The aluminium foundry industry              energy conservation imperatives.               IIRs ...
The aluminium foundry industryenergy conservation imperatives.Outline:The energy problemThe energy conservation schemeThe ...
The aluminium foundry industryenergy conservation imperatives.Outline:The energy problemThe energy conservation schemeThe ...
The aluminium foundry industry energy conservation imperatives.Energy sources are not restricted to electricityThey includ...
The aluminium foundry industryenergy conservation imperatives.The electrical energy problem – not enough, incorrectly priced
The aluminium foundry industry energy conservation imperatives.The graphs assume a 4% annual supply growth to underpin a 6...
The aluminium foundry industryenergy conservation imperatives.
The aluminium foundry industry energy conservation imperatives.Electricity is priced differently to industry, commerce and...
The aluminium foundry industry                energy conservation imperatives.Demand                  Supply        Countr...
The aluminium foundry industryenergy conservation imperatives.Four main option types to effect behaviour change wereconsid...
The aluminium foundry industryenergy conservation imperatives.Outline:The energy problemThe energy conservation schemeThe ...
The aluminium foundry industryenergy conservation imperatives.The energy conservation scheme is targeting a 10%energy savi...
The aluminium foundry industryenergy conservation imperatives.Outline:The energy problemThe energy conservation schemeThe ...
The aluminium foundry industryenergy conservation imperatives.The foundry industry is a basic industry.Castings form the b...
The aluminium foundry industry energy conservation imperatives.The foundry decision environmentThe decision environment in...
The aluminium foundry industry energy conservation imperatives.The foundry decision environmentThe main controllable varia...
The aluminium foundry industryenergy conservation imperatives.        Crucible furnace – suited to batch      Note energy ...
The aluminium foundry industryenergy conservation imperatives.      Crucible furnace – note insulated lid
The aluminium foundry industryenergy conservation imperatives.                            Closed system design            ...
The aluminium foundry industryenergy conservation imperatives.                            Flue                            ...
The aluminium foundry industryenergy conservation imperatives.Foundries are capital and energy intensiveEquipment lasts a ...
The aluminium foundry industryenergy conservation imperatives.The question is both what to do and in what order.The majori...
The aluminium foundry industryenergy conservation imperatives. Energy is not only used for meltingIt is also used for hold...
The aluminium foundry industryenergy conservation imperatives.Outline:The energy problemThe energy conservation schemeThe ...
The aluminium foundry industry energy conservation imperatives.• Energy is required for melting, holding and casting• The ...
The aluminium foundry industryenergy conservation imperatives.• Heat solid from day temperature to melting /kg            ...
The aluminium foundry industryenergy conservation imperatives.Best world practice 0,55 – 0,65 kWh/kg taking the impact of ...
The aluminium foundry industryenergy conservation imperatives.Outline:The energy problemThe energy conservation schemeThe ...
The aluminium foundry industry                    energy conservation imperatives.                                        ...
The aluminium foundry industryenergy conservation imperatives.ManagementWe know how much energy is required to heat and me...
The aluminium foundry industryenergy conservation imperatives.                                                  Charge pre...
The aluminium foundry industryenergy conservation imperatives.                                              Charge pre hea...
The aluminium foundry industryenergy conservation imperatives.Most 800oC to 1500oC high temperature furnaces are inefficie...
The aluminium foundry industryenergy conservation imperatives.Outline:The energy problemThe energy conservation schemeThe ...
The aluminium foundry industryenergy conservation imperatives.The USA industry had generally chosen equipment that assumed...
The aluminium foundry industryenergy conservation imperatives.US oil production peaked in 1973In October 1973, as a result...
The aluminium foundry industryenergy conservation imperatives.Response:It was realised that the era of cheap oil had passe...
The aluminium foundry industryenergy conservation imperatives.Outline:The energy problemThe energy conservation schemeThe ...
The aluminium foundry industryenergy conservation imperatives.The conference focussed on two aspects;• Increased energy co...
The aluminium foundry industryenergy conservation imperatives.A major factor that needed to be taken into account was ther...
The aluminium foundry industryenergy conservation imperatives.In the recuperator the heat is transferred by different mode...
The aluminium foundry industry energy conservation imperatives.(Gas) Radiation Recouperators.• Consists of two concentric ...
The aluminium foundry industry energy conservation imperatives.Heat Wheels• Hot exhaust gases are directed through one sid...
