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PLANET: Sustainability is Everyone’s Business

In our previous Sustainability report, the focus was on defining our values and targets and evaluating emissions. In this report, we describe the progress and report on some key projects related to more sustainable products and services. In 2021, we concentrated on the already ongoing development projects, thus the percentage of new green investments remained the same as in 2020. In addition, we have put a lot of effort to calculating our CO2 emissions and to defining reduction activities.

ENGAGING STAFF TO SUSTAINABILITY ISSUES

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In 2021, we launched sustainability targets and strategic values internally, visiting different sites in the countries where we operate. We arranged country-specific work groups and appointed local representatives to promote sustainability co-operation.

The meetings were held under the theme “Sustainability Workshop Round”. After presenting the strategic targets and focus areas, the discussions led to many positive findings and good practices regarding both possibilities to reduce local emissions as well as other good suggestions within sustainable business practices in general. As travelling has become easier, and meeting people has become safer, this work will be completed in 2022.

The R&D department of FORCIT Explosives focuses strongly on material recycling, plastics minimisation, and new raw materials as an integrated part of the total CO2 reduction plan.

Sustainability workshop round in Gevingåsen.

DID YOU KNOW?

COMPENSATION IS A WAY TO INVEST IN PROJECTS TO BIND CARBON DIOXIDE FROM THE ATMOSPHERE, EQUIVALENT TO THE COMPANY’S EMISSIONS

As today’s ADR regulations prohibit electrical drive motor technology for transportation of explosives, FORCIT Group offers customers a possibility to compensate logistics emissions. The carefully chosen projects are certified and verified to permanently add CO2 binding capacity. We have evaluated the reliability of compensation models and suppliers and made a compensation contract, giving our customers the possibility to choose compensated transportations.

FORCIT Group cooperates with verified and sertified actors.

FORCIT GROUP: PLANET IN FIGURES

(2020 in parentheses)

Energy 17,100 MWh (15,000 MWh) Renewable Energy* 67% (73%)

Electricity 7,800 MWh (7,000 MWh) Renewable Electricity* 68 % (79%) Total Energy 169 kWh/ton (186 kWh/ton)

Total Waste 650 ton (860 ton)

Recycled & Energy Waste 26% (28%) Fuel Data 1,080,000 l (780,000 l) Heating Oil 21,000 l (12,000 l)

Evaluation for Responsible & Sustainable Development 8,1/10 (8,1/10) Product Transportations 3,100,000 km** (1,800,000 km)

* Please note that the figures shown for 2021 are calculated for Renewable Energy, which includes energy sources such as wind, solar, hydro, biomass and geothermal energy. In 2020 nuclear energy was, however, included in the figures for Explosives Sweden. When renewable and nuclear energy are combined, the percentage for Carbon-Free Electricity is 89% and Carbon-Free Energy 77% for 2021.

CARBON FOOTPRINT

There are some challenges in defining the carbon footprint on group level, mostly related to collection and reliability of data sources, as well as to defining which data is most relevant to our total footprint.

Adapting a step-by-step approach on this challenge, we conducted the first evaluation and carbon footprint calculation only for Oy Forcit Ab, which presents the mother company’s functions in Finland, including explosive manufacturing, offices, and services. We aim at expanding the carbon footprint calculation to group level operations during 2022.

This preliminary study clearly shows the need for more reliable data as a basis for future investments and decisions on the allocation of resources. Developing the data collection process is therefore a key focus area for the coming year, as well as establishing co-operation and partnerships with customers, suppliers and partners regarding sustainability.

RESULTS OF THE FIRST STUDY

When talking about CO2 scopes, we have committed to being CO2 neutral at the latest by the year 2035 within Scope 1 and 2.

Scope 1 comprises direct emissions from operations at our own sites and services (fuel consumption in facilities and vehicles) as well as emissions to air when producing or destroying explosives at the site. In our operations, it is obvious that logistics stands for the biggest part of our direct emissions. Scope 2 summarises the CO2 emissions of purchased electricity and energy (heating, cooling) needed at sites, facilities and processes. District heating is used at the Hanko and Vihtavuori factories.

The results show the importance of shifting to green energy and of focusing on energy-saving activities and technologies. Renewable electricity is utilised at all sites where we have had a possibility to influence the origin and the contracts. In coming years, we will investigate possibilities to shift to green energy in all our locations.

Scope 3 emissions usually play a major role in footprint calculations and represent up to 95% of the total industrial business footprint. Also Forcit’s biggest carbon footprint emission sources originate from Scope 3 emissions.

Scope 1 Carbon Footprint Contributors Scope 2 Carbon Footprint Contributors

Ammonium nitrate ‒ the main raw material in explosives production ‒ has the biggest negative impact and accounts for approximately 80% of our total Scope 3 emissions.

While production of raw materials causes the biggest footprint, also the usage of our products (at blasting sites) is clearly seen in our calculation results.

The results clearly show the great influence of Scope 3 emissions along the value chain, urging us to develop co-operation and partnerships to reduce these. Logistics and fuels are the third biggest CO2 source in the Scope 3 data.

SCOPE 2

Production of electricity

Production of heat/steam/cooling

Purchased goods and services

Emissions of fuel production and losses in transformation and distribution of district heating and electricity

Upstream transportation and distribution

SCOPE 1

Use of leased and owned company vehicles

Stationary combustion: Energy production for heating and processes

Emissions of the on-site waste handling

Employee commuting Business travel

In the carbon footprint calculations, emissions are categorised as shown in the picture above.

