Sustainability Strategy Slides

Morning Agenda 8.30am – 9.30am REGISTRATION & NETWORKING BREAKFAST

11am – 11.15am REFRESHMENT BREAK

9.30am – 9.35am Welcome Address Nadine Bloxsome, Membership & Sustainability Manager, ALFED

11.15am – 11.45am A Global Sustainability Pathway for Aluminium – UK Opportunities Miles Prosser, Secretary General, International Aluminium Institute

9.35am – 10am OPENING KEYNOTE How Soon Will Companies Win or Lose Business on the Carbon Content of their Product? Lord Rupert Redesdale

11.45am – 12.15pm Powering a Sustainable Future Cameron West, Carbon & Energy Analyst, Zenergi

10am – 10.20am UK Net Zero Strategy Henry Green, Head of Net Zero Delivery Net Zero Strategy Directorate

12.15pm – 1pm How to Make Carbon Reduction Commercially Viable Chris Maclean, CEO, Open Energy Market & Guests

10.25am – 11am Addressing Carbon Leakage Risk to Support Decarbonisation Timothy Stock, Head of Embodied Emissions Reporting Industrial Decarbonisation at Department for Business, Energy and Industrial Strategy (BEIS)

1pm – 2pm LUNCH & NETWORKING

Afternoon Agenda 2pm – 2.45pm Panel Discussion: Greenshoring – UK Aluminium Moderator - Dr Mark Jones, Head of Business Development, BCAST Brunel Panellists - Paul Cantwell, Head of Net Zero Programs, National Manufacturing Institute of Scotland Rachel Wiffen, Senior Process Engineer, Innoval Technology Ltd Tom Giddings, Executive Director, Alupro Kilian Schneider, Process Metallurgist, Constellium 2.45pm – 3.30pm Panel Discussion: Addressing Competitiveness and Carbon Leakage in UK Aluminium Production Moderator - Jo Milligan, Head of Government Relations & External Affairs, GFG Alliance Panellists - Emanuele Manigrassi, Senior Manager, Climate & Energy, European Aluminium Andy Doran, Senior Manager, Sustainability & Recycling Development, Novelis Europe Katie Doubleday,HM Treasury Tom Jones, CEO, ALFED 3.30pm – 3.45pm REFRESHMENT BREAK

3.45pm – 4pm Fast Forward Zero Jerome Lucaes, CEO Fast Forward Zero 4pm – 4.30pm Smart Sorting Technology for a Green Future Terence Keyworth, Segment Manager Metal, TOMRA Recycling Sorting 4.30pm – 5.15pm Panel Discussion: Eliminating Waste Moderator - Elle Bennett-Runton, Knowledge Transfer Manager - Circular Economy, Innovate UK KTN Panellists - Jan Lukaszewski, Technical Manager, ALFED Mike Dines, Director, Tandom Metallurgical Ltd Laura Downey, Innovation Manager (Sustainable Manufacturing), WMG, University of Warwick 5.30pm – 6.30pm NETWORKING RECEPTION Sponsored by Zenergi

Sustainability Strategy Day Thursday, 1st June 2023

KEYNOTE

How Soon Will Companies Win or Lose Business on the Carbon Content of their Product?

Lord Rupert Redesdale

Rupert Redesdale 25 years of carbon campaigning

How soon will companies win or lose business on the carbon content of their product?

Drivers for Carbon Reporting

• Net Zero • Procurement • Company climate change carbon targets • Carbon Reporting • ESG (Alfed ESG Officer training)

net zero – definition

Current Legislation Consequence of taking no action

Step 2

Increased costs due to future carbon taxation, public image and new contracts

Advisory

Energy White paper – powering our Net Zero Future

Compulsory

GHG Reporting - Annual Mandatory GHG emissions reporting

None compliant directors report

SECR - Annual Streamlined Energy and Carbon Reporting (SECR)

None compliant tax return

Compulsory

Compulsory

ESOS - Energy Savings Opportunities Scheme

Upto £50,000 penalty every 4 years

Future Legislation Consequence of taking no action

Step 2 Advisory

NZC 2050 – Net Zero Carbon by 2050

Increased costs due to future carbon taxation, public image and new contracts

Compulsory

TCFD 2025 – Taskforce on Climate Related Financial Disclosure

None compliant tax return

Advisory

SBTi – Science Based Targets Initiative

Competitor advantage and public opinion

Potential

UK ETS – UK Emissions Trading Scheme

Potential future taxation currently at £25/tonne of CO2

net zero - industry take note

net zero – supplier pressure

net zero – employee pressure

Procurement • How many companies have require carbon data as part of their procurement process?

• How long before that is a mandatory element of procurement requirements?

TO BE NET ZERO, WE NEED TO UNDERSTAND – GHG Emissions – THE SCOPES

OH S**T MOMENT How many companies in the supply chain?

NET ZERO – WHAT DO WE NEED? • STRATEGY • POLICY • BUY-IN • COMMITMENT • DATA • DATA • DATA • NET ZERO PLAN • THE PLAN MAY INCLUDE SOME OR ALL OF THESE AREAS…….

Who in the company is responsible for Carbon reporting and ESG?

"Intrinsically linked"

Q: What is the current position? What is the ambition?

Alfed ESG Officer • Alfed training to be able to: • Understand all elements needed to be ESG compliant • Focus on companies carbon profile, environmental and societal policies • Formulate necessary policies in all ESG areas • Ability to integrate all policies into company governance and risk register

Who should go on the course?

• Those who wish to be ESG officers • Those who are tasked with creating and implementing ESG policies • Those tasked with carbon reporting • No prior qualifications needed

Alfed ESG Course • Course will be based on online webinars • In person training • Online materials • Access to online forum • CPD • Please sign up….

