EU, including the replacement of Section 232 tariffs with tariff-rate quotas (TRQ), agreement to cooperate in trade remedies and customs matters and development of additional actions, negotiation of global steel and aluminium arrangements that restore market-oriented conditions and address carbon intensity, lifting of the EU’s retaliatory tariffs and suspension of disputes before panels of the World Trade Organisation, and other measures to ensure market-oriented conditions in the EU market. “Under the TRQ arrangement, historically-based volumes of EU steel and aluminium products would enter the USA market without the application of Section 232 tariffs to meet the demands of downstream users,” according to the news statement from the U S Department of Commerce. “Both sides agreed to

expand their coordination involving both trade remedies and customs matters, and to meet regularly to consult and develop additional actions to address non-market excess capacity in these sectors…The USA and EU resolved to negotiate future arrangements for trade in the steel and aluminium sectors that take account of both global non-market excess capacity as well as the carbon intensity of these industries. The USA and the EU agreed to form a technical working group to enhance their cooperation and facilitate negotiations on these arrangements, and will invite like-minded economies to participate in the arrangements.”

Beyond the trade arrangement with the EU, the USA is working with the United Kingdom (UK) “…on bilateral and multilateral issues related to steel and aluminium, with a focus on the impacts of overcapacity on the global steel and aluminium markets; the need for likeminded countries to take collective action to address the root causes of the problem; and the climate impacts of the sectors,” noted the US Department of Commerce. “Building on our shared democratic values, the United States and the UK are committed to working together to address contemporary economic challenges, whilst supporting their industries and workers. The United States and the UK look forward to market-orientation and tackling carbon emissions across all types of production in the steel and aluminium industry.” A similar statement was issued by the US Department of Commerce at the same time noting that the USA was also consulting with Japan on similar terms. On 30 November 2021, a Trilateral Partnership was renewed among Japan, the EU, and the USA regarding nonmarket policies and practices. “They agreed to focus their work as trilateral partners in three areas,” according to a statement from European Aluminium, including “Identification of problems due to non-market practices; Identification of gaps in existing enforcement tools, and where further work is needed to develop new tools to address such practices, as well as discussing cooperation in utilising existing tools; and Identification of areas where further work is needed to develop rules to address such practices.” In a joint news statement issued on 9 December 2021 by European Aluminium, The Aluminum Association, the Aluminium Association of Canada,

Image 2. Billets produced by Century Aluminum in Mount Holly, South Carolina, are ready for delivery to customers. (The photograph was provided courtesy of Century Aluminum, June of 2021.)

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space of a month. The EU is sacrificing the entire aluminium value chain like never before to appease a handful of downstream users and traders.”

Image 3. Norsk Hydro ASA operates an aluminium recycling plant in Azuqueca, Spain. (The photograph was provided courtesy of Norsk Hydro ASA, 10 June 2020.)

and Japan Aluminium Association, the four trade associations welcomed the renewal of the “…Trilateral Partnership to address the global challenges posed by non-market policies and practices of third countries that undermine and negatively affect our workers and businesses.” On 7 December of 2021, Gina Raimondo, Secretary of Commerce of the USA, met with Margrethe Vestager, Executive VicePresident for A Europe Fit for the Digital Age and Competition of the European Commission. The US Department of Commerce reported that “…Secretary Raimondo and Executive Vice-President Vestager discussed progress since the USAEU Trade and Technology Council’s (TTC) first meeting on 29 September, 2021, in Pittsburgh, Pennsylvania. They also laid out next steps for the TTC working groups to deepen their cooperation with a view to developing concrete and commercially meaningful outcomes that strengthen transatlantic tech collaboration.” European Aluminium European Aluminium stated “…that the tariff-rate quotas, which will replace the existing 10 percent tariff on EU aluminium products under Section 232, will result in even more trade distortions [and]…warns it will create additional market instability for aluminium companies on both sides of the Atlantic.” The Association noted that it includes more than 95 members active in the aluminium industry in Europe, including entities representing more than 600 facilities in 30 European countries. According to European Aluminium, “Under the tariff-rate quota system, which will come into force as of 1 January 2022, the aggregate annual import volume is set at 18 thousand metric tonnes for unwrought aluminium products and 366 thousand metric tonnes for wrought products. The import volumes will be Aluminium International Today

