Sustainability report 2016 Contents
ABOUT ELKEM 27 Monitoring water bodies 2 Elkem – an overview 28 Water management in silicones production 4 Foreword by CEO Helge Aasen 28 Water economizing in Elkem Carbon
5 People are the driving force 29 Substantial NOx reductions 6 Foreword by Chairman of the board 30 Combatting dust in the work environment Michael Koenig 32 Major reduction in SO2 emissions 7 Global employer 33 Sustainability initiatives at Elkem Silicones 8 Injuries at work are not acceptable Shanghai, China 10 Corporate social responsibility in Elkem 34 Phasing out PAH 12 Collaboration to achieve improvements 36 Energy leadership 15 Responsible business conduct 38 Reducing waste and increasing the yield
INNOVATION PRODUCT STEWARDSHIP 16 Innovation in Elkem 39 Product stewardship in Elkem 18 Profitable silicones innovations SUPPLY CHAIN 20 Electricity made from hot air 41 Elkem’s supplier requirements 21 Elkem silicon in lithium-ion batteries 22 Industrialized charcoal production ELKEM’S DIVISIONS 23 Controlling emissions by closing the furnace 42 Elkem’s divisions: 43 Silicon Materials ENVIRONMENT 44 Silicones 24 Elkem’s environmental and energy strategy 45 Foundry Products 25 Energy efficiency and scrubbing measures in Elkem 46 Carbon 26 Biocarbon 47 About this report
Elkem – an overview
Elkem is one of the world’s leading companies in the environmentally responsible manufacture of metals and materials. The main activities are related to production and sale of silicon materials, silicones, ferrosilicon, specialty alloys for the foundry industry, carbon products and microsilica. In 2016 the turnover was NOK 14,226 million and the net profit NOK 758 million. Elkem has 3,800 employees in over 40 countries throughout the world. Elkem is owned by China National Bluestar.
2 Elkem sustainability report 2016 ProductionProduction site site SalesSales office Oce HQHQ
Key figures
FINANCIALS UNIT 2016 2015 2014* 2013*
Revenues NOK million 14 226 14 541 12 694 11 473
EBITDA NOK million 1 618 2 207 1 248 819
EBIT NOK million 941 1 310 527 345
Profit for the year NOK million 758 842 161 (268)
Total assets NOK million 14 813 14 477 14 579 13 086
Net interest-bearing assets /(liabilities) NOK million (1 729) (1 928) (3 530) (3 538)
Equity NOK million 7 459 6 167 4 754 4 022
Equity ratio Per cent 50.4 42.6 32,6 30.7
ROCE Per cent 10.2 15.1 6.7 4.8
No. of fulltime equvivalent employees Numbers 3 806 3 628 3.459 3 420
HEALTH AND SAFETY Sick leave rate Per cent 3.8 3.7 3.4 3.7 No. of lost time injuries per million work hours H1 2.4 1.3 2.1 0.8
ENERGY AND EMISSIONS** Energy recovered GWh 644 483 421 450
CO2 emissions 1000 tonnes 1841 1790 1771 1588
NOx emissions Tonnes 7427 8353 8969 7755
SO2 emissions Tonnes 7882 7417 7842 7929
* Bluestar Silicones was acquired in 2015 and is included in comparable figures. Elkem Solar was divested in 2015 and is excluded in comparable figures. Please refer to accounting principles in consolidated financial statement for Elkem AS group for more details. ** The emissions from 2013 to 2016 include the numbers from Elkem Rana, acquired in 2016, and will therefor differ from the figures presented in last year’s report.
Elkem sustainability report 2016 3 ABOUT ELKEM – FOREWORD BY CEO HELGE AASEN
Incremental and step changes are necessary to improve sustainability
Elkem works continuously to reduce the company’s environmental footprint, both in our day-to-day improvement work and our long-term R&D programmes. We do this because we want to stay at the front as a profitable and responsible producer of advanced materials.
Elkem’s sustainability philosophy is based on the general principle of producing as efficiently as possible and with the maximum use of all side streams, like materials and energy.
EBS and sustainability go hand in hand The essence of Elkem’s culture is the Elkem Business System (EBS). In EBS we focus on working in a lean and safe manner, to eliminate all kinds of waste and to always look for potential to further improve our performance. I see a clear link between EBS and the concept of sustainability, as our key sustainability initiatives are related to optimising our use of resources and protecting people, environment and property from harm.
In 2016 we continued our dedicated work to implement major projects aimed at reducing our emissions of Chemical oxygen demand (COD) to water, sulphur, NOx and dust. This gives results. To give an example, our COD emissions in 2016 have decreased 14% compared to 2015. We are reducing our energy consumption and increasing the energy recovery from our production. Our research and development teams in all divisions are dedicated to developing new products and new processes.
Our long-term goal: Carbon neutral metal production
Elkem’s main emissions of CO2 stem from the silicon and ferrosilicon plants. In 2016 we continued our research programme into carbon neutral metal production (CNMP). The initial part of the programme showed that by using biocarbon instead of carbon in the production processes, Elkem could become carbon neutral. It also showed that by recovering the heat from both the biocarbon and the silicon production, we could in fact become electricity neutral as well. However, our research also demonstrated that the economic margins are challenging, and closely dependant on the performance of the pyrolysis technology. Therefore we have initiated a new R&D project called PyrOPT. The goal of this project is to optimise the pyrolysis process to get charcoal of a quality that fits our needs. At the same time we wish to maximize the value of the side streams of gas and condensate, e.g. by making profitable and useful products like biofuels and green binders.
We have also initiated a research project where we are looking into whether it is possible to close
the top of the furnace, leading to a controlled production of CO inside the furnace, rather than CO2- emissions. CO gas is a valuable product that can be used either for industrial or energy purposes. If
both R&D projects are successful, our silicon and ferrosilicon production might become CO2-neutral. The projects will also have other important positive effects like reducing NOx emissions by 90%.
Elkem’s history has always been characterized by our future-oriented and ambitious approach to innovation. As the readers of this report will see, today, the majority of our R&D projects are focused on finding solutions that at the same time strengthen our business and contribute to improved results for the environment, safety and health.
Helge Aasen CEO Elkem AS
4 Elkem sustainability report 2016 ABOUT ELKEM
People are the driving force
Elkem Business System (EBS) forms the foundation of Elkem’s corporate culture and operations. EBS is a set of fundamental principles describing how employees at all levels and in all positions shall work together to achieve common goals and continuous improvement.
Helge Aasen with the winners Individual responsibility The four main principles of Elkem One of the main EBS principles is that Business System are: Continuous people are the driving force. This means 1. Make to use that each Elkem employee is encouraged The customer’s needs are always in focus. improvements in and expected to actively look for and sug- This applies also internally in Elkem, gest improvements to the processes he or where everyone in the organisation is Elkem Carbon Brazil she is involved in. In order to ensure that interlinked as suppliers and customers in Flavio Piantavinha (to the left) was the everyone can take part in and contribute a value chain. winner of 2016 Elkem Carbon Brazil to the continuous improvement work, Continuous Improvement Programme targeted training sessions are arranged 2. Empowered people with the project Business Intelligence at operator, team leader, administration Elkem ascribes 70% of its success to of Invoiced amounts. The annual and management levels. All Elkem’s human input and 30% to the underlying award is part of a programme in Elkem plants have established arenas for active system and technical equipment. People Brazil that recognises good ideas and daily improvement work. A deep level of who perform the tasks are the experts, suggestions. personal engagement from all employees and together they constitute Elkem’s is an important success factor for Elkem. resource base. Another price winner, Rodrigo Annual development discussions provide Vasconcelos (to the right), is the basis for the professional and personal 3. Eliminating waste team leader for the Critical Processes development of Elkem’s employees. Eliminating all forms of waste, including Management work with Naphthalene waste of time and human resources, lies production. Through systematic work at the heart of Elkem’s goal of continuous based on tools from EBS, his team has Leadership responsibility improvement. improved the productivity, quality and Another key principle of EBS is that lead- safety related to process and, at the ers are coaches and must have in-depth 4. Processes in control same time, eliminated the need for knowledge about critical processes. All processes shall be stable and investment to increase capacity. Elkem’s leaders are expected to be regu predictable, and larly present at the production facilities variations While visiting Elkem Carbon units in to see for themselves what is happening, shall be Brazil CEO Helge Aasen and Senior engage in discussions with employees avoided. Vice President Asbjørn Søvik compli- about their tasks, the production flow and mented both the winners and the team improvement ideas. In addition to good PROCESSES at Elkem Carbon Brazil with excellent coaching and listening skills, the ability IN CONTROL EBS work and results in the areas of to give direct, specific feedback on how 5S, dust reduction, flow improvements each employee is performing his or her and on-going implementation of duties is an important leadership skill in Critical Processes Management. Elkem.
Elkem sustainability report 2016 5 ABOUT ELKEM – FOREWORD BY CHAIRMAN OF THE BOARD, MICHAEL KOENIG
Sustainability is the backbone of business
Sustainability has become the backbone of any chemical or metallurgical company, and is today a prerequisite for a successful global company. From a day-to-day business perspective, it might not seem necessary to bother with sustainability issues. However, to stay in business long term companies have to focus on sustainability and deliver results. There are many examples of how businesses get into trouble and loose out because management lacks understanding of the importance of sustainable business practices.
In my mind, there are two main pillars to sustainability. Health, safety and compliance is prerequisites to sustainability and no business can be called sustainable unless health, safety and compliance is a priority on the management and board agendas. Furthermore, energy efficiency and environmental protection is at the core of sustainability.
EHS and compliance Elkem has a very good safety performance overall and management awareness is high. However, the 2016 EHS-numbers are not as good as in 2015 and we strongly regret a fatality in France with one of our contractors. According to our procedures, measures are being taken to learn from such tragic accidents to prevent them from happening again.
When it comes to compliance to rules and regulations, I regard Elkem as true landmark and an out standing example in the industry.
Energy and environment Elkem has high ambitions and shows good results on energy preservation and environmental protection. Innovation plays a key role, both regarding the development of better and more sustainable products and improved processes.
The global societal trends linked to sustainability are growing worldwide. Expectations of sustainability have lately become more tangible in Asia and specifically in China, where the government is pushing the importance of sustainability more and more. The sustainability trends shape expectations from governments, customers and our employees. We must deliver on sustainability to maintain our license to operate, to keep our customers satisfied and be an attractive employer.
Sustainability trends also affect the market. For Elkem, major trends like energy saving, increased use of renewable energy and electric mobility translates into business opportunities. One example: Silicon based rechargeable batteries are expected to have at least twice the capacity of today’s batteries. Better batteries are a prerequisite for the transition to fossil free transportation and better use of renewable energy sources.
Elkem’s silicones division, Elkem Silicones, has a high product innovation pace and has launched a number of new products that improve the safety, health and everyday life for people all over the world. An exam- ple is the development of silicone gels for scar care and wound management that reduce pain for the patient as well as reducing the consumption of wound dressing material in health care institutions.
These examples show how Elkem’s materials are both produced in an environmentally responsible way, and improve energy efficiency and reduce waste for the customer, promoting sustainability throughout the value chain.
Michael Koenig Chairman of the board
6 Elkem sustainability report 2016 ABOUT ELKEM
Global employer
Elkem is a company with vast geographical, cultural and functional diversity within the organisation. The company actively uses the Elkem Business System (EBS) to provide employees with a common approach to both everyday tasks and big decisions.