Sustainability Strategy Day Thursday, 1st June 2023

UK Net Zero Strategy

Henry Green Head of Net Zero Delivery Net Zero Strategy Directorate

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Overview of the UK’s net zero strategy Henry Green, Head of Net Zero Delivery Department for Energy Security and Net Zero

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Reducing fossil fuel use and increasing renewable energy has been key Growing renewables and falling demand have pushed out coal in the UK

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The 2021 Net Zero Strategy set a path to reduce emissions across all sectors

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The 2023 Powering Up Britain plans brought energy security and net zero together • We published the Powering Up Britain plans in March 2023.

Figure 1: Destabilised global energy markets

• Energy security and net zero are two sides of the same coin – we can secure reliable energy supplies whilst cutting carbon and reducing prices.

• Putin’s illegal war destabilised global energy markets and led to an energy crisis. (Figure 1).

• The Government provided unprecedented support to consumers and firms (Figure 2).

• To meet Britain’s future energy needs, and bring down prices, we set out a plan to diversify, decarbonise and domesticate energy production.

Figure 2: Government support for business and consumers

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The Independent Review of Net Zero set out the economic opportunities of net zero • An independent review, led by Chris Skidmore MP, a Conservative Member of Parliament • Focused on ‘Delivering a pro-growth, cost-effective net zero in the context of global economic shocks’ • Over three months, the Review led 52 evidence sessions, meeting more than 1000 businesses, universities and other organisations. It received more than 1800 written evidence submissions.

• In January 2023, it published its report ‘Mission Zero’. It made 129 recommendations, including: ⚬ Review UK incentives in the context of the Inflation Reduction Act ⚬ Clear plans to deliver 70GW of solar ⚬ A public engagement plan • Its major conclusion: net zero is the growth opportunity of the 21ˢᵗ century

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To conclude…

• The UK has a long-term plan for reaching net zero – as set out in its 2021 Net Zero Strategy • This is driving decarbonisation across the economy • Net zero and energy security are two sides of the same coin – brought together in the Powering Up Britain plans • 2023 is another important year of action • The UK’s strategy is built on growing the economy while responding to climate change

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Sustainability Strategy Day Thursday, 1st June 2023

Addressing Carbon Leakage Risk to support Decarbonisation

Timothy Stock Head of Embodied Emissions Reporting - Industrial Decarbonisation at Department for Business, Energy and Industrial Strategy (BEIS)

OFFICIAL-SENSITIVE

Addressing carbon leakage risk to support decarbonisation Consultation overview

Carbon leakage consultation: an overview OFFFFIICIIALL--

OFFICIAL-SENSITIVE

HMG’s approach to carbon leakage Carbon leakage is the movement of production and associated emissions from one country to another due to different levels of decarbonisation effort through carbon pricing and climate regulation. As a result, the objective of decarbonisation efforts –to reduce global emissions –would be undermined.

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The UK is working with international partners to address carbon leakage -this remains our priority.

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However, this will take time, so we are also considering domestic policies to ensure UK efforts lead to a true reduction in global emissions.

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The government is therefore exploring a package of potential measures to mitigate carbon leakage risk at all stages of the UK's net zero transition.

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ETS reform is being explored in parallel by the UK ETS Authority; any carbon leakage policy would be designed to work cohesively with our existing carbon leakage policy measures.

Carbon leakage consultation: an overview OFFFFIICIIALL--

OFFICIAL-SENSITIVE

About the consultation Timing and audience Consultation opened on 30 March, running for 12 weeks to 22 June.

Welcome inputs from all stakeholders, including industry in UK and overseas.

Accessing and responding: Consultation online at:https://www.gov.uk/government/consultations/addressing- carbon-leakagerisk-to-support-decarbonisation Respond online at:https://beisgovuk.citizenspace.com/trade/addressingcarbon- leakage-risk/ Email for consultation: carbonleakage.consultation@beis.gov.uk Carbon leakage consultation: an overview OFFFFIICIIALL--

OFFICIAL-SENSITIVE

Exploring a potential policy package This exploratory consultation will inform decision making on which policies, if any, should be introduced, and does not commit the government to adopt any specific policy.

We are inviting views and evidence from stakeholdersonthe best possible mix of policies to manage carbon leakage risk.

New measures wouldneed to: •

Respond to carbon leakage risk in a proportionate, targeted, evidence-based, and effective way, aligning with relevant UK decarbonisation policy.

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Promote and encourage increased climate action both in the UK and globally, including international action to address carbon leakage and taking into consideration countries’ differing levels of development,particularlyfor leastdeveloped and low-incomecountries.

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Be compatible with, and deliverable alongside, the government’s key domestic priorities, such as supporting sustainable and balanced growth, by minimising business compliance costs.

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Be consistent with ourcommitment to free and open trade and be designed in line with the UK’s international obligations and commitments,including World TradeOrganisation (WTO)obligations.

Carbon leakage consultation: an overview OFFFFIICIIALL--

OFFICIAL-SENSITIVE

Part 1: Potential mitigation policies Overview

OFFICIAL-SENSITIVE

Part 2: Emissions reporting requirements An embodied emissions reporting system could support the implementation of carbon leakage mitigation policies.

A key consideration is to minimise and consolidate burdens on business including by making requirements streamlined and non-duplicative as far as possible.

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Options for embodied emissions reporting Use of Emission Factors Possible use of default values

Designing the mechanism for embodied emissions reporting to standardise approaches and ensure robust outcomes while minimising burdens for businesses

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Methodology and metric Data collection period

for collecting and Delivery of reporting system processing product-level embodied emissions data

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An emissions reporting framework may be needed to underpin policy with reporting of product-level embodied emissions.