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allocated on an EU Member State basis in line with the 2018-19 historical volumes. Section 232 aluminium products from the EU that are within the quota will enter free of any Section 232 duty, whilst products entering above the quota will continue to be subject to a 10 percent duty.” “It seems the EU and USA administrations assumed that trade policies that work for steel will work equally well for aluminium without taking into account our industry’s specificities and our continued opposition against tariff-rate quotas,” commented Gerd Götz, Director General of European Aluminium. “Replacing the Section 232 tariffs with another trade-distorting measure is a lose-lose situation for the aluminium industry and their downstream customers on both sides of the Atlantic. The quota system will only create a two-tier price system and additional unpredictability. Metal traders will use this to their advantage to manipulate aluminium prices at the expense of aluminium producers and manufacturers.” “We’re also extremely disappointed the quotas are based on historical volumes from 2018-2019, rather than a future-proof quota system which takes into account the growing demand for aluminium,” Mr. Götz continued. “The European aluminium industry fears that the EU’s acceptance of tariff-rate quotas will normalise the use of such quotas, which continue to penalise free and fair aluminium trade. European aluminium producers already face tremendous competitiveness challenges because of the high regulatory costs in the EU and unfair competition from China. Yet despite our industry’s precarious situation, the EU suspended long overdue anti-dumping measures on dumped Chinese flat-rolled products, depriving us of the level of trade defence protection American companies enjoy. It now deals us another blow in the

The Aluminum Association “Whilst The Aluminum Association continues to disagree with a TRQ as a replacement for Section 232 tariffs, we were pleased to see the Administration commit to tackling unfair trade together with our allies,” stated Ryan Olsen, Vice President of Market Growth and Development at The Aluminum Association. According to the organisation, it represents the majority of aluminium production and jobs in the USA. “One easy way to demonstrate this commitment would be for the European Commission to reimplement tariffs on unfairly traded Chinese aluminium. Fully 97 percent of the more than 166,000 direct aluminium industry jobs in the USA are in mid-and-downstream production and processing. These American workers depend on an integrated supply chain that allows for fair trade among allies to meet demand and support growth. And whilst we fully support efforts to spur meaningful investment in domestic primary aluminium production, it is simply a fact that we cannot continue to invest in USA manufacturing and grow American aluminium jobs without open but rulesbased trade with other market-oriented economies.” In a statement issued in early November of 2021, The Aluminum Association indicated that the Federal government of the USA “…should renew its focus on strong trade monitoring and enforcement; work with like-minded trading partners to address unfair Chinese trade practices; and continue making reforms to the Section 232 product exclusion process to avoid market manipulation.” In addition, the organisation noted that policies should focus on ways to enhance the availability and use of recycled aluminium as well as expand access to affordable and reliable energy. “Policymakers need to recognise the unique position of the USA aluminium industry in the global marketplace – including key differences between steel and aluminium,” added Mr. Olsen. “We need trade strategies that work for all USA aluminium companies rather than a few select market segments. That’s the path to sustainable growth and investment for the domestic industry, which makes some of the cleanest aluminium and aluminium products in the world.” American Primary Aluminum Association One of the organisations supporting the January/February 2022

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Communication & Public Affairs at Norsk Hydro ASA. “It is unfortunate that the 232 tariffs are only replaced by tariff-rate quotas, which we in principle are against. Tariff-rate quotas increase uncertainty for trade, and we assume this will be limited in time.” Mr. Molland noted that “the 232 tariffs added a distortional effect to trade. Hydro is today operating in both North America and in the EU, but are exporting less in between.” Image 4. Country Manor Shake Aluminum Roofing is among the products manufactured by Isaiah Industries of Piqua, Ohio. (The photograph was provided courtesy of Isaiah Industries.)

