Hydro Annual Report 2011b

The Qatalum aluminium plant, in which we own 50 percent,
came into full production in September 2011. The plant uses
natural gas as its energy source. The International Energy
Agency recognizes natural gas as an important energy source
that can help reduce global temperature increases. In addition,
the use of natural gas in Qatalum is an efficient way of utilizing
local energy sources. In Brazil and Australia, we use power
from the grid. The grid in Brazil is mainly supplied by hydropower,
while the grid in Australia is mainly supplied by coal
power. At Alunorte and Paragominas in Brazil, the main
energy sources are fuel oil, coke and diesel.
The greenhouse gas emissions from Hydro’s current consolidated
activities decreased by 5 percent in 2011, compared with
2010. After Qatalum moved into into full production, total
emissions from our ownership equity – including indirect
emissions from electricity generation – increased by 10 percent.
Due to our new assets in Brazil, our direct greenhouse gas
emissions from consolidated activities increased by 4.5 million
metric tons compared to the figures reported in Hydro’s annual
report 2010.
In 2009, we revised our goal to a specific direct emission of
1.52 mt CO2e per mt aluminium in 2013. With a performance
of 1.61 mt CO2e per mt aluminium last year excludin
newly aquired Albras, we are approaching this target. The
improvement represents a net annual reduction of more than
200,000 mt CO2e compared to 2009, when the specific emissions
were 1.85 mt CO2e per mt aluminium.
Energy efficiency is an important part of Hydro’s 300 USD/
mt cost-saving program (see page 29). On average, our fullyowned
primary aluminium plants consumed 13.79 kWh of
electricity to produce one kilogram of aluminium in 2011, an
improvement of 0.09 kWh/kg aluminium. This equals an
annual energy reduction of more than 80 GWh from 2009.
Our HAL4e technology, which we are testing in full scale, has
Optimizing transportation
As an energy-intensive industry, climate-gas emissions from
the transportation of raw materials and products is estimated to
constitute less than 5 percent of Hydro’s total emissions. Still, it is
important to continue reducing these emissions. As an example,
Hydro’s rolled products business leverages several concepts
to secure customer-oriented logistics at lower CO 2 emissions
and less cost. One is to use trains or ships for long distances,
trucks for shorter distances. One project (Germany-Spain) has
been calculated to save around 260,000 km driven per year. The
business also uses a multi-drop concept to serve more customers
from one truck and then reverse the logistics, which brings finished
material to the customer and returns with scrap. A similar approach
is used in e.g. Hydro Building Systems.
Direct greenhouse gas emissions from Hydro’s
consolidated activities
Million metric tons CO2e
10
8
6
4
2
0
CO2
2007
PFC
2008
2009
Greenhouse gas emissions from
Hydro's ownership equity
Million metric tons CO2e
15
12
9
6
3
0
2007
2008
vIABIlItY perForMAnCe
Energy and climate change
Figures include historical emission from current operations.
2009
2010
2010
Bauxite & Alumina Downstream production Electricity generation
Metal production Remelters
2011 target
• Further lift our recycling volume to improve capacity utilization
• Develop new business opportunities within recycling
2011 result
• The electrolysis process of aluminium production emitted 1.61
mt CO2e/mt aluminium, compared to 1.63 mt last year
• Recycling of contaminated and post-consumer scrap increased
by 3 percent
• Feasibility study for recycling facilities carried out in Neuss,
Germany and Karmøy, Norway
2012 target
• Stabilize at above 90 percent capacity utilization in recycling
2011
2011
Ambition
• Aluminium production emits 1.52 mt CO2e/mt aluminium in 2013
• Recycle 1 million metric tons of contaminated and postconsumer
scrap by 2020
51
Greenhouse gas emissions based on Hydro’s ownership equity as per December 31,
2011. Emissions from electricity generation are based on electricity consumption
and IEA “CO 2 Emissions from Fuel Consumption” 2008 factors. Emissions include 1.9
million mt CO2e from Hydro’s ownership equity in the Qatalum owned gas-fired power
plant in Qatar in 2011 and 0.9 million mt in 2010. Figures includes historical emissions
from current operations.