The aluminium foundry industryenergy conservation imperatives.Outline:The energy problemThe energy conservation schemeThe ...
The aluminium foundry industryenergy conservation imperatives.The local foundry industry is undertaking a volunteer forty ...
The aluminium foundry industryenergy conservation imperatives.Outline:The energy problemThe energy conservation schemeThe ...
The aluminium foundry industry energy conservation imperatives.The new reality of energy rationing and increasing cost of ...
The aluminium foundry industryenergy conservation imperatives.Outline:The energy problemThe energy conservation schemeThe ...
The aluminium foundry industry energy conservation imperatives.Foundries contribute to global warming from fossil fuel bas...
The aluminium foundry industryenergy conservation imperatives.The foundry sources of energy are all fossil fuels.The CO2e ...
The aluminium foundry industryenergy conservation imperatives.The green economy effect on international goods tradingThis ...
The aluminium foundry industryenergy conservation imperatives.Carbon tradingThe 1997 Kyoto protocol Clean Development Mech...
The aluminium foundry industryenergy conservation imperatives.The South African carbon tax on electricity (2011)South Afri...
The aluminium foundry industryenergy conservation imperatives.Outline:The energy problemThe energy conservation schemeThe ...
The aluminium foundry industryenergy conservation imperatives.The energy crisis is real and it is here.We are faced with b...
                          The aluminium foundry industry              energy conservation imperatives.               IIRs ...
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The aluminium foundry industry energy conservation imperatives

  1. 1.             The aluminium foundry industry energy conservation imperatives. IIRs Light Metals conference The Hyatt Regency, Rosebank, Johannesburg 11,12 and 13 May 2009 Dr A E Paterson – Aluminium Federation of South Africa
  2. 2. The aluminium foundry industryenergy conservation imperatives.Outline:The energy problemThe energy conservation schemeThe foundry industryThe energy requirement of meltingFurnace efficienciesThe 1973 oil crisisThe USA aluminium foundry industry 1976 energy conservationworkshopWhat is the local foundry industry doing at present?How does the foundry industry pay for it?Climate change, environmental and trading impactsConclusion
  3. 3. The aluminium foundry industryenergy conservation imperatives.Outline:The energy problemThe energy conservation schemeThe foundry industryThe energy requirement of meltingFurnace efficienciesThe 1973 oil crisisThe USA aluminium foundry industry 1976 energy conservationworkshopWhat is the local foundry industry doing at present?How does the foundry industry pay for it?Climate change, environmental and trading impactsConclusion
  4. 4. The aluminium foundry industry energy conservation imperatives.Energy sources are not restricted to electricityThey include electricity, natural gas, lpg, heavy and light oilsand, in the case of irons and steel, coke.Measured against reliability of supply, where possible, multisource energy could be attractive.Measured against increasing cost of energy, local pilot studieshave indicated capacity of improvement. RSA foundriesmeasured in three independent pilot studies showed lowenergy efficiencies relative to world leaders.Energy can be saved at a cost. Embedded capital equipment requires consideration.
  5. 5. The aluminium foundry industryenergy conservation imperatives.The electrical energy problem – not enough, incorrectly priced
  6. 6. The aluminium foundry industry energy conservation imperatives.The graphs assume a 4% annual supply growth to underpin a 6% annualgrowth in GDP. (This implies a strategic move from supporting primaryindustry to supporting down stream value adding industry.)To maintain surety of supply Eskom require a minimum of a 10% bufferto allow for foreseen and unforeseen maintenance requirements.Savings are essential if the country is to avoid a crisis in 2011 to 2013.Also - Existing power stations come to end of life in the mid 2020’sPricing – the electricity price had been kept artificially low and did notreflect the replacement value of the capital equipment. It was regardedby the DME as being 76% below the nearest competitor
  7. 7. The aluminium foundry industryenergy conservation imperatives.
  8. 8. The aluminium foundry industry energy conservation imperatives.Electricity is priced differently to industry, commerce and households.The graphs drawn from external sources relates to households and toindustry respectively. Whilst RSA is not included in the industrypricing they support the cheaper electricity view.
