Hydro’s 2020
climate strategy
Bjørn Kjetil Maurtizen
Head of Climate, Hydro
(1)
Hydro’s climate strategy is to be carbon-neutral by 2020
Emissions
Hydro
carbon
neutral
in 2020
Recycling
Integrated into
business
strategy in all
business areas
Use phase
benefits
(2)
Hydro’s global operations are fully integrated
Recycling
Rolling
Bauxite
Alumina
Energy
Primary
Products
Casting
Extrusion
Recycling
(3)
Emissions from aluminium through the value chain
10
9.2
9
8
7
Casting
6
Electricity
kg CO2/
5
kg alu
Electrolysis
Anode
4
Alumina
3
Bauxite
2
1
0
Global average (ex. China)
Source: IAI
(5)
Other applications
(engineering, solar etc.)
Packaging
Recycling
Building & Construction
Transport
Emissions
Increase recycled metal share
Reduce indirect emissions
Roadmap to carbon neutrality
Focus on total climate effects
Hydro carbon neutral in 2020
Use phase benefits
Hydro’s climate strategy: carbon-neutral by 2020
Climate effects and carbon neutrality are affected by several factors
Source of energy and process
improvements
Products that enable carbon
savings
Recycling
•Recyclable with low energy input
•Strong position in hydropower – 2/3 of
portfolio
• Focus on developing markets where
aluminium properties enable carbon
savings
• Lighter cars, less emissions
•Among aluminium companies, Hydro
has among the lowest emissions
•Preparing technology pilot for the
world’s most energy efficient
electrolysis
• In the long run, relative cost position
may improve if carbon pricing is
introduced in more areas
(6)
• Energy efficiency buildings
• Lighter packaging, less resources
• Ambition to be in the technological
forefront and work with consumers to
develop new solutions
•Recycled material has the lowest
carbon footprint
• Recycling rates high in general
Production
(7)
Power source is the key factor
20
18
16
14
Casting
12
Electricity
10
Electrolysis
Kg CO2/ kg Alu
Anode
8
Alumina
Bauxite
6
4
2
0
Hydro power/nuclear
Source: IAI
Natural gas
Coal
Global average (ex.
China)
Hydro meeting the climate challenge
R&D and innovation have cut emissions and energy consumption in Norway
Lower direct emissions
Improved energy-efficiency*
Kg CO2e / Kg aluminium
KWh / Kg Aluminium
7
16
6
-70%
5
-17%
15
emissions
4
energy
consumption
14
3
13
2
12
1
11
0
1990
1995
2000
2005
Average specific emissions from Hydro’s Norwegian smelters
* DC electricity consumption
(9)
2012
1993
1998
2003
2010
Qatalum
HAL4e
Pilot
Average specific energy consumption from 100%-owned Norwegian smelters
New technology pilot project at Karmøy
Developing
Viktig pilotanlegg
steg for
theå world’s
utvikle på
verdens
most
energy
besteefficient
elektrolyseteknologi
electrolysis technology
ulig
Karmøy
+
=
HAL4e
HALsee
High voltage test cells at
Årdal research center
Super energy efficient test cell at
Årdal research center
12.3 vs. 14*
11.98 vs. 14*
Karmøy
technology pilot
The world’s most
energy efficient cells and
the smallest CO2 footprint
70,000 mt/year
*) World average 14 kWh/kilo aluminium
(10)
The world’s most energy-efficient aluminium production
We have the technology, we have the expertise
The world’s most
energy efficient cells
and the smallest
CO2 footprint
(11)
Use-phase
(12)
More aluminium to meet climate change targets
