2014 Sustainability report Content
3 Key figures 28 Elkem Technology 29 Elkem’s future is carbon neutral 4 Foreword CEO 30 Si 2020 – improved production process 5 Elkem – an overview 32 Bringing industry together in a new research centre 6 Corporate management and board of directors 34 Elkem Silicon Materials Guiding principles 35 Promising research into silicon batteries 7 Corporate governance 36 Vision 2050 and leadership 8 Sustainable growth 38 International language of improvement 39 Elkem Silicon Materials’ plants Partnerships 10 Working together 40 Elkem Foundry Products 41 Elkem helps lower car industry emissions Elkem Business System 42 Zero waste to landfill 11 Tools for continuous improvement 42 More electricity from the world’s oldest energy recovery plant 43 Energy efficient plant in Chicoutimi becomes Elkem employees even better 12 Continuous development 43 Elkem Foundry Products’ plants
Environment, health and safety 44 Elkem Carbon 14 Zero tolerance for injuries and strains 45 Clean is profitable 16 EHS audits for continuous improvement 46 A green alternative 47 Broad Based Black Economic Empowerment Energy and the environment 48 Lower PAH emissions 18 Energy efficiency and scrubbing measures in Elkem 49 Elkem Carbon’s plants 19 A circular economy for the climate and environment
20 New investments result in lower NOX emissions 50 Elkem Solar 21 Fight against dust shows results 51 Elkem expands its solar venture 22 Energy leadership 51 Elkem Solar’s plant 24 Charcoal in silicon production 26 Monitoring plant water quality 52 Managing all transport in and out of the company
Financial results 53 Elkem’s history – 110 years of innovation 27 Profitable growth from a solid base 54 Afterword from chairman of the board
Cover photo is from Elkem Technology. Read more about our research facilities on page 28. Key figures
FINANCIALS UNIT 2014 2013* 2012 Revenues NOK million 8 652 7 789 8 093 EBITDA NOK million 1 060 644 770 EBIT NOK million 611 418 (127) Profit for the year NOK million 303 (628) (457) Total assets NOK million 11 025 11 668 11 607 Net interest-bearing assets / (debt) NOK million 2 279 145 (5 039) Equity NOK million 8 757 7 697 4 305 Equity ratio Per cent 79 66 37
Health and safety No. of employees 2 127 2 092 2096 Sick leave rate Per cent 3.4 3.7 3.9 No. of lost time injuries per million work hours H1 2.1 0.8 1.8
Energy and emissions Norway Group Norway Group Norway Group Energy recovered GWh 438 628 370 450 158 340
CO2 emissions Thousand tonnes 746 1 463 831 1 335 870 1 300 NOx emissions Tonnes 5 764 6569 5 100 5602 5 125 8 500
SO2 emissions Tonnes 3 539 7267 3 200 7256 3 233 7 000
* Elkem Solar is presented as discontinued operation for the two months ended February 2014 and for the year ended 2013 and 2012. As a consequence Elkem Solar is not included in revenues, EBITDA, EBIT and net interest-bearing asset/(debt). Please refer to accounting principles under consolidated financial statement Elkem AS group for more details.
Carbon neutral Si 2020 – improving Affirmative action metal production our production process in South-Africa
Elkem is among the world’s cleanest The basic principles of silicon production As part of the South African equal metal manufacturers but still emits are around 100 years old. A number of opportunities policy, which aims to around 1.3 million tonnes of CO2 each different improvement measures have rectify historic inequalities for disadvan- year. We are now looking into how this resulted in a considerably better pro- taged ethnic groups, the government may come to an end. cess. In 2011, Elkem decided to start a has implemented laws that govern how A research project in Elkem will lay the research programme that would carry companies should contribute to redress foundation for full-scale production out a thorough review of each step of these disparities. Each company has without net CO2 emissions and without the production process. We do this a scorecard that ranks their impact a net supply of energy. Read more on to examine the residual potential that on what is called Broad Based Black page 29. remained regarding better material yield Economic Empowerment (BBBEE). Read and reduced losses, lower emissions, more about how Elkem works with this and more efficient energy consumption. on page 47. Read more on page 30.
