1. Power-oriented Industries

2. Introduction What is a power-oriented industry?
An industry which needs to locate near the power resources because of the large demand for abundant energy supply with cheap transport cost of energy can be regarded as a power-oriented industry.

3. Features of power-oriented industries
High energy consumption in production processes
Requiring reliable and consistent energy supply for smoothening the manufacturing processes

4. Case Study - Aluminium Industries in Australia
Alcoa, the largest aluminium producer in the world, operates 2 aluminium smelters in Australia.

5. Smelting is the process of extracting aluminum metal from aluminum oxide (alumina) through electrolytic reduction. The fundamental component of a smelting operation is the electrolytic cell, or "pot" in which this reaction takes place. During smelting, large amounts of current pass through molten alumina dissolved in a °C cryolite bath. This process separates out aluminum metal for removal and casting. Smelters typically operate hundreds of pots, linked electrically in configurations called potlines.
Aluminium smelter of Alcoa in Australia

6. Aluminium Smelting Process

7. Why is it considered as power-oriented industry?

8. Evidence 1. Using power resources intensively
It requires on average 15.7kWh of electricity to
produce 1 kg of aluminium to produce 1 kg of
aluminium.
In comparison, for iron and steel industry, about
7 kWh of electricity is needed to produce same
amount of output.
A large amount of
energy is needed

9. 2. Energy cost : Larger % of production cost
Compare to other industries, the aluminium industry spends a much larger portion of its production cost on energy.
Energy cost as a
large portion of
production cost
Source: Department of Commerce, 1999

10. 3. Non-stop operation
Smelting process has to be continuous, otherwise:
Cooling down of alumina
More energy for reheating
Higher total energy cost
the nearer to the power resources,
the more stable power supply.
The need of
a reliable power
resources

11. Conclusion Power-oriented A large demand for power resources
Need for reliable and stable energy supply
Power-oriented

12. ∴ near HEP plants Smelting is an electricity-intensive process
Cost of electricity is a key component of the cost of aluminum Alcoa’s smelting facilities are usually closely allied with power generation systems.
In the cases, Alcoa operates its own hydroelectric or coal-fired power plants that provide power both for smelting and for municipal use.

13. What affects the influence of energy on location?

14. Technology advancement
＊cables and pylons are used to transmit electricity
it is mobile ∴ energy can be generated everywhere
∴ free from power sources

15. ↑Energy Efficiency Methods ceramic fiber
AIM (Advanced Industrial Materials)
Combustion
∴ Old production system replaced by new equipments
more convenient and more productive
amount of energy used in manufacturing
processes decreases steadily

16. ↑Energy Efficiency
E.g. in aluminium industry, in 1950’s, it took about 21 kWh of electricity to make 1 kg of aluminium from aluminium oxide; today, only 14 kWh of electricity is needed. 25 20
Aluminium needed (kWh) 15 10 5
1950‘s
present

17. More substitutes Development of different dominant types of energy
18th century
-Charcoal, Motive power
19th to 20th century
-Coal, Oil
Mid-20th century
-Petroleum, Natural gas, HEP,
Nuclear power, Biofuels, Wind
power, Solar energy
Decrease in locational effect

18. Conclusion The technology advancements reduce the pull of energy.
 Energy becomes a less important locational factor influencing on the industrial location.
According to the recent trend, we can predict that with the use of more and more new forms of energy resources which are easier to be transported or ubiquitous in nature, the role of power supply in the location of industries become less and less important.