Carbon leakage consultation: an overview OFFFFIICIIALL--

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Sectoral coverage and where to target in the manufacturing chain IT system options Frequency of reporting Verification and disclosure

OFFICIAL-SENSITIVE

Q&A Accessing and responding: Consultation at:https://www.gov.uk/government/consultations/addressingrisk-to-support-decarbonisation

online carbon-leakage-

Respond online at:https://beisgovuk.citizenspace.com/trade/addressing-carbonleakage-risk/ Email for consultation: carbonleakage.consultation@beis.gov.uk Carbon leakage consultation: an overview OFFFFIICIIALL--

Sustainability Strategy Day Thursday, 1st June 2023

A Global Sustainability Pathway for Aluminium: UK Opportunities

Miles Prosser Secretary General International Aluminium Institute

A Global Sustainability Pathway for Aluminium – UK Opportunities Miles Prosser Secretary General

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About the International Aluminium Institute (IAI) Since its foundation in 1972, members of the IAI have been companies engaged in the production of bauxite, alumina and aluminium, the recycling of aluminium and/or fabrication of aluminium, or as joint venture partners.

The International Aluminium Institute (IAI) is the only body representing the global primary aluminium industry.

Current IAI membership represents all major regions of global bauxite, alumina and aluminium production.

The IAI has been key to bringing the industry together on shared purpose over the past 50 years.

What we do

Raise awareness of Aluminium’s unique and valuable properties

Foster collaboration for sustainability

Support informed decision making

Contribute to Aluminium wide standards and regulation

Today • Why sustainability is important?

• Applying sustainability to aluminium.

• Greenhouse Gas Pathways.

Context

COVID RECOVERY

CLIMATE CHANGE

INTEREST RATES

ENERGY CRISIS

Aluminium Is Sustainable RENEWABLE ENERGY

TRANSITION TO ELECTRIC VEHICLES

THE MOST RECYCLED DRINK CONTAINER

Shaping A Better Tomorrow CONDUCTIVE

DURABLE

Alloys are weather-proof and corrosion-resistant resulting in very long lifetimes

High thermal conductivity minimises the time and energy to process, chill and heat food

ALUMINIUM Shaping a better tomorrow

FORMABLE

PROTECTIVE

Flexibility and formability enable unlimited design potential

Barrier properties preserve food, drink and medicines, reducing wastage

LIGHTWEIGHT

High strength-to-weight ratio makes it possible to design light, strong & stable structures

RECYCLABLE

Recycling saves 95% of the energy required for primary production.

Aluminium consumption in main regions and sectors

Main Drivers Of Demand Growth

Transportation

Electrical

Packaging

Construction

Decarbonisation policies and the shift towards more aluminium intensive electric vehicles will have a positive impact in the metal’s consumption coming from the Transportation sector.

The transition from traditional sources of power towards nonconventional renewable energy sources represents one of the most substantial opportunities for the aluminium industry over the coming years

Driven mainly by the rise in popularity of canned drinks in North America, Europe and China, the packaging sector is experiencing a surge in demand of aluminium

In contrast to other sectors, the construction sector is not expected to be driven by ESG trends and decarbonization policies.

Automotive - The transition to EVs ICE to Battery

Source: Aluminum Association and DuckerFrontier:

Aluminium Demand For Electricity Projected aluminium demand for electricity grid additions and replacements increasing from 9 Mt to 13-16 Mt by 2040.

2023 9 Mt

2040 13-16 Mt

Source: The Role of Critical Minerals in Clean Energy Transitions, IEA World Energy Outlook Special Report, May 2021

Aluminium Cans: The Best Solution For A Circular Economy

Source: https://internationalaluminium.org/resource/aluminium-beverage-can-study/

2019 Recycled Products

2019 Real Recycling Rate

Includes USA, Brazil, Europe, Japan, China

A Circularity Case For Aluminium Compared With Glass And Plastic

Aluminium’s contribution to sustainable development 2 & 3: Barrier properties to preserve & deliver food & vital medication

11: Durable aluminium building components with lifetimes >120 years

7: Al essential in renewable energy systems, cabling & energy storage

13: 1 kg of Al replacing heavier materials in a car saves 20 kg CO2 over the vehicle’s life

12: Sustainable production, sharing of good practice & improving recycling

8: Approximately 8 million direct & indirect high quality & skilled jobs across the sector

17: Collaboration across the value chain & cross-sector

Sustainability challenges for aluminium 1,2 & 3: Ensure communities benefit from industry.

4, 5, 8 & 10: Ensure workforce benefits from industry.

12: Sustainable production, sharing of good practice

13: Reduce GHG emissions – to zero

14 & 15: Minimise & manage impacts on land & water

17: Collaboration across the value chain & cross-sector

“Green” Is More Than Greenhouse Gas Emissions

Climate change

People

Emissions & Waste

Water

Biodiversity

Circularity

IAI Greenhouse Gas Pathways to 2050 Data driven approach

Industry data & input

Establish the sector baseline

Top-down scenario analysis – IEA

Consider the different positions

Identify variety of pathways

700 million

300 million

<100 million

Electricity

Process & Thermal

Ancillary & Transport

2018: 1.1 billion tonnes of CO₂e

IAI Emissions Scenarios Aluminium Sector (million tonnes CO2e) – 2018

BAU B2DS 1.5DS

IAI GHG Pathways to 2050 (IAI, 2021)

Greenhouse Gas Pathways To 2050

Sectoral Transition Strategy by Mission Possible Partnership 2020-2050 direct and indirect emissions for the aluminium sector

% of cumulative emissions reduction (20222050) 15Improved recycling rates Material & 20% Higher design efficiency Resource

GtCO₂e/yr 1.