  9. 9. The aluminium foundry industry energy conservation imperatives.Demand Supply Country climate Financial SA Probabilityreduction options constraints image change sustainability Economy of desired and outcome environm entalLoad SheddingRolling BlackoutsPrioritisation of newload With pcpIntensified “energyefficiency” DSM good butSevere NMD slowpenaltiesSuspend newapplications ShortPower conservation termprogramme Positive Neutral Negative impact impact
  10. 10. The aluminium foundry industryenergy conservation imperatives.Four main option types to effect behaviour change wereconsidered: Load shedding - unfair and unsustainable. Substantial price increases - useful in conjunction with rationing Demand supply management programme – usefulalongside .rationing Power conservation programme - Rationing the right to purchase . (of supply) seen as bestoptionPCP is the core underpinning principle linked to pricing penalties
  11. 11. The aluminium foundry industryenergy conservation imperatives.Outline:The energy problemThe energy conservation schemeThe foundry industryThe energy requirement of meltingFurnace efficienciesThe 1973 oil crisisThe USA aluminium foundry industry 1976 energy conservationworkshopWhat is the local foundry industry doing at present?How does the foundry industry pay for it?Climate change, environmental and trading impactsConclusion
  12. 12. The aluminium foundry industryenergy conservation imperatives.The energy conservation scheme is targeting a 10%energy saving phased in over three to four years witha 50% saving in the first year.Failure to meet the 10% savings targets will result inpunitive energy tariffs in the form of a steeplyinclining power curve block tariff approaching andexceeding the replacement value cost of electricity.A phase in period of about two years is anticipated.
  13. 13. The aluminium foundry industryenergy conservation imperatives.Outline:The energy problemThe energy conservation schemeThe foundry industryThe energy requirement of meltingFurnace efficienciesThe 1973 oil crisisThe USA aluminium foundry industry 1976 energy conservationworkshopWhat is the local foundry industry doing at present?How does the foundry industry pay for it?Climate change, environmental and trading impactsConclusion
  14. 14. The aluminium foundry industryenergy conservation imperatives.The foundry industry is a basic industry.Castings form the basis of many productsThe value chain involves casting, machining, manufacture andpackaging giving added value of the order of 50x at industry level.Energy is required to melt and cast metalsEnergy rationing and sharply increasing price forms a challengeThe 1970’s USA crisis that followed energy rationing and priceincreases will be explored to gain insights.
  15. 15. The aluminium foundry industry energy conservation imperatives.The foundry decision environmentThe decision environment includes variables that have a significanteffect on returns.The four main variables are the market, capital equipment, metal priceand the casting technology and process control.These are subject to control, subject of influence or not subject tocontrol of influence.The main controllable variable is casting technology and process controlCapital equipment is not subject to control or influence once purchased. (This does not imply that the equipment does not have to be run correctly –it does imply that the basic structure and character of the furnace exists) The offerings of furnace and holding oven manufacturers vary and my differ from market to market. South Africa . . typically uses batch furnaces.
  16. 16. The aluminium foundry industry energy conservation imperatives.The foundry decision environmentThe main controllable variable is casting technology and process controlCapital equipment is a major decision related to a specific market needand is cannot be readily changed once purchased. (This does not imply that the equipment does not have to be run correctly –it does imply that the basic structure and character of the furnace exists)The offerings of furnace and holding oven manufacturers vary and differfrom market to market.The South African foundry sector typically uses batch furnaces toaccommodate a jobbing market with changing alloy specifications.Some use induction furnaces but these have limited applicatio becaeu ofmetal stirringSome foundries specialising in single alloy volume markets such as theautomotive sector have chosen continuous furnaces such as the Striko.
  17. 17. The aluminium foundry industryenergy conservation imperatives. Crucible furnace – suited to batch Note energy losses with open crucibles
  18. 18. The aluminium foundry industryenergy conservation imperatives. Crucible furnace – note insulated lid
  19. 19. The aluminium foundry industryenergy conservation imperatives. Closed system design 3 Stage Furnace Charge preheat shaft Melting on ramp adjacent to holding chamber Holding in separate chamber with separate controls Continuous process Doors are the width of each chamber => easy cleaning Modern Striko furnace
  20. 20. The aluminium foundry industryenergy conservation imperatives. Flue Charge preheating Striko furnace
  21. 21. The aluminium foundry industryenergy conservation imperatives.Foundries are capital and energy intensiveEquipment lasts a long timeCapital choices reflect specific foreseen circumstances made atthe time of choiceTwo issues are the interplay between the costs of capital andenergyIn a cheap energy, expensive capital country, the bias hasbeen towards lower coat lower energy efficiency.In expensive energy, cheap capital countries energy savingequipment is used. The technologies exist.
