ENERGY EFFICIENCY at ALCOA Aluminum Association October 3rd, 2005

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ENERGY EFFICIENCY at ALCOA Aluminum
AssociationOctober 3rd, 2005

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Global Commodity Management - Energy

• Procurement
• Regulatory
• Risk Management
• Energy Efficiency
• Strategic Sourcing
• Energy Measurement
• Energy Technology Sponsorship
• Web-based Communication

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Why Focus on Energy Efficiency?

• Reduce Emissions
• Reduce Costs
• Meet our 2020 goals
• Live our values
• It is the right thing to do
• Portfolio under management 1B

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How much energy in a MT of Aluminum?
Process GJ/MT Multiplier Total
Mining .5 4 2
Refining 21 2.0 42
Anode 57 .45 26
Smelting 119 1 120
Total 190 GJ/MT
Includes energy content of transportation or
materials purchased, pre-combustion for power
production and consumables in the processes, such
for Soda and Lime
From Worldwide average in IPAI report, May 2000
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How much does that Energy Cost?
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Energy Efficiency Scope and Goals

• Examine consumption of non-potroom fuel energy
  usage
• Provide Training for Plant Personnel
• Save 5 - 10 of cost and reduce emissions
• Low cost / no cost solutions
• Low risk technology or practices
• Identify and replicate Best Energy Efficiency
  Practices (BEEPs)

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Desired Assessment Results

• Assessments tailored to plant needs
• 20 of savings from no cost projects
• More than pays for assessment cost
• Some Recs in place prior to completion of
  assessment
• 80 of savings from projects lt2 yr. payback
• Use outside experts plus Alcoans
• Focused on ancillary systems
• Find Best Practices to Share
• Motivate people to make a cultural shift for
  Energy Efficiency

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Producing Energy Efficiency Savings
PROCESS STEP PRIME
RESPONSIBILITY

• REWARD RECOGNIZE
• REPORT SAVINGS
• DO PROJECTS
• REVIEW /ACCEPT RECOMMENDATIONS
• PERFORM ASSESSMENT
• AGREE TO ASSESSMENT
• CONTACT PLANTS

• LEADERSHIP
• PLANT
• EE Network

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Key Focus Areas

• Sponsorship
• Planning
• Execution
• Follow-up
• Communication
• Recognition

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Results

• 50 Plants assessed in the past 3 years
• Great team work with plant personnel
• Plants have confirmed nearly 80 Million/yr in
  savings potential
• More than 23 Million/yr captured
• Over 35 Million/yr being actively pursued

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Alcoa Plant Case Study
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• Thank You !!