6 1.

4 1.

2 1.

0 0.

8 0.

6 0.

4 0.

2 ₂₀₂₀

Efficiency

Low Carbon Refineries

₂₀₂₅

₂₀₃₀

₂₀₃₅

₂₀₄₀

₂₀₄₅

₂₀₅₀

510%

Heat recovery and zeroemissions boilers Zero-emissions calciners New grid connections or CCS Nuclear small modular reactors

Low Carbon Power

55-60%

Low Carbon Smelters

10%

Inert anodes CCS retrofits

Additional Fuel Switching

1015%

Low-carbon electricity or hydrogen across wider value chain

Greenhouse Gas Pathways To 2050

2021 GHG Emissions not on 1.5DS Track Aluminium Sector (million tonnes CO2e) – 2021 Update

BAU B2DS 1.5DS

IAI GHG Pathways to 2050 (IAI, 2021), IAI Statistic (IAI, 2022)

GHG Reduction Projects 2022/2023 -> 50 Projects Electricity decarbonisation Direct emissions

Recycling

IAI GHG Technology Map (IAI, 2023)

IAI Membership Decarbonisation Plans

84%

72%

Decarbonisation Plan

2050 Net-Zero Pathway

36%

Endorsement of MPP Aluminium Transition Strategy

Sustainability and the Aluminium Industry Aluminium is part of the sustainability solution.

Aluminium has natural advantages over other materials.

To grasp opportunities we must demonstrate that aluminium is sustainable.

Decarbonisation is a significant challenge for the aluminium industry.

international-aluminium.org @Int_Aluminium linkedin.com/company/international-aluminium-institute/ @TheAluminiumStory

Thank you

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Sustainability Strategy Day Thursday, 1st June 2023

Powering a Sustainable Future

Cameron West Carbon & Energy Analyst

Powering a Sustainable Future Social Value Strategy Cameron West ALFED Sustainability Strategy Day BMA House, London

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Net Zero - 2050

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Net Zero - 2050

26:07:05:15:40:02 years

months

days

hours

minutes

seconds

Until Next Saturday

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Net Zero

The path to net zero ambition

The path to net zero reality

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What is net zero?

Balancing the amount of greenhouse gases emitted with the amount removed from the atmosphere (offsetting).

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Net zero

How many people have a written Net Zero Strategy in place?

How many people have considered Net Zero but haven't written it down and are not sure where to start?

Is the want there but just restricted by finance and resource?

What is more important Net Zero or to simply Reduce Consumption?

Is anyone just not interested in Net Zero?

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Powering a sustainable future

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Powering a sustainable future

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Phase 1: Measure

The path to net zero is a marathon

Ensure compliance Data collection Create baseline Stakeholder workshop

Zen Zero is Zenergi’s market-leading solution which helps organisations to not only define their carbon footprint, but also provides a glidepath to net zero with the relevant expertise and tools, every step of the way.

Zenergi’s three-stage Zen Zero framework, Measure, Prepare, and Deliver, is a proven approach that will deliver sustained benefits across your organisation – from increased profit through strategic energy efficiency programmes, while reducing the risk from rising energy and carbon prices, to assisting the UK nationally to provide security of energy supplies and supporting the transition to a low-carbon economy.

Phase 2: Prepare

Detailed site audits Identify opportunities Industry benchmarking Establish ambition level Agree net zero target Carbon roadmap

Phase 3: Deliver

Launch net zero plan Engage stakeholders Commence delivery Technical support Regular reporting

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Keep it simple

Appoint an Expert Partner Define your Expectations Early Choose your Scopes 1, 2 & 3 Plan your Strategy Measure, Prepare & Deliver

Survey your Buildings Understand the Challenges Verify Savings

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Next steps

Start (or continue) the conversation: Cameron West Carbon & Energy Analyst – SECR Lead cameron.west@briar.zenergi.co.uk 07354 844 888

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Sustainability Strategy Day Thursday, 1st June 2023

How to Make Carbon Reduction Commercially Viable

Chris Maclean

Steve Malkin

Joe Wadsworth

Chief Executive Officer

Paul Meaden

CEO and Founder Planet Mark

UK Commercial Manager Energy Gain

Head of Strategic Partnerships Ripple Energy

Greenshoring UK Aluminium

Sustainability Strategy Day Thursday, 1st June 2023

Dr Mark Jones

Rachel Wiffen

Tom Giddings

Kilian Schneider

Head of Business Development BCAST Brunel

Senior Engineer, Quality Systems Manager Innoval Technology Ltd

Executive Director Alupro

Lead Material Technologist, Constellium

Brunel Centre for Advanced Solidification Technology (BCAST)

Dr Mark Jones Head of Business Development mark.jones@brunel.ac.uk Dr Mark079441 Jones +44(0)7881

LiME Hub Manager

BCAST Brunel University London Uxbridge, UB8 3PH, UK

Greenshoring Secondary Aluminium into the UK 1ˢᵗ June 2023

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Greenshoring Greenshoring puts sustainability at the core of location choice for manufacturing, shifting the focus from low cost onto sustainable manufacturing.

