Slide 1: Recycling – A pure bonus
Recycling A pure bonus Roland Scharf-Bergmann Head of Recycling (1)
Slide 2: Agenda
• 1 Recycling • 2 Market Outlook • 3 Recycling in Hydro
Slide 3: Recycling
• 1 Recycling • 2 Market Outlook • 3 Recycling in Hydro
Slide 4: Recycling – a pure bonus
Recycling – a pure bonus Utilizing aluminium as an energy bank 5% of initial energy to recycle 75% still in use (4)
Slide 5: Aluminium recycling, a viable business
Aluminium recycling, a viable business High rates of recycling RECYCLING GLOSSARY • 95% Transport Pre-consumer scrap • 95% Buildings process scrap generated before the product‘s use phase • 55% Packaging (64% Cans) Post-consumer scrap product scrap from used products at end of product life Long life
Slide 6: 3 types of scrap are created in the regional aluminium flow
3 types of scrap are created in the regional aluminium flow Post-consumed (PCS), fabrication scrap and clean process scrap (CPS) Primary production Trade Casthouse shapes Semis Final product End-of-life product Trade (primary and remelt) trade trade trade Al₂O₃ Bauxite Primary shapes (EI,SI,PFA,WR,I
Slide 7: Various scrap sorting techniques & technologies
Various scrap sorting techniques & technologies Steel, Fe Plastics, foam Mg, Cu, Zn, Pb Wrought vs Casting Metals & alloys Metals & alloys Magnetic & Shredding Air seperation Sink float Hot crush Color sorting Spectroscopy Eddy current • Cutting scrap in • Magnets separating • Using air to separate
Slide 8: Market
• 1 Recycling • 2 Market • 3 Recycling in Hydro
Slide 9: Europe is the world leader in recycling
Europe is the world leader in recycling • 10,5 million mt recycling production in 2014. • An increase of 6,1% from the year before, • Primary production in Europe fell by 3,0%
Slide 10: There are more than 220 plants in 24 countries in Europe
There are more than 220 plants in 24 countries in Europe 3% 5% 7% 29% 7% 7% 11% 15% 7% 9% Germany Italy France UK Eastern Europe Austria/Switzerland Scandinavia BeNeLux Spain/Portugal Other Countries Source: EEA
Slide 11: 89% of scrap is used in Europe (EU27+EFTA)
89% of scrap is used in Europe (EU27+EFTA) 11% of the scrap generated in Europe in 2014 was exported Use of scrap 11% 19% 17% ~7 million mt 53% Scrap consumption in Europe Pre consumer casting alloys Post consumed casting alloys European scrap exports Pre consumer wrought alloys Post consumed wrough
Slide 12: Advanced modelling reveals long term supply growth
Advanced modelling reveals long term supply growth Old Scrap Collected (Europe) 6.0 5.5 Aluminium in million tonnes 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 2010 2015 2020 2025 2030 Rolling Extrusion Casting (12)
Slide 13: Available post-consumed scrap expected to increase
Available post-consumed scrap expected to increase. China as main source of old scrap generation growth GARC: Global old scrap to scrap market (Before trade and remelt loss) CAGR: 38 Figures in million tonnes (mio.t) Other 36 Region 10-15 15-20 20-25 25-30 Other 34 Producing Other +5% Countries 7% 6
Slide 14: Current scrap trade levels not sustainable due to shrinking Chinese imports
Current scrap trade levels not sustainable due to shrinking Chinese imports Declining US exports as an effect of this China scrap import US scrap export Figures in kt Figures in kt 3 000 -5% 3 000 2 500 2 500 -2% 2 000 +26% Others 2 000 +17% Malaysia Others 1 500 1 500 Canada Australia Mexico Korea
Slide 15: Scrap and alloy prices principally follow LME
Scrap and alloy prices principally follow LME Time-lags for scrap may cause imbalances Price development in € 2013 - April 2015 € 2,500 € 2,300 € 2,100 € 1,900 € 1,700 € 1,500 € 1,300 € 1,100 € 900 € 700 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Slide 16: Market (UBC)