To have success Elkem needs competent, Cooperation employees in Elkem has nevertheless empowered and motivated people at Good cooperation and teamwork been stable and low at 22%. Among all levels. In Elkem, the role of Human between employees and leaders is a pre- leaders in Elkem, the female share is 26%. Resources (HR) is to support value requisite if Elkem is to cope with what are The female share among employees in creation and to strengthen the competi- at times demanding market conditions. the white-collar population is 35% and for tiveness of the company. Elkem has a long tradition of construc- blue-collar only 6%. Elkem values diver- tive and mutually beneficial cooperation sity and aims to achieve a better gender In 2016 Elkem acquired Fesil Rana Metall between employees, their unions and balance, looking continuously for ways to AS in Norway and the iron foundry busi- management. Elkem complies with local improve. ness of Minex Metallurgical Co. Ltd. in statutory requirements regarding free- India. At year-end 2016, Elkem employed dom of association in all countries where Elkem has production sites and sales 3,806 people. we are present. Pursuant to the provi- offices on four continents. EBS is the com- sions of the Norwegian Companies Act, mon denominator and the base of Elkem’s Around half of Elkem’s employees work employees have two representatives and company culture and values that tie this as operators at Elkem’s production two observers on the board of Elkem AS. diverse organisation together. In EBS, the plants in Brazil, Canada, China, France, employees are considered specialists in Germany, Iceland, India, Italy, Malaysia, their fields and thus shall be involved in Norway, South Africa, Spain, UK and Equal opportunities decisions affecting them as well as in con- USA. Elkem also operates quartz mines The process industry is generally male tinuous improvements in their respective in Spain and Norway. Elkem has sales dominated. Women are, however, increas- work areas. All employees in Elkem shall offices in more than 30 countries, and ingly expressing an interest in working in be listened to and treated with respect. about 10% of Elkem’s staff (400 emp our industry, much because of increased Discrimination in any form is strictly for- loyees) are engaged in research and automation, less heavy manual work and bidden in Elkem. Discrimination is not only development. Elkem’s commitment to sustainability in unethical; it is also totally incompatible all operations. The percentage of female with our basic workplace philosophy.
Elkem sustainability report 2016 7 ABOUT ELKEM Injuries at work are not acceptable
Elkem’s health and safety work is based on a zero harm philosophy. We do not accept that injuries or illnesses are unavoidable facts of life in our industry. Unfortunately, the year 2016 was a setback compared to 2015, when Elkem had record results.
Elkem has been on a downward trend in safety programme ‘FOKUS’ is now being the numbers of injuries for many years, implemented at all plants in the Silicones reducing the likelihood of injuries with division. almost 90% since the turn of the century. From 2011 the improvement stagnated until 2015, when results improved more Contractor safety than two-fold, giving Elkem the best Contractors deliver services of many safety results ever. Unfortunately, the kinds at Elkem’s plants, and are often an number of injuries at some of the plants integrated part of the plants’ daily opera- escalated in 2016, bringing the total tions. Contractors had a total recordable results back to the level seen before 2015. injury rate of 18 in 2016, more than three However, the majority of plants were still times as high as for Elkem’s employees. showing very good results. Part of the difference between recordable rates for Elkem’s employees and contrac- In 2016 the total recordable injury rate tors can be explained by a substantially increased from 1.8 (2015) to 5.3 injuries lower number of working hours for con- per million working hours. This includes tractors and the fact that most contrac- both injuries with lost working days (H1) tors do manual physical maintenance and and other injuries that required medical project work, compared to own employ- treatment and/or restricted work (H2). ees who are more involved in routine operations and administrative functions. The total numbers of recordable injuries Elkem will continue to focus on the safety rose from 17 in 2015 to 34 in 2016. This of our contractors. Contractor employees includes numbers from the Silicones working on Elkem’s property are subject division that was merged with Elkem in to the same EHS requirements as Elkem’s June 2015, increasing the total workforce own employees, and receive training and with approximately 1,500 employees. This follow-up to ensure that they have a safe means that a higher absolute number and healthy working environment. of injuries could be expected, even though recordable rates should not have increased, as they are calculated per Fatal injuries million working hours. Previously, some It is with regret we have to report that a of the Silicones division’s plants did have contractor at one of the Silicones divi- high injury rates and this explains some sion’s plants in France had a fatal accident of the increase. The Elkem health and in 2016. The contractor was working with
Sick leave in % Trend in number of injuries No. of lost time injuries per million work hours (H1) 8 No. of total injuries treated per million work hours (H1+H2)
7 40
6 30 5
4 20 3
2 10 1
0 0 2000 2002 2004 2006 2008 2010 2012 2014 2016 2000 2002 2004 2006 2008 2010 2012 2014 2016
8 Elkem sustainability report 2016 a forklift inside a warehouse for storing for all EHS employees in the Elkem employees are not taking the time and flammable chemicals. After damaging group and all employees have read effort to understand and prevent possible one of the drums with a forklift, finished access to the information. hazards, do not follow prescribed safe product leaked out and caught fire. • An annual EHS conference is held for working procedures and/or are not using French police is still investigating the 60-70 key EHS personnel from all correct protective equipment. incident. plants and divisions sharing and dis- cussing EHS improvements, incidents, All of Elkem’s employees have a personal The fact that simple everyday tasks can practices and policies. responsibility to participate actively in result in fatalities shows how important • Special EHS sessions are held for young risk reduction activities and to perform it is to focus on the details and fully leaders. their daily work in a safe and healthy understand hazards associated with jobs manner. before they are executed. The incident has been thoroughly analysed by Elkem, Personal responsibility and learning points are used to improve Our statistics clearly show that it is Top management follow-up operational safety at all plants. possible to run difficult and potentially The status of Elkem’s safety work is dangerous operations with a large work discussed every week at division and force without injuries. Several of our group management levels. Incident, Training and sharing plants have achieved this for a number of injury and deviation reporting, investi- • Full understanding of health and safety years in succession. To achieve this type gation and mitigation is a major part of risks and challenges have high priority of result we must know and understand Elkem’s improvement work. All divisions at all plants. This understanding is what may cause harm in the working provide EHS status reports every month. obtained through extensive training, environment and how we can implement Whenever serious injuries and/or high- comprehensive risk assessment and measures to avoid harm. This means look- risk incidents happen, detailed presenta- through the sharing of information ing closely at all unsafe conditions and tions of the course of events, causes and and experiences between plants. Key unsafe actions to understand why they lessons learned are prepared and distrib- activities include basic training for exist and how we can correct them. uted. This enables the learning points to all employees with training materials Our statistics also show that the vast be shared between plants and divisions, available in a number of languages. majority of all injuries are caused by and contributes to similar incidents being • An electronic document library is open unsafe actions; individual behavior where avoided in the future.
Injuries can be avoided FOKUS
Elkem’s plant in Shanghai is one of the larger silicones plants with about FOKUS is Elkem’s programme for environment, health 200 employees. They have operated without any recordable injuries and safety in the workplace. FOKUS is closely linked to since 2010. Erimsa operates quartz mines with a total of 70 employees Elkem Business System (EBS) with an emphasis on con- in 5 different locations in Spain. Their last recordable injury was in 2012. tinuous improvement and each employee’s involvement Carboderivados in Brazil’s 50 employees have processed potentially and responsibility to contribute to good results. FOKUS harmfull chemicals for many years and have not had recordable injuries has five fundamental principles: since 2012. These are just a few examples of different production units 1. Improvement has no limits. that show that operations can be run long-term without harm. 2. Zero harm philosophy: All incidents and injuries can be prevented. Safety champions 3. Incidents and/or injuries will always have one or more causes. Causes will always be associated with Plant Last H1/H2 Years since unsafe conditions, unsafe actions, or a combination of both. Reporting and investigating all incidents and Shanghai (BSI) 01/04/2010 6.9 injuries allows us to identify root causes and elimi- nate them before they cause more serious harm. Carboderivados 05/06/2012 4.7 4. Effective prevention of harm requires hazard iden- tification, risk analysis and the implementation of Erimsa 18/06/2012 4.7 actions to reduce unacceptable risk to an acceptable level. R&D Saint-Fons 13/10/2014 2.3 5. Success depends on all employees being actively Tana 15/10/2014 2.3 involved in the health and safety work and sharing the responsibility for a safe working environment.
Elkem sustainability report 2016 9 ABOUT ELKEM Corporate social responsibility in Elkem
Elkem is a signatory to UN Global Compact, and Elkem’s definition of corporate social responsibility (CSR) is based on the ten UN Global Compact principles. CSR forms an important part of Elkem’s business culture.
CORPORATE STRATEGY
WORKING PRACTICES
CoC EBS EHS CSR Anti-corruption, whistle blowing, Competition law CULTURE
VALUES
Continuous Respect Involvement Precision improvement
MISSION FOUNDATION Our mission is to work towards a sustainable future by providing advanced silicon- and carbon-based solutions, adding value to our stakeholders globally.
Organisation and responsibilities • Code of conduct Corporate and divisional procurement Elkem’s CEO is the formal owner of • Whistle blowing functions Elkem’s policy and programme for corpo- • Anti-corruption policy • Mapping and basic monitoring rate social responsibility, and governing • Competition law compliance policy of suppliers in relation to Elkem’s documents are subject to board approval. • Annual sustainability report requirements All employees have responsibilities to • Collaboration with suppliers to improve follow Elkem’s policies and principles, to identified discrepancies report discrepancies to his or her imme- CSR steering committee • Termination of relationships with diate supervisor, or Elkem’s function for The CSR steering committee has the suppliers when the improvement rate is whistle blowing, and help investigate and overall responsibility for defining and not satisfactory correct discrepancies. following up governing documents for corporate social responsibility. The Corporate and divisional sales functions Each location and function is responsible committee has responsibility for Elkem’s • Mapping and basic monitoring of the for establishing an understanding of how annual sustainability reporting. business functions (sales office, distrib- Elkem’s CSR policy affects their specific utor, agent and customer) working environment and develop nec- On a day-to-day basis, support for • Collaboration with agents, distributors essary procedures and routines to ensure Elkem’s CSR activities is given by and customers to improve identified full compliance. corporate and divisional functions. discrepancies This includes: • Termination of relationships with The formal CSR framework in Elkem agents, distributors and customers includes the following policies and Corporate help chain functions (HR, when the improvement rate is not documents: EHS, EBS, Legal department) satisfactory • General policy of Elkem AS • Support for competence building and • Elkem policy for corporate social change management within the areas Training and education responsibility of ethics and social responsibility All employees receive a copy of Elkem’s • Mandate for the CSR steering • Auditing of own business, suppliers, code of Conduct which they are required committee customers and partners to discuss with their superior and sign
10 Elkem sustainability report 2016 UN Global Compact to confirm their understanding and 10 principles acceptance of the content. Special WE SUPPORT training related to social responsibility and focused on understanding how 1 Human Rights local culture and customs can influence Principle 1: Businesses should support and respect the protection of the perception of what is acceptable in internationally proclaimed human rights; and different situations, is given to selected Principle 2: make sure that they are not complicit in human rights abuses. employees who will meet this type of challenge in their work. 2 Labour Principle 3: Businesses should uphold the freedom of association and Selected target group employees are also the effective recognition of the right to collective bargaining; the elimination of all forms of forced and compulsory labour; required to have documented training in Principle 4: Principle 5: the effective abolition of child labour; and Elkem’s anti-corruption and competition Principle 6: the elimination of discrimination in respect of employment law compliance policy. Each location is and occupation. responsible for its own implementation and documentation of training, with 3 Environment support from the corporate HR and legal Principle 7: Businesses should support a precautionary approach to department. Agents doing business with environmental challenges; Elkem’s products also have anti-corrup- Principle 8: undertake initiatives to promote greater environmental tion training. responsibility; and Principle 9: encourage the development and diffusion of Employees who conduct supplier audits environmentally friendly technologies. receive additional training in recognised international standards and the use of 4 Anti-corruption audit tools. The corporate EHS/CSR Principle 10: Businesses should work against corruption in all its forms, function is closely involved in this type including extortion and bribery. of training.
Elkem sustainability report 2016 11 ABOUT ELKEM
Collaboration to achieve improvements
Cooperation and dialogue with employees, politicians, local communities, regulatory authorities, organisations, researchers and other interested parties form an important part of Elkem’s continuous improvement philosophy.