TRQ aspect of the trade arrangement between the USA and the EU is the American Primary Aluminum Association (APAA). “The…TRQ deal will maintain the effectiveness of the Section 232 aluminium programme, whilst allowing us to support continued investment in the USA primary aluminium industry and create more American aluminium jobs,” said Mark Duffy, Chief Executive Officer of the APAA. “Of critical importance, the arrangement supports America’s primary aluminium industry by setting the quota portion of the TRQ at very low levels that are well below pre-232 volumes.” Century Aluminum and Magnitude 7 Metals are members of the APAA. According to the APAA, “Prior to the Section 232 programme, all of America’s primary aluminium smelters were slated for closure because of the collapse in prices due to excess global capacity. Since its implementation, the Section 232 programme has helped America maintain its ability to produce primary aluminium, protecting and creating thousands of American aluminium jobs and leading to over $6 billion in new domestic capital investments (upstream and downstream). As part of President Biden’s commitment to rebuild domestic manufacturing, the TRQ deal will allow USA primary aluminium producers to keep reinvesting and creating more good-paying American jobs…” United Steelworkers The United Steelworkers (USW) International announced its support of the trade agreement with the EU. The organisation is North America’s largest industrial union, according to the USW, with 1.2 million members and retirees in the USA, Canada, and the Caribbean. Among the members of this union are individuals who work in the aluminium industry, including at manufacturing plants of such aluminium businesses as Alcoa, Arconic, Century Aluminum, Constellium, and Kaiser Aluminum. January/February 2022

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“This new arrangement, which will maintain but modify Section 232 measures on steel and aluminium from the EU, will create a framework that will ensure USA domestic industries remain competitive and able to meet our security and infrastructure needs,” stated Tom Conway, President of the USW. “It will also provide a much-needed opportunity to address the non-market predatory practices of China and other countries that have distorted global markets, whilst also spurring a dialogue over climate concerns stemming from countries whose industries are far more carbon intensive than those in the United States and the EU.” “In aluminium, the Biden administration reached a parallel arrangement with the EU that ensures the USA has the capacity to meet its critical needs and allows for limited amounts of downstream products,” Mr. Conway continued. “As we look to the future of our industries and jobs, it will be vital to rein in global overcapacity, stemming largely from [the] Chinese Communist Party’s state-led trade practices. Engaging with our allies is a necessary step in this process, and this arrangement offers a path forward toward working together to address this larger concern…We appreciate Secretary of Commerce Gina Raimondo and United States Trade Representative Katherine Tai and their respective staffs’ active consultation with the USW and domestic industry during the negotiating process. Norsk Hydro ASA One of the major global aluminium companies with operations in both the EU and the USA is Norsk Hydro ASA (Hydro). The firm has had to deal with the Section 232 tariffs in recent years. Norsk Hydro ASA is headquartered in Vækerø in Oslo, Norway. “Hydro welcome the initiative to open discussions on a global arrangement on sustainable steel and aluminium,” stated Halvor Molland, Senior Vice President of

Isaiah Industries Isaiah Industries is an example of an American business that has been affected by the activities within the overall aluminium market, including the impact of trade in the metal between the USA and the EU. The firm, headquartered in Piqua, Ohio, manufactures several styles of aluminium, steel, and copper interlocking roofing shingles. Products manufactured by this business are sold through a network of independent contractors who install the products throughout North America; the firm also has significant exports to Japan and the Caribbean. The company indicated that its typical customer is a high-end home improvement contractor within the USA and, in other nations, distributors that in turn re-sell the products to local contractors in their countries. “As we look at what’s been happening with difficulties in getting aluminium and higher prices, we are starting to look at producing polymer products as well,” said Todd Miller, President of Isaiah Industries. “That said, for customers just getting started with our products who may be experiencing some difficulty building the value to justify the price in selling to their customers, we will encourage them to sell our steel products rather than aluminium.” “The major impact was raw material shortages and delays,” Mr. Miller continued. “We are on allocation from our suppliers and, through the year, have had those allocations cut as well as frequent delays of 8 – 12 weeks on shipments. This has caused our lead times to our customers to extend to 8 – 12 weeks in many cases whereas normally we ship within a week.” Despite these market issues, year 2021 was considered a good one for this business. “Our use of aluminium was up,” stated Mr. Miller. “Had we not experienced supply chain issues and delays in getting our raw materials, 2021 would have been a record year for shipments…In 2021, we will be up about 35% over 2020 and about 15% over 2019.” Aluminium International Today will continue to keep our readers updated as trade negotiations continue between the EU and the US. � Aluminium International Today

