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ENERGY EFFICIENCY

Alcan undertook significant efforts in 2004 to achieve greater energy efficiency, including new investments in technology and making optimal use of the available water from reservoirs. And, while Alcan is already very competitive in terms of its large hydroelectric resources, further reducing its demand for hydroelectric power through greater efficiency helps to reduce overall demand for electricity.

For example, in 2004, Quebec Power Operations continued its upgrading of turbine water wheels. The result is higher turbine performance and more electricity produced per volume of water. Approximately CAN$450 million has been invested to date in this turbine/alternator upgrade program. By managing water responsibly, the Company achieves energy gains, reduces its reliance on external public energy resources and reinforces its position as a responsible community partner.

Since 1979, Alcan's Quebec Power Operations' upgrades have increased the nominal capacity of the entire system from 1,935 MW to 2,004 MW in 2004, with plans to increase that capacity to 2,028 MW by 2008. Furthermore, the more efficient water wheels provide opportunities for increased power generation beyond the nominal capacity during periods of higher than normal precipitation. Overall, the efficiency of the water management has increased from approximately 95% in 1993 to between 98% and 98.5% today.

At the Vaudreuil alumina plant in Quebec, Canada, projects to reduce steam consumption resulted in first-year energy consumption savings totalling nearly CAN$2.5 million compared to 2003.

Sustainability Example:

Energy efficiency at Quebec alumina plant

Sustainability Example:

HALE Project: Reducing energy consumption in electrolysis

The International Aluminium Institute reports that primary energy requirements per tonne of aluminum produced have decreased by one third between 1950 and 1990 and by one third again since 1990. Alcan has been an important contributor to this global trend.

The broader societal challenges of rising energy demand, which translates into higher energy prices and increases in energy-related GHGs and other emissions, provide an opportunity for the substitution of lightweight aluminum applications in place of heavier materials. This is especially relevant in transportation applications. The Product Stewardship section of this report outlines some of the developments being made by Alcan in this important area, as well as the importance of aluminum recycling in reducing energy use.

Alcan historical energy consumption
Alcan smelters
in kW-h/kg aluminum
     
2004
14.9
2003
15.2
2002
15.1
2001
15.4
2000
15.9
1999
15.8

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