2. Alcoa at a Glance
Founded in 1888
200+ locations
31 countries
$21.0 billion 2010 revenue
Alcoa’s lost workday injury rate is 1/10 that of
the average U.S. manufacturing workplace
Award-winning sustainability leadership
120 years of aluminum technical leadership,
including the original aluminum process
2
Number of Employees (2010)
U.S. 24,000
Europe 17,000
Other Americas 11,000
Pacific 7,000
59,000
3. Aluminum – The Miracle Metal
3
Drives fuel
efficiency
Makes hottest
gadgets cool
Takes you out of
this world
Infinitely
recyclable
Builds a strong
foundation
Replacing 2 lbs.
of steel with one
pound of
aluminum in a city
bus can
eliminate up to
35 pounds of
greenhouse gas
over its lifetime
Aluminum’s look,
feel, durability
and thermal
conductivity
make it a top
trend in consumer
electronics
Nearly all the
alloys used in
modern aircraft
were developed
by Alcoa
More than one
trillion cans
have been
recycled in
America since
Alcoa pioneered
the industry in
1972
An office building
using aluminum-
enabled building
envelopes can
drive 20%
energy savings
over similar
buildings: and
157 tons of CO2
per year
Almost 75% of all aluminum produced is still in use today
4. The Aluminum Leader for 125 Years
4
F Upstream
Bauxite mining
Alumina refining
Aluminum smelting
Aluminum recycling
Downstream
Fastening Systems
Power & Propulsion
Wheel & Transportation
Building & Construction
Forgings & Extrusions
Midstream
Flat rolled aluminum
Operations
We invented the aluminum smelting process in 1888
Alcoa is the largest producer of aluminum in the world
Alcoa is the leader in aluminum technology and innovation
Only aluminum company covering every stage of aluminum production:
5. Alcoa is No.1 or No. 2 in 85% of our Businesses
5
Primary
Aluminum Transportation Packaging
Building/
Construction Aerospace Industrial Oil & Gas
Consumer
Electronics
Ingot
Rolling slab
Extrusion billet
Cast Rod
Sheet,
castings,
extrusions
Forged wheels
Sheet for
aluminum
beverage cans
and bottles
Recycling
Reynobond/
Reynolux
Aluminum
Composite
Material
Kawneer
windows,
curtain wall
systems,
entrances,
framing
Sheet/Plate for
fuselage skins
Structural
forgings
Fastening
Systems
Cast turbine
blades
Sheet
Plate
Forgings
Hard-alloy
extrusion
Aluminum drill
pipe
Riser systems
Enclosure design
and surface
treatments
Thermal
management for
displays
Forgings for
display
manufacturing
7. Key Global Megatrends Fuel Our Growth
Population Growth Urbanization Climate Change
7
Energy consumption rising
Increase of 54% by 2025
Driven by developing countries
Personal transport rising
Increase of 40% by 2030
Greenhouse gas regulation
Global population rising
2006: 6.6 billion
2025: 7.9 billion
2050: 9.1 billion
Population in cities
2006: > 50%
2030: > 60%
Demand for buildings,
transportation and consumer
goods
Demand for infrastructure,
energy
Demand for fuel efficiency,
recyclability, environmental
stewardship
8. Values Drive Everything We Do
8
Integrity
Environment,
Health and Safety
Customer
Excellence
People
Profitability
Accountability
Building shareholder value
Behaviors, actions, results
Customers, employees, community
Promote human and environmental health
Creating value through innovation
Pursued in everything, every day
Embracing change and respecting the individual
9. Future Products Have Potential to Revolutionize Markets
9
Aerospace Defense Energy
Packaging
Consumer Electronics
Ground Transportation Oil & Gas Building & Construction
Fuselage sheet that
mimics sharkskin
Energy efficient
buildings
Ultra-thin, durable,
infinitely recyclable
finishes
Strong, light, blast-
resistant military
vehicles
Low-cost
concentrating solar
power
Aluminum-intensive
electric cars
Nano-coatings
increase life of oil
riser systems
Stylish, cool,
sustainable
packaging
14. •Plant Energy SPAs
•Regional energy organizations
•External corporations
•Agencies (DOE, ABRACE, ETC.)