  22. 22. The aluminium foundry industryenergy conservation imperatives.The question is both what to do and in what order.The majority of energy (about 70%) is used of meltingMuch of the energy use is outside the direct control of the foundry– it depends on the type of furnace installationEnergy in the from of heat is lost through inefficient conversion,through furnace walls and through the flue. The majority is lostthrough the flue. Modern furnaces use this energy.Looking to similar energy challenge circumstances the USresponse after the 1973 oil crisis was considered.Energy availability declined rapidly and prices accelerated rapidly. We face rationing and rapidly increasing prices.
  23. 23. The aluminium foundry industryenergy conservation imperatives. Energy is not only used for meltingIt is also used for holding, for casting and for heat treatmentHolding – the structure may lost heat through the foundations,. the walls of the flue. - holding practice may hold molten metal for too long.Casting – too large a runner and riser system requires extra . metal melted and remelted - poor practice which results in a high defect ratio. requires extra energy in remelting. - impact of poor metal quality or temperatureHeat treatment – temperature, time, insulation aspects These are the controllable aspects.
  24. 24. The aluminium foundry industryenergy conservation imperatives.Outline:The energy problemThe energy conservation schemeThe foundry industryThe energy requirement of meltingFurnace efficienciesThe 1973 oil crisisThe USA aluminium foundry industry 1976 energy conservationworkshopWhat is the local foundry industry doing at present?How does the foundry industry pay for it?Climate change, environmental and trading impactsConclusion
  25. 25. The aluminium foundry industry energy conservation imperatives.• Energy is required for melting, holding and casting• The vast majority of energy is required for melting.The theoretical calculation without melt loss, furnace heating,other losses including rework and volume of runners and risersis based on: Specific heat aluminium solid 900J/kgC Specific heat aluminium liquid 944J/kgC Latent heat of fusion 3,96 E5J/kg)
  26. 26. The aluminium foundry industryenergy conservation imperatives.• Heat solid from day temperature to melting /kg 900 x (660oC-20oC) = 5,76E5J/kg (54%)* Melt/kg = 3,96E5J/kg (37%) Heat liquid to casting temperature of 760oC 944x(750oC - 660oC) = 0.85E5J/kg (8%) Total = 10,57E5J/kg = 10,57E5Ws/kg = 10,57E5/1000x3600 = 0,3kWh/kg electrical (or equivalent electrical energy consumption) * Aluminium at 660C is not stable. Assume 450C charge pre heat, so charge heating around 35% melt plus heat to casting temperature 65% With pre heated charge a 1/3 saving is possible
  27. 27. The aluminium foundry industryenergy conservation imperatives.Best world practice 0,55 – 0,65 kWh/kg taking the impact of furnace heating and run round scrap into account. This is about twice the theoretical minimum requirement formelting aluminium. But we have to consider the need to heatthe furnace structure and the melt for runners and risers – quiteapart from rework.Pilot studies by AFSA taking all energy sources into accountand measured against metal purchases (assuming work flowand quality is a constant) found an energy use of about fivetimes [and up to ten times] the theoretical minimum, over twicebest practice)
  28. 28. The aluminium foundry industryenergy conservation imperatives.Outline:The energy problemThe energy conservation schemeThe foundry industryThe foundry industryThe energy requirement of a foundryFurnace efficienciesThe 1973 oil crisisThe USA aluminium foundry industry1976 energy conservationworkshopWhat is the local foundry industry doing at present?How does the foundry industry pay for it?Climate change, environmental and trading impactsConclusion
  29. 29. The aluminium foundry industry energy conservation imperatives. Energy loss Energy loss metallurgy • Where does the (70%) energy go? through flue • Metal quality • Too hot • Returns - process - quality Energy loss All energy Energy • Process inefficiency sources - net Energy • housekeeping energy in conversion into • Furnace walls at factory gate furnace eg power factor • through flue Burn efficiency Energy opportunity – pre Coal to energy heat charge conversion efficiency plus electrical Energy transmission loss conversion Energy loss Energy needed to (1) heat Energy loss Into furnace, (2) raise charge to melt foundations temperature. (3) melt metal andThe energy conversion of coal (4) raise to casting temperatureto electricity is typically17%-35% efficient. This is notvery different to the conversionof petrol to power in cars Energy loss can be divided into: controllable negotiable uncontrollable
  30. 30. The aluminium foundry industryenergy conservation imperatives.ManagementWe know how much energy is required to heat and melt aluminium.How do we use this to distinguish between furnace efficiency andmanagement efficiency. Management offers the best returns.Energy use per unit mass successful casting will increase as: Volume of runners and risers as a percentage increases Volume of additional mass later machined off increases Volume of rejects increasesManagement of volume of melt and nature of supply may not . reflect market (continuous or discontinuous, single or multiple . alloy) and production realities. This implies identifying and. measuring what is actually done and optimising the molten metal. supply and holding parameters to meet actual demand profiles.