Employees influence young people to choose educa- Institute and Technische Universität Elkem strives to create a working environ- tions that are relevant to Elkem, typically Bergakademie Freiburg (Germany), Texas ment that employees find fulfilling, both science subjects. School visits, trade fairs A&M University System (USA), Okayama on a personal and professional level. We and other forums are used to meet stu- University (Japan), KTH Royal Institute want our employees to be proud to work dents near our production sites and sales of Technology (Sweden), the University for Elkem. Employee involvement at all offices at universities around the world. of Central Lancashire (UK) and NTNU levels of the organisation is an impor- (Norway). tant part of this and fully integrated in the Elkem Business System. This means Research institutions that employees are involved in systema Elkem is dedicated to improving its exist- Regulatory and supervisory tic continuous improvement activities ing business and developing innovative authorities throughout Elkem. They are also included solutions. To achieve this, world-class Dialogue with regulatory authorities takes in dialogue about working conditions, research is needed, and Elkem works place both as direct contact between occupational health and safety, as well as extensively with many research insti- Elkem and the authorities, and indirectly, Elkem’s economic results and strategic tutions around the world. International through business associations. Elkem’s choices. research partners include institutions largest presence is in Norway and France, such as the Wuhan University of Science where many of our plants, as well as Elkem needs to attract highly qualified and Technology (China), L’Ecole des our corporate headquarters and major and dedicated employees, and wants to Mines d’Alès (France), Fraunhofer research facilities are located. Elkem
12 Elkem sustainability report 2016 wants to contribute to, and influence, the and end-of-life magnets and batteries. to drive continuous improvement in framework conditions for our industry. environment, health, safety and security An important aspect of Elkem’s dia- In Norway, Enova, the Research Council performance. logue with public authorities involves of Norway, Innovation Norway, Siva, the informing about the impact policies will Norwegian business sector’s NOx Fund have on our plants and facilities. Elkem and the Environmental Fund are impor- Local communities is an active member of national and tant partners to promote R&D break- Elkem is focused on being a good European industry organisations such as through technologies and their imple- neighbour everywhere our operations are Euroalliages, Eurometaux, the European mentation in industry. located. As a long-term partner, we main- chemical industry council (CEFIC) and tain a good dialogue with neighbours and industry associations in Norway and local politicians. Many of Elkem’s plants France. Important topics for the industry’s Non-governmental organisations are cornerstone employers and of great dialogue with public authorities are emis- (NGOs) importance to local communities in terms sions and other environmental issues, Elkem maintains informal dialogue with of tax incomes, jobs and community energy policies and EHS. numerous environmental organisations development. and other NGOs in order to share know ledge about various environmental and Dialogue with local communities is the R&D funding social issues associated with the opera- responsibility of each plant manager Support to implement major capital tion of Elkem’s plants. Elkem also cooper- and is carried out both formally and on intensive research and development ates formally with certain NGOs, drawing an informal day-to-day basis. Input from (R&D) projects is important to promote on their competence in matters such as local communities is considered valua- industrial innovation and growth. sustainable sourcing of raw materials. ble information that helps us improve. Important topics for dialogue with local Elkem is actively involved in several communities are community develop- major research projects together with Corporate sustainability initiatives ment projects, job security, safe opera- research institutes and industry partners Elkem is signatory to the UN Global tions, emissions and other environmental in Norway, France and on EU level. The Compact, the world’s largest corporate issues, and traffic generated by the plant. EU is an important partner. For exam- sustainability initiative. Global Compact Complaints raised by local communi- ple, Elkem Technology R&D Center in challenges us to align our strategies ties, and traffic incidents related to our Kristiansand, Norway, will be an industry and operations with universal principles operations are registered and managed partner in a EU project called REE4EU. on human rights, labour, environment in accordance with good practices for The project will develop, test and indus- and anti-corruption. Elkem’s silicones incident and deviation management. trialise novel methods for recycling of division is a member of Responsible Care, Rare Earth Elements (REE) from waste the chemical industry’s global initiative
Traffic
Elkem manages most if its own logistics activities stretching allows us to better manage and influence environmental and from raw material transportation to production sites and to fin- safety factors throughout the supply chain. ished product transportation to customers. This general principle Transportation of raw materials, intermediates, and some fin- ished products in the Silicones division includes a higher level of risk than in the other Elkem divisions, as many of these products are defined as hazardous goods. The division has strict policies for their logistics activities and follows mandated procedures for hazardous goods transportation. We always use the safest modes of transport and also advise our customers about risks linked to transportation and handling of our hazardous goods.
Elkem has introduced a ‘safe truck initiative’ in parts of Norway, which means that if there is a reason to doubt whether a truck and/or driver satisfy national safety requirements, loading will be refused. If the identified deviation is not remedied, it is regarded as a breach of contract and the service provider may lose his/her contract.
Elkem sustainability report 2016 13 Richard Li, Elkem Silicones Asia Pacific R&D Manager with children on Summer Silicones Class in Elkem Silicones Shanghai R&D Centre.
Silicones class for kids
Every summer, the Silicones Shanghai R&D Centre welcomes Silicone, in many ways a magic material, captures the children’s children to chemistry classes. interest. Funny and lively experiments showcase a variety of silicones applications in our daily life. The silicones class also - Children normally learn chemistry from books, and its appli- wants the children to discover the possibilities of using different cations in our daily life are not included in the teaching. The silicones applications to develop practical solutions in environ- summer school’s experiments are closely linked with daily life. mental protection. This way the Silicones class awakens the children’s curiosity for chemistry, says Richard Li, Elkem Silicones Asia Pacific R&D The Silicones class in Shanghai is held every summer vacation. Manager. The class also covers the theoretical part of silicone chemistry.
Tech On Wheels
In Mumbai, India, the organisation Masoom along with Elkem Masoom is hoping to increase the enrolment of out-of-school launched the Tech On Wheels Bus in February 2016. This is a students, thus ensuring more young people complete their basic computer education van for night school students. education. The reach of the bus in the first year is expected to be 1,050 students. Masoom is a not-for-profit organisation establishing quality edu- cation in night schools. Masoom is based in Mumbai and works with 60 night schools, reaching 15,000 students in Maharashtra.
Night school students in India are unskilled labourers aged 14 to 21, who work during the day to support their family and study at night to complete their education. They mostly live in slums and come from a poor background.
Night school students have to complete their studies in half the time of day school students. However they do not have access to basic facilities like science labs and computer education. Many are also unaware of skilled career options.
The Tech On Wheels Bus provides night school students with access to computers, online resources, and innovative edu- cational programming. The students also get an international outlook, by exchanging ideas and thoughts with students from USA, through video letters and Skype communication.
14 Elkem sustainability report 2016 ABOUT ELKEM Responsible business conduct
Successful business depends on confidence and a good reputation. Elkem requires our employees and representatives to promote our values towards colleagues, business associates and society at large.
In accordance with established Elkem Anti-corruption breach of the employee’s obligations principles and business values Elkem Elkem does not permit or tolerate any towards Elkem and will most likely result has a strong commitment to operate in form of corruption. Corruption prevents in termination of the employment or accordance with responsible, ethical and economic development, distorts com- other applicable sanctions. sound business principles, and to comply petition and undermines the rule of law, with applicable laws and regulations. well-functioning national and interna- tional markets and democratic processes. Compliance with competition law It is Elkem’s general policy to compete Code of conduct Elkem is present in several countries vigorously and fairly in full compliance Elkem’s code of conduct is based on where corruption is generally acknow with relevant laws and regulations the principles of honesty and respect, ledged as an issue of great concern. applicable to our business. Compliance and must be complied with regardless Elkem’s policy on anti-corruption applies is of special importance in the field of of where our operations are carried group-wide, worldwide. Several countries’ competition law, and Elkem has adopted out. Elkem’s code of conduct has been anti-corruption regimes imply extraterri- a competition law policy as well as a com- approved by the board of directors torial application and observing local law pliance programme to ensure group-wide and applies for all employees and only is therefore not sufficient. Elkem’s compliance on this matter. representatives. anti-corruption manual explains and elaborates on the content and implica- Absolute compliance with competition We encourage an open discussion about tions of the anti-corruption policy for law is expected of all Elkem employees. responsible conduct and expect all Elkem’s employees, representatives and No employee should ever assume that it employees to raise any concerns they partners. Each Elkem business unit is is not in Elkem’s interest to comply with might have about unethical and/or illegal responsible for understanding the specific competition law. Any failure to take proper behaviour. Reporting concerns and com- challenges regarding anti-corruption, the care to comply with competition law will plaints can be done confidentially and, if anti-corruption regulations applicable to be considered a serious breach of the necessary, anonymously. its operations and for adopting adequate employee’s obligations towards Elkem. anti-corruption guidance and measures. Violation of Elkem’s code of conduct will Elkem has developed a manual that not be tolerated and may lead to internal Elkem personnel considered exposed to describes conduct that will or might disciplinary action, dismissal or, ultimately, corruption risk must complete training infringe competition law. Elkem personnel to civil legal action or criminal prosecution. in Elkem’s anti-corruption policy and considered exposed to competition law manual, which includes real life dilem- issues are required to participate in com- Should an improper practice or irregular- mas. Absolute compliance with Elkem’s petition law training facilitated by Elkem. ity occur within Elkem we will make the anti-corruption policy is required by all Business unit leaders have the responsi- necessary corrections and take remedial Elkem employees at all times. Any failure bility to take steps to implement Elkem’s action, also with the object of preventing to comply with applicable anti-corruption policy in their respective organisations. recurrence. regulations will be considered a serious
RESPONSIBLE BUSINESS CONDUCT Results 2016*
Code of conduct 87% – commitment /signatory
Anti-corruption 97% – training and signatories
Compliance with competition law 97% – implementation of training – result signatories
* Numbers exclude newly acquired Elkem Rana and ERIMSA which are in the process of being converted to Elkem’s CSR system.
Elkem sustainability report 2016 15 INNOVATION
Innovation in Elkem
Future-oriented and ambitious innovation strategies have been the foundation for Elkem’s development and success since Sam Eyde established the company in 1904.
To enrich our global culture of innova- chemistry. During the last few years, and R&D resources support front-end tion, and to further strengthen market innovation in Elkem has been focused innovation and product development. positions across all business segments, on finding sustainable solutions. Elkem • Radical improvements: To keep our the Elkem innovation team was created University is the main internal arena for position as a world-leading materials in 2016. The team consists of marketing, technology transfer and dissemination of producer Elkem also seeks radical process and Reseach and Development new knowledge. improvements through research and (R&D) leaders from all divisions. by exploring or inventing new markets. Elkem’s innovation strategy covers:
R&D – a key asset to develop • Incremental innovation: The core of Innovation as part of the corporate sustainable innovation Elkem Business System (EBS) is the strategy Elkem’s development has always been organisation’s continuous work on In Elkem we set innovation targets to based on world-class in-house expertise improvements. Elkem employees achieve both our strategic goals and envi- within our core competencies. Moreover, are always looking for improvement ronmental performance. Examples are since the acquisition of Bluestar Silicones, potentials, and use EBS tools to carbon neutral metal production, research we now have an integrated silicon value describe the potential, find solutions on reuse of process water and projects on chain research activity. R&D is at the core and measure results. This means energy recovery and energy efficiency. of our businesses, and Elkem’s R&D cen- that Elkem achieves progress that tres with their near 400 employees, are keeps the company equipped to stay The four most important areas for step strategically located across Asia, Europe, competitive. change innovation or radical improve- Latin America and the USA. Our commit- • Step-change innovation: As we ments are: ment to R&D upholds our reputation as continue to evolve, we look for future a leader in our field and ew continuously growth opportunities by monitor- • New or improved products and services lead the way in pioneering technolo- ing market trends. Working groups ›› The new products are increasingly gies that ask more from metallurgy and consisting of marketing, technology developed for high-end markets
16 Elkem sustainability report 2016 If you and your company have ideas that may be of interest to Elkem, please contact us. We are always interested in discussing new technology, products or business opportunities or even sharing best practices to enhance our innovation performances.
where huge improvements are Open innovation ways to improve our products, focusing required to keep entry barriers and ‘The world is becoming too fast, too on quality rather than just cost, we create competitive advantage complex, too networked for any company lasting value for our customers. ›› We develop new services to support to have all the answers inside’ our customers in the launch of their – Yochai Benkler, Harvard. own products, for instance, technical Collaborative project – sustainable and safety trainings and fine-tuning Collaboration is increasingly important innovation of the required properties for successful innovation. Open inno- The open innovation approach to R&D is vation means that we share ideas and also made possible by multiple collabo- • Fundamentally new production meth- create value, and open the mind to new rative projects supported by European, ods, equipment and processes that possibilities. Norwegian, Chinese and French gov- achieve improved quality, improved ernments and through industry clusters safety and a smaller environmental Identifying potential partners and such as Eyde in Norway and Axelera and footprint of our products, like energy developing relationships with customers, Techtera in France. Many of our most efficiency, resource efficiency, or suppliers, research institutions, govern- successful research-based innovations reduced emissions ment authorities and financial markets come from these research programmes is therefore an integral part of Elkem’s and projects. In 2016, Elkem was • Development of new sources of raw innovation strategy. By working alongside recognized as a partner in at least six materials partners with complementary skills to our new collaborative projects devoted to own, we have enhanced the development new products or technology such as 3D • Innovative ways of working in sales, of new markets, products, processes and printing, new markets like health care marketing and production services. and new processes like industrialized ›› Innovation is a collaborative way charcoal production. Thanks to these to create value. More and more, Elkem continues to move production initiatives, we take part in the reinforce- different functions and entities are towards ever more specialised solutions ment of cooperative networks of univer- involved to optimise a sustainable and products. Ideas for new products sities, research institutes and industry value creation and propose new often emerge in meetings where our partners that operate with support from types of innovation such as business teams cooperate with the customers to the Norwegian Research Council and model-, product system- or customer understand and develop solutions to their French Ministry of Research. experience innovation unmet needs. By continuously looking for
Elkem sustainability report 2016 17 INNOVATION Profitable silicones innovations
A portfolio of more than 1,200 patents and an average of 10 products developed each year, illustrate Elkem Silicone’s capacity to innovate. The division is dedicating more than 4% of its turnover to R&D. Products that are less than five years old generate over 20% of sales.
