Perspectives on the Aluminium industry - OECD.org · International Aluminium Institute ... Source:...

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Annex I Expert Group Seminar in Conjunction with the OECD Global Forum on Sustainable Development – Paris 27 March, 2006 Perspectives on the Aluminium industry Jerry Marks International Aluminium Institute www.world-aluminium.org [email protected]

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Page 1: Perspectives on the Aluminium industry - OECD.org · International Aluminium Institute ... Source: IAI Life Cycle Inventory Data IAI 2004 PFC Survey. ... • Voluntary Objective 11

Annex I Expert Group Seminar in Conjunction with the OECD GlobalForum on Sustainable Development – Paris 27 March, 2006

Perspectives on the Aluminium industry

Jerry MarksInternational Aluminium Institute

[email protected]

Page 2: Perspectives on the Aluminium industry - OECD.org · International Aluminium Institute ... Source: IAI Life Cycle Inventory Data IAI 2004 PFC Survey. ... • Voluntary Objective 11

Annex I Expert Group Seminar in Conjunction with the OECD GlobalForum on Sustainable Development – Paris 27 March, 2006

Talking Points• GHGs from aluminum production - adding

perspective• Sources of GHGs from aluminium production• IAI global sustainability initiative – GHG

emissions reduction• Baseline Issues• CDM and aluminium industry• Sum up

Page 3: Perspectives on the Aluminium industry - OECD.org · International Aluminium Institute ... Source: IAI Life Cycle Inventory Data IAI 2004 PFC Survey. ... • Voluntary Objective 11

Annex I Expert Group Seminar in Conjunction with the OECD GlobalForum on Sustainable Development – Paris 27 March, 2006

What fraction of total Global GHG Emissions is Global Primary Aluminium Production responsible?

Aluminium Industry Emissions, 2003

Direct PFCs 0.0352Direct CO2 0.0454

Total PFCs and CO2 (CO2-eq) 0.0806

Electricity Contribution (@ 5.8 t CO2-eq/t Al) 0.1624

Worldwide CO2-eq Emissions excluding LU and forestry millions Gg

Total Annex 1 countries, yr 2002 14.95China, yr 1994 3.65Brazil, yr 1994 1.03India, yr 1994 1.23Other non-Annex 1, yr 1994 0.57

Total worldwide GHG Emissions (CO2-eq) = 21.43

Percent Contribution (Excluding electricity) 0.4%Percent Contribution (Including electricity) 1.1%

Page 4: Perspectives on the Aluminium industry - OECD.org · International Aluminium Institute ... Source: IAI Life Cycle Inventory Data IAI 2004 PFC Survey. ... • Voluntary Objective 11

Annex I Expert Group Seminar in Conjunction with the OECD GlobalForum on Sustainable Development – Paris 27 March, 2006

GHGs from Primary Aluminium Production

Two PFC (perfluorocarbon compounds - CF4 and C2F6)contribute about 40% of direct primary aluminium GHG emissions

Limits on GHG emissions performance set by genre of installed production technology

Cathode Block

Molten Aluminium

Feeder

GasesAnode

Electrolyte

Anode Carbon1.7 – 2.1 t CO2eq/t AlIAI average = 2.0

Electricity Input15.6 MWh/t Al0 – 20.8 t CO2/t AlIAI average = 5.8

Alumina Production1.5 – 2.5 t CO2eq/t AlIAI average = 1.9

PFC Generation0.02 – 24.5 t CO2eq/t AlGlobal average = 1.16

Source: IAI Life Cycle Inventory DataIAI 2004 PFC Survey

Page 5: Perspectives on the Aluminium industry - OECD.org · International Aluminium Institute ... Source: IAI Life Cycle Inventory Data IAI 2004 PFC Survey. ... • Voluntary Objective 11

Annex I Expert Group Seminar in Conjunction with the OECD GlobalForum on Sustainable Development – Paris 27 March, 2006

Primary Aluminium Production is Globally BasedWorldwide Primary Aluminum Production by Region

(Millions of Tonnes)

6.8

5.85.2

2.1 2.1

1.2

8.4

5.5

8.2

2.3 2.2

1.4

0

1

2

3

4

5

6

7

8

9

Europeand

Russia

NorthAmerica

Asia LatinAmerica

Oceania Africa

Total 2000 Production = 24.2 mil tonnesTotal 2003 production = 28.0 mil tonnes

20002003

Page 6: Perspectives on the Aluminium industry - OECD.org · International Aluminium Institute ... Source: IAI Life Cycle Inventory Data IAI 2004 PFC Survey. ... • Voluntary Objective 11

Annex I Expert Group Seminar in Conjunction with the OECD GlobalForum on Sustainable Development – Paris 27 March, 2006

IAI Global Sustainability Initiative12 Voluntary objectives covering key environmental, social, and economic

indicators• Voluntary Objective 1An 80% reduction in Perfluorocarbon (PFC) greenhouse

gas emissions per tonne of aluminium produced for the industry as a whole by 2010 versus 1990 levels.