  31. 31. The aluminium foundry industryenergy conservation imperatives. Charge pre heating - feed to Added cooling air melt by adjustable grating Flue gas heated fresh air directed to charge to achieve suitable temperature to avoid upsetting molten alloy characteristics Charge pre heating Crucible furnace – example 1 - note retrofit lid integrated pre-heating unit
  32. 32. The aluminium foundry industryenergy conservation imperatives. Charge pre heating - feed to Melt by solid transfer Flue gas heated fresh air directed to charge to achieve suitable Added cooling air temperature to avoid upsetting molten alloy characteristics (450oC) Charge pre heating Crucible furnace Example 2 - note retrofit lid and charge pre-heating unit
  33. 33. The aluminium foundry industryenergy conservation imperatives.Most 800oC to 1500oC high temperature furnaces are inefficientThermal efficiencies can be high but can be as low as 10%because as the heating or melting of metals requires high wastegas temperatures leaving the furnace it makes it difficult to design.Typically over 50% of the heat input may be lost through the flueIf this could be recaptured, it could be used to preheat combustion air for burners (fossil fuel fired) or to preheat charge metal.The focus on this paper is on heat recouperation.
  34. 34. The aluminium foundry industryenergy conservation imperatives.Outline:The energy problemThe energy conservation schemeThe foundry industryThe energy requirement of a foundryFurnace efficienciesThe 1973 oil crisisThe USA aluminium foundry industry1976 energy conservationworkshopWhat is the local foundry industry doing at present?How does the foundry industry pay for it?Climate change, environmental and trading impactsConclusion
  35. 35. The aluminium foundry industryenergy conservation imperatives.The USA industry had generally chosen equipment that assumedcheap plentiful energy.The increasing price energy crisis that faced the USA at thatstage is not dissimilar to that faced locally today. In addition, thesource of energy, oil, had peaked. Strategic independence waslost.The crisis reflected a shortage combined with rapidly rising prices.The workshop concentrated on metal melting as the most energyintensive and the one that offered most potential for returns.The focus was on retrofitted solutions.
  36. 36. The aluminium foundry industryenergy conservation imperatives.US oil production peaked in 1973In October 1973, as a result of Yom Kippur War tensions, OPECmembers stopped exports to the USAOil prices rose from $3/barrel in 1972 to $12 in 1974 (4x)By the second oil crisis (1979) prices had risen to $35/barrel (12x)
  37. 37. The aluminium foundry industryenergy conservation imperatives.Response:It was realised that the era of cheap oil had passed.The US Energy Department became a cabinet office.The US Government took an active interest in facilitating changeThe drive for light weighting of cars grew from the energy crisis.A USA aluminium foundry industry energy conservation workshopwas held in 1976 to share lessons learned.
  38. 38. The aluminium foundry industryenergy conservation imperatives.Outline:The energy problemThe energy conservation schemeThe foundry industryThe foundry industryThe energy requirement of a foundryThe 1973 oil crisisThe USA aluminium foundry industry 1976 energyconservation workshopWhat is the local foundry industry doing at present?How does the foundry industry pay for it?Climate change, environmental and trading impactsConclusion
  39. 39. The aluminium foundry industryenergy conservation imperatives.The conference focussed on two aspects;• Increased energy conversion efficiencies – improved burner efficiency - furnace preheating (In South Africa we could add improved power factorconversion for Electricity, a potential 5% saving)• Heat recouperation Energy regained is energy saved This can be used to preheat thecharge, . to preheat the furnace air, etc The focus is on heat recouperation
  40. 40. The aluminium foundry industryenergy conservation imperatives.A major factor that needed to be taken into account was thereality of embedded capital equipment.The 1976 conference focus was on retrofitted solutions.Two systems were discussed: Recouperation through radiation Heat wheels.Typically the heat captured was cooled to about 400oC bydilution with ambient air before use and used to preheat chargemetal or to preheat furnace or burner air.
