We have for several decades monitored our impact on the environment as part of a holistic approach to value creation. Our climate strategy is an integral part of our overall business strategy, including reducing the environmental impact of our production activities as well as taking advantage of business opportunities by enabling our customers to do the same. Some of the measures we pursue include:
- Using viable energy sources
- Reducing energy consumption and emissions in production
- Reducing CO2 emissions through the use of our products
- Increasing the recycling of aluminium
Hydro's greenhouse gas emissions from our current consolidated activities decreased by 5 percent in 2011 compared with 2010. Following Qatalum coming into full production, total emissions from our ownership equity, including emissions from electricity generation, increased by 10 percent. Due to our new assets in Brazil, our direct greenhouse-gas emissions from consolidated activities increased by 4.5 million metric tons (mt) compared to the figures reported in Hydro's board report in 2010.
In 2009, we revised our goal to a specific direct emission from primary production of 1.52 mt CO2e per mt aluminium in 2013. With performance of 1.61 mt CO2e per mt aluminium last year, we are approaching this target.
Our ambition is to grow faster than the market in recycling and to take a strong position in this part of the value chain. By 2020, we aim to recover 1 million metric tons (mt) of contaminated and post-consumer scrap annually. We have improved utilization of our existing capacity to almost 100 percent during the last two years, and are now recycling more than 270,000 mt annually. Due to curtailments in remelting and recycling capacity, growth was only about 3 percent compared to 2010. In total, Hydro is remelting and recycling more than 2 million mt of aluminium. Our goal for 2012 is to stabilize at above 90 percent capacity utilization and to develop specific post-consumed scrap projects for investment in additional capacity. This will also improve Hydro's carbon footprint.
In addition to our existing climate strategy and recycling strategy, we decided in 2011 to concentrate on four areas going forward:
- Ecosystems and biodiversity
- Product stewardship
- Waste and efficient resource use
- Emissions
When bauxite extraction is finished in an area, rehabilitation starts. Hydro's Paragominas mine started production in 2006 and the reforestation program started in 2009. We have identified improvement potentials with regards to reforestation and wildlife management at Paragominas, and are evaluating possible adjustments. In total 853 hectares of land was disturbed during 2011 and about 4,700 hectares since the mining operations started. In 2011 we rehabilitated 142 hectares, while approximately 400 hectares have been rehabilitated in total since the operations started.
Enough and clean water is a challenge in some of the areas where Hydro operates. Local initiatives show that with simple measures, substantial water savings are achievable. Systematic mapping of our water situation in 2011 showed that in total, about 3 percent of our water input came from water-stressed areas when regarding annual renewable water supply.
Although the Amazon is recognized for having an abundance of water we have over the last decades observed that parts of the area have had repeated droughts. We will therefore carefully address water as an issue also for our sites in Brazil. Qatalum, where Hydro holds a 50-percent share, gets water from public water works which is produced by desalination. Sea water is used for wet cooling towers at the power plant.
With the new assets in Brazil, Hydro's waste production now includes significant amounts of tailings from bauxite extraction as well as bauxite residue, or red mud, from alumina refining. Waste amounts are directly linked to the amount of produced bauxite and alumina. Tailings consist of mineral rejects from the extraction process mixed with water. No chemicals are added. The tailings at the Paragominas bauxite mine in Brazil are stored in dedicated tailing ponds where the particles settle. Separated water is transferred to a clarification dam before being reused in the process. There is a minor run-off to the river downstream of the tailings, which is required to maintain an ecological flow. The run-off is monitored and the water quality satisfies the requirements set by the authorities. In 2011, Hydro produced 5.9 million mt of tailings.
Bauxite residue is a by-product of the alumina refining process. Alunorte uses the Bayer process, which includes use of caustic soda. The lye is recovered and reused in the process as part of a closed-loop system to reduce production costs and lower the alkalinity of the residue. In 2011, Hydro produced 6.4 mt of bauxite residue.
Spent potlining (SPL) from the electrolytic cells used in primary aluminium production is defined as hazardous waste. In 2011, Hydro produced 24,804 mt of SPL, a 29 percent decrease from 2010. Production of SPL varies with the relining of smelter cells which is normally done every 4-7 years for established smelters. We expect an increase in the SPL production from consolidated smelters in a couple of years.