•Corporate Energy Team
•Training
•Webinars
•Global & regional meetings
•Workshops
•Case studies
•Top level commitment
•Goal setting
•Reporting
•Recognition
•Energy management standard
practice
Energy Efficiency Program
•Energy assessments
•Energy Kaizens
•Technical assistance
•Standard practices
•Energy projects
14
15. Top Level Commitment
Dedicated energy team and energy efficiency
staff.
Each business sets annual energy reduction
goals.
Businesses and business units designate
energy champions (SPAs).
Each business establishes an energy cost
reduction goal and strategy.
Executive compensation linked to an energy
reduction goal.
15
16. Downstream businesses (GRP
and EPS)
− 20% reduction in energy
intensity between 2005 –
2020 (2010 for EPS)
− 30% reduction by2030
Progress is reported in the Alcoa
sustainability report each year
Goal Setting & Reporting
Set long term reduction goals
Global Primary Products (Mining, refining and smelting)
− 10% reduction in energy intensity between 2005 - 2020
− 15% reduction by 2030
16
Chart from the Alcoa 2011 Sustainability at a Glance Report
17. 17
Recognition
Striving to recognize individuals and groups making the Energy Efficiency
Program successful.
Past individual awards include:
Developing/contributing to a
Best Practice procedure.
Providing leadership in
program development.
Leading a successful
assessment.
Sharing information and
providing technical support.
18. Three primary standards
1. Energy Management Standard Practice (ISO 50001)
2. Energy Measurement, Management, and Verification
3. Compressed Air Systems
18
Energy Management Standard Practice
Energy Management Best
Practice documents
available on the Global
Energy Efficiency website
19. Five day “deep dive” review of all aspects of energy use.
Technical investigation of specific energy users.
All opportunities (capital and non-capital ) identified and quantified.
Involves both internal and external experts.
Full report of findings prepared.
19
Energy Assessment
20. A three day, plant-wide activity focused on:
Low cost and no cost actions to reduce energy consumption.
Learning ways to continuously improve and reduce energy
consumption.
Cross-functional teams of Alcoans brainstorm ways to reduce
energy use throughout the plant.
Teams identify, analyze, and evaluate energy savings opportunities
by observing daily operations.
Opportunities for reduction are quantified using a standard
methodology and calculation.
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Energy Kaizen
Energy Kaizen
21. Aggregate Summary
2012 Energy Kaizens
Savings Opportunities (GJ) Energy Usage Observed (GJ)
~8% total energy
reduction identified
~8% GHG emission
reduction identified
~10% total utility spend
reduction identified
2121
Energy Kaizen Results
22. 22
Technical Assistance
By phone
By email
In person
The Corporate Energy Team is
available to help with questions,
problems, issues, and ideas.
SPAs also a good source for
phone or email assistance.
28. Tools - Alcoa Energy Efficiency Suitcase
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HOBO U12 Data
Logger + 600 AMP Split
Core Current
Transformer
HOBO H22 Energy
Logger – Multi Channel
Multi Transducer Data
Logger
HOBO U12-014 Logger
– 0 to 1800 degree
thermocouple
Testo 540 Light Meter
Dickson
Pressure
Logger
Kill-A-Watt
120VAC outlet
energy meter
Fluke 345 – Clamp
Meter (Power
Factor / Energy
Logging)
UE Ultrasonic
Leak Detector
Pelican 1510
Case
31. 31
Global phone conferences – monthly
Regional conferences – Europe, Latin America,
Refining, Canada, LAC
Global & Regional Meetings
Business unit
conferences – BCS,
APP, EPS, GRP
32. 32
Workshops
Two-day workshop helps businesses and locations develop
an energy reduction program. Topics covered include:
Getting started
Information sharing
Performing an assessment
Scheduling a Kaizen
Needed actions for energy efficiency
Next steps
Each workshop individualized to the needs of the plant.
