Europe Building a Clean and Secure Society with Circular Economy 2050

Transcription

1 Europe Building a Clean and Secure Society with Circular Economy 2050 Thomas Mock Director Public Affairs, Hydro Aluminium Rolled Products GmbH Berlin, 12 October 2017

2 The global and complete aluminium company create a more viable society by innovative and efficient use of natural resources and products More than 110 years of industrial development and responsibility Aluminium metal of the future Hydropower infinitely recyclable «green» energy Engaged in the entire value chain R&D, innovation and tailormade solutions 35,000 employees at 150 locations in more than 40 countries Involved and engaged Alumina Energy Bauxite Recycling Primary Metal Use phase Rolled Products Extruded solutions 2

3 A resource-rich and customer-oriented aluminium company With robust positions across the value chain Bauxite & Alumina Energy Primary Metal Rolled Products Extruded Solutions Global provider of alumina, aluminium and aluminium products and solutions Leading businesses along the value chain; raw materials, energy, primary metal, rolled products, extruded solutions and recycling 35,000 employees at more than 150 locations in more than 40 countries on all continents Market cap ~NOK 110 billion/usd 14 billion Annual revenues ~NOK 137 billion (2016)* Included in Dow Jones Sustainability Indices, Global Compact 100, FTSE4Good *) The sum of Hydro s and Sapa s individual turnover In 2016 (4)

4 Engaged in the entire aluminium value chain Bauxite Alumina Energy Primary metal Casthouse Rolled products Extrusion Solutions Recycling Rolling Recycling Bauxite Alumina Energy Primary Casting Products Extrusion Recycling (4)

5 Product service offering and quality throughout the value chain Built on market understanding, customer closeness and competence North America #3 position extrusion ingot ~24% market share in extruded products Europe #1 position in value added metal products 2 Strong presence in the Nordic power market Strong market presence across segments 3 ~22% market share in extruded products ~18% market share in building systems Asia Rolled Products Primary Metal Globally Top 3 positions in extrusion ingot and PFA 4 Energy Bauxite & Alumina Extruded Solutions Recycling Top 3 positions in 3 rd -party bauxite & alumina market globally 1 #1 position precision tubing globally #1 positions foil and litho globally 1 Outside China; 2 Extrusion ingot, sheet ingot, primary foundry alloys and wire rod; 3 Packaging, automotive, litho, building & construction and general engineering; 4 Primary Foundry Alloys 5

6 Operational leadership among peers Solid cost positions in aluminium value chain Smelter BOC curve by company (2017) USD/mt Lowest CO 2 emissions Tonnes CO 2 /tonne aluminium, Direct Indirect Average Alumina BOC curve by company (2017) USD/mt 400 Among the best on safety performance Incidents per 1 mill hrs worked among ICMM member companies, Average Peers Hydro Source: CRU, International council on mining and metals (ICMM) 6

7 For Hydro responsibility is fundamental Key to comply with our values and for strengthening our competitivity Safety and environment Social responsibility Carbon-neutral from a life-cycle perspective On track Safety performance (TRI) at industry benchmark Close reforestation gap by 2020 On track 7

8 activities and investments

9 Die Perspektive der energieintensiven Industrie angesichts der Klimaziele 2050 Thomas Mock Director Public Affairs, Hydro Aluminium Rolled Products GmbH Eberbach, 27 September 2017

10 Years of research and innovation make low-carbon industry possible The Karmøy technology pilot Big Data Robotic pot-tending Self-learning machines Advanced process control Predictability analysis Sensor technology

11 Aluminium solutions for low-energy buildings Constructing a sustainable future: Energy positive buildings Efficiency: Aluminium based roofs reflect up to 45% of the sunlight Renovation: Its high strength, light weight and flexibility make aluminium good for refurbishment Infinite life: Nearly all the aluminium from the building may be recovered and reused. Example: Hydro s test center in Bellenberg, Germany Since April 2010, it has produced 50% more energy than consumed Photovoltaic on the rooftop Aluminuim façade functions like sun shading In the Hydro building n Bellenberg produced 108 MWh from solar panels, while its energy consumption was 79 MWh 11

12 Light-weight mobility, Circular solutions Multiple applications to drive the energy transition Transport Aluminium used in transport reduces the weight, fuel consumption and GHG emissions Using 100 kg of aluminium in a car reduces CO 2 emissions by up to 8 grams/km travelled, saving up to 46 litres of fuel per year. Circular Economy Aluminium can be endlessly recycled, without loss in quality Around 75% of aluminium ever produced is still in use Recycling aluminium uses only 5% of the energy needed for primary production. 12

13 The most ambitious climate strategy in global aluminium Carbon-neutral by 2020 from a life-cycle perspective, looking ahead to 2050 Wind off-takers in Europe (MW) Value-creating implementation examples Karmøy technology pilot Primary Metal, Norway Automotive line 3 Rolled Products, Germany UBC recycling line Rolled Products, Germany 13

14 But The challenges

15 Increasing risk of carbon leakage for the electro intensive industries Closure of capacity in EU will not be replaced by capacity in another MS, but from outside Europe EU imports dependency Level of direct and indirect ETS costs for different CO 2 prices In /t of aluminium produced before compensation - Allowance price price of 5 = 4% of LME sales price - Allowance price of 30 = 25% of LME sales price Direct costs Indirect costs 250 EU primary production /t CO 2 15 /t CO 2 30 /t CO 2 15

16 Power: The Main Cost Factor for Aluminium Production The price of aluminium is determined on a global mechanism (London Metal Exchange, whilst electricity is priced locally The sector therefore cannot pass on regional costs, leading to investment- and carbonleakage Electricity accounts for 32% of global production costs......but the EU power costs gap with the rest of the world has doubled over past 10 years $/tonne Source: CRU 16

17

18 The options Circular Economy with the metal of the future

19 A world of infinite opportunities in aluminium Building block of modern society Transportation (19) Packaging Buildings and construction Applications and end-user products

20 Aluminium is the metal for the future Properties lead to increased market share Lightweight Recyclability Formability Conductivity Corrosion resistant Alloying technology 1/3 density of steel means lighter vehicles, lower energy consumption and reduced emissions 5% of original energy consumption 75% of all aluminium produced still in use Makes it possible to integrate different technologies into one solution, e.g. in buildings A superconductor for heat and electricity, more cost efficient than copper, enabling energy-efficient systems for electrical transmission, such as transfer components Natural oxide layer protects the metal against corrosion and makes it virtually maintenance free Aluminium can be made hard, soft, stiff, bendable, smooth, temperature resistant etc. depending on the actual need, by developing tailor-made alloys (20)

21 Aluminium s reach is growing in response to key long-term trends Substitution continues to be a key driver for aluminium Transport Packaging Building & construction Electrical Semis 3-4% Lightweighting Substitution Auto sales Urbanization Sustainability Substitution Urbanization China moderating Energy-efficient buildings Substitution Urbanization Electrification 4-5% 3-4% 2-3% 3-4% Global semis demand for segment, CAGR

22 (22) Aluminium the Energy Bank

23 Recycling a pure bonus Aluminium is an energybank 5% Energy for recycling 75% Still in use

24 Hydro and aluminium Low-carbon solutions, Circular solutions Bauxite mining Primary aluminium production Alumina production Energy Recycling Use phase Semi-fabrication Product manufacture 24

25 25