  41. 41. The aluminium foundry industryenergy conservation imperatives.In the recuperator the heat is transferred by different modes:• Conduction within metals or other bodies,• Convection between gas or air and solid bodies. The higher thetemperature differential, the better the rate of heat transfer. Thefaster the gas or air moves across or along the tubes or other solidbodies, the higher the heat transfer rates.• Radiation between solid surfaces – transfer rates increases by thefourth power of the temperature differential between the two surfaces.• Gas radiation between certain gases and solid surfaces – transferrates increase by about the fourth power of the absolute temperaturedifference between the gas and surface. Heat transfer also increaseswith higher amounts of C02 and H20 and with large gas volumes.However, radiation is not very effective at low temperatures of eitherthe surfaces or the gases.
  42. 42. The aluminium foundry industry energy conservation imperatives.(Gas) Radiation Recouperators.• Consists of two concentric large diameter cylindrical metal shellswelded together at each end by way of air inlet and outlet headers.• Exhaust flue gases from the furnace at some 1 100oC pass throughthe inner shell while combustion air passes through the narrow gapbetween the shells.• Heat from the exhaust flue gas is transmitted to the inner shell(heating surface) mainly by gas radiation which may be as high as75% to 95% of the total heat transferred.• Additional heat is transferred by convection due to the slow flow ofexhaust flue gas through the recuperator as well as by radiation fromthe hot inner shell into the recuperator.• On the other side of the heating surface of the recuperator thecombustion air passes with high velocity to dilute the air and picking upheat from the inner shell to achieve about 400oC.
  43. 43. The aluminium foundry industry energy conservation imperatives.Heat Wheels• Hot exhaust gases are directed through one side of the slowlyrotating heat wheel, absorbing the beat. Cold air flows through theother side in the opposite direction, stripping the heat put into thewheel with efficiencies up to 75%.• Metal wheels have expansion and contraction (causing distortion)drawbacks for high temperature applications. The seals are difficult tomaintain• The geometric stability of the ceramic wheel at high temperaturesprovides an answer to critical high temperature sealing. This very lowexpansion at temperature allows the use of “close gap” ceramic seals.The seals are also low expansion material.• Ceramics are generally more resistant to corrosion from chemicalattack than most metals. They have a high efficiency heat exchangebecause the low thermal conductivity and high specific heat provide agreater heat capacity and smaller energy loss between the hot andcold face than similar metal heat recovery units.
  44. 44. The aluminium foundry industryenergy conservation imperatives.Outline:The energy problemThe energy conservation schemeThe foundry industryThe foundry industryThe energy requirement of a foundryFurnace efficienciesThe 1973 oil crisisThe USA aluminium foundry industry1976 energy conservationworkshopWhat is the local foundry industry doing at present?How does the foundry industry pay for it?Climate change, environmental and trading impactsConclusion
  45. 45. The aluminium foundry industryenergy conservation imperatives.The local foundry industry is undertaking a volunteer forty foundryby foundry five part fact base energy study:•Ascertain the quantum of energy input to the factory in joules•Survey the use of energy in the foundry process up to fettling•Analyse the top 80% of energy usage for each foundry todetermine efficiency of use•Propose possible solutions on a cost benefit scale. (Manyhousekeeping type solutions are very low cost but need to bemonitored to ensure sustainability)•Use the data to develop and publicise a country recommendation
  46. 46. The aluminium foundry industryenergy conservation imperatives.Outline:The energy problemThe energy conservation schemeThe foundry industryThe foundry industryThe energy requirement of a foundryFurnace efficienciesThe 1973 oil crisisThe USA aluminium foundry industry1976 energy conservationworkshopWhat is the local foundry industry doing at present?How does the foundry industry pay for it?Climate change, environmental and trading impactsConclusion
  47. 47. The aluminium foundry industry energy conservation imperatives.The new reality of energy rationing and increasing cost of energyprices warrants serious attention.New more energy efficient equipment exists.Retrofit solutions are well understood and availableThe difficulty at present is cash flow.The combination of the world economic crisis and tight lendingconditions by the banks begs the affordability questions.Government intervention is a change partnership is desirableHowever, if foundries do not invest into energy efficiency for thefuture, increased prices (and penalties) come into play.