Almost 230 researchers work every Major innovations over the past Over the last few years, the Silicones day throughout the world to develop 10 years division has developed a Silcolease UV environmentally friendly processes and range for release coating applications and adapt and create new products for new Eco-design in particular for the labels market, as an markets. The R&D, sales, marketing and 2009: Launch of a new silicone resin alternative to solvent-based solutions. operations departments work closely manufacturing process – the key together to understand and anticipate raw material for the airbag market Life sciences: health care, customer needs, develop solutions and – a process to limit effluents and personal care manufacture new products. reduce energy costs 2011: New range of Mirasil D-DML prod- 2011: Development of a new range ucts for the cosmetics market Product and process innovations are in of green catalysts for silicone 2012: New Silbione HC2 range adhesive line with major global trends such as the materials gels for medical applications, need for environmental protection, the 2014: Start-up of the Cleantech pro- non-traumatic removal of plasters development of health and life sciences, gramme seeking to reduce efflu- for wound treatment, etc. increased urbanization, new forms of ents and improve water treatment 2015: Launch of a 3D printing programme mobility and global population growth. in Elkem Silicone’s factories for silicones Elkem Silicones is intent on creating new 2016: Introduction of an energy-saver to 2016: Development of the Silbione M550 market sectors such as connected health, reduce gas consumption for the silicone elastomer for long-term new sensors for autonomous electric distillation column in Roussillon, medical implant applications vehicles, and combining 3D printing and France silicone chemistry.
Sophie Schneider, R&D Director Elkem Silicones.
18 Elkem sustainability report 2016 Safety: food, public safety 2014: Launch of Bluesil RT Foam 3243, a The Silicones division tests cables by 2015: Launch of BLUESIL FRC 8470, a new silicone foam technology for a burning them at temperatures over new generation of silicone elasto- wide range of sealing applications 900°C for a relatively long time (>30 min- mers (EVC) for high fire-resistant (e.g. household appliances) utes) to ensure that the insulated sheath cable applications 2014: Silcolapse 801 bolsters the range of does not burn, and that it maintains its anti-foams with improved perfor- protection of the cables. This ensures Urbanization and mobility mance, reducing the use of foam in that electrical or other systems function 2011: New range of Bluesil NOVOLASTIC manufacturing processes for paper during fire, which is important when products, foams to insulate sub-sea pulp and offering high machine evacuating people. pipelines for oil extraction productivity 2016: Launch of Bluesil ESA 6000HT, a It is important that the rubber does not silicone gel solution for new gen- emit halogen gases when exposed to high erations of power modules: IGBT temperatures. Halogen gases vary from (Insulated Gate Bipolar Transistors), Silicone rubbers save lives extremely toxic to somewhat toxic, but part of the silicone development Most deaths in fire incidents are caused are all of great danger to human health. programme for electronic by gas or smoke. The average time from applications ignition to flashover has gone from 15 Elkem Silicones has an established track 2017: Elkem Silicones will launch a new minutes in 1950 to three minutes today, record in the production of safety cables product for airbag fabric coating because we use more plastics both at used in many applications, such as power home and at work. distribution, safety equipment and Global population growth telecommunications. The division works 2011: Launch of the Silcolease OPTIMA Elkem Silicones has over the years closely with customers to provide expert range for the release coating market developed silicone rubber insulations advice and fast-track development ser- 2012: As leader on the paper release for electrical cables that significantly vices to deliver customized halogen-free market, the Silicones division is reduce the risk of fatalities caused by silicone rubber (HCR) solutions that developing the new Silcolease smoke or toxic substances in case of fire. meet the performance criteria needed Emulsion 925. In 2017, the Silicones Bluesil™ FRC 8470 is the latest silicon to comply with the most rigorous safety division plans to bring new innova- rubber innovation for electrical and other standards. tive solutions to this market cables.
Elkem sustainability report 2016 19 INNOVATION Electricity made from hot air
More than 60% of the energy produced in the world today ends up as waste heat. One way to utilise the heat is to let hot air flow through a Thermoelectric Generator (TEG). Elkem could benefit from this both by producing silicon based elements for the TEGs and by using TEG to make electricity at its plants.
A thermoelectric module utilises the seebeck effect to convert a heat flow into electric current or visa versa. It can simply be understood as a solid state heat pump that can be run in both directions.
A TEG-system has no moving parts, and even toxic materials. mixed with other elements forms silicides. requires very little maintenance and, due The silicides can handle higher temper- to its modular design, can be fitted to The goal of Elkem’s R&D project TESil atures than many of the TEG materials almost any heat source, regardless of size. is to demonstrate that a TEG based on used today, and can therefore convert The core of a TEG is thermoelectric mate- silicides will produce electricity at a heat to electricity more efficiently. This rials that convert a heat flow into electric considerably lower price than today’s also opens up for many new applications, current. The higher the temperature TEG technology. particularly in the field of waste heat difference, the more electricity is gen- recovery, but also as energy harvesters erated. However, today TEG technology In TESil, Elkem hopes to develop the for wireless sensor networks or heat flux is relatively costly and in little use, since next generation thermoelectric materials sensors and controls. TEGs are often made of rare, expensive based on low cost and harmless silicon The next step is to integrate the silicides into a TEG that can be used for waste heat recovery purposes. Since a TEG is a more flexible way of transforming heat into electricity than the generators that are used today at large smelting plants, TEG can be a solution for electricity production at plants of all sizes, all over the world.
Norwegian research partners Sintef, University of Oslo and University of Agder will contribute with important modelling, characterisation and measurement of the silicides to achieve the highest possible efficiency and durability. The project is supported by The Research Council of Norway.
20 Elkem sustainability report 2016 INNOVATION Elkem silicon in lithium-ion batteries
Li-ion batteries with silicon-based anodes are expected to be the winning technology for electric vehicles. Many companies, including raw material suppliers, fight for a position in this value chain. Elkem has a unique background for developing a high quality silicon solution at competitive cost.
The reason why introduction of silicon in and universities support Elkem in solving to the first customers on a regular basis. lithium-ion batteries (LIB) is challenging the expansion problems by modifying The Dutch company ‘Smart Green Scans’ and takes years of research and develop- binders, electrolytes, cathodes, addi- reported in March 2017 results of the LCA ment is the expansion that occurs when tives, etc. The research activities done analysis carried out at Bremanger and silicon reacts with lithium during charg- by researchers in Elkem are focused on documented Silgrain®e-Si as a ‘green’ ing, and the corresponding contraction micronization and chemistry. This means feedstock to the LIB industry compared during discharging. To the extent these to establish a process for size reduction, to competing raw materials. movements cause crack formation or to create a silicon quality with desired destroy contact between anode material structure and purity, which produces and current collector, capacity is lost and repeatable particle sizes and size distribu- The way forward the number of charging cycles is reduced. tions in the low micron and sub-micron The Elkem battery project will end in If successful, using silicones in batteries range both in bench and industrial scale 2017, and conclusions will be drawn can increase the battery capacity tenfold, equipment. on unit process selection, particle size and results show that a battery with a sil- details, chemistry, etc. With expected icon/graphite anode could do more than project results, Elkem will get an early 1000 charge cycles. ‘Green’ feedstock entry into a promising lithium-ion So far, the battery project has resulted in batteries market. one patent and two patent applications, Research activities and Elkem Bremanger produces and sup- On-going studies at research institutes plies commercial amounts of Silgrain®e-Si
Elkem sustainability report 2016 21 INNOVATION Industrialized charcoal production
Elkem has a pronounced goal of using 20% charcoal in the mix of reduction materials in the production of silicon and ferrosilicon alloys in Norway within 2021 and 40% within 2030. To reach this goal Elkem will develop a new industrial process for charcoal tailor-made for silicon and ferrosilicon production processes.
The R&D project PyrOPT is a succession Therefore the PyrOPT project’s goal is to approximate 15% loss before the material of the R&D project Carbon Neutral Metal improve: enters the silicon alloy furnace. There are Production (CNMP), successfully finished • Charcoal product quality also problems with charcoal fines mixing in 2016. CNMP had two aims: Showing • Process performance of the pyrolysis into the microsilica, an important bi-prod- that all net CO2 emissions could be technology uct in the silicon production process. A removed by using charcoal, and that the • Process integration between the silicon set of properties defining a good charcoal process could be electricity neutral. and pyrolysis technology will be established as part of the PyrOPT CNMP proved that, with today’s techno project. logy Elkem can reach a reduction of 26% of overall energy input, and that 56% of Independent of electricity supply the electricity consumption can be In addition to reducing the emission Exploring other products recovered. of CO2, a successful realisation of this The PyrOPT project will also investigate new integrated technology will improve how gas and condensates can be refined The energy reduction and CO2 emissions Elkem’s cost position significantly and to valuable products, other than produc- targets were achieved by combining char- make it possible to build new silicon ing steam or electricity. Possible valuable coal and metal production with energy and ferrosilicon plants at locations with bi-products are chemicals, biofuel for recovery. CNMP integrates the pyrolysis limited electricity supply. transportation and binders used in the process for charcoal production with the metal production industry. furnace process for silicon production, Charcoal is made by heating wood and recovers the off-gas energy from without oxygen, and the products are The R&D project is organized with Elkem both processes. However, the CNMP charcoal, gas and fluids. Elkem needs as the industrial partner and with R&D project also showed that the economic charcoal with consistent levels of fixed partners SINTEF Energy Research AS margins are challenging, with a significant carbon and with mechanical properties (SINTEF ER) and the Paper and Fibre dependency on the performance of the that goes well with the entire produc- Research Institution (PFI), both in pyrolysis technology. tion flow. Today’s charcoal gives a high Norway. The project is supported by amount of fine particles that represent an The Research Council of Norway.
22 Elkem sustainability report 2016 INNOVATION
Controlling emissions by closing the furnace
SiNoCO2 is a new R&D programme that will research possible methods for producing silicon alloys with no direct CO2 emissions from the production furnaces.
Very simplified, the goal is to ‘close the Practical challenges emission of silicon containing gas from silicon furnace’. As a result, the off-gas The biggest challenge for ‘closing the the furnace top. from the furnace will mainly contain CO, furnace’ is to control the material flow, which can be further exploited for energy the energy distribution and the chemical The off-gas carbon monoxide (CO) from production or chemical manufacturing, reactions inside the furnace. The silicon the process can be used for energy pro- such as hydrogen production. process experiences crust formation in duction; production of hydrogen or other the furnace charge, halting the mate- chemicals, or as a reduction gas for the The new production concept could also rial flow into the metal producing zone production of other metals. If successful, be an important step on the road to further down in the furnace pot. Today, what today is waste will be turned into CO2-negative silicon production, because stoking of the ovens solves this problem. valuable products. it will be possible to use carbon capture When the ovens are closed, a ‘stoking and storage (CCS) in addition to the free’ process must be developed or, There will be other environmental ongoing work to replace coal from fossil alternatively, a form of automatic stoking advantages as well. The NOx emissions sources with charcoal. CCS and ‘carbon of the furnace. from the furnace will be reduced by more negative’ production processes are seen than 90%. Costs for removing sulphur as important contributions to reach the In addition, the closed furnace must be and other elements will also be reduced. targets defined by the Paris Agreement, operated without direct observations of The operational cost of closed furnaces is which aim at a maximum temperature the furnace surface. This is an area that expected to be 60-70% of the cost level increase of 1.5°C. has changed significantly the latest years. today. Camera technology has been evaluated The ‘closed furnace’ will be well adapted and industrially tested by Elkem. A closed Microsilica is a valuable by-product from for capturing CO2, as there will be a high furnace would have to be equipped with present silicon furnaces. Microsilica is the concentration of CO2 in the final off gas. this type of monitoring technology. silica fume harvested from the chimneys If fossil coal is replaced with charcoal, it of todays open or semi-closed furnaces. will be possible to take CO2 out of the If the obstacles are solved, the gains will To identify conditions needed to produce atmosphere if a CCS-unit is connected to be large. There is a potential for 40% high quality microsilica in closed furnaces the plant. The goal is to replace 40% of reduction in energy consumption per is a prioritized activity in SiNoCO2. the fossil coal used in Norway by charcoal tonne of silicon. by 2030 and towards 100% in the future. Elkem Technology is the project owner Another Elkem R&D project, PyrOPT, and manager of SiNoCO2. SINTEF, NTNU (see page 22) will develop a method to 100% silicon yield and Teknova AS are Norwegian research optimize a pyrolysis process to produce The SiNoCO2 project will examine partners in the project. Both Elkem charcoal with the right properties for whether it is possible to operate a furnace Foundry Products and Elkem Silicon silicon production. at 100% silicon yield, so that all silicon Materials represent future users of the in the quartz raw materials is tapped as technology. The project is supported by liquid silicon from the furnace, with zero The Research Council of Norway.
