|
| Energy as a key area of focus |
| Short
or long term |
Business
groups most affected |
Stakeholders
most affected/involved |
| Both |
Bauxite and Alumina,
Primary Metal,
Engineered Products |
Investors, Customers,
Local Communities |
|
 |
|
Energy is a vital industrial input
for Alcan's operations, especially in its Bauxite
and Alumina and Primary Metal groups. The energy
mix, its relative availability and cost affect
Alcan's competitiveness, stakeholder interests,
and a range of environmental issues related to
sustainable energy management.
|
|
|
Key Challenges and Opportunities:
| • |
Continue research and development in technology
and process improvements in Bauxite and Alumina
and Primary Metal groups. |
| • |
Increase energy efficiency and reduce GHG emissions
related to energy use. |
| • |
Effectively manage water resources used in power
generation activities. |
| • |
Engage stakeholders though positive actions and
dialogue. |
|
Company-wide, Alcan consumed 415 million gigajoules
(GJ) of energy for all of its industrial processes in 2004
including direct energy sources used on site and indirect
energy sources for site electricity, heat and steam. With
such large energy requirements, source reliability and long-term
energy costs continue to be key strategic issues, requiring
effective management on an ongoing basis – extremely
important in a global environment of volatile energy prices.
Total energy consumption
|
|
|
| in millions of GJ |
| |
|
|
| 2004* |
|
415 |
|
|
|
| 2003** |
|
293.9 |
|
|
|
| 2002** |
|
295.1 |
| The increase in total energy consumption in 2004 is
largely due to Pechiney acquisition. |
| * |
Alcan started in 2004 to report the energy used by installations
on site, excluding efficiency for energy production off site. This figure
is more representative for the efficiency of Alcan's own processes,
the total amount being 256 million GJ in 2004. |
| ** |
Energy figures for 2002 and 2003 include about 10% of
energy used for transportation of products to customers. The transportation
energy will not be included in the energy figures in the future as the accuracy
is much lower than for the other energy data. |
Total energy consumption rate
|
|
|
| in GJ/US$ sales |
| |
|
|
| 2004 |
|
0.017 |
|
|
|
| 2003 |
|
0.021 |
|
|
|
| 2002 |
|
0.024 |
| The total energy consumption includes all the direct
energy sources used on site as well as the indirect energy sources to produce
the energy consumed by Alcan sites as electricity, heat and steam (this
means it includes efficiency of energy generation off site). |
Total energy consumption
by business group
| 2004 |
|
 |
|
| A |
|
Bauxite and Alumina |
|
18.2% |
| B |
|
Primary Metal |
|
66.4% |
| C |
|
Rolled Products Americas and Asia |
|
4.6% |
| D |
|
Rolled Products Europe |
|
3.7% |
| E |
|
Engineered Products |
|
3.1% |
| F |
|
Packaging |
|
4.0% |
|
The power-generating facilities owned by Alcan are a critical
component of the Company's competitiveness as an aluminum
producer. They provide security of supply, shield the Company
from energy market price risk, and also ensure a stable presence
in the communities where they are located.
In the Bauxite and Alumina group, significant energy
is required for a variety of processes, including bauxite
mining, ore crushing and transporting of the ore to the refinery.
Once at the alumina processing refinery, energy is required
for grinding the ore and heating and dissolving aluminum oxide.
The raw alumina is then washed, filtered and cooled, heated
again to dry, and then transported by conveyor, often over
several kilometres, to port facilities for shipping. In 2004,
Alcan's bauxite and mining operations consumed a total of
76 million GJ of energy for such operations.
In the Primary Metal group, aluminum smelting is energy
intensive, largely due to the electrolytic process whereby
an anode and a cathode reduce alumina into molten aluminum
and oxygen. The latest technology requires approximately 13,500
kW-h of electricity to produce one tonne of aluminum. During
2004, the Primary Metal group consumed a total of 275 million
GJ of energy, the majority of which is required for its aluminum
smelting operations.
Approximately 50% of Alcan's primary smelting capacity is
powered by Alcan-owned energy sources. The majority of these
power-generating resources are hydroelectric based –
Alcan's preferred source of energy – which provides 57%
of all electricity used in its primary smelters worldwide.
This extensive owned hydroelectric power network provides
energy that is renewable, cost effective and non-polluting.
In Canada, where approximately 46% of the Company's primary
metal is produced, Alcan owns hydroelectric facilities in
both British Columbia and Quebec, supplying most of its present
Canadian power needs. The Natural Resources Stewardship section
of this report provides more details on Alcan's management
of the water resources that provide the basis for Alcan's
hydroelectric generation.
In addition to competitiveness, there are several issues
associated with being both a significant user and producer
of energy. These combine to create sustainability challenges
and opportunities for Alcan in its management of energy, including
purchase, production and use.
Energy, as one of Alcan's key resources, is an integral component
of its EHS FIRST management system. All Alcan
sites are required to promote a systematic approach in resource
management, including energy, through the effective use of
management systems and through continuous performance improvement.
In Canada, where Alcan operates an extensive owned hydroelectric
power network in both British Columbia and Quebec, ongoing
dialogue is maintained with communities and the various levels
of government to ensure sustainable long-term management
of water resources for the benefit of all stakeholders.
Here are some key
issues related to energy that Alcan's firm commitment
to resource management is helping to address.
|