Greenshoring will reduce the emissions of the current manufacturing base and attract new manufacturers to make products with the lowest possible environmental footprint, and ensure security of the supply chain. *Objective of today is to focus on greenshoring the secondary aluminium industry into the UK*

BCAST Circular Metals Centre

Part of the government £30M NICER initiative to make the UK a Circular Economy Leader

BCAST’s long-term vision is Full Metal Circulation

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BCAST Circular Metals Centre

Part of the government £30M NICER initiative to make the UK a Circular Economy Leader Innovate UK collaborative research & development fund

£30M Total Funding 34 Universities 64 Senior Academics 42 Early Career researchers

Textiles

Construction Minerals

Metals

Technology Metals

Chemicals

Wider academic, industry, third-party, policy community (including DEFRA, BEIS, devolved administration)

60+ PhD Students 120 Industrial Partners

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BCAST Circular Metals Centre Strategy

Part of the government £30M NICER initiative to make the UK a Circular Economy Leader

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The Global Aluminium Industry

Russia and Eastern Europe 2022 4.1mt North America 2022 3.7mt

Western and Central Europe 2022 2.9mt

South America 2022 1.3mt Estimated Unreported 2022 1.9mt

Asia (ex China) 2022 4.6mt

China 2022 40.5mt

Gulf Cooperation Council 2022 6.1mt Africa 2022 1.6mt

Oceania 2022 1.8mt

World is still producing 68mt of primary aluminium in 2022 100mt+ estimated to be used pa, including post consumer scrap Source: International Aluminium Institute statistics 2022

Imports 1.2mt, and exports up to 800kt of secondary aluminium Currently employs 39,000 people directly and 104,000 with spill over impact; and contributes £7.4 billion in Gross Value Added (GVA) Source: Fraser of Allander Institute, the aluminium industry in the UK, report for ALFED, 2022

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Aluminium Sector Co2 emissions end to gate

85% CO2 emissions reduction

Circular Economy

Source: High Value Manufacturing Catapult

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UK Secondary Aluminium New Manufacturing Announced Doubling their capacity in Lochaber, from 50kt primary, by using secondary for extrusions for windows for a volume of 50kt, totalling 100kt output.

Expansion of Hydro global recycling centres, based in Wrexham, to produce 100kt of secondary aluminium, for feeding into CircAL extrusion alloys and into primary reduction cells in Norway.

CirConAl – project to develop lower carbon, lower cost recycled aluminium alloys with automotive manufacturers and suppliers, focussed on extrusion.

British Aluminium Corporation for Advanced Alloys (BACALL) New packaging secondary aluminium rolling plant (2026).

Currently import 1.2mt, and export up to 800k of secondary aluminium (this will expand) • 400kt of automotive sheet - rolling • 50kt of castings – will increase e.g. aerospace • 50kt of extrusions • 150kt of can sheet - rolling

There is a desperate need for low carbon aluminium – UK opportunity to act rapidly to become a world leader in the use of secondary aluminium.

Opportunity to become self sufficient, and then grow as demand increases.

UK Secondary Aluminium R&D Opportunity

• Industrial scale forming

• UK manufacturing Net Zero activities • Industrial scale casting

• Analytical equipment

• Industrial scale casting • Industrial scale extrusion • Analytical equipment • Secondary aluminium specialist • Circular Metals Centre • LiME Hub • Metal Heath Service (MHS)

Offer a UK sustainable aluminium R&D capability, to drive forward via government and industrial support: ‘Sustainable Aluminium Innovation Hub’

Greenshoring the Secondary Aluminium into the UK Interactive Discussion Panel will introduce themselves, and speak for 5 mins on major challenges and opportunities for their speciality/sector Wider audience participation: • Major challenges for the UK • Opportunities for the UK We are forming an R&D capability, pulling everyone together, proving the science, investigating industries and supply chains BCAST & High Value Manufacturing Catapult will be hosting a workshop in July 2023 a. How can industry work together (not working in silos, what are the tensions)? b. What would the perfect policy be – carbon border tax, energy price? c. Magic investment, what would this look like? d. Future directions

Sustainability Strategy Day Thursday, 1st June 2023

Fast Forward Zero

Jerome Lucaes CEO Fast Forward Zero

FAST FORWARD ZERO Tow ard s

a

de carb on i z e d,

m ore c i rc u l ar

an d

inclusive

ALFED Sustainability day 1 ˢᵗ June 2023

–

The climate emergency toolkit For the aluminium industry Jerome

Lucaes,

CEO

e con om y

Jerome LUCAES bio highlights CEO, FAST FORWARD ZERO (FFZero) - Business transformations, creation of coalitions, for a low carbon, circular and inclusive economy

Strategic Advisor, IAI • Created/Facilitates the ALUMINIUM FORWARD 2030 coalition

Director - Low carbon aluminium program - En+ Group / RUSAL – 2016 – 2022 • Led the low carbon aluminium program • Creator of the ALLOW brand • WORLD FIRST commitment to net ZERO CARBON

Global Product sustainability director at Rio Tinto (2011-2016) Co-creator of the Aluminium Stewardship Initiative (2011-2014) Experience of 25 years in the aluminiuum industry with Pechiney, Alcan, Rio Tinto, RUSAL ⚬ ⚬ ⚬ ⚬ ⚬

net 0 carbon transformation innovation to market, marketing strategies, brand creation and development, product life cycle management energy, climate, SDGs, biodiversity, social, sustainability impact assesments, risks based analysis, metals and mining, energy, raw materials, supply-chains Business development, Partnerships

FA S T FO R W A R D ZE R O

The world is in a CLIMATE CRISIS, and in a RACE TO ZERO CARBON FA S T FO R W A R D ZE R O

Human activities generate more GHG emissions Only wars, recessions, fuel shocks & pandemics have dented the rise of fossil fuel emissions

Source: Global Carbon Project/ Nat Bullard

FA S T FO R W A R D ZE R O

Atmospheric carbon dioxide is higher than at any time in 800,000 years

Source: EPA/ Nat Bullard

FA S T FO R W A R D ZE R O

All business are impacted Carbon Price

Source: graph based on EEX EUA spot price data

FA S T FO R W A R D ZE R O

Decarbonisation is not an option anymore

FA S T FO R W A R D ZE R O

Climate related risks, opportunities and Financial impact

Source: TCFD

FA S T FO R W A R D ZE R O

HOW to EAT an ELEPHANT?