• 1 Recycling • 2 Market (UBC) • 3 Recycling in Hydro
Slide 17: UBC scrap market in Europe
UBC scrap market in Europe 280 kmt of UBC are collected in Europe from a variety of collection systems based on EAA figures. Deposit based Kerbside collection Bring system Residual Waste Sorting (17)
Slide 18: Volumes from different collection systems
Volumes from different collection systems Added value from sorting Cleanliness of scrap Residual Waste Kerbside Deposit Sorting collection Bring system based system (RWS) separated Waste treatment 60 kmt (22%) Sorting facility Sorting facility plant Annual volumes: 44 kmt (15%) 77 kmt (28%) 96 kmt (
Slide 19: Recycling in Hydro
• 1 Recycling • 2 Market Outlook • 3 Recycling in Hydro
Slide 20: The industry's most ambitious climate strategy: Carbon-neutral by 2020
The industry’s most ambitious climate strategy: Carbon-neutral by 2020 Supported by the three pillars of Hydro’s technology strategy Energy and primary production Reduce emissions, increase efficiency Aluminium in use Maximize user- phase benefits ‘End-of-life’ Increase recycling, back to the loop (
Slide 21: Hydro's recycling facilities
Hydro’s recycling facilities Holmestrand, Norway • 2014 production: 47,000 tonnes Karmøy, Norway WMR, Dormagen, Germany • 2014 production, 23,000 tonnes • 2014 production: 30,000 tonnes Deeside, UK • 2014 production: 51,000 tonnes Neuss (Alunorf), Germany • 2014 production: 347, 000 tonnes Rackwitz,
Slide 22: Hydro has developed leading scrap capabilities the last years
Hydro has developed leading scrap capabilities the last years Key elements in scrap procurement and handling Hydro leading in state-of-the-art scrap Material Flow Analysis Scrap availability modelling based on dynamic stock analyses and growth scenarios flow model development Scrap Receival & Sampli
Slide 23: Our Recycling Strategy – in short
Our Recycling Strategy – in short Build on leading remelt capability to expand use of post consumed and lower priced scrap Enablers Increased Strategic Objectives • Access to processing capacity for post • Better (improved margins) used of post consumed and difficult scrap • Bigger (increased capa
Slide 24: Flow-sheet post-consumed scrap recycling
Flow-sheet post-consumed scrap recycling Mixed End of Life scrap fines shredder bunker ferrous metals magnetic separator decoating kiln screen sieve fines (size split approx 40mm) plastics, eddy current separator melting furnace minerals heavy metals casting furnace x-ray sorter cast alloys plastics
Slide 25: Strengthening of recycling position through UBC recycling line
Strengthening of recycling position through UBC* recycling line Establishing strong recycling position • Fulfilling customer needs and strengthening beverage can market position • € 45 million investment • Start of production end 2015 • Contribution towards 2020 carbon neutrality target * UBC: Used
Slide 26: UBC shredder unit
UBC shredder unit Overview Shredding the cans for optimal sorting • contamination such as "plastic widgets" in special beer cans must be exposed by the shredding (Guinness / bitter beer) Shredding the cans for optimal delacquering • both sides of the aluminium can (inside / outside) must be open • t
Slide 27: Bale braker and hammer mill
Bale braker and hammer mill (27)
Slide 28: Sorting line, furnace and delaquering
Sorting line, furnace and delaquering (28)
Slide 29: Acquisition of WMR Recycling GmbH
Acquisition of WMR Recycling GmbH Superior patented shredding & sorting technology Two-stage scrap processing Step 1: • Scrap shear • Hammer mill • Magnetic & eddie-current-sorting, sieving • Particle size 150 – 250 mm Step 2: • 2 parallel cutting mills • X-ray transmission sorting • eddie-current-s
Slide 30: Infinite Aluminium Hydro
INFINITE ALUMINIUM HYDRO