• Voluntary Objective 7The industry will monitor annually aluminium shipments for use in transport

in order to track aluminium's contribution through light-weighting to reducing greenhouse gas (GHG) emissions from road, rail and sea transport.

• Voluntary Objective 3A 10% reduction in average smelting energy usage by IAI Member

Companies per tonne of aluminium produced by 2010 versus 1990.

• Voluntary Objective 8The IAI has developed a mass flow model to identify future recycling flows.

The industry will report annually on its global recycling performance.

• Voluntary Objective 11 NewThe IAI Member Companies will seek to reduce GHG emissions from the

production of alumina per tonne of alumina produced.

Page 7: Perspectives on the Aluminium industry - OECD.org · International Aluminium Institute ... Source: IAI Life Cycle Inventory Data IAI 2004 PFC Survey. ... • Voluntary Objective 11

Annex I Expert Group Seminar in Conjunction with the OECD GlobalForum on Sustainable Development – Paris 27 March, 2006

Progress Toward Goals Monitored Annually

• Member companies surveyed annually• Data are analyzed and summary reports developed• Coded facility specific benchmark data provided to

participants to aid in setting improvement objectives• Directors meet two times each year to evaluate

progress toward objectives

Page 8: Perspectives on the Aluminium industry - OECD.org · International Aluminium Institute ... Source: IAI Life Cycle Inventory Data IAI 2004 PFC Survey. ... • Voluntary Objective 11

Annex I Expert Group Seminar in Conjunction with the OECD GlobalForum on Sustainable Development – Paris 27 March, 2006

Baseline Issues• What gases would be included?• What parts of the production processes would be included?

– Mining - Fabrication– Refining - Recycling– Smelting

• Indirect emissions from electricity production• Direct emissions from smelting process

– CO2– PFCs

• Installed technology mix will result in different baseline emissions among countries.

– Older Søderberg technology is higher emitting than center fed prebaked anode facilities

– Side fed prebaked anode facilities have the highest emissions per unit time on anode effect

Page 9: Perspectives on the Aluminium industry - OECD.org · International Aluminium Institute ... Source: IAI Life Cycle Inventory Data IAI 2004 PFC Survey. ... • Voluntary Objective 11

Annex I Expert Group Seminar in Conjunction with the OECD GlobalForum on Sustainable Development – Paris 27 March, 2006

PFC Emissions by Production Technology Type

0.0

0.2

0.4

0.6

0.8

1.0

0 5 10 15 20 25 30

CWPBPFPBSWPBVSSHSS

Cum

ulat

ive

Prob

abilit

y

PFC Emissions (t CO2-eq/t Al)

4.94

1.62

• Large ranges in PFC performance both within technology type and among different technologies

• PFC emissions from SWPB>HSS>VSS>CWPB>PFPB• Range of performance within technology groups results from different work

practices and process control software

Page 10: Perspectives on the Aluminium industry - OECD.org · International Aluminium Institute ... Source: IAI Life Cycle Inventory Data IAI 2004 PFC Survey. ... • Voluntary Objective 11

Annex I Expert Group Seminar in Conjunction with the OECD GlobalForum on Sustainable Development – Paris 27 March, 2006

GHG Accounting Standards

http://www.ghgprotocol.org/ http://www.world-aluminium.org/environment/climate/pfc_measurement.pdf

http://www.world-aluminium.org/environment/climate/ghg_protocol.pdf

WRI/WBCSD CorporateGood Practice Standards IAI Industry GHG Protocol

USEPA/IAI PFC MeasurementProtocol

IPCC Good PracticeGuidance http://www.ipcc-nggip.iges.or.jp

Page 11: Perspectives on the Aluminium industry - OECD.org · International Aluminium Institute ... Source: IAI Life Cycle Inventory Data IAI 2004 PFC Survey. ... • Voluntary Objective 11

Annex I Expert Group Seminar in Conjunction with the OECD GlobalForum on Sustainable Development – Paris 27 March, 2006

IAI Initiatives to Reduce GHG Emissions• Benchmarking on industry performance on key

performance criteria (Anode effects for PFCs, Energy utilization, carbon consumption)

• Annual published progress reports and briefings of all IAI Directors/CEOs;

• Coded Benchmarking Graphs;• Scientific papers on anode effects and PFC emissions;• Greenhouse Gas Protocol to ensure common methodology;• Sharing best operating practices;• IAI Consultant and equipment to carry out measurements

and provide training;• Cooperation with international bodies – OECD, IPCC;

UNFCCC and WBCSD – and national regulatory agencies.