FA S T FO R W A R D ZE R O

The aluminium industry pathway to net zero 2020-2050 direct and indirect emissions for the aluminium sector

% of cumulative emissions reduction (2022-2050)

GtCO₂e/yr

1.6

Material & Resource Efficiency

1520 %

• Improved recycling rates • Higher design efficiency

Low Carbon Refineries

510%

• Heat recovery and zeroemissions boilers • Zero-emissions calciners

Low Carbon Power

55-60%

• New grid connections or CCS • Nuclear small modular reactors

Low Carbon Smelters

10 %

• Inert anodes • CCS retrofits

Additional Fuel Switching

1015%

• Low-carbon electricity or hydrogen across wider value chain

1.4 1.2 1.0 0.8 0.6 0.4 0.2 2020

2025

2030

2035

2040

Source: IAI, Aluminium Sector Transition Strategy Model (2022).

2045

2050

FA S T FO R W A R D ZE R O

The industry decarbonisation readiness

Source: Mission Possible Partnership

FA S T FO R W A R D ZE R O

More than 50 decarbonization projects have been identified globally

2020 -> 16 Project

2023 -> 50 Projects

Electricity decarbonisation Source: IAI GHG Technology Map (IAI, 2023)

Direct emissions

Recycling

FA S T FO R W A R D ZE R O

PRIMARY ALUMINIUM

The primary aluminium industry is moving ahead • Reduce scope 1 & 2 emissions by 15% and emissions intensity by 30% by 2030 (vs 2018) - Group • Power transition - Gas to solar & wind in Australia smelters (4 GW RFP) • Hydrogen feasibility study at Yarwin refinery • AP60 LCA plant expansion • ISAL carbon capture project CARBFIX • ELYSIS

RECYCLING

Recycling ≥50Kt • PFA production with EOL wheels • Billets with recycling content >25% (NZAS)

• Hydro power expansion (TAISHET) • INERT ANODE (INERTAL) • Switch oil & coal fuel to gas at alumina refinery. Change alumina source • Upgrade smelting technology (exit Soderberg) • Divestments

RHEINFELDEN,30kt • PrimarywithPCSpilotatKubal

• To reduce CO2 emissions by 10% 2025, 30% by 2030 and zero emissions by 2050.

• Hydrogen at alumina refinery in Brazil • Hydrogen at Casthouses in Norway • HALZero R&D development • Ardel/ Sunndel tech upgrades • Reduxa 2.0 by 2030 • BIO ANODES Recycling >500Kt • Add EOL into primary aluminium VAP, pilot in Norway by 2022 • 75R – Billet with >75% PCS

• To reduce GhG emission intensity by 30% by 2025, 50% by 2030 vs 2015.

• San Ciprian, Spain => Wind power by 2024 • Sao Luis, Brazil = > restart by 2022, Hydro power • Alumina = > MVR technology • Smelter renewable energy use from 78% 2020 to 85% 2025 • ELYSIS Recycling ≥ 50Kt • ASTRAE. Purification EOL scrap upto 99.98%. Pilot in Canada by 2023 • Brand. Billets with recycling content >50%

• 80 kt based on solar energy • Upto 2Mt based on nuclear energy source • Divestment of GAS POWER PLANT • Alumina refinery based on nuclear energy • Joined AbDhabi Hydrogen initiative

• Decarbonize alumina supply

Aluminium recycling coalition withTadweer, Coca-Cola, Pepsico, Canpack, Crown, Veolia.

LOW CO2 BRAND

Yunnan Aluminium 2023

2.0Mt 3.8 full scope

2030

2.1+ Mt

Source: compannies websites and FFZero analysis

2.6Mt 4.5Min – 7.3Max

3.4Mt

2.0Mt

1.6Mt

1.7Mt

0.08Mt

<4.0

<4.0

<4.0

3.8 ?

full scope

Scope 1, 2, partial 3

full scope

full scope

1.8Mt

2.1Mt

3.0Mt

<2.0

< 3.0

full scope

full scope

0.2 – 2.2Mt < 3.8 full scope

FA S T FO R W A R D ZE R O

The approach to succeed

Develop a decarbonization roadmap Set Targets

• CO2 / energy measurement system • Quality/relevance/achievability of solutions, • $ - carbon price • Timelines, Long term vs short term • Risks identification and management, options

IMPLEMENT and EXECUTE

• Management focus – ownwership, priorisation • Set targets - Assignments, Individual KPIs, rewards, • Adapt Resources (education, transformation) • Mobilize with a sense of urgency - time pressure • Monitoring of CO2 reductions, certifications • Reporting & Communication & External recognitions (SBTi, CDP),

Manage and Influence external factors & Collaborate

• Markets, customers • Engage Suppliers, technology partners • Regulations, standards, CBAM

Measure

FA S T

FO R W A R D ZE R O

A few concrete steps if you are just starting Measure your carbon footprint

• With the help of an expert

Mobilize your team

• Run a “climate fresk” workshop

Identify the quick wins

• Low carbon material • Green energy • home – work commuting

Evaluate the carbon footprint of my business

Organisational boundary (equity share or control approach)