Elkem sustainability report 2016 23 ENVIRONMENT
Opening of the upgraded electricity recovery facility at Elkem Bjølvefossen in March 2016. From the left: CEO in Enova Nils Christian Nakstad, CEO in Elkem Helge Aasen, Minister of Trade and Industry Monica Mæland and plant manager Børge Hauge.
Elkem’s environmental and energy strategy
Elkem works continuously to reduce the company’s environmental footprint. Elkem’s sustainability philosophy is based on the general principle of producing as efficiently as possible and with the maximum use of all input streams, like materials and energy.
Audit and report As Elkem continues to grow in new tious targets for reduced emissions All divisions and plants are responsible segments of the Silicone value chain, • Minimizing the use of landfills and for implementing environmental and strategic targets in this area include: striving to avoid waste through effi- energy strategies, and conducting their cient processes and/or recycling into business in accordance with Elkem’s prin- • Mapping and understanding Elkem’s valuable products ciples in this area. Well established group- total environmental impact • Implementing energy management wide audit and reporting systems for • Expanding Elkem’s worldwide EHS systems at all sites that have not EHS are also being expanded to include reporting regime to include better already done this by end of 2018 a higher level of focus on environmental environmental and energy indicators • Setting ambitious targets for energy and energy issues. • Greater understanding of critical emis- consumption and energy recovery at all sions and discharges (i.e. COD, dust, sites worldwide CO2, SO2, NOX, PAH), and setting ambi-
24 Elkem sustainability report 2016 ENVIRONMENT Energy efficiency and scrubbing measures in Elkem
PROBLEM MEASURES WHERE SOLUTION PROVIDES
Unused thermal energy from Energy recovery plant All plants Hot water and steam for reuse production or sale
Poor resource utilisation Electricity for sale
Unnecessary indirect CO2 Better resource utilisation emissions Lower CO2 emissions
Unnecessary electricity con- Ensuring stable furnace operation All plants Lower electricity consumption sumption for furnace operation and continuous development of optimum furnace operation Poor resource and raw material Better resource and raw utilisation material utilisation
Unnecessary electricity con- Energy efficiency measures All plants Lower electricity consumption sumption for plant operations, other than furnaces
Poor resource utilisation and Better resource utilisation and higher costs lower costs
Inadequate control of silicon dust Collection of dust in scrubbing All silicon and Valuable by-product from production system connected to silicon and ferrosilicon plants (microsilica) ferrosilicon furnaces Local pollution and loss of Less pollution and better qual- sellable by-product Processes under control ity of life in local environment
Better relationship with local community
Inadequate control of dust in the Development of production meth- All plants Improved working environment workplace ods for avoiding dust generation and health and safety results
Deterioration of the working New equipment Reduced time used and costs environment for cleaning and maintenance Better extraction and cleaning Wasting sellable by-products Sellable by-product
Time and resources spent on cleaning and maintenance
NOx emissions Introduction of new feed method, Elkem Salten, Over 40% lower NOx emissions new furnace design in line with Norway Poorer air quality in the local research results environment
SO2 emissions Use of raw materials with less Raw material use in Eliminates SO2 emissions sulphur where appropriate all plants
Poorer air quality in the local SO2 capture and scrubbing Plans for SO2 Better relationship with local environment, odour capture at Fiskaa community Carbon
Runoff to the sea and ground of Reduced water use Elkem Silicones, Reduced COD emissions pollutants France Projects reducing pollution of Reduced supply of polluted waste water Elkem Carbon, dust into the surroundings that Norway and Brazil can be dispersed further by Better control of diffuse emissions water
Bio-purification of polluted rain Clean water water at plants in tropical climates
Elkem sustainability report 2016 25 ENVIRONMENT
Biocarbon
Using CO2 neutral biocarbon instead of carbon in the production of silicon and ferrosilicon is a key part of Elkem’s sustainable production strategy. Elkem’s ambition is that 20% of the company’s consumption of carbon as a reduction agent in the smelter process in Norwegian plants shall be biocarbon in 2021, increasing to 40% in 2030.
Elkem already uses biocarbon in the where trees grow rapidly and can provide place. The climate is also ideal for plan- form of charcoal and wood chips in the a basis for industrial-scale charcoal tation production of timber for charcoal smelting process at some of its plants production. While doing this Elkem has production: It only takes seven years for and is researching the quality-related also established very strict controls for a eucalyptus tree to grow to full size. and technical aspects of replacing even charcoal suppliers to ensure that timber For Norway this is more challenging as it more carbon with biocarbon. Key ques- comes from certified, sustainable sources takes 30 years for a tree to grow to full tions that need to be answered are how and that the working conditions in the size. Charcoal production may, however, charcoal quality can be optimized, and production process are acceptable and still be feasible in Norway as there are if and how furnace technology must be comply with basic human rights. Elkem substantial amounts of forest wood that customized for the use of more biocarbon has zero tolerance of corruption and is no longer being utilised in other indus- in the form of charcoal and wood chips. non-compliance with laws and regula- tries and needs to be harvested to make The whole value chain is involved in the tions. Read more about Elkem’s supplier room for new growth. Elkem is therefore development process to ensure good requirements on page 41. also exploring charcoal production in decisions. See page 22 for information Norway, where several of Elkem’s largest about the R&D project PyrOPT. A third challenge is found in logistics. plants are located. Biocarbon in the form of charcoal and Another main challenge is the lack of an wood chips, is a voluminous product. To A study done in 2016 by Elkem in cooper- international market that can supply the reduce costs and the negative environ- ation with several other Norwegian com- amount of biocarbon for metallurgical mental effects of long transportation, panies confirmed that it would be possible usage that is needed to reach Elkem’s Elkem ideally seeks biocarbon sources to make charcoal from Norwegian spruce. goal of 40% in 2030. This has led to the located close to the plants where it will There are, however, still a number of issues conclusion that Elkem must actively look be used. In South America this is possible including long term timber availability and at the possibility of sourcing charcoal and there are already well-established pricing that need to be resolved before from plantations in equatorial countries structures for charcoal production in production can be initiated.
CO2 emissions Elkem group 1000 tonnes/year Reduction material Elkem group 1000 tonnes/year
2000 1200
1000 1500 800
1000 600
400 500 Fossil 200 carbon
0 0 Sustainable 2009 2010 2011 2012 2013 2014 2015 2016 2014 2015 2016 Biocarbon
26 Elkem sustainability report 2016 ENVIRONMENT Monitoring water bodies
During 2015 and 2016 Elkem plants in Europe have systematically monitored the environmental status of their surrounding water bodies.
Elkem’s water monitoring programmes Elkem Iceland has a joint monitoring plan overall results compared to earlier are in compliance with the EU Water with Century Aluminium for the indus- tests. Results for water bodies that have Framework Directive. Water monitoring trial site at Grundartangi. In this moni- been exposed to silicon and ferrosilicon has, however, been an on-going activity toring plan Icelandic water regulations production exclusively, generally show for Elkem’s plants for a decade or more. are used to determine compliance for good results. Key parameters like levels Several plants have been monitoring drinkable water. Fresh water samples are of heavy metals and organic compounds sediments, biota and water bodies collected from five rivers near the indus- in blue mussels and sediment levels from potentially affected by production trial site where the mean concentration landfill run-off at Elkem Salten, Elkem plants. of fluorine, chloride and sulphate has Bjølvefossen and Elkem Thamshavn been below values specified in Icelandic seem to be very low. The environmen- The monitoring programmes carried regulations. Heavy metals are monitored tal status of the Nordgulen (Elkem out by Elkem Salten, Elkem Thamshavn in sea water, sediments and blue mussels. Bremanger) and Kristiansand fjords and Elkem Bjølvefossen were mainly PAH16 is monitored in blue mussels and (Elkem Solar and Elkem Carbon) are designed and performed to monitor pos- sediment in Iceland. All values are low more complex, due to various past and sible run-off from existing or previous and below the Norwegian environmental present activities from both industrial landfill sites, whereas the Elkem Carbon’s limits. plants and the local community. and Elkem Bremanger’s monitoring programme was designed to take into The water monitoring results were For water bodies that are at risk of not account potential effects of regulated mostly as expected. Results are excellent achieving satisfactory results within discharge to water. for plants established less than 40 years 2021, risk-reducing measures will be ago, and the tests are showing improved implemented.
Elkem sustainability report 2016 27 ENVIRONMENT Water management in silicones production
Elkem’s Silicones division does not In addition to compliance with local have a standalone water policy. Water environmental permits, continuous Chemical oxygen demand (COD) management issues are included in the improvement in both water use and COD Kg per day/year Responsible Care Global Charter to which reduction is the goal. Several improve- the Silicones division is a signatory. All ment projects have been initiated during 1200 silicones plants have permits, which limit the last 3-4 years. Some examples are: 1000 effluent discharge and define daily limits • Several contaminated water discharges for discharge volume, flow rate and con- have been stopped and are now 800 centration of pollutants. The parameter incinerated 600 used is chemical oxygen demand (COD), • Installation of dry vacuum pumps expressed as metric tons of oxygen. COD instead of water vacuum pumps and 400 emissions are measured at all plants and reliability programmes analyzed and managed daily. A monthly • Optimisation of pH treatment to 200 environmental review is organised at remove soluble copper before 0 plant and board level for the French discharge 2013 2014 2015 2016 plants as they represent around 99% of • New distillation column to reduce the Elkem Silicone’s effluents. volatiles
Water economizing in Elkem Carbon
Efforts are on-going at all Elkem Carbon not imply any contamination of the water. by evaporation, but the water loss is sig- plants worldwide to reduce the amount nificantly reduced compared to previous of water used in production. Plants Elkem Ferroveld, South Africa, has open and free-flow coolers. located in areas where water is a critical up-graded the closed loop cooling resource have special focus on water system with state of the art sensors The plant in the Ningxia Province in China, economization. and control systems. The pipelines are close to the Gobi desert, is now con- replaced to ensure safe operation of nected to the public water supply, ensur- Elkem Carbon is using water for cool- the control instruments. The water is ing the required water quality needed for ing the products, but also to cool down circulating through closed systems with the cooling process. Water at this plant technical equipment like transformers, cooling panels and heat exchangers made was previously taken from ground water high temperature furnace processes and of steel. The temperature of the water will wells, which required more maintenance rotating equipment like ball mills for gen- increase and then pass through separate due to contamination and corrosion of eration of fine materials. These systems do coolers. Air coolers gives a loss of water the water pipelines.
28 Elkem sustainability report 2016 ENVIRONMENT
Substantial NOx reductions
The rebuilding of two furnaces at Elkem Salten and one at Elkem Thamshavn in Norway has reduced Elkem’s emissions of NOx with nearly 1,300 tonnes per year. Planned rebuilding of two more furnaces will cut emission with another 400 tonnes a year.