35. 35
Plant Energy Team & SPA
Energy SPA – energy expertise in technical and financial processes.
Energy Team comprised of personnel from key departments.
The SPA and Energy Team:
Understand the goals (targets) for the business and the plant.
Communicate the goals and activities.
Help determine energy metrics.
Lead a diverse energy team.
Report progress to plant lead team.
Participate with regional and corporate teams.
Drive greater employee engagement.
Share best practices with other locations .
Engage with regional energy groups.
36. 36
Regional energy groups can be organizations such as local
industries, state or provincial organizations, or regulatory action
groups.
Some examples:
ABRACE (Brazil)
U.S. Department of Energy
South East Energy Alliance (U.S.)
Industrial Energy Consumers of America
Associations provide:
Best Practice sharing with other industries
Incentive information
A greater voice with suppliers and government
Regional Energy Organizations
37. 37
External Corporations
Information sharing
Observing established programs
Reviewing Best Practices
Recent association with Eastman let us observe how
they successfully encouraged employees to participate
in energy reduction program.
39. DOE Partnership Brings Additional Energy Savings
Access to technical expertise
DOE provides valuable support to Alcoa Energy Efficiency Group activities.
Plant energy assessments.
Energy management training.
Tools and analysis for reporting.
DOE labs.
Results
DOE conducted 13 onsite energy assessments.
Identified $20 million in potential savings.
Connected DOE with Alcoa locations in Latin
America to reduce global consumption.
Goal Setting
Alcoa signed up for the Better Building Better Plants Challenge to improve
energy efficiency 25% by 2020 across 30 plants in the U.S.
Achieved a 7.3% reduction to date.
39
Resource Agencies
40. Corporate Energy Team
40
Walt Brockway – Manager Global EE
Adam Vucelich – Sr. Energy Engineer
Mike Caufield – Energy Specialist
Greg Harrell – Energy Consultant
Boiler efficiency
Steam system efficiency
Combined heat and power
Compressed air systems
Waste heat recovery
Heating systems
Over 80 Alcoa energy assessments
500 assessments for various industries
including DOW, Exxon-Mobil, ArcelorMittal
• Strategic Energy management
• Energy Assessment coordination
• Electricity Demand Response
• Regulation and compliance
• Combined 32 years experience
• electric utilities and energy management
• Hydro Electric system management
• Energy regulations and compliance
• Plant maintenance and engineering
Energy Assessment coordination and opportunity
evaluation
Process Heating systems
Compressed air systems
Electricity Demand Response
Combined thirty-five years experience with Alcoa and
Reynolds
aluminum smelting, casting, melting and cable
manufacturing
DOE energy efficiency software tools and analytical
offerings.
• Energy Assessment opportunity
evaluation
• Energy Kaizen facilitation
• Electrical metering
• Electrical distribution systems
• Energy Management
• Smelting substation power systems
• Hydroelectric operations and
maintenance
• Metering installation and commissioning
• NEC and NFPA industry practice
41. 41
Corporate Energy Team
Guides locations in establishing an Energy Efficiency
Program.
Assists in the initial assessment.
Conducts the Energy Kaizen to uncover ways to save
energy.
Provides technical assistance.
Helps locate local resources and associations.
Builds corporate and professional relationships.
Provides continuous guidance, assistance in problem
solving, and information on new technologies.
42. 42
Deploy the ISO 50001 Energy Management
Standard Practice.
Utilize an Energy Kaizen.
Consider an assessment.
Getting Started
Don’t forget, we are here to help.
Contact the Corporate Energy Team
for assistance, answers to questions,
locating resources.
43. Questions
This is not just about this year or next…
…energy efficiency is our future.
Energy Efficiency Program