Establish Organisational Boundary

Establish Organisational Boundary

Calculate Emissions

FA S T FO R W A R D ZE R O

Evaluate the carbon footprint of your business

Carbon Footprint Calculation

Emissions

=

Activity Data

X

Emission Factor

FA S T FO R W A R D ZE R O

Evaluate the carbon footprint of you business

Carbon Footprint Calculation

Carbon Footprint

=

n

Σ i=1

Scope

A i F Activity Data U

X

FE i kgCO2e/FU

Emission Factor

FU= Functional Unit FA S T FO R W A R D ZE R O

All GHG emissions count GWP GAS Carbon Dioxide CO2 Fossil Methane CH4 Biogenic Methane CH4 Nitrous Oxide N2O SF4

OVER100YEARS

(CO2 eq)

1 30 28 265 23 500

How to add up emission types: • We use a conversion factor: Global Warming Potential (GWP), over 100 years.

• It measure the contributions to warming over 100 years, of global 1kg of gas compared with CO2 (CO2e).

• Figures are based on calculations updated in each IPCC report.

• Other indicators exist. Most of the regulations use GWP at 100 years.

FA S T FO R W A R D ZE R O

Product carbon footprint boundaries

GATE-TO-GATE

MATERIALS

TRANSPORT

MANUFACTURING

DISTRIBUTION

RETAIL

USE

END OF LIFE

RECYCLING

FA S T FO R W A R D ZE R O

Product carbon footprint boundaries

CRADLE-TO-GATE

MATERIALS

TRANSPORT

MANUFACTURING

DISTRIBUTION

RETAIL

USE

END OF LIFE

RECYCLING

FA S T FO R W A R D ZE R O

Product carbon footprint boundaries

CRADLE-TO-GRAVE

MATERIALS

TRANSPORT

MANUFACTURING

DISTRIBUTION

RETAIL

USE

END OF LIFE

RECYCLING

FA S T FO R W A R D ZE R O

Product carbon footprint boundaries

CRADLE-TO-GRAVE INCL. RECYCLING (ALSO KNOWN AS LIFE CYCLE ASSESMENT)

MATERIALS

TRANSPORT

MANUFACTURING

DISTRIBUTION

RETAIL

USE

END OF LIFE

RECYCLING

FA S T FO R W A R D ZE R O

Establish a net zero carbon roadmap What Net zero carbon mean?

?

To limit global warming to 1.5ºC, we must reach net-zero emissions no later than 2050 FA S T FO R W A R D ZE R O

Identify your emissions reduction levers

New technologies and opportunities emerge

Source: European Aluminium

FA S T FO R W A R D ZE R O

Engage your suppliers

Invite customers & suppliers to join you on your journey.

Leverage the benefits to create a low carbon offering.

Celebrate progress & milestones.

FA S T FO R W A R D ZE R O

Create a story around your decarbonisation

Lifetime carbon neutral

Inspiring

By

2041, VELUX will remove all emissions since the company was created in 1941

Be prepared for a lot of resistance to change

FA S T FO R W A R D ZE R O

Ready?

FA S T FO R W A R D ZE R O FA S T FO R W A R D ZE R O

Thank you

FA S T FO R W A R D ZE R O FA S T FO R W A R D ZE R O

FAS T FO R WAR D ZE R O

TOWARD A DECARBONIZED, MORE CIRCULAR AND INCLUSIVE ECONOMY

Advises business leaders, boards of directors • industrial companies • investors and funds

Helps and partners with start-ups • Equity participation • Business plan and commercial development • Connect people

Key experience and expertise:

• Over 20 years in the aluminium industry, primary and downstream • net 0 carbon transformation, • innovation to market, • marketing strategies, brand creation and development, product life cycle management • sustainability impact assesments, risks based analysis, • metals and mining, energy, raw materials, supply-chains • Business development and partnerships

FA S T FO R W A R D ZE R O

Sustainability Strategy Day Thursday, 1st June 2023

Smart Sorting Technology for a Green Future

Terence Keyworth Segment Manager Metal

Agenda

• TOMRA introduction • Technology portfolio • Applications • Market trends

Technology & Products

X-TRACT XRT X-ray transmission technology

X-TRACT XRT – sorting principle

X-ray Source X-rays penetrate the sorting material Transmitted X-rays are collected by X-TRACT Advanced Duoline® sensor TOMRA data processing from X-ray image to converted image

AUTOSORT PULSE LIBS technology

AUTOSORT™ PULSE Dynamic LIBS solution for sorting aluminum scrap by alloy.

AUTOSORT™ PULSE Dynamic LIBS solution for sorting aluminum scrap by alloy.

LIBS working principle

Laser Induced Breakdown Spectroscopy

LASER

https://en.wikipedia.org/wiki/Laser-induced_breakdown_spectroscopy

https://www.researchgate.net/publication/312476192/figure/fig2/AS:866938993524745@1583705771852/LIBS-spectra-of cabbage-leaf-in-spectral-range-200e500-nm.jpg 10

Dynamic Laser – TOMRA LIBS

3D Object Detection

Scanning system

https://www.parilas.eu/en/consortium.html

LIBS Detection

12

GAIN Deep Learning technology

What is Deep Learning?

Artificial intelligence (AI)

is any technique that enables computers to mimic human intelligence, using logic, if-then rules, decision trees and machine learning.

A full AI is the intelligence of a machine that could successfully perform any intellectual task that a human being can.

Today narrow AI, a machine trained to do one particular task, is becoming widely used.

Machine learning (ML)

Artificial Intelligence

uses statistical techniques to give computer systems the ability to "learn" from data, without being explicitly programmed.