Elkem sustainability report 2014 3 FOREWORD CEO
We are facing a green industrial revolution
The Intergovernmental Panel on Climate Change has stated The Norwegian metallurgical industry is world-leading, and that a two degree Celsius increase in the Earth’s average bases its success on research-driven innovation linked to temperature represents the limit of what nature can with- the production of metals the world needs. From April 2015 stand before climate changes become uncontrollable. If the the industry’s innovation work will receive an important world is going to achieve this goal, emissions of greenhouse boost when the entire Norwegian metallurgical industry gases must be reduced by 95 per cent by 2050. For the gathers behind ’SFI Metal Production’. SFI is the Norwegian industry this means that our greenhouse gas emissions abbreviation for the Centre for Research-based Innovation must cease within the next 35 years. (Senter for Forskningsdrevet Innovasjon), a programme run by the Research Council of Norway. In other words: ’business as usual’ is no longer an option. Research is a top priority in Elkem because we know that it The research centre will be funded through a joint effort is the only way to ensure that there is a place for us in the between the industry, the Research Council of Norway and future. Gradual improvements have always been important academia. This is good news, both for Norwegian industry to Elkem. Elkem Business System, our most important man- and for the global metal industry. agement tool, is based on the idea of continuous improve- ment. However, if we are going to solve the world’s sustain- Our goal is zero injuries. Elkem’s workplaces should be safe. ability challenges we also need technological leaps. Elkem is Unfortunately, the injury rate for 2014 was no lower than in therefore working to establish new climate technology with 2013. We had 22 personal injuries in 2014, the same as in global potential. 2013. Even though these incidents were not very serious, it is unacceptable for our employees or subcontractors to be Two years ago we started a research project that aims to injured at our plants. This applies to both serious injuries and develop a process for carbon neutral metal production, any health suffering that may occur due to prolonged expo- which is also electricity neutral: the production plant will be sure. We will therefore strengthen our focus on EHS in 2015. capable of generating as much electricity as is consumed All employees must understand their personal responsibili- in the process. If we achieve this, it will represent a techno- ties and how individuals can contribute to the improvement logical quantum leap that could change the whole industry work. There will be a stronger focus on fire prevention, we around the world. The work is supported by the Research will monitor all locations where water and molten metal may Council of Norway and the ambition is to be ready to start come into contact and may cause explosions, and we will constructing a full-scale smelting plant within 5-7 years. complete our work on better electricity safety. This will be a green industrial revolution. Our research projects are aimed at lower energy consump- For high-risk climate project such as this it is vital for the tion and emissions, and our focus on EHS goes hand in progress that the public sector has joined us by ensuring hand to ensure our place in a sustainable future. that adequate funds are available, especially in the pilot/ demonstration phase. Funding to promote new technology is one way in which Norway and other countries can con- tribute to cutting global emissions.
4 Elkem sustainability report 2014 ELKEM IN BRIEF Elkem – an overview
Elkem is a world-leading producer of silicon, ferrosilicon-based speciality alloys, carbon products and microsilica. The 2014 turnover was NOK 8,652 million. Elkem had 2,127 employees in about 40 countries throughout the world in 2014. Elkem is part of China National Bluestar (Group) Co. Ltd.
Elkem Silicon Materials is one of the silicon is used as an additive to improve Elkem Solar produces solar-grade sili- world’s leading suppliers of silicon and the properties of steel and iron that are con for the solar industry, using a metal- microsilica. Silicon has a wide range used, for example, in the production of lurgical process that requires only about of applications, such as an important windmills, trains, cars and other mechan- 25 per cent of the energy consumption additive in certain aluminium alloys and ical devices. Elkem’s speciality alloys are of traditional manufacturing processes. in the chemical industry, where silicon is added during the customer’s foundry Elkem Solar is now 50 per cent owned the main ingredient in silicones. Silicon operations and contribute to increased by Elkem and 50 per cent by Guangyu is also necessary for the production productivity and reduced energy con- International Investment Company. of solar cells and almost all electronic sumption. devices. Microsilica is extremely finely Elkem Technology conducts research grained silicon that is used as additive in Elkem Carbon is the world’s largest and development projects related to concrete, refractory materials, plastics, producer of electrically calcinated all parts of Elkem’s value chain. The fertiliser and sealants for oil wells. anthracite, which is used in electrode research strategy is based on close paste and sealants (ramming paste) cooperation between the operational Elkem Foundry Products is the world’s that are necessary in the manufacturing organisation and the researchers. leading producer of ferrosilicon and fer- process of steel, aluminium, silicon and rosilicon-based speciality alloys. Ferro- other metals.