Nitrogen oxides (NOx) are gases that lead NOx in Norwegian land based industry, average NOx emission from a car of about to higher concentrations of tropospheric Elkem has performed intensive studies 5 kilogram per year. The total investment ozone, acid precipitation and global together with different research insti- in the rebuilding projects exceeds NOK warming. These emissions can be harmful tutions and full-scale testing at Elkem 300 mill. to ecosystems and vegetation, as well as Thamshavn and Elkem Salten to develop health. In Norway, the transport sector technology that can give a substantial In addition to furnace design, furnace accounts for 58% of emissions, while the reduction in emissions of NOx from the operation and product type also have industry accounts for 11%. smelting process. With financial sup- an effect on NOx emissions. More NOx is port from the Norwegian NOx Fund the formed at higher temperatures which are The formation of NOx takes place in the technology has been rolled out on three generated when producing silicon with furnaces at temperatures above 1,500°C. furnaces giving a reduction of almost higher purity. As the market demands Understanding the processes behind the 1,300 metric tons NOx per year. Two more speciality products with a higher formation of NOx has made it possible other furnaces will also be rebuilt in the silicon purity some of the environmental to redesign the furnace hood on Elkem’s near future giving a total reduction of gain may be lost, but Elkem is still work- smelting furnaces in order to reach a NOx emissions of approximately 1,700 ing actively to ensure that increases are significant reduction of the emissions. tonnes, which equals the NOx emission of as low as technically possible. As one of the largest single emitters of approximately 340,000 cars, based on an
Emissions NOX Elkem group Tonnes/year
10000
8000
6000
4000
2000
0 2009 2010 2011 2012 2013 2014 2015 2016
Elkem sustainability report 2016 29 ENVIRONMENT Combatting dust in the work environment
Elkem allocates significant resources to combat silicon and ferrosilicon dust in the work environment. The long-term goal is to reduce process dust to levels where exposure is acceptable without the use of respiratory protection.
Extremely high temperatures and ultra the Thamshavn furnace number 1 in ›› A concept design solution for the fine particles that disperse very quickly 2013. Unfortunately, filter capacity has Elkem Rana furnace number 5 is makes it especially difficult to capture not been sufficient to fully realize the currently under way dust generated during the tapping and potential of the improvement. This will casting processes. Elkem, together with be resolved in 2017 when new filter Available extraction and filter capacity R&D partners have successfully gained capacity will be installed. in connection with the collection and greater understanding of these chal- • After meticulous planning and design extraction system on furnace numbers 2 lenges and developed better solutions work, the technology was also installed and 4 at Bremanger has also opened for for dust collection near sources with gas on the Bremanger Foundry furnace a similar solution on a recently installed temperatures of up to 1,400°C. number 4 and put into operation in refining station ensuring that new emis- January 2016. This solution included an sions are correctly taken care of and not air curtain system as a supplement to let out in to the working area. Effective dust collection in prevent tapping smoke from escap- the tapping area ing. This add-on was successful, and The tapping area has one of the most dif- further development work is ongoing Casting ficult emission points for combatting dust to improve the design and utilization of Elkem is also working on the develop- in a smelting furnace building. Therefore, air curtain technology. ment of extraction hoods for capturing for the past 4-5 years, Elkem has been • The Foundry division followed up process gas during casting. This is even developing new types of highly effec- by copying and installing the same more challenging than the tapping area tive local dust collection and extraction equipment on their second furnace in because casting involves several mov- systems for the tapping area. As each fur- Bremanger in June 2016. ing systems and multiple points of dust nace is unique with respect to processing • A detailed plan for further deployment generation. A preliminary study has and structural conditions, the technology of the technology in Elkem is in place: been done at the Salten plant in Norway must be tailor-made for each furnace. ›› Salten furnace number 2 is planned and is ready to be followed up with a for Q4 2017 pilot installation. Elkem Bremanger is The technology has now been installed at ›› Design solutions are developed also working on new casting technology several Norwegian plants: for the Elkem Thamshavn furnace that will reduce dust generation and number 2 and for the Elkem Salten emissions. • An industrial pilot was installed on furnace number 1
Installation of an air curtain system as a supplement to prevent tapping smoke from escaping.
30 Elkem sustainability report 2016 Plans for further reduction of dust Research on respiratory protection work place culture are important predic- in the working environment equipment tors with regard to whether respiratory All of Elkem’s Norwegian (ferro-)silicon Elkem is partner in DeMaskUs, a four-year protection equipment is actually used. plants have developed detailed plans research project focusing on optimal use The final goal of these investigations is to regarding reduction of dust generation, of respiratory protection in the smelter be able to achieve intervention strategies improved dust collection and reduced industry. The project started in 2015 and that better facilitate desired behaviour personnel dust exposure. is an interdisciplinary research project and thus increase the probability of aiming to identify sources and dispersion actual and correct respiratory protection Tailormade extraction/collection systems of ultrafine particles in the Norwegian equipment use. will be implemented at all plants, and ferroalloy and silicon carbide industries, online dust measuring equipment will their effect on anyone exposed to them, ‘Fit testing’ of respiratory protection has also be installed, so that all dust sources and how exposed workers can effectively been used actively at Elkem’s Norwegian in the production halls can be identified, be protected. silicon and ferrosilicon smelters over the measured and, if possible, eliminated. past few years to increase correct use of Focus is also on how working routines The focus is on personal respiratory pro- this type of protection among exposed and equipment can be changed to reduce tection equipment and human behaviour. employees. During the testing employees or eliminate the generation of dust and The DeMaskUs project is researching are instructed in the correct use of the exposure to it in the working environ- the effectiveness of various dust masks equipment and given the opportunity to ment. Results and ideas are shared across against ultrafine particles. It is also look- try different types of masks to find the the divisions. ing at the psychological factors that may optimal fit for the shape of their face. affect how people use personal protec- The DeMaskUs project has enhanced this tion equipment. Studies have illustrated through mapping of possible psycholog- that factors such as knowledge, attitude, ical factors with questionnaires filled out behaviour, individual differences and by employees and studied by researchers.
Emissions of dust Elkem group Tonnes/year The DeMaskUs project is a collaboration between SINTEF, 2500 NTNU, St. Olavs hospital, University hospital of North 2000 Norway, University of Tromsø, The Norwegian Institute of Occupational health, and the Norwegian ferroalloy and SiC 1500 industries. The Norwegian Ferroalloy Producers Research Foundation (FFF) and the SiC producers Saint-Gobain and 1000
Washington-Mills, in addition to the Norwegian Research 500 Council through the Nano2021 programme, fund the project. 0 2009 2010 2011 2012 2013 2014 2015 2016
Elkem sustainability report 2016 31 ENVIRONMENT
Major reduction in SO2 emissions
Elkem Carbon has been granted funding to clean sulphur emissions from its calcination furnaces at Fiskaa, Norway. Construction work is well underway. When the project is completed, sulphur emissions from the furnaces that process petroleum coke will be reduced by 98%. The total emission of SO2 from this plant will thereby be reduced by over 50%. The facility is scheduled for completion in September 2017.
The project has an investment budget entering the cleaning process. Years of paste, among other things. Excess heat of NOK 141 million and is co-funded research and testing at Elkem’s Carbon will also be used to dry another raw mate- by the Norwegian Environment Fund, plants have shown that this energy does rial, anthracite, before the calcination ENOVA and Elkem. Three of the plant’s 13 not have to be wasted, but can be recov- process, so that less energy is required calcination furnaces are used to process ered in a combined energy recovery and to remove moisture during this part of petroleum coke. The project is limited to sulphur treatment plant. the process. A warehouse for the storage these three furnaces as they represent of raw anthracite has already been built, about 60% of the total SO2 emissions When the project is completed, it will making it possible to keep the anthracite from the plant and will therefore give the recover 18-20 GWh of heat energy per protected from rain and moisture when highest possible improvement for the year from the furnace off-gas. This will be dried. available funding. used to lower electricity consumption in other parts of the production. Equipment In addition to thermal oil heating and installed by the project will lead furnace anthracite drying there will also be a sub- Energy recovery off-gas through a heat exchanger to heat stantial amount of heat energy available At the point of emission, furnace off-gas up oil. The hot oil is used to keep pitch for other initiatives to replace electricity from a calcination furnace has a tempera- in a liquid state during storage and hot and oil as sources of heat for offices and ture of approximately 1,000°C. This is too enough to flow through the different other buildings in Elkem’s industrial area high for a sulphur cleaning system and production processes. Elkem Carbon at Fiskaa in Kristiansand. must be reduced to about 200°C before uses pitch in the production of electrode
Emissions of SO2 Tonnes/year Emissions of sulfur Elkem group Tonnes/year
1000 8000 7000 800 6000
600 5000 4000 400 From calcining 3000 of petcoke 2000 200 From calcining 1000 0 of anthracite 0 2013 2014 2015 2016 Future 2009 2010 2011 2012 2013 2014 2015 2016
32 Elkem sustainability report 2016 ENVIRONMENT Sustainability initiatives at Elkem Silicones Shanghai, China
In recent years, the Chinese government has frequently issued new environmental regulations and laws. Air quality is a major concern.
Over the past decade, the Chinese tal initiatives at the end of 2015 under Elkem Silicones Shanghai has also taken economy has achieved impressive the guidance of Shanghai Municipal a series of actions to reuse and reduce results. However, the pressure on energy Environmental Protection Bureau, its energy consumption, and to reduce resources and the environment has Shanghai Academy of Environmental waste and wastewater from the produc- been heavy. As a consequence, the Sciences and other experts. After rigorous tion. Thanks to these initiatives, the plant environmental awareness of the Chinese project assessment, technical discussions has both reduced its fixed costs and the people and the Chinese government with French experts as well as on-site environment footprint, and can offer its has increased. The Chinese government inspection and comparisons among employees a cleaner and better working will further tighten the environmental suppliers, RTO (Regenerative Thermal environment. demands on companies’ progress in the Oxidizer) technology was selected to 13th Five-Year Plan, operative for the destroy emissions from one of the main • In 2014, the plant started to use hot period 2016-2020. production processes at the plant. water generated from the production process as bath water offered to opera- Over the past years, Elkem Silicones plant The RTO technology destroys Hazardous tors in the winter in Shanghai has been committed to reduce Air Pollutants (HAPs), Volatile Organic • In 2015, the plant installed a non-elec- its environmental footprint. In 2012, the Compounds (VOCs) and odorous emis- trical air conditioner that could use plant implemented a clean production sions that are often discharged from available steam at the factory site initiative, followed by the renovation of industrial or manufacturing processes and for cooling, thus reducing electricity the ventilation systems in its workshops. converts pollutants into carbon dioxide consumption In 2015, the plant made substantial invest- and water vapor. On site it is now used • From 2015, the plant has used a sand ments in its pollution control systems to destroy the waste gas generated from filter, carbon filter and RO membrane installing new absorbers in addition to the manufacturing of toluene-containing filter to produce de-ionized water, thus existing activated carbon absorbers, and products for release coating applications. increasing the production of de-ionized implementing world-class LDAR (Leak With a total investment of two million water with 50% Detection and Repair) methodology to RMB, the equipment has ensured a • In 2016, the company started separat- further reduce VOC (volatile organic com- remarkable reduction in emissions: ing generic waste and solid waste. A pounds) emissions from valves, pumps, project team was set up to reduce solid mixers, compressors, flanges, connectors • VOC emission to less than 10ppm, waste treatment cost. Reduction in and so on. As a result, the plant managed which fully satisfy the new regulation solid waste the first year was more than to comply with new requirements under • The concentration of NMHC (non-meth- 20%, saving 200,000 RMB the ‘One Plant, One Scheme’ programme ane hydrocarbon) is 1.8 mg/m3, well required for 150 key enterprises in under the legal limit of and 50 mg/m3 Shanghai earlier than mandated. for NMHC • Concentration of toluene is To meet the introduction of new reg- 0.704 mg/m3, also well below ulations from 1 January 2017, the plant emission limit value of 10mg/m3 launched another series of environmen-
Regulation Date People’s Republic of China Air Pollutant Emission Standard 01.01.1997 Shanghai Clean Air Action Plan (2013-2017) 07.11.2013 Smell Investigation Rectification Opinion in Xinzhuang and Zhuanqiao zone 01.01.2014 Shanghai Top VOC Emission Enterprises 2014 - One Plant, One Scheme 04.04.2014 People’s Republic of China Environment Protection Law 01.01.2015 People’s Republic of China Air Pollution Prevention Law 01.01.2016 Shanghai Air Pollutant Emission Standard 01.01.2017
Elkem sustainability report 2016 33 ENVIRONMENT PAH emissions to water from Elkem Carbon Fiskaa, Norway have been heavily reduced from 650 kg in 2004 to around 2 kg per year in 2016.
Phasing out PAH
Elkem Carbon’s main R&D priority is to develop products that are PAH (polycyclic aromatic hydrocarbons) free.