SCOPE 3

Downstream transportation and distribution

Waste generated in operations

Use of sold products

EoL treatment of sold products *

* End of life cycle emissions are partly included in figures at scope 1 & 3.

CASE EXAMPLE: ENERGY SAVING BY OPTIMISATION OF VENTILATION AND HEATING AT THE HANKO FACTORY

To reduce energy usage at the Forcit factory in Hanko, Finland, we invested in automation systems, that allow us to follow the electricity usage in real time and control the need for heating and ventilation. Dynamite production consumes a lot of energy, as the nitrogen fumes need to be ventilated out of the working area. In summer, we need energy both during daytime to control the humidity at production sites, and at night for warming.

The new automated system minimises energy consumption by using lights. When lights are in the “off” position, the system automatically changes the warming and ventilation parameters to “away from home” mode. The flow of ventilation is minimised when there is no production. The parameters are preset for each building separately according to the features of the building, chemicals, and processes. The consumption data shows up to a 40% decrease in energy consumption in buildings which are equipped with this control system. In addition to waste reduction activities, an innovative solution where a part of our emulsion waste stream is recycled as raw material for a totally different field of business was implemented together with a new partner. This has a direct impact on waste volumes going to the burning process, thus reducing our greenhouse gas emissions.

Heating and heat recovery are adjusted automatically.

CASE EXAMPLE: WASTE MINIMISATION

Forcit has a strong focus on reducing waste, and in 2021 the development has been very positive. The amount of waste in our production continued to decrease on the company level, and in some parts zero-waste level was accomplished. The increased emphasis on quality control of raw materials, production processes, and end products starts to pay back in regard to both emissions and profitability.

In addition to the above-mentioned recycling initiative, we have recently launched a project in co-operation with Business Finland aimed at developing processes to recycle our explosives wastes to raw materials.

In the manufacturing of emulsion explosives, small amounts of non-usable emulsion containing ammonium nitrate and oil blend is formed. This emulsion has potential to be used as a secondary raw material but currently the non-usable emulsion is disposed of for safety reasons by burning. Recycling of these by-products in the emulsion explosives manufacturing process or for other industries would greatly minimise the greenhouse gases.

Greenhouse gas emissions would be reduced especially because of the reduced burning, but also with reduced waste transports, virgin raw material manufacturing and transportation. There is no commercial method for decomposition of emulsion explosives and recycling of valuables. For ammonium nitrate, the goal is to achieve a 90% recycling rate. In addition, the project also aims to find an appropriate concept for recycling the oil phase, which is the other main component in emulsion.

View from the interface of the vehicle tracking system.

DID YOU KNOW? DID YOU KNOW?

VEHICLE TRACKING AND REMOTE READING OF DIGITAL TACHOGRAPHS

Forcit has invested in a new vehicle tracking system, which enables us to see the online data and exact location of all Forcit’s vehicles in real time. All digital tachographs and data analysis can be seen remotely. Checking the route and speed helps drivers in precise driving and accuracy, encouraging economical driving. The system also gives online data on fuel consumption.

Through this tracking, we are developing our driving culture to a more sustainable and economical direction by monitoring speed, idling, coasting, acceleration, and braking.

A4 TOOL GIVES MORE ACCURATE DATA OF DELIVERIES

It is now possible to evaluate site-specific emissions of the deliveries. In addition to verified Environmental Product Declarations (EPD), a calculation tool for evaluating site specific logistics emissions has been developed. The calculation tool registers the transported volumes and load size, the engines, the fuels, roads, and the return of the goods.

CASE EXAMPLE: EXPLORING HYDROGEN PEROXIDE-BASED NITROGEN FREE EXPLOSIVE ‒ KEMIITTI HP

Forcit has initiated a project for developing greener explosives, aimed at replacing ammonium nitrate as raw material in bulk explosives with hydrogen peroxide, leading to less nitrogen emissions in blasted rock and later in surface and ground waters.

Today, there are strict restrictions for water-soluble nitrogen emissions in the environmental permits of mines, leading to optimisation, alternative explosives, or denitrification processes.

The Kemiitti HP explosive does not contain nitrogen. In the ground, it decomposes into oxygen and water and other biodegradable components. Ammonium nitrate explosives always produce some nitrogen oxides in blast fumes, which must be considered in occupational safety routines. Hydrogen peroxide explosives do not form any nitrogen oxides, which will lead to shorter re-entry time in underground blasting, improving the efficiency in mining and tunnelling operations.

In the next phases we will get CE certification and, after this, permission from the authorities for testing. A pilot scale production and loading unit is under construction and we plan to conduct the first field scale tests in 2022. The next steps consist of blast fume analysis and stability testing with Luleå

Testing of nitrate-free emulsion explosive. Technological University (LTU) in Sweden, followed by an evaluation of the results and further development of the formula.

Even though the target is to innovate a nitrogen free option for mining explosives, the safety of the product is still the number one priority. Hydrogen peroxide is an aggressive chemical requiring a high level of handling safety procedures in many ways, which are being developed and planned along with the project.

As hydrogen would be produced by natural gas today, the carbon footprint of this production method would still be considerable, which is the case also with ammonium nitrate. But provided that the electricity required for hydrogen production would originate from green energy sources, also the total CO2 footprint from explosives production could be very low. Obviously, the origin of the energy is a big challenge for our societies and involves many other sectors.

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