6 locations in Norway
Elkem’s plants and offices around the world: Plant Office
Elkem sustainability report 2014 5 CORPORATE GOVERNANCE Corporate management
Back: Asbjørn Søvik SVP Elkem Carbon, Kjell Ramsdal SVP Corporate development, Trond Sæterstad SVP Elkem Silicon Materials, Morten Viga CFO, Helge Aasen CEO, Mark Breidenthal VP EHS & CSR. Front: Kristin Karlstad VP Public Relations, Liu He SVP Elkem China, Katja Lehland SVP Human Resources, Inge Grubben-Strømnes SVP Business development and Solar, Håvard Moe SVP Elkem Technology, Jean Villeneuve SVP Elkem Foundry Products.
Board of directors
Robert Lu Sverre T. Tysland Olivier de CEO Bluestar Selmer DA Clermont-Tonnerre Chairman Board member Bluestar Silicones Board member
Helge Aasen Yougen Ge Einar Støfringshaug Espen Sortevik Elkem AS Bluestar Union representative Union representative Board member Board member Board member Board member
6 Elkem sustainability report 2014 GUIDING PRINCIPLES Corporate governance
Elkem is part of the China National Bluestar (Group) Co. Ltd. (Bluestar). Bluestar is a global group in the chemical industry that focuses on new chemical materials and animal nutrition.
Elkem is governed by the board of asset management are subject to proper make decisions at various levels in the directors, which consists of seven scrutiny. organisation with the board being the persons, five of whom are elected by highest ranking body for business- the owners and two by the employees. Elkem’s work on corporate social related decisions. Mr. Robert Lu, CEO of Bluestar, is responsibility is coordinated through a chairman of Elkem’s board. Elkem’s steering committee lead by the SVP HR. The group’s internal control function is CEO, Helge Aasen, sits on the board as The steering committee reports directly exercised through monthly reviews of the a representative elected by the owners. to Elkem’s CEO. In 2014, the steering business activities at the group manage Aasen also sits on Bluestar’s board of committee initiated extensive updates in ment level. The monthly reviews are directors. Elkem’s guiding documents. conducted according to a stated agenda.
Elkem’s board meets at least four times Non-hierarchical organisation Updated risk assessment a year and conducts its activities in Elkem has had employee representatives Assessment of risk includes all aspects accordance with approved rules of on its board since 1974 and promoted of the enterprise and are delegated as a procedure that are based on the provi- the introduction of corporate democracy line responsibility. This includes health sions of the Norwegian Limited Liability in Norway. The relationship between and environmental risk, financial risk, Companies Act. These rules regulate corporate management and employees market risk (price and volumes) and the board’s responsibility and the CEO’s is characterised by a flat organisational operational risk. There are policies and relationship to the board. The main tasks structure. procedures for all risk areas, and the of the board are to ensure the sound risk assessment is updated regularly. organisation of the company’s activities, Detailed authority structure Measures are decided on and imple- adopt plans and budgets, supervise the and internal control mented as soon as possible. The board general management, and ensure that A detailed authority structure has and management are regularly updated the company’s activities, accounts and been developed to regulate who can on the group’s performance.
Elkem sustainability report 2014 7 GUIDING PRINCIPLES Sustainable growth
Elkem’s vision is to develop advanced materials that shape the future. Our mission is to help promote a sustainable future by producing advanced silicon- and carbon-based solutions that create value for all our stakeholders. We believe that safe and sustainable operations are the future and that our products and innovations can help solve many of the world’s challenges.