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34 ALTERNATIVE ENERGY

The renewables race By Myra Pinkham*

Image courtesy of Century Aluminum

Current status of the Maple Hill Solar Park, courtesy of the developer, Competitive Power Ventures (CPV).

THE aluminium industry has integrated renewable energy as power for its smelters for several decades, but with the recent global push for industries to increase their sustainability and reduce their carbon footprint, both producers and power providers have been exploring the use of up-and-coming energy sources, such as solar and wind power. It isn’t surprising that the global aluminium industry is at the crux to this push, Geordie Wilkes, head of research at Sucden Financial, said, given how energy intensive – therefore electricity intensive – primary aluminium production is, using approximately 95% more energy than it takes to make recycled aluminium. This isn’t to say that some global primary aluminium producers haven’t previously adopted renewable power. Hydroelectric power, according to Martin Jackson, a senior analyst for CRU, has been used in certain regions of the world since the 1920s and continues to be well established there. John Mothersole, the director of IHS Markit’s pricing and purchasing service, added that in the past, hydropower – where available – had been the cheapest source of electricity, which attributed to its early integration. But, he continued that these prices are being challenged with solar and wind power starting to become more competitive. Jean Simard, president and chief executive officer of the Aluminium Association of Canada, noted that, since hydroelectric power- is very location

based, there are potential limitations on how hydroelectric power capacity is able to grow from its current levels. This is despite the traditional hydropower locales; including Canada, Iceland, Norway, and Russia, as well as some pockets in South America and the Yunnan Province in China, are amongst the “greener” locales for the primary aluminium industry. It isn’t just that hydroelectric power is locationally limited, as Matt Aboud, Century Aluminum’s senior vice president for strategy and business development explained; the growing concerns about the environmental damage that could be caused by damming rivers also poses as a key issue. However, CRU’s Jackson observed that there are a few new aluminium smelters being built in Russia that plan to use hydropower, which are supported by the push by Rusal to produce greener aluminium. There are similar moves being made in North America, where, according to a recent Aluminum Association study, renewables, including hydropower, now account for about 80% of the energy used at primary smelters, up from about

60% in 1991 with potential for further growth. Ivan Vella, Rio Tinto Aluminium’s chief executive officer, announced in November that as part of its commitment to strengthen its position as a low-carbon hydro-powered producer, the company is adding 16 new smelting cells at its Saguenay-Lac-Saint-Jean, Quebec, AP60 smelter. Nevertheless, Jackson says that most of the growth opportunities for hydropower capacity is in Asia – particularly in China’s Yunnan Province, where, like in Canada, the infrastructure was built in the 1920s and 1930s. “Smelters there have the advantage of extremely competitive power, keeping them in the game.” However, another limitation for hydropower is that it is subject to weather conditions. In fact, Gregory Wittbecker, another CRU senior analyst, pointed out that last year’s drought conditions in Yunnan led to some smelter curtailments there. Yang Cao, a senior analyst with Fastmarkets MB, noted that about 88% of China’s aluminium smelting capacity is still coal fired, with only about 8% being hydropowered and only about 3%

*USA correspondent January/February 2022

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Aluminium International Today

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ALTERNATIVE ENERGY 35

“Going forward, wind, solar and hydropower should eventually become the main energy source

”

for the aluminium industry, Fastmarkets’ Cao said,

“But it will take some time to go through that transition period.

