Norway Aluminium innovations lead the way Christine Frogner Brath - - PowerPoint PPT Presentation
Norway Aluminium innovations lead the way Christine Frogner Brath Corporate Strategy & Analysis, Norsk Hydro ASA, November 7, 2017 Content of presentation 1. Aluminium applications, properties and growth 2. Technology development, energy
Christine Frogner Brath Corporate Strategy & Analysis, Norsk Hydro ASA, November 7, 2017
drivers for the circular economy
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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
Properties lead to increased market share
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Strong growth, in particular for recycling China’s recycling activity is limited China has grown
Source: CRU
10 20 30 40 50 60 70 80 90 2000 2005 2010 2015 2020 2025 Hydropower Nuclear Gas Coal
Global aluminium production split on power source
Miliion tonn
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A Paradox: Gradually more of the world’s aluminium production is based on coal
Hydropower based aluminium production Coal based aluminium production
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Governments and NGOs Customers and end users Markets and investors
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Hydro aims to be climate neutral by 2020
Climate- and energy- efficiency in production processes Climate advantage in the user phase Recycling to bring more metal back to the loop
UBC recycling line
Rolled Products, Germany
Automotive line 3
Rolled Products, Germany
Karmøy technology pilot
Primary Metal, Norway
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Alunorte Fuel Switch Project
Bauxite & Alumina, Brazil
Hydro’s climate strategy Value adding, climate friendly investments:
Become carbon neutral by 2020, seen from a life cycle perspective
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17,5 15 14,8 14,4 14,4-14,0 13,9 13,5 12,3 11,5 10
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Karmøy 1967 Hydro 1993 Hydro 1998 Hydro 2003 Global 2014* Hydro 2012 HAL300 2013 HAL4e Pilot HAL4e Ultra Hydro Vision kWh/ kg Al
13 5 10 15 20 25 30 35
Building & Construction Transport Packaging Machinery & Equipment Electrical Consumer Durables Other
Forecast
Estimated recovery from post-consumed scrap collected
Million tonnes
Recycling capacity of 3.3 billion cans a year at the UBC line in Germany Recycling is becoming more important as the generation of post consumed scrap material gains momentum
500 1000 1500 Sapa Zhongwang Shandong Huajian Guangdong Fenglu Xingfa Aluminium Guangdong JMA Guangdong Weiye Constellium Guangyin Asia Aluminum
Clear leader in a fragmented industry where closeness to customers and markets are key success factors
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Primarily serving domestic Chinese markets
Unrivalled position as #1 extrusions provider globally
Extrusion volumes (2016), in thousand mt
Strong global positions
22,400 people Present in 40 countries
Source: CRU, Sapa Annual Report and Investor Briefing 2016
Aluminium design for e-car battery frames
Global solutions is the only way out of the global challenges in a low carbon society
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Rewards for doing the right things and punishment for doing the wrong…
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This ALUMINIUM chair is the first model
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Source: K. Vella keynote speech at EA event 2016 ‘’From a plan to reality: making the Circular Economy happen’
«You are an important partner in making circular economy a
recyclable, and it doesn't lose any properties during the recycling process.»
Karmenu Vella EU Commissioner for Environment
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aluminium products and solutions
materials, energy, primary metal, rolled products, extruded solutions and recycling
more than 40 countries on all continents
Global Compact 100, FTSE4Good
Primary Metal Rolled Products Energy Bauxite & Alumina Extruded Solutions
With robust positions across the value chain
*) The sum of Hydro’s and Sapa’s individual turnover In 2016 (20)
Bauxite Alumina Energy Primary Casting Products Rolling Extrusion
Recycling Recycling
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Bauxite Alumina Energy Primary metal Casthouse Rolled products Extrusion Solutions Recycling
Primary Metal and Metal Markets
Qatar, 300 000 tonnes
Germany, 235 000 tonnes
Canada, 120 000 tonnes
Brazil , 235 000 tonnes
Australia, 70 000 tonnes
Norway, 1 015 000 tonnes
11% 49% 15% 3% 6% 11% Slovakia, 90 000 tonnes
4% 7 stand-alone remelters:
Spain and Germany)
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million tonnes
Remelt/ Recycling
million tonnes
Primary
Primary aluminium plants Recycling and remelt plants
Attributable capacity: 2.1 million mt. Consolidated capacity: 2.4 million tonnes (Slovalco and Albras are consolidated). The smelters have an additional remelt capacity: 0.5 million tonnes. Consolidated casthouse capacity: 2.9 million tonnes. Qatalum is equity accounted in Hydro’s results. * Rheinwerk smelter is included in the Rolled Products division for logistical reasons
‘* Sales volume 2016 for casthouse products and Sapa, estimate 2020 for Rolled Products
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Casthouse products Rolled Products Sapa Automotive and transport representing significant share of Hydro’s total portfolio
Sales volumes*
Automotive and transport Other
Car makers utilizing aluminium to reduce weight and increase fuel-efficiency
High-growth automotive segment with substantial further potential due to aluminium’s superior inherent properties
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