Elkem Carbon is a world-leading supplier authorisation. Intermediate use, like in adding chemical building blocks. Elkem of carbon electrode materials, lining electrode paste for use in smelting pro- Carbon will focus on demonstrating the materials and specialty carbon products cesses, is exempted from authorisation. application of the chemicals as binders in to metallurgical processes for the pro- their products. duction of ferroalloys, base metals and primary aluminium. R&D Knowledge and experience from Elkem’s Research to find alternatives to coal tar work on ELSEAL® Type G will be used in Elkem Carbon uses coal tar pitch as a pitch is a priority for Elkem Carbon. By this project to verify if different materials binder in its products. Coal tar pitch developing products that do not contain available from the bio refineries can be contains PAHs - polycyclic aromatic coal tar pitch, Elkem Carbon will minimise used as binders in carbon materials for hydrocarbons. Several of the PAH com- PAH exposure and emissions both from the metallurgical industry. pounds are classified as health hazards its own production and from the custom- and substances of very high concern. The er’s production of aluminium, ferroalloys Green binder for carbon products – large volumes of such binders (4 million and other metals. supported by the Norwegian Research tonnes annual consumption worldwide) Council also constitute a substantial contribution BIOFOREVER The overall goal of the ‘Green binder for to greenhouse gases, since it is oxi- A consortium of 14 European companies carbon products’ project is to develop dized to CO2 during metal production. using EU funding under the Horizon 2020 biobased binders for carbon products to In December 2016 the European Union programme, is planning to demonstrate replace today’s fossil based coke tar bind- made the use of coal tar pitch subject to the conversion of woody biomass to value ers. This will, if successful, reduce the CO2
34 Elkem sustainability report 2016 footprint of the metallurgical industry and well-maintained facility is important plants worldwide to reduce the amount also improve its working environment. to reach this goal. Systematic work to of water used in production. The reduc- reduce dust has had a strong positive tion of PAH from 650 kg to less than 2 kg Elkem Carbon and the Norwegian bio impact on Elkem Carbon’s PAH emissions have been achieved through extensive refinery Borregaard have joined forces in to air. The vast improvements have given maintenance on the water pipes to avoid this project. Borregaard will tailor-make room for less use of personal respiratory leaks, and new piping has been installed, bio based binders with optimized protection, as the air in the working envi- in order to separate water streams into properties for use in carbon products. ronment is safe to breathe. The reduction clean cooling water and contaminated Elkem Carbon will test the new binders of PAH emissions to air from the plant water. This makes it possible to treat the in both their pilot and full scale facilities, continued in 2015, but a slight increase contaminated surface water and meas- and make the necessary adjustments was registered in 2016. The root cause ure emissions. and optimizations to make use of these for the 2016 increase has been identified novel green binders in their commercial as a change in raw material quality. Elkem Carbon Ferroveld in South manufacturing processes possible. Africa has an integrated process-water Elkem Carbon, Fiskaa, Norway is par- treatment system on site. Contaminated ticipating in a national survey on moss water from the extruder facility is trans- Reduced waste quality in the areas around Norwegian ferred to process-water used for cooling To avoid unnecessary disposal of waste production facilities. This includes deter- chrome slag at another production facil- containing PAHs, Elkem Carbon is mination of PAHs and metals in moss and ity in the industrial park. In this process working systematically to recycle scrap PAHs in air. Since 1983 and every year contamination is destroyed and water production in the production of new from 2010 Elkem Carbon Fiskaa, Norway evaporates instead of being discharged. products. It has invested in new equip- has been monitoring the water and sed- ment to handle and process off-spec iment quality for PAHs in the neighbour- In tropical regions, biological methods materials. The rejected products are ing fjord (Kristiansandsfjorden). After 30 for water purification can be used to crushed, sieved and fed in controlled years of warning against eating fish from remove PAHs and other contamination quantities into the production process the fjord, the Norwegian Food Safety from rainwater and other storm water. through a separate silo. Authorities now considers fish from the At Elkem Carbon’s plant in Brazil, water Kristiansandsfjord safe to eat. Results that may be contaminated is fed through for blue mussels and sediments are also three basins: one containing old wood Reduction of PAH emissions to air improving. materials, one containing plants, and Elkem Carbon Fiskaa, Norway, aims to one containing bacteria. This purification keep its emissions of PAH under 50% of method is also adopted at Elkem’s new what is permitted in their environmental Reduction of PAH emissions plant in Malaysia. permit, even with increased production. to water A stable production process in a Efforts are ongoing at all Elkem Carbon
ELSEAL® Type G
In 2015 Elkem Carbon developed ELSEAL® Type G as an alternative to coal tar pitch based ramming paste. ELSEAL® Type G contains neither PAHs nor other hazardous substances. It is classified as non-hazardous according to present regulations like GHS (globally harmonized system) and the EU/EEA regulations REACH and CLP (classification, labelling and packaging). Hence, there are no emissions of PAHs during production and use, workers will not be exposed to these potentially harmful compounds, and it does not form any harmful waste. ELSEAL® Type G has the same or improved technical perfor- mance compared to existing products. It has a proven performance under challenging elec- trolysis conditions with the combination of high temperature and corrosive bath.
Elkem sustainability report 2016 35 ENVIRONMENT Energy leadership
36 Elkem sustainability report 2016 Elkem is constantly seeking ways to reduce energy consumption per produced unit. There are three ways to reach this goal: Increasing the production yield, recovering heat from the furnace off-gases and carefully managing other energy consumption.
Silicon alloy production is energy Energy recovery at the neighbouring industrial plant. The intensive. In 2016, the electrical smelting There are two main methods to recover main study for a new energy recovery furnaces in Elkem consumed 4,364 GWh energy from the smelting process. Both facility at Elkem Salten, Norway, with a of electricity compared to 4,314 GWh in have their advantages and challenges. potential of recovering 300 GWh/year 2015. In addition to electricity, the pro- The first method recovers energy by uti- has been performed, but low electricity duction process requires adding carbon lising surplus heat directly in the form of prices in Norway have made it difficult based reduction materials in vast quan- steam or hot water. This is very efficient, to finance the project, which still is under tities to the process that also represent a but not very feasible, as most of Elkem’s consideration. large amount of energy. plants are located in sparsely populated areas where there is little demand for At Elkem Carbon’s plant in Norway, a Elkem recovered 644 GWh of energy in heat from local communities or from combined energy recovery and sulphur 2016, compared with 483 GWh in 2015. other industry. treatment plant is under construction. As a percentage of total electricity When the project is completed, it will consumption, the amount of recovered In the second method for energy recovery recover 18-20 GWh a year. Waste heat energy was 15% in 2016 up from 11% in surplus heat is used to produce electricity. from the calcination furnaces in Elkem 2015. The advantage is that electricity can be Carbon’s production will be used to lower fed into the power grid. The downside is electricity consumption in other parts 227 GWh of new electricity was genera that two thirds of the energy is lost in the of the production. Read more about the ted from hot off gasses at three plants, transformation. project on page 20. one in China and two in Norway. Most of the recovered energy was utilised as Elkem currently uses both methods. In district heating, but Elkem Chicoutimi Norway, Elkem Thamshavn currently Energy management in 2016 sold 227 GWh of steam to the generates around 160 GWh of electricity All Elkem plants in the Silicon Materials, nearby Rio Tinto aluminium plant. every year, and Elkem Bjølvefossen will Foundry and Carbon divisions now increase its generating capacity from 40 have energy management systems that to 80 GWh per year, after the recovery comply with ISO 50001. The process has Energy efficiency facility upgrade was finished in March showed that even small measures, such The most effective method to reduce the 2016. At Elkem Carbon in China 35 GWh as better insulation, motor inspections, energy used per produced tonne of ferro- electricity was recovered in 2016. lighting management, sealing leaks in silicon or silicon is to make the production compressed air systems, and heating and process more energy efficient. Elkem Maintaining an intense focus on energy cooling control, can produce substantial has some of the most energy efficient efficiency has made Elkem Thamshavn, savings, even though each individual smelting furnaces in the world, but still Norway and Elkem Chicoutimi, Canada measure is relatively small compared with sees a potential for improvements. A ded- the world’s most energy efficient smelting the energy consumption of a smelting icated research and development project plants for silicon and ferrosilicon pro- furnace. Potential energy savings of 10% called Si2020 focuses on furnace design, duction respectively. 70% of the electric of auxiliary energy have been identified. process control, refining, and optimal use energy used at Elkem Chicoutimi in 2016 of raw materials. was recovered as steam and sold for use
Energy recovery Elkem group GWh Energy recovered as % of electricity consumption
700 15% 600 12% 500 400 9%
300 6% 200 Steam/Heat 3% 100 Electricity 0 0 2014 2015 2016 2014 2015 2016
Elkem sustainability report 2016 37 ENVIRONMENT Reducing waste and increasing the yield
Elkem is finding new ways to reuse materials that previously have been disposed of and will terminate the use of landfills. The reuse of production waste from silicon and ferrosilicon smelters will increase the total yield and improve the environmental footprint of these activities. We also believe that this will result in economic benefits in the long term.
During different phases of the production raw materials like quartz and coal are air, giving a valuable by-product called process substantial quantities of raw crushed creating a substantial amount of microsilica. During the process, heavier materials and intermediate products must fine materials that cannot be used in the particles are removed using radiclones. be removed and captured before the final process even though they still contain val- Traditionally these particles have been product can be shipped to the customer. uable elements needed in the production. considered worthless even though they Traditionally, much of this has ended up New methods to make solid briquettes contain valuable silicon, carbon and iron in landfills as reuse has not been feasible from the fines have made it possible to units which could be used as raw materi- either because of material characteristics feed the material back into the furnaces als. By turning these into briquettes they or cost. Some has also been sold for a low and increase the yield. The briquettes are can also be used as input when charging price to customers who have managed to strong enough to tolerate handling and the furnaces. Waste is eliminated and use it in their processes. transport and do not crack or break down yield is increased. when fed into the furnace making what With our zero waste philosophy and long was once seen as waste into good quality Using these methods some of Elkem’s term goal of terminating landfills this is raw materials. The use of quartz fines in plants are showing tremendous improve- no longer acceptable and a number of ini- this manner reduces the import of quartz ment with shares of waste to landfill tiatives have been taken, both to reduce by 10,000-12,000 mt per year, which has reduced from 12% to about 5% and the generation of waste throughout the led to considerable savings. increased production yield for quartz production process and to reuse any about 5-6%. waste that is generated. Off-grade microsilica Another large source of waste has been Further development Raw materials off-grade microsilica particles captured A number of plants, including Elkem One of the most exciting examples of in the filter process. Off-gas from silicon Iceland and Elkem Bremanger, are improved reuse is through briquetting. and ferrosilicon smelting furnaces is continuously working on new projects During transportation and processing cleaned in large filters before emission to to reduce the generation of fines in their production, reuse fines in the process by briquetting or other methods, or to create higher value products from material that was once seen as low value or waste.
One example of creating higher value products from waste is cooperation with Silingen in Poland. In November 2016 Elkem and Silingen signed an exclusive co-operation agreement on product development, production, sales and marketing of FeSi Briquettes to the steel industry. For years, Silingen has been developing and producing high quality FeSi briquettes, mainly using raw mate- rials from Elkem. With the cooperation they will be able to produce up to 18,000 mt per annum.
Elkem will be responsible for the supply of raw materials, as well as sales and mar- keting of the FeSi briquettes under the brand name BriqSil TM. Product develop- ment will be a joint effort between Elkem, Silingen and Elkem’s customers.
38 Elkem sustainability report 2016 PRODUCT STEWARDSHIP
Product stewardship in Elkem
Elkem wants to ensure safe handling, use and disposal of our products. Our continuous improvement philosophy means that we constantly look for ways to improve the properties of our products.