Our solutions shape the future years. We see that cooperation with our that increase our ability to learn and to Our products are based on two of the customers, suppliers and other partners develop new solutions. world’s most common elements – silicon helps develop solutions that give our and carbon. The products we manufac- customers better quality, higher efficiency Respect entails being open and honest, ture from these elements are essential and reduced emissions. Our technology trusting colleagues, appreciating diversity building blocks for current and future and processing knowledge will continue and promoting fairness. We respect the materials. As a manufacturer we think to form the basis for many of the solu- law, the environment, our employees, that safe and environmentally-friendly tions that are needed in order to shape a colleagues, customers, suppliers, own- production is the only way forward. sustainable future for our planet, such as ers, the society, the local community, and During our 110 year long history we have highly efficient solar cells and windmills, other cultures. developed a very good understanding batteries that may abate fluctuations in of the silicon process, which we are now the production of renewable energy, as Our focus on precision is evident in our using to consolidate our position as the well as smart electronics. efforts to develop and comply with stand- world’s most environmentally-friendly ards for best practices and stable, safe manufacturer of these products. Our Our values operations. By establishing standards for research constantly facilitates safer and Our core values are the foundation for the work practices and working conditions more efficient production. This gives a way we work in Elkem. The work of each we can measure and thereby continu- lower consumption of energy and lower individual, regardless of where they are in ously improve them. emissions of greenhouse gases, reduces the value chain, is based on the following the losses in production and results in the values: involvement, respect, precision We know that the value chain can always utilisation of more and more by-products. and continuous improvement. be improved by experimenting, by mak- Elkem is working to introduce energy ing use of new solutions, and by con- management and energy recovery in Involvement commits people. Despite tinuously eliminating waste. Continuous all plants. In the long run our goal is to smart systems and artificial intelligence, improvement means that we are always remove all waste through efficient utilisa- it is still people who are best at identifying looking for potential improvements and tion of all by-products and side streams. problems and finding solutions. Through that we are open to learn new things and the wide involvement of our colleagues, willing to share knowledge. The demand for Elkem’s products is customers and other stakeholders, expected to increase in the coming we create openness and teamwork
8 Elkem sustainability report 2014 Management systems for responsible conduct
Elkem’s internal control system works systematically to achieve this goal. Elkem does not contribute to political oversees the conditions in the workplace Reports are prepared for each business parties. that can affect employees’ health and area every month. The reports include an safety or negatively affect the environ- overview of high risk incidents and near- Elkem’s guidelines for social respon- ment, and are kept within the rule of law, accidents as well as lessons to prevent sibility describes areas of responsibility rules and licenses, and Elkem’s policy. similar incidents to occur in the future. within the organisation and routines for ensuring compliance with Elkem’s Elkem’s risk management instructions Elkem’s ethical guidelines apply to ‘Principles for social responsibility’. emphasise all types of risks that can all Elkem employees. The guidelines The principles address our responsibility affect the business. The purpose of the address each employee’s responsibility for safeguarding basic human rights, the instructions is to ensure a systematic for ensuring that Elkem maintains a high employees’ rights as workers, environ- approach to risk management within EHS standard, for ensuring that discrim- mental concerns, a sustainable exploita- Elkem. Risk management shall ensure ination and harassment do not occur, tion of natural resources and business that risks that are significant to Elkem’s for the prohibition on corruption, the integrity. goals are surveyed, analysed and management of confidential information, handled at as early a stage as possible compliance with competition rules and Elkem’s supplier requirements impose and in a systematic and cost-efficient for accuracy in public reporting. A basic requirements on suppliers regarding manner. It is Elkem’s experience that principle is that all employees shall com- human rights and responsible environ- investment in proactive risk-reducing ply with and respect the law wherever mental management. Elkem’s standard measures carries significantly lower they are. procurement contracts refer to Elkem’s costs than acting retroactively. principles for social responsibility as a Elkem has a whistleblowing procedure requirement for signing contracts. ‘Focus’ is Elkem’s programme for that employees can use to note their Elkem provides training and implements environment, health and safety in the concerns about possible breaches of supplier audits, and continuously work workplace. Elkem has a goal of zero Elkem’s ethical guidelines or other possi- with the goal of ensuring compliance injuries and occupational illnesses, and ble unethical or illegal actions. throughout the value chain.
Elkem sustainability report 2014 9 PARTNERSHIPS Working together
Working together with local communities, regulatory authorities, organisations, politicans, researchers and other interested parties outside the company forms an important part of Elkem’s activities.
Local communities member of the Federation of Norwegian Organisations Many of Elkem’s plants are cornerstone Industries. The EU is also an important Elkem maintains extensive dialogue with companies that are very important to actor when it comes to determining the numerous environmental organisations in the development of local communi- policy framework for industry. Elkem is order to share knowledge about various ties. Maintaining a good dialogue with therefore active in European industry environmental topics associated with the neighbours and local politicians is organisations such as Euroalliages and operation of Elkem’s plants and to sup- therefore important. Elkem