New cars meet CO2 targets with aluminium inside
Main end-use of aluminium
Trends for consumption
In M tonnes
Transport
Buildings
Packaging
Engineering
Consumer durables
20
18
16
14
12
10
8
6
4
2
0
2010
Source: EAA sustainability indicators 2012. EU27 + EFTA
(13)
2020
2030
2050
Environmental regulations drive demand
Auto industry need to lightweight to meet tough emission reduction targets
EU reduction targets
US fuel-economy standards
g CO2/Km
miles per gallon
70
250
60
200
50
150
40
30
100
20
50
10
0
0
2007
2012
Cars
(14)
2015/7
Vans
2020/1
2012 2014 2016 2018 2020 2022 2024
Cars (3.8 m2)
Cars (5.1 m2)
Light trucks (3.8 m2)
Tougher global CO2 emission targets
All around the world governments are imposing stricter emission standards
Source: EAA / The International Council on Clean Transportation
(15)
Growth across the automotive sector
40 years of uninterrupted growth – explosive period from 2015 to 2025
Average aluminium content in kg per vehicle
300
250
200
150
100
50
0
1990
1995
2000
Europe, cars
Source: Ducker Worldwide
(16)
2005
2012
2015
2020
USA, light vehicles
2025
Aluminium replacing steel in cars saves emissions
Kg CO2 saved/kg aluminium replacing steel in cars*
15
10
5
0
0
1
2
3
4
5
6
7
8
9
10 11
-5
-10
EU average
Hydropower based
Land Rover Sport 2014
Land Rover Sport 2010
2,200 kg
3,100 kg
C02 emissions: 194 g/100 km
C02 emissions: 327 g/100 km
* Incl. Full value chain CO2 emissions in production of (primary and recycled) steel and aluminium
Assuming 1 kg of aluminium replacing 2 kg of steel in car applications
(17)
Aluminium gives light-weight trains and subways
Lightweight aluminium Siemens subways (by Hydro JV Sapa) in Oslo and London
London (Victoria Line). Higher maximum speed
and faster acceleration, 8% decrease in stationto-station journey times.
(18)
Oslo. 12% energy savings. 95% recyclable.
CO2 emissions through life-cycle as little as 2.6
g/tonne/km.
An enabling technology for energy positive buildings
Supply ever more energy – or stop the
energy waste?
− Today, buildings account for 40% of the
world’s energy consumption
− In 2050, energy consumption in buildings
will equal total energy usage in the world
today – if we don’t do anything
Regular office-building
turned energy neutral
outside Oslo, Norway
Planned energy
neutral PowerHouse in
Trondheim, Norway
Hydro test centre in
Bellenberg, Germany
– producing 5 times
the energy it needs
Vodaphone HQ in
Milan, Italy – energy
efficient facade
profitable in 2 years
• Buildings need to become energy
efficient
− The majority of EU’s energy-saving
potential is in the building sector
− Nearly Zero-Energy Buildings to become
norm for all new buildings in the EU by the
end of 2020
(19)
Better protection in packaging saves resources
Prevents product spoilage, reduces food waste and provides energy savings
Aluminium extends the life of products
• 1.5 grams of aluminium in a 1l fruit juice
packed beverage carton more than doubles
the shelf-life.
Aluminium packaging
keeps food fresh longer,
reduces cooling need
and protects food better
during transportation
and storage
Less packaging needed
• Lighter materials mean less material
needed, less energy to make it and less to
recycle end of life.