Updated product information to make sure that all Elkem products are ensures that compliance, certificates and to customers compliant at all times. regulatory statements are easily available Elkem is committed to complying with for distribution to customers. international regulatory requirements The majority of Elkem’s SDS and product and provides safety data sheets (SDS) compliance certificates are available for The Silicones division is a signatory of for all its products in accordance with download from Elkem’s website (www. the Responsible Care Global Charter of the UN Globally Harmonized System of elkem.com). However, the SDS for some the International Council of Chemical Classification and Labelling of Chemicals selected products are only available on Associations (ICCA). This entails a com- (GHS) or its National implementations. request, in order to protect confidential mitment to managing chemicals safely business information. throughout their life cycle. In all market where Elkem’s products are promoted, the products must meet With a portfolio of approximately 4000 specific requirements and comply with different products that are used in a Innovation to improve product certain technical, health or environmental multitude of applications, regulatory properties standards. Elkem’s product stewardship and product compliance is key also for Elkem’s philosophy of continuous team monitors the development of the Elkem’s Silicones division. Elkem Silicones improvement also applies to research and applicable standards and regulations at has therefore developed the document development work on new products. the targeted international level in order management system OSCAR, which
Elkem sustainability report 2016 39 PRODUCT STEWARDSHIP
The issue of D4 and D5
When producing all of the silicone-based end products modern both D4 and D5 safe for human health after substantial inde- society is so dependent on, a number of chemical processes are pendent scientific review and evaluation of how consumers may used to create intermediate products, which are then further be exposed to D4 and D5, the possibility of bioaccumulation processed to consumer products. D4 and D5 are two of these in the environment has triggered public organisations in other intermediate products. countries to propose stricter regulations around the use of these intermediate products. Concerns have been raised in some countries as to possible residues from the intermediate products in some of the final In Europe, the ECHA Member States Committee have concluded products used for rinse-off personal care (like shampoo), and if that D4 and D5 could be regarded as persistent and bioaccu- these could have any negative environmental effects. mulative under the European Union’s chemicals management programme (REACH). Following a proposal by the United Kingdom to restrict the use of D4 and D5 in rinse-off personal What are D4 and D5? care products under REACH, the ECHA’s Risk Assessment and D4 and D5 are cyclosiloxanes, basic members of the silicone Socio-Economic Analysis Committees will evaluate the appropri- family. As intermediate products they are most frequently used ateness of the proposed Risk Management Measures. as raw materials in the manufacturing process and only present at low levels in some end products. Elkem works closely with the European silicone association (CES) and supports scientific research to fully understand any potentially harmful effects of our processes, intermediates and/ Are D4 and D5 safe for the environment or final products. Research is also ongoing to ensure sustainable and human health? production if any harm were to be identified or any restrictions The main concerns about D4 and D5 have been in connection implemented on today’s processes and products. Elkem is fully with rinse-off personal care products. Critics are concerned that committed to complying with existing regulations at all times residue will end up in waterways and accumulate over time. Even and to prevent potential harm to the environment. though public organisations like Health Canada have declared
40 Elkem sustainability report 2016 SUPPLY CHAIN
Elkem’s supplier requirements
All Elkem activities related to the purchasing of goods and services are based on Elkem’s governing documents for occupational health and safety, human rights and worker’s rights, responsible environmental management and anti-corruption.
New suppliers of raw materials are sub- involved in the promotion and monitoring registered, and addressed with verbal ject to pre-qualification and risk assess- of safe and decent working conditions or written warnings and requests for ment. Suppliers that fall into ‘high risk’ at its high-risk suppliers and contractors. improvements. Repeated violations lead categories during the risk assessment are This includes health and safety training to requirements for speedy implemen- met with specific requirements included and providing correct personal protection tation of improvement plans written by in their contracts. Risk-exposed suppliers equipment for suppliers’ employees when Elkem, financial penalties, or termination are subject to detailed requirements from necessary. Age control to prevent child of contracts with immediate effect. Elkem. Elkem also asks suppliers to influ- labour and ensure responsible working ence their sub-contractors and suppliers conditions for young employees is also to follow Elkem’s principles. carried out. Elkem requires suppliers and Biocarbon contractors to engage their employees on Sourcing of biocarbon is subject to Suppliers of goods and services are fair terms, and that they give them infor- special sustainability requirements. pre-qualified before tendering based on mation about the ability to organise and Elkem cooperates with NGOs and corporate requirements within environ- collectively bargain with management academia to secure good understand- ment, health and safety, social respon- where this is legally possible. ing of environmental, social and human sibility and compliance with laws and rights challenges related to biocarbon regulations. Elkem’s requirements are regularly production in different markets. Elkem discussed in meetings with suppliers. requires that suppliers of biocarbon are Elkem is developing database and High-risk suppliers must document their committed to sustainable and ethical contract management systems to ensure understanding of legal requirements and raw material sourcing in accordance with compliance and governance throughout hazards in their operations and present internationally accepted principles and supplies. plans showing how risk will be eliminated standards (i.e. FSC – Forest Stewardship or controlled while working for Elkem. Council or PEFC – Pan European Forest Elkem performs audits and inspections, Certification). Follow-up both in connection with normal visits for Elkem has developed detailed require- sampling and as unannounced site visits. Biodiversity status is reviewed against ments for the health, safety and envi- External auditors also conduct supplier the International Union for Conservation ronmental standards of our suppliers of audits on Elkem’s behalf. of Nature (IUCN)/Convention on operations like mining, transportation, International Trade in Endangered storage and loading, and is actively Violations of Elkem’s requirements are Species of Wild fauna and flora (CITES).
Elkem sustainability report 2016 41 Elkem’s divisions
42 Elkem sustainability report 2016 ELKEM’S DIVISIONS Silicon Materials
The Silicon Materials division manufactures and sells silicon and microsilica for a large number of applications. The division delivers products to customers in the chemical, solar, electronics, aluminium, construction, refractory, oil and gas industries worldwide.
Key developments and events 2016
Silicon Materials operates four plants • Silicon Materials has delivered a good • Elkem’s plants have a strong competi in Norway, including Rana, which was financial result despite challenging tive position and are among the most acquired in 2016. In addition to silicon market conditions cost efficient in the world metal the division is producing highly • Sales prices for silicon dropped approx. • The division is differentiating its prod- specialised microsilica, which is used as 30% from May 2015 to June 2016 uct portfolio and has launched several an additive in a large number of product • Cost reductions and higher sales vol- new product applications in 2016 applications. The division also has a umes have partly offset the effects of • Elkem Rana, acquired from Fesil, will special focus on raw materials sourcing. lower sales prices be integrated in the Silicon Materials division and strengthen the portfolio of differentiated products
PRODUCTS PLANTS Silicon produced in different purities and sizes according to customer needs. Norway: Salten, Thamshavn, Bremanger and Rana Elkem Microsilica®, which is used in construction, refractory, oilfield and polymer industries, because of its many unique properties. QUARTZ MINES Norway: Tana, Mårnes, CAPACITY Spain: Explotacion de Rocas The division produces approximately 160,000 tonnes of silicon and 275,000 tonnes of Industriales y Minerals SA microsilica per year. (Erimsa)
KEY NUMBERS 2016 2015 Share of group 2016* Revenue NOK million 4,540 4,759 32% * The division’s share of the group revenues is calculated including the division intra Employed FTE (full-time equivalent) 899 793 24% group transactions.
Elkem sustainability report 2016 43 ELKEM’S DIVISIONS Silicones
The Silicones division produces siloxanes and a comprehensive range of silicones, which are a family of specialty, high performance products and materials, produced by reacting silicon with methyl chloride. Silicones are found in a large variety of products used in daily life. Elkem Silicones division is one of the leading producers of airbag coating, paper coating and other specialty products such as defoamers and lubricants.
Key developments and events 2016
Elkem Silicones operates two major • Good sales volumes and strong • Tragic accident at the Saint-Fons plant plants in France for production of development in Asia end of Q2 with one fatality upstream and intermediary products. • Improved cost position due to vertical • Increased sales of specialities, In addition, the division has production integration with Elkem continued strong focus on R&D and facilities in Europe, North America, South • Production problems, mainly in second product development America and Asia for production of spe- quarter, due to interruption of supply • Brazilian operation relocated and cialised silicones products. of a key raw materials and some strikes upgraded in 2016 and launch of a in France completely revamped workshop for Elastomers in Saint-Fons
PRODUCTS PLANTS Silicones produced by the division are found in products such as release coatings, rubber, France: Roussillon, Saint-Fons textile coating, healthcare, personal care, mould making, speciality fluids, sealing and Germany: Lübeck bonding and construction. Italy: Caronno Spain: Santa Perpetua USA: York CAPACITY China: Shanghai The division has an upstream capacity of about 100,000 tonnes per year of siloxane and Brazil: Joinville more than 250,000 tonnes capacity per year of intermediates and silicones.
KEY NUMBERS 2016 2015 Share of group 2016* Revenue NOK millions 5,029 4,985 35% * The division’s share of the group revenues is calculated including the division intra Employed FTE (full-time equivalent) 1,401 1,499 37% group transactions.
44 Elkem sustainability report 2016 ELKEM’S DIVISIONS Foundry Products
The Foundry Products division provides metal treatment solutions to iron foundries and is a supplier of high quality speciality ferrosilicon to the steel industry. The automotive, engineering, pipe and steel industries are important markets for the division.
Key developments and events 2016
Foundry Products has a strong global • Foundry Products delivered record India and the construction of a new production footprint with plants in sales and production volumes in 2016 plant in Paraguay Norway, Iceland, Canada, China and India. • Sales prices for ferrosilicon dropped • The plant in China will be relocated In addition, the new plant in Paraguay is approx. 29% from April 2015 to March in 2017 to increase the production expected to start production in 2017. The 2016 and has negatively affected the capacity division has a high share of specialised financial result for 2016 • In addition, the division has completed products for the foundry industry. • A number of strategic projects have a successful rebuild of furnace 2 at been concluded in 2016, including Bremanger and installed a new turbine acquisition of a foundry alloy plant in for energy recovery at Bjølvefossen
PRODUCTS PLANTS The division is a supplier of high quality speciality ferrosilicon and provides metal Norway: Bremanger and treatment solutions to iron foundries. Bjølvefossen Iceland : Akranes Canada: Chicoutimi CAPACITY China: Shizuishan The division has a total production capacity of approximately 265,000 tonnes per year, India: Nagpur based on its current product mix of ferrosilicon-magnesium (nodularisers), inoculants and ferrosilicon.
KEY NUMBERS 2016 2015 Share of group 2016* Revenue NOK million 3,642 3,674 26% *The division share of the group revenues is calculated including the division intra group Employed FTE (full-time equivalent) 734 626 19% transactions.
Elkem sustainability report 2016 45 ELKEM’S DIVISIONS Carbon
The Carbon division produces carbon materials. The main products are Søderberg electrode paste, lining materials, pre-baked electrodes and specialty carbon products for various metallurgical smelting processes and primary aluminium industries.
Key developments and events 2016
The Carbon division has production facil- • Strong financial performance for the • Product development to meet new ities in Norway, Brazil, South Africa, China division growth segments and Malaysia. The division has leading • New plant in Malaysia commenced • Systematic plan to reduce time to positions in most of its markets and a production market through streamlining product strong fundament for growth based on • High focus on health and environment development processes global strategy and synergies. with a number of strong initiatives • Ambitious cost reduction targets through EBS and automation
PRODUCTS PLANTS Söderberg electrode paste, lining materials, pre-baked electrodes and specialty carbon Norway: Kristiansand products for various metallurgical smelting processes and primary aluminium industries. China: Shizuishan Malaysia: Sarawak Brazil: Carboindustrial and CAPACITY Carboderivados, Vitoria Carbon has an annual production capacity of approximately 260,000 tonnes of South Africa: Ferroveld JV, Söderberg electrode paste and approximately 105,000 tonnes of other carbon products, eMalahleni depending on the product mix.
KEY NUMBERS 2016 2015 Share of group 2016* Revenue NOK million 1,375 1,388 10% * The division’s share of the group revenues is calculated including the division intra Employed FTE (full-time equivalent) 420 409 11% group transactions.
46 Elkem sustainability report 2016 About this report
Elkem is reporting according to the Global Reporting Initiative-guidelines (G4/Core). When addressing sustainability issues, Elkem puts great emphasis on input from stakeholders (see page 12). Based on this input, and a broad knowledge of Elkem’s sustainability challenges and possibilities, Elkem’s CSR committee (see page 10) considers the following aspects the most material for Elkem:
• Energy
• Emissions
• Product responsibility
• Occupational health and safety
• Supplier performance regarding environment and labour practices
• Anti-corruption and anti-competitive behaviour
• Relations with local communities
Contact information
Visiting address Elkem AS Drammensveien 169 0277 Oslo, Norway
Postal address Elkem AS P.O. Box 334 Skøyen NO-0213 OSLO
Telephone + 47 22 45 01 00 Fax + 47 22 45 01 55
www.elkem.com
Editor: Johanne Holter Thompson Text: Elkem / Stakeholder AS Design: fdesign.no Photo: Elkem / Nicolas Tourrenc Print: Gelato.com Delivering your potential