Machine Learning

Deep learning (DL)

Deep Learning

is a class of ML algorithms that uses a hierarchical level of artificial neural networks.

In Development: GAIN S Metals

Market Drivers

Market drivers & trends in metal recycling

• Huge cost impact on (primary) aluminum industry • Focus on reducing operational costs • Availability of human resources

• Staying local due to high transportation costs and more stringent regulations for transboundary shipments (EU) • Need for sorting ‘waste’ (WEEE plastics, ASR) & further upgrading NF metals

• Continuing market pull for Green Aluminum & recycled content • High demand for XRT & alloy sorting • Global trend

‹#›

The global trend: the race to carbon neutrality Several states have pledged/projected for carbon neutrality by:

Canada 2050

USA 2050

UK 2050

Russia 2060

China 2060

EU 2050

UAE 2050

EU Green Deal and “Fit for 55 Initiative” • European climate law formulates legal obligation to reach climate neutrality by 2050 • Commitment by EU member stats to reduce greenhouse gas emissions by at least 55% by 2030 (compared to 1990 levels); legally binding • Agreement reached in EU Parliament 04/2021 and EU Council approved in 05/2021

Japan 2050

India 2060

Source: HARBOR Aluminum with Energy & Climate Intelligence Unit data; June

https://www.consilium.europa.eu/en/infographics/fit-for55-how-the-eu-will-turn-climate-goals-into-law/

‹#›

A few conclusions towards carbon neutrality • The aluminum industry is spending tremendous efforts to reach the goal!

• Without a significant utilization of scrap, carbon neutrality cannot be reached!

• In order to utilize more scrap in aluminum production, clean scrap fractions are needed!

Scrap sorting by alloy is essential! ‹#›

Applications

X-Ray Transmission (XRT) technology • Sorts metals based on atomic density • Recovers different products

High density

Low density

Magnesium

Wrought aluminum

Cast aluminum

Heavy metals

Zorba

Alu profiles Mixed sheet Taint Tabor

X-Ray Transmissio n

X-Ray Transmissio n

X-Ray Transmissio n

Heavy metals*

Premium Wrought Alu

Cu ≈ 0,05-0,15% Zn ≈ 0,05-0,15% Si ≈ 0,4-1,5% Fe ≈ 0,2-0,4% Premium Alu

Low grade Alu (Cast)*

* Mg can be sorted into Heavy metals or Cast Alu

Heavy metals & cast alu

Cu ≈ 0,03-0,1% Zn ≈ 0,03-0,1% Si ≈ 0,3-0,5% Fe ≈ 0,1-0,3%

Aluminum alloys that need separation

Aluminum wrought Alloys

1xxx

Al

2xxx

Cu

3xxx

Mn

4xxx

Si

5xxx

Mg

6xxx

Mg, Si

7xxx

Zn

8xxx

Others

Solved with X-Tract

Combining XRT and LIBS sorting technology Magnesium

• The X-TRACT is a good sorting step in order to decrease Cu, Zn and partly Si • This removes the 2.xxx and 7.xxx as well as the cast alloys high in copper • In aluminium from car shredder a high content of Si typically remains • The LIBS step can help to lower the Mg and Si level

Free heavy metals

X-TRACT

1.xxx 3.xxx 4.xxx 5.xxx 6.xxx Cast low in Cu/Zn

Cast alloys high in Cu+Zn (mainly 3xx.x) Wrought 2.xxx + 7.xxx

LIBS

1.xxx 3.xxx

High in Al

5.xxx 6.xxx 4.xxx Cast low in Cu/Zn

> 5 % Si

Opportunities for post consumer scrap • The machine produced the groups 6.xxx, 5.xxx, 3.xxx and cast in 4 steps • Main challenge for the future is to work on these alloying groups with: ⚬ ⚬ ⚬ ⚬ ⚬

Lacquer Dirt Swim-sink-flotation residues Organic remains Blank pieces

• The more groups are defined the better the purity and recovery results will become

Step 1 Step 2 Step 3 Step 4

Alloy group

Purity

6.xxx 5.xxx 3.xxx cast

97,5% 97,7% 89,1% 91,0%

Throughput (tph) 3.8 3.9 4.3 3.5

Opportunities for Zorba Zn

Cu

Mg

Si

4

• The main influence on the heavy metal content was done by the XRT • A lowering of Mg and Si could be achieved by the LIBS • An influence on the surface could not be identified • Low alloyed cast remains in the drop fraction

3

2

1

0

Input

step 1 (X-TRACT)

step 2 (LIBS)

LIBS sorting on stamping scrap

Shredder

Over belt Magnet

Screen (30 mm)

Results matching the industry requirements: • High throughputs that match industry standards • High purities that enable direct scrap utilization in aluminum production.

5xxx

6xxx

Twitch

Wrought vs. Cast using GAIN technology

Into ..

• Results are indicative and show only one example • Better Recovery can be achieved via adjustment of sorting settings • Target of this attempt was to reach 90% quality with one single sorting step

Cast Aluminum

Wrought Aluminum

Summary

• Global market trends in metal recycling ⚬ Energy costs ⚬ Stay local ⚬ Green aluminum

• Technology & applications are developing ⚬ XRT & AS Pulse ⚬ GAIN

• Partnering for a circular future!

Eliminating Waste

Sustainability Strategy Day Thursday, 1st June 2023

Elle Bennett-Runton

Mike Dines

Jan Lukaszewski

Knowledge Transfer Manager Circular Economy Innovate UK KTN

Laura Downey

Director, Tandom Metallurgical Ltd

Innovation Manager (Sustainable Manufacturing), WMG, University of Warwick

Technical Manager, ALFED