”

Plants & products overview. Courtesy of Century Aluminum

Left and right: Images courtesy of Century Aluminum

powered by other forms of clean energy. But with the further growth potential for hydropower generally seen as being limited, and with aluminium producers looking for ways to reduce their carbon footprints and most major companies setting carbon neutrality goals, other alternative energy sources – particularly wind and solar energy – seem to have increasing potential for growth. These developments in renewable energy have been assisted by the certain technological improvements combined with a lower cost, enabling the building of more big utility-scale projects – particularly solar projects, added Century’s Aboud. He went on to note that while not traditionally being the case, recently, some of the lowest cost energy coming into the electric grid is coming from solar or wind farms. Aluminium International Today

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In light of this, several aluminium producers are taking moves to use more solar and wind at their smelters. One example of this is Norsk Hydro, who has adopted diverse renewable energy as part of a goal to reduce the company’s carbon footprint by 30% by 2030. Mike Stier, vice president of finance and strategy at Hydro Extrusions North America, announced that in addition to a lower carbon footprint, raw materials and including more recycled products, Hydro has made a 10 year commitment to power its Cressona, Pa., aluminium extrusions facility with solar energy from Competitive Power Ventures’ Maple Hill, Pa., solar park, starting in the summer of 2022. Stier added that the commitment would save about 32,000 tons of carbon, reducing the plant’s carbon footprint by about 27%. He continued,

“While we are mainly looking at sourcing energy from utilities or alternative energy providers, we are also entertaining some site specific projects to install our own alternative energy generation.” Middle Eastern aluminium producers have also made the decision to move to renewable energy sources, Century’s Aboud observed. For example, Emirates Global Aluminium (EGA) has announced that they are partnering with Dubai Electricity and Water Authority (DEWA) on a solar park to be located next door to its smelter and Aluminium Bahrain (Alba) – the world’s largest aluminium smelter outside of China – has invited bids for the development of solar farm in Bahrain. CRU’s Jackson said that while EGA currently only uses solar energy for its aluminium production, he expects that on January/February 2022

14/01/2022 10:16:52

36 ALTERNATIVE ENERGY

this investment alone, its solar energy use will increase quickly over the next decade to about 10% of its production. He added that there has been some moves elsewhere in the world, including some related to wind power. For example, Companhia Brasileira de Aluminio (CBA) in Brazil, which had already been using hydroelectric power, has invested in a wind farm, and the Eoliennes en mer de Dunkerque (EMD) consortium in Dunkirk, France, sources power from the grid that is based on nuclear and wind power. Rio Tinto also contracted with global energy provider EDL to build, own and operate a 4MW solar farm and 4MWh battery storage facility which will triple the supply of solar energy to its Weipa bauxite mine in Queensland, Australia, once the project is completed in late 2022. The new solar farm and battery storage will complement the existing 1.6MW solar farm at Weipa, which was completed in 2015 and is also owned and operated by EDL. Industry observers, however, say that there are many challenges for the aluminium industry to engage in a large scale transition to using wind power, solar power and other renewables other than Hydropower, from the fossil fuel based energy that they are currently using. One such challenge, Sucden’s Wilkes pointed out is that, like hydropower, wind and solar power generation is only available in certain regions where it is viable. “While we are seeing more aluminium producers trying to source renewable power whenever possible, you can’t put a wind farm where the is no wind or a solar farm where there isn’t enough sun.” And even in those regions, the generation of solar and wind energy tends to be very intermittent – by Simard’s estimation, energy production only occurs 20-30% of the time – which not only means that there is no reliable renewable power source, and so a base energy source such as natural gas, hydro or nuclear power is required for peak times, but also a large amount of land is needed for industrial-scale solar and wind farms. “For example, if a wind turbine only generates energy 30% of the time, there is a need for three times the number of windmills to produce the amount of energy needed,” he explained, adding that the same is the case for solar panels. Even though renewable energy is becoming more available, Hydro’s Stier said he views solar and wind power as being supplemental, given that Hydro and other aluminium producers need reliable power even when it is dark and/or the wind is calm. But there is no question that demand for wind and solar power has been January/February 2022

