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Velkomin til ISAL 1 ISAL and the ISAL Production Upgrade.

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Presentation on theme: "Velkomin til ISAL 1 ISAL and the ISAL Production Upgrade."— Presentation transcript:

1 Velkomin til ISAL 1 ISAL and the ISAL Production Upgrade

2 2 ISAL – General Information Founded in 1966 Production started in 1969 with capacity of 33,000 tons (120 pots) Major expansions: –1972 (2 nd potroom) –1997 (3 rd potroom) Designed for 150,000 tons Production in 2011 >185,000 tons

3 3 National Aluminium Production Century Norðurál ISAL Alcoa Fjarðarál Century - Helguvik Alcoa - Bakki 1995 2007 2009 Current share: Alcoa: 41% Century: 33% RTA: 26% Best estimate: ca. 40% of viable hydro power already harnessed National production

4 4 National Electricity Use Total production in 2008: 16,488 GWh Thereof three aluminium plants: 70% Source: National Energy Institute of Iceland (2009)

5 5 National Electricity Use Heavy Industries vs.Rest Share of heavy industries has risen to 80% of national production –three aluminium smelters + Elkem 2008 Source: National Energy Institute of Iceland (2009) Note the increase since 2006

6 6 The Production Process 4 tons of bauxite2 tons of alumina 1 ton of aluminium

7 7 Our Products Sheet ingots for rolling mills 200 different types of products A specialized casthouse adds to the possibilities of value creation Our metal is used for: –Cladding in construction –Packaging (food, medicine) –Automotive Constellium Singen rolling mill

8 8 Raw Materials Power from Landsvirkjun, the National Power Company Alumina from Brazil Anodes from Holland

9 9 Hydro Energy = Less Total Emission

10 10 GHG emissions: dramatic reduction Absolute emissions reduced by 50% since 1990 in spite of 100% production increase PFC (strong greenhouse gas) almost eliminated: industry leading Fossil fuel PFC From anodes

11 Environment World’s best PFC performance International Aluminium Institute’s 2008 report: ISAL no.1 world-wide with respect to PFC emissions @ 23 kg/t Al World average: 700 kg/t Al If ISAL was at the world average the plant would annually emit an additional 130kt of CO2eq ISAL has managed to maintain this success 2008: 23 kg/t Al (no. 1 world-wide) 2009: 17 kg/t Al 2010: 20 kg/t Al 2011: 37 kg/t Al

12 12 Fluoride Emission

13 13 Measured for 40 years

14 14 Talented People Almost 500 employees –20% women –80% men Average turnover rate: 3,5% Average tenure: >13 years Gender equality policy Equal wages for same work Diverse background: –University degree; engineering, technology, business administration, psychology etc. –Craftsmen; electricians, mechanics, auto mechanics, painters etc. –Unskilled workers

15 15 Education: ISAL school Started in 1998 School for unskilled workers One of the keys to increased productivity Courses tought by both ISAL and outside specialists 206 graduates to date Advanced program for graduates –35 graduates to date

16 16 Safety Chief Executive Safety Award in 2010 6 million work-hours without a serious accident (December 2011) 6 years without a serious accident achieved in January 2012 –2012 YTD: Two serious accidents

17 17 Emphasis on Employees’ Health No Smoking work area Monitoring of key factors, such as: –Air quality –Noise mapping Health risk analysis of tasks “Bicycle to Work”: –National competition –Gold-medal winners eight years in row!

18 18 Community and CSR ISAL Community Fund –USD 200,000 to diverse projects and causes Local youth sports Sponsor of annual cultural award Cooling water provided to neighbouring golf-course Wetland restoration –Agricultural University

19 Velkomin til ISAL 19 New power contract & Production increase New power contract $347M investment 470 man-years 20% production increase

20 20 New power contract (2010) Runs until 2036 Previous contract ran until 2014 –with 10 year extension option Crucial to ISAL’s future Current power (335MW) + 75MW additional power

21 21 IPU: Production increase (“creep”) Three objectives: 1.Reliability –prevent 2006 failure 2.Compliance –upgrade gas treatment center 3.Increase production by 20%, to 230 kta –within current buildings –complicated and challenging project

22 22 2006-failure: Loss of USD 35m 19 June: Explosion due to ferro-resonance destroys all six 33 kV potential transformers, disabling a whole rectifier station Result: All 160 pots freeze in Potline 3 15 July: First pot restarted 31 August: All pots restarted –Restart accomplished in record time and without serious accidents Loss: USD 35m –mainly pot recovery costs and production loss Substation is still exposed to single-mode failure Further risk mitigation only possible with investment in alternative DC power routes

23 23 Scope Investment: $347M Man-years: 470 Scheduled completion of works is December of this year Creep scheduled to be completed in H1 of 2013

24 24 Casthouse conversion $140M investment 150 man-years

25 From sheet ingots to billets Production of sheet ingots will cease; will produce billets instead More valuable product

26 26 What are billets for? Used to make profiles Construction, automotive etc.

27 27 Scope and schedule Investment: $140M Man-years: 150 Casthouse expanded –considerable construction Height of project was summer 2011 –150 workers on site First billet production: this summer Will continue to produce 50% ingots for 2 years Full conversion to billets before year- end 2014

28 28 Thank you

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