  48. 48. The aluminium foundry industryenergy conservation imperatives.Outline:The energy problemThe energy conservation schemeThe foundry industryThe foundry industryThe energy requirement of a foundryFurnace efficienciesThe 1973 oil crisisThe USA aluminium foundry industry1976 energy conservationworkshopWhat is the local foundry industry doing at present?How does the foundry industry pay for it?Climate change, environmental and trading impactsConclusion
  49. 49. The aluminium foundry industry energy conservation imperatives.Foundries contribute to global warming from fossil fuel basedenergy sources.Foundries are also affected by clean air and water legislation.The application of clean air and water, and waste legislations bymunicipalities is an issue of concern as it is unclear howmunicipalities will differentiate between manageable andunmanageable contributors.In due course this legislation may result in the need to reorganisefoundry layouts as has been found in Germany where heatsources have been clustered into one area, those producing dustor other air contaminants into another.
  50. 50. The aluminium foundry industryenergy conservation imperatives.The foundry sources of energy are all fossil fuels.The CO2e load for energy from coal is 7,18 tons/10 000 kWhThe CO2e load from light fossil fuels is 2,16 tons/cu metreThe CO2e load from natural gas at 1atm is 181kg/kWhThese enable a foundry to calculate the carbon tax effect on itsown operations
  51. 51. The aluminium foundry industryenergy conservation imperatives.The green economy effect on international goods tradingThis is related to individual country carbon emissions and reflectsthe cost of greenhouse gas reduction on competitiveness.RSA could face trading penalties.The so called green trading tax is intended to recognise the costof local carbon emission reduction on competition from importedgoods by taxing imports from less carbon efficient countries a levybased on carbon differences.This is an important consideration from the point of view countriesthat use fossil fuels as the main source of energy – including RSA,China Australia and the USA. Green economy taxes have not been applied to date.
  52. 52. The aluminium foundry industryenergy conservation imperatives.Carbon tradingThe 1997 Kyoto protocol Clean Development Mechanism (CDM)is the process through which developed countries can funddeveloping countries to implement emission reduction strategies.The CDM processes are intended to promote sustainabledevelopment, be measurable and additional, and are not intendedto divert funds from government development programmes.Current value (2009) is ϵ23x0,9/MWh. Minimum criteria is averifiable and verified 10 000 tons CO2e per annum.As individual foundries do not meet the minimum volume criteria.a foundry group approach may be required. This is an arena where governmentagencies such as Eskom or the dti could offer a service
  53. 53. The aluminium foundry industryenergy conservation imperatives.The South African carbon tax on electricity (2011)South Africa’s total CO2e emissions are 500million tons per year.The proposed carbon tax would be applied at producer and atconsumer levels at R165/ton CO2e (Treasury prefers R200/ton).The only documentation given to date relates to electricity.The total anticipated 2011/2012 revenue is R82Bn/annum.This is about half the VAT revenue but drawn from a smaller group.Fossil fuels appear not to have been addressed but are likely to be.BUSA has opposed adoption of this tax because of the impact oncountry competitveness, growing the economy and job creation. If the CDM process is adopted and applied by government . agencies some relief may be achieved.
  54. 54. The aluminium foundry industryenergy conservation imperatives.Outline:The energy problemThe energy conservation schemeThe foundry industryThe foundry industryThe energy requirement of a foundryFurnace efficienciesThe 1973 oil crisisThe USA aluminium foundry industry 1976 energy conservationworkshopWhat is the local foundry industry doing at present?How does the foundry industry pay for it?Climate change, environmental and trading impactsConclusion
  55. 55. The aluminium foundry industryenergy conservation imperatives.The energy crisis is real and it is here.We are faced with both rationing and increased prices for allforms of energy.Equipment exists that is more energy efficientRetrofit low cost/high return solutions are a likely form ofbehaviour changeRenewal cost of amortised equipment is likely to be impacted onby the current trading and borrowing conditions.A government proactive approach towards a partnershipapproach to manage the changed circumstances is desirableCarbon taxes are likely to have a significant impact. The CDMmechanism may assist but will need to be bundled.
  56. 56.             The aluminium foundry industry energy conservation imperatives. IIRs Light Metals conference The Hyatt Regency, Rosebank, Johannesburg 11,12 and 13 May 2009 Dr A E Paterson – Aluminium Federation of South Africa Thank you
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