Page 12: Perspectives on the Aluminium industry - OECD.org · International Aluminium Institute ... Source: IAI Life Cycle Inventory Data IAI 2004 PFC Survey. ... • Voluntary Objective 11

Annex I Expert Group Seminar in Conjunction with the OECD GlobalForum on Sustainable Development – Paris 27 March, 2006

CDM and Primary Aluminium

• Some member companies developing CDM projects

• First methodology approved for PFC emissions reduction project in February 2006

• IAI working to establish CDM template for member use for emissions reduction projects

Page 13: Perspectives on the Aluminium industry - OECD.org · International Aluminium Institute ... Source: IAI Life Cycle Inventory Data IAI 2004 PFC Survey. ... • Voluntary Objective 11

Annex I Expert Group Seminar in Conjunction with the OECD GlobalForum on Sustainable Development – Paris 27 March, 2006

Summing Up• Aluminium industry is global in scope• The industry has a strong sustainability initiative with

quantitative goals and a monitoring system in place• Strong track record of progress in emissions reductions has

been established and industry has strategy in place to achieve its 80% reduction goal

• IAI historical survey data may be useful in establishing baseline emissions levels

• National baselines for GHGs from primary aluminium production must recognize the country specific technology mix

• Some IAI member companies have initiated CDM projects and one methodology has been approved

Page 14: Perspectives on the Aluminium industry - OECD.org · International Aluminium Institute ... Source: IAI Life Cycle Inventory Data IAI 2004 PFC Survey. ... • Voluntary Objective 11

Annex I Expert Group Seminar in Conjunction with the OECD GlobalForum on Sustainable Development – Paris 27 March, 2006

Thank you for your attention:

Jerry MarksInternational Aluminium [email protected]

Page 15: Perspectives on the Aluminium industry - OECD.org · International Aluminium Institute ... Source: IAI Life Cycle Inventory Data IAI 2004 PFC Survey. ... • Voluntary Objective 11

Annex I Expert Group Seminar in Conjunction with the OECD GlobalForum on Sustainable Development – Paris 27 March, 2006

Recycling Saves Energy and Reduces GHGs

Page 16: Perspectives on the Aluminium industry - OECD.org · International Aluminium Institute ... Source: IAI Life Cycle Inventory Data IAI 2004 PFC Survey. ... • Voluntary Objective 11

Annex I Expert Group Seminar in Conjunction with the OECD GlobalForum on Sustainable Development – Paris 27 March, 2006

Comparisons of Al with Other Industry

5

4

0.8

4.2

0

1

2

3

4

5

6

Iron & Steel Cement Aluminium Other

Per

cent

of T

otal

A

nthr

opog

enic

GH

G

Em

issi

ons

Source: Boumert, Herzog and Pershing, “Climate Data: A Sectoral Perspective, August, 2005.available at www.pewclimate.org

Page 17: Perspectives on the Aluminium industry - OECD.org · International Aluminium Institute ... Source: IAI Life Cycle Inventory Data IAI 2004 PFC Survey. ... • Voluntary Objective 11

Annex I Expert Group Seminar in Conjunction with the OECD GlobalForum on Sustainable Development – Paris 27 March, 2006

Progress in Reducing PFC Emissions per Tonne Primary Aluminium Produced

0.00.51.01.52.02.53.03.54.04.5

19901992

19941996

19982000

20022004

20062008

2010

PFC

Em

issi

ons

(t C

O2 -

eq/t

Al)

Year

1.160.88

74% reduction in PFC emissions per tonne aluminium from 1990 baseline2010 goal is a 80% reduction in PFC emissions per tonne aluminium

4.42

Page 18: Perspectives on the Aluminium industry - OECD.org · International Aluminium Institute ... Source: IAI Life Cycle Inventory Data IAI 2004 PFC Survey. ... • Voluntary Objective 11

Annex I Expert Group Seminar in Conjunction with the OECD GlobalForum on Sustainable Development – Paris 27 March, 2006

Total PFC Emissions from Primary Aluminium Production

60% reduction in total PFC emissions through 2004 from 1990 baseline

0

10

20

30

40

50

60

70

80

90

100

1990 1995 1998 1999 2000 2001 2002 2003 2004

Glo

bal P

FC E

mis

sion

s (M

illion

s to

nnes

CO

2-e)

86.1

34.7

Source: 2004 IAI Anode Effect Survey