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growing, with the push not just coming from governments around the world, which, as is evidenced by what was discussed at COP26, but aluminium companies doing so as well. And on top of that, Stier observed that end-users are generally becoming more aware as well and are expecting the aluminium industry to use more renewable energy. With this increased demand, the price of wind and solar prices have already come down massively and is already seen as very competitive with such fossil fuels that are currently used for base energy sources by the industry. In fact, Sucden’s Wilkes observed that in some regions it is the cheapest fuel source. Its cost competitiveness with fossil fuels, however, could be somewhat deceptive, CRU’s Wittbecker said, given that it assumes that such power is being sold immediately after it has been generated, as opposed to being stored until needed, which would greatly reduce its sustainability. Mothersole adds, this highlights the need to greatly enhance industrial energy storage capacity capabilities, stating, “Without that I don’t see how the wind and solar generation industries become sustainable to the level that carbon policy activists would like to see,” which, he said, is why the percent aluminium smelters that are currently fired by these less conventional renewable power sources is relatively small. That is because, at least at the present time, the technology doesn’t yet exist to store enough solar- or wind-based power, long enough, Jackson said, explaining that most battery storage systems aren’t able to hold the power for more than about six hours. “So, it isn’t something that you can store for days on end and slowly discharge into the grid,” he said. That, however,

could be starting to change somewhat, Mothersole said, noting that while battery technologies capable of storing energy at that scale, aren’t available quite yet, it is possible that they could be able to do so in another five to 10 years. There, however, are a number of uncertainties about the upcoming storage infrastructure, Simard observed. One being that, since not all batteries are born equal, it is unknown what the carbon footprint of such systems will be. He said that would depend upon a number of factors, including the emissions generated in the fabrication of the batteries and how disposable they will be at the end of their lives. Also, Jackson pointed out that these industrial batteries are currently extremely expensive, therefore, storage could add quite a bit to the cost of the energy that aluminium companies are buying. “But eventually battery technology will become less expensive,” he said, especially given that some batteries used for energy storage infrastructure are able to be repurposed from the automotive sector. “Going forward, wind, solar and hydropower should eventually become the main energy source for the aluminium industry,” Fastmarkets’ Cao said, “But it will take some time to go through that transition period.” But even then, aluminium producers will need to continue to use some fossil fuels as a balancing agent, Century’s Aboud said. “Aluminium facilities that are adjacent to hydropower or geothermal or a nuclear plant could be totally supplied by those sources because they are fairly constant,” he said. “But on the other hand, solar and wind isn’t reliable all the time, so I don’t think it is feasible for exclusively by those sources,” although the ratio might change. �

Image courtesy of Century Aluminum

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38 GREEN ALUMINIUM

The time for green aluminium companies to scale is now – let’s embrace it By Konrad von Szczepanski* The aluminium industry is facing a fundamental paradigm shift. The introduction of carbon taxation schemes, coupled with the pressure from customers and investors for the sector to decarbonise, is having a significant impact on the market’s competitive landscape – boosting demand for green aluminium while helping to reduce the industry’s emissions. Yet, to truly unlock the potential for green aluminium companies to reign the market, key stakeholders – including government, investors, and customers – will need to do their part to accelerate the transition. The Carbon Tax: A new era for the aluminium market The introduction of a carbon tax by the EU (and possibly other governments) is set to shift the dial on the industry’s competitive environment, benefitting low emission producers regardless of where they’re domiciled. According to BCG analysis, a $50 per ton of CO2 carbon tax in the EU could raise the costs of aluminium produced in a coalpowered smelter by approximately $800 per ton, clearly benefitting low emission producers in the long run1. And this is only an estimated cost for the base case scenario. If we are to meet the 1.5-degree target from the Paris Agreement, carbon taxes would have to become even more onerous, at $150 per ton of CO2.2 Once fully implemented, the EU carbon border tax will have an immediate impact on global trade dynamics. According to another BCG research, high emission producers, such as China, South Africa, and India, will see the cost of materials produced in their countries increase by 15% to 30% almost overnight3. Unless high-emission producers are willing to pay the cost, they’ll most likely avoid selling to markets that have such taxes. As a result, the carbon tax would enable low emission producers based anywhere to claim substantial amounts of demand in markets covered by carbon taxes (and carbon border adjustments). The combination of higher prices and the relatively small uptick in emission-taxrelated costs would boost the profitability January/February 2022