Strand of hair
~ 55 µm
Aluminium foil
~ 6.3 µm
10µm
Contact with fill good
PE 40 µm
Al Foil 6 µm
PE 20 µm
Carton 250g/m²
PE 20 µm
(20)
10µm
Efficiencies in transport and storage
• Less weight to transport gives a more
efficient supply chain; saves transportation
costs and emissions
Recycling
(21)
Recycling – a pure bonus
Utilizing aluminium as an energy bank
5%
of initial energy
to recycle
75%
still in use
(22)
Hydro’s recycling facilities
Wrexham, UK
Remelting at rolling mills, Europe
• 49,000 tons
•
•
•
•
•
Kentucky, USA
• Henderson:
Holmestrand, Norway
Karmøy, Norway
Hamburg, Germany
Rheinwerk, Germany
Slim, Italy
Rackwitz,Germany
86,000 tons
• 79,000 tons
Lucé, France
• 50,000 tons
Texas, USA
• Commerce:
95,000 tons
Remelt production, 2013
(23)
Azuqueca, Spain
Clervaux, Luxembourg
• 71,000 tons
• 88,000 tons
Climate strategy
one year on
(24)
Hydro on track – improving the footprint
Production
Use phase
Recycling
World-class technology pilot and
renewable energy
Meeting the needs of the
automotive industry
Strengthened position in the
beverage can segment
Support for technology pilot
• The world’s most energy efficient
cells
• Enova support for test pilot at the
Karmøy plant
New casting technology in Norway
• Casting system with adjustable and
flexible moulds meets stricter
customer demands
• To be used at plants in Høyanger
and Årdal
New recycling line for cans in
Germany
• €45 million investment at Neuss
plant to increase annual recycling
capacity of used beverage cans to
100,000 tonnes
• New and unrivalled Hydrodeveloped sensor technology to
identify and separate scrap
Increased share of hydropower
• Production at Norwegian plants Søral
and Sunndal to increase (2015)
• Share of hydropower in portfolio to
increase to more than 70% (2015)
Higher hydro power production
• 0.6 TWh higher energy production in
Norway
Improved performance in Quatalum
• Stabilized operation at high level
(25)
New automotive sheet line in
Germany
• Third automotive production line at
Hydro’s Grevenbroich plant in 2016
• Annual capacity for aluminium car
body sheets to increase from 50,000
to 200,000 tonnes
Recycling moved from France to
Norway
• Agreement with collection company
Norsk Resirk to recycle all
aluminium cans returned in Norway
Towards a low-carbon economy
• Hydro supports the ETS as the
preferred instrument for EU
climate action
• Global climate regime will create
a level playing field
• With a low-carbon portfolio,
Hydro is well positioned for a
future global carbon price
Back up
(27)
Hydro on track – developing products that save CO2
“Hydro Inside”
• Meeting needs of automotive industry
for lightweight aluminium
• New Hydro casting technology in Norway
BMW 7 series
Peugeot 308
− Casting system with adjustable and flexible
moulds
− Meets customer demands and safeguards lead in
providing products to the automotive industry
− To be used at plants in Høyanger and Årdal
New Mercedes C Class T
Audi A6
• New automotive sheet line in Germany
− Introducing third automotive production line at
Grevenbroich plant in 2016
− Annual capacity for aluminium car body sheet to
increase from 50,000 to 200,000 tonnes
Porsche 911
(28)
BMW i3/i8
− State of the art annealing and surface treatment
lines to provide unmatched forming properties
The world needs both primary and recycled aluminium
The material flow and metal flow in the aluminium value-chain
Bauxite
208
Alumina
Primary
aluminium
76
37
Annual deposit
into the
«aluminium bank»
75
10
(29)
638
29
Fabrication
scrap*
2008 figures in mill. metric tonnes
*) Scrap generated during semi-production
36
Total amount of
aluminium stored in
buildings, cars,
constructions e.g.
in actual use
39
Recycled/remelted
aluminium
The global
«Aluminium Bank»
Old scrap
Annual withdrawal from
the «aluminium bank»
(end consumer scrap
back into the loop)
Aluminium replacing steel in cars saves emissions
Aluminium produced on hydropower is carbon neutral after 1 year of driving
Kg CO2 saved/kg aluminium replacing steel in cars*
15
An average car uses
140 kg aluminium (2012)
x 14.6 million cars/yr (EU)
10
5
0
0
1
2
3
4
5
6
7
8
9
10 11
Annual reduction of
47.0 million tonnes CO2eq
-5
-10
EU average
Annual reduction of
34.7 million tonnes CO2eq
Hydropower based
* Incl. Full value chain CO2 emissions in production of (primary and recycled) steel and aluminium
Assuming 1 kg of aluminium replacing 2 kg of steel in car applications
(30)
1 kg Al
=
-17 kg CO2eq