AL Circle's weekly wrap
Speira's 6.4 million euros worth of new furnace saves 15 per cent of energy consumption
Speira is back with a bang! The enterprise has introduced its new 'transparent' melting furnace, which consumes 15 per cent less energy in all the processes with enhanced capacity, recycling, insights, and data collection.
The company, known for its aluminium rolling and recycling, is investing close to 6.4 million euros in the new furnace which is planned to be placed in the Hamburg plant. The unit, internally referred to as 'Furnace 6', will come in lieu of the oldest model on the site, which dates back to the 1970s. This project is historically significant in successfully handling without any accidents during ongoing foundry operations.
Enhanced production with reduced energy consumption
"This new furnace is of great importance to us. It increases the performance and output of the foundry in Hamburg and helps us to optimise the metal flows and recycling options at Speira," describes Alexander D?rsel, Head of the Specialties business unit at Speira. On the other hand, Danny Kelm, the new plant manager in Hamburg since October, added, "By introducing state-of-the-art process control and further improving energy efficiency, we are setting new standards for our customers. This is also a great signal for our colleagues and, therefore, for Speira's future in Hamburg."
The plant in Hamburg is a real allrounder and is also of utmost importance regarding prime logistics location in Europe. More than 165,000 tonnes of aluminium strips are produced on-site for a miscellany of applications. The new furnace is equipped with a melting capacity of 60 tonnes per batch, increasing aluminium production by 7,500 tonnes per annum. An electromagnetic stirrer and immensely efficient burner technology have improved energy efficiency by 15 per cent and significantly pared CO2 emissions.
Sensor, camera and AI inclusive feature
One notable feature is the integration of state-of-the-art Industry 4.0 technologies, wherein the oven is the company's first entirely 'transparent' oven. Here, innovative sensor and camera technology feed real-time insights into all furnace operations, and the data obtained in this way enables continuous optimisation of the operation and burner control, adapted to the mix of scrap and primary metal used. Based on the constant monitoring of the melt and supported by artificial intelligence, the operator is given the ideal times for alloying or dross removal, for example. The measured parameters also permit the hydraulic components to be operated with less wear and tear, facilitate targeted predictive maintenance and thus lower downtimes and further enhance plant efficiency.
Dream of full-fledged clean energy implementation in Australian aluminium smelter slipping away?
Jerome Dozol, the chief executive of Tomago Aluminium since July, has recently contradicted the possibility of achieving the venture's agenda to switching to a primarily clean power supply subsequently this decade, citing that the pricing of the energy on offer was too hefty for the Tomago smelter near Newcastle (Australia) to continue operations without government aid. He has asked for 'urgent action' to ensure uninterrupted operations at the specified plant. The existing electricity supply contract to the smelting facility, which employs more than 1000 people, is with AGL Energy and expires at the end of 2028.
Tomago conducted a comprehensive sounding of the electricity supply market this year with the goal of positively replacing the AGL contract with renewable energy. However, as it narrowed down 24 suppliers of wind, solar and battery-stored power, the enterprise realised that there would not be sufficient renewable energy and infrastructure to meet the plant's target of 50 per cent renewable energy by 2030. But, it still may be possible to go all renewables by 2035, counting on affordable pricing.
"The price of electricity on offer is too expensive for us to keep operating without government intervention," said French-born Mr Dozol, who has joined Tomago after serving Rio Tinto for 18 years, the majority owner of the Newcastle smelter, adding, "We need the government to help bridge the gap until the price for renewable energy becomes more affordable, or until global carbon pricing is recognised in the aluminium price."
Being the largest electricity consumer in the country, the venture, whose shareholders comprise CSR and Hydro Aluminium, is also the nation's biggest aluminium producer, with a cumulative output of about 590,000 tonnes a year. Running around the clock, the plant uses about 10 per cent of New South Wales' (NSW's) power supply and contributes AU$2.2 billion on average to the nation's economy.
Besides, another major shareholder, Rio Tinto, has also commended the federal government for offering manufacturing credits to local smelters, cautioning that it will fail to operate actively in its Queensland and NSW plants beyond 2030 if they are not converted to clean energy. Read the full news here.
Rio Tinto back to fulfilling commitments after lifting operational force majeure
In a recent news piece by S&P Global, the report of Rio Tinto Group removing the halt on alumina exports from its Gladstone refineries in Australia has come up. "... We received notice that [the] FM has been lifted [and] operations are close to normal," an Australia-based trader said. At least four other market sources validated the receipt of the notice.
Rio had earlier declared force majeure — a legal clause allowing a company not to fulfil contractual obligations from its refineries in Queensland, Australia, due to bounded gas capacity levels at its facility operations.
The restriction added to a flood of supply disruptions from Jamaica to China, adding to the set of factors sending alumina prices to record highs since September and squeezing the smelters that churn out the intermediate product into aluminium. Rio has alumina production facilities at its Yarwun refinery and Queensland Alumina Ltd., in cooperation with Russia's United Co. Rusal International PJSC.
In the Q3 report released on October 18, Rio Tinto declared that gas supplies were satisfying about 95 per cent of necessities, while alumina production for the quarter was 7 per cent lower Y-o-Y at 1.77 million tonnes due to "the breakage of the third-party operated Queensland Gas Pipeline in March."
"Basically, it doesn't matter whether the force majeure is lifted or not. It is just a positive signal to their downstream customers. Their Q3 report already said that they have recovered 95%," a trader has said on this note. However, a Rio spokesperson was not immediately available for comment.
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