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*Konrad von Szczepanski is a Partner & Director at Boston Consulting Group. He’s a core member of BCG’s Global Advantage practice and led BCG’s Industrial Goods practice in the UK and Benelux from 2015 to 2020. He’s also the global lead for strategy, value creation, and ecosystem integration in metals and mining. of low-emission producers – regardless of where they’re domiciled. In short, green aluminium companies should remain confident about their growth prospect. But only so long there’s a market for them to scale.

The pressure to decarbonise: propping the industry to meet the growing demand for green aluminium As customers and investors become gradually more inclined to prioritise those companies with the most sustainable

1. https://www.bcg.com/en-gb/publications/2021/going-green-and-sustainability-in-aluminum-industry 2. https://www.woodmac.com/news/opinion/carbon-taxes-which-mined-commodities-will-be-the-winners-andlosers/wl;. 3. https://www.bcg.com/publications/2021/eu-carbon-border-tax 4. https://www.bcg.com/en-gb/publications/2021/going-green-and-sustainability-in-aluminum-industry

Aluminium International Today

14/01/2022 07:53:03

GREEN ALUMINIUM 39

operational profile, demand for green aluminium will be steadily increasing. However, this growing demand will mean nothing to the sector if keystakeholders don’t create the conditions for producers to make the switch. As high emission producers start ceding ground to low-emission ones, industry players looking to benefit from this paradigm shift will need to have the right infrastructure in place to ensure green aluminium companies have the potential to grow. This means that private and public sectors will need to collaborate in order to scale this brewing market. The carbon tax will have a significant impact on the market’s landscape, but, in itself, will do little to boost demand for green aluminium. For production to scale, governments will need to understand the impact of carbon taxation on domestic players. Firstly, as the industry undergoes this shift, governments will need to provide temporary measures that ensure the availability of aluminium supply amid the new trading dynamics – be it through incentives and schemes to ensure the transition to green aluminium is attractive

and sustainable. Secondly, governments must look into opportunities to reinvest the profits from carbon taxation in new low-carbon energy sources and sustainability measures for the industry. This sort of investment will be critical to propping up the industry for success and reducing costs for those companies developing green solutions, while at the same time boosting production of green aluminium. Outside of government, industry players will need to do their part to ensure the market is ripe for success. Producers can switch from coal-based smelters to cleaner sources of power generation, such as hydroelectric power, as long as renewable power generation capacity is brought online in sufficient quantity and at competitive cost. For this to happen, key stakeholders – including governments, power companies, and investors – will need to partner to increase renewable power production capacity for green aluminium to scale. This alone could significantly improve the industry’s carbon footprint, emitting six times less CO2 per ton compared to coal-based smelters4. But more innovation will be needed to

make sure green aluminium can become a mass-market commodity. Aluminium companies will also need to collaborate within the industry and with research organisations, governments, and investors to develop, fund, and accelerate innovation that could spur greener technologies that reduce direct CO2 emissions and reduce waste, such as inert anode and red mud reuse. Finally, companies must also explore industry consolidation to increase the sector’s ability to lower cost, fund innovation, and scale the market at the speed the climate crisis warrants. Grasping an opportunity The aluminium industry is undergoing a transformational shift. The introduction of a carbon tax, coupled with the pressure to decarbonise, will significantly change the market’s competitive environment for good – benefitting green aluminium companies in the long run. The time is now for industry players to grasp this moment and work together with governments, customers, investors, and academia to ensure green aluminium companies can scale. �

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