1 / 13

Impact of EU Emission Trading Directive and renewable energy tax on the copper industry

Impact of EU Emission Trading Directive and renewable energy tax on the copper industry. 29 th September 2009. Ulf Gehrckens Senior Vice President Corporate Energy Affairs. Copper – Contributing to the solution of Climate Change Problem. Copper content in different applications.

cbostic
Download Presentation

Impact of EU Emission Trading Directive and renewable energy tax on the copper industry

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Impact of EU Emission Trading Directive and renewable energy tax on the copper industry 29th September 2009 Ulf GehrckensSenior Vice President Corporate Energy Affairs

  2. Copper – Contributing to the solution of Climate Change Problem Copper content in different applications ~25 kg copper ~115 kg copper ~200 kg copper ~4000 kg copper ~7300 kg copper ~8-30 tonnes copper Source: Financial Mirror Ltd 2008, WVM

  3. Global copper demand will increase despite current economic crisis Physical demand will stay at high leveldespite current economic downswing Japan Western Europe Strong growth in China, India and Eastern Europe foreseeable U.S.A. Copper demand per capita (in kg) Russia Eastern Europe China India Africa GDP per capita (in US $) Source : United Nations 2008, Brook Hunt 4Q 2008 Copper markets

  4. 95,8 Well positioned production sites in European core market Production sites and employees Primary Copper Production Recycling / Precious Metals Emmerich: 115 Smethwick: 28 Olen: 496 • Lunen • Hamburg • Olen • Pirdop • Fehrbellin • Hamburg • Olen • Pirdop • Röthenbach Hamburg: 2094 Fehrbellin: 49 Lunen: 473 Röthenbach: 37 Copper Processing • Hamburg • Olen • Avellino • Emmerich • Stolberg • Yverdon- les-Bains • Smethwick • Dolný Kubín Dolny Kubin: 11 Stolberg: 537 Yverdon-les-Bains: 39 More than 4,700 people are working in the new group directly and more than 9400 persons are working indirectly. Avellino: 108 Pirdop: 758

  5. The processing fee is independent of the Copper price, and Aurubis can not pass on its additional costs to its customers TC/RCs and Copper Price (in US cts/lb) Cu-Price Source: CRU

  6. Main production units in Aurubis Bulgaria Smelter Refinery Sulphuric acid plant Flotation production capacity (up to) Anode copper 249,000 t Cathode copper 180,000 t Sulphuric acid 900,000 t Processed slag 486,000 t

  7. Aurubis Bulgaria‘s Copper processing is among the cleanest in the world. SO2-Emissions of Copper Smelters (in kg SO2 per t Copper) • Pirdop Site 10 •  European Copper Smelters 28 • International Copper Smelters 352 Pirdop Ø international Ø Europa Source: Brook Hunt 2008, certified data

  8. 100 Aurubis Bulgaria’s Copper production is among the most energy efficient in the world. Energy efficiency of Copper industry (in MJ/ t cathode) Aurubis Bulgaria in in Pirdop : is 8,760 MJ/t Source: Brook Hunt 2006

  9. Direct Emissions: 92 % Decrease in Direct Emissions since 1990 Further decrease is technically limited and is economically unrealistic. Indirect Emissions: Electricity mix of Bulgaria determines the indirect emissions for Aurubis Bulgaria at Pirdop. 3.0 2.5 2.0 1.5 1.0 0.5 0.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 Aurubis Bulgaria at Pirdop has already done a lot to decrease CO2 emissions CO2-emission Aurubis Bulgaria since 1990 (in t CO2/t copper) 92 % decrease since 1990

  10. Uneven Industrial Electricity prices in Europe Average price in 2009 for 2010 baseload for energy intensive industrial consumers In Bulgaria, industrial electricity costs more than in other European Countries. This must be solved. Industry supports the economy and EU considers low industrial electricity prices as normal and not as a state aid. Source IVH

  11. Electricity costs are very important for Aurubis Bulgaria Electricity costs of Aurubis Bulgaria (in Mio. €) More than 30% of the electricity is used for environmental protection Inclusion of Copper industry in ETS means additional cost of 56.000 t x 30,- €/t= +1.7 Mio. €/a (direct emissions) With complete auctioning of Emission rights, extra cost through electricity of about 386,000t x 30 €/t = + 11,6 Mio. €/a (indirect emissions) With the additional tax due to Renewable Energy in Bulgaria, Industry’s burden has increased Every additional Cent per kWh Electricity price increase means an additional financial burden of about 3.4 Mio. €/y in Aurubis Bulgaria.

  12. Energy Intensive Industry should be freed from the renewable energy tax like in Germany. Recycling and environmental protection measures must be exempt from Carbon related taxes. A performance based, full compensation for direct and indirect Carbon taxes is essential as long as no compareable system is installed worldwide. The decisions of the EU in December 2008 should in no case be changed during the implementation process. The list for carbon leakage should not be shortened for indirect emissions related compensation. The compensation for indirect emissions must be based on real costs. Capacity expansion should be free from the extra CO2 related financial burden. Aurubis Requests Without these measures, Copper production will move out of Europe to more CO2 emitting parts of the world and this will result in a real damage to European employment and world environment.

  13. Historical legacy is cleaned with enhanced attention to the environmental protection. • Pirdop site in 1999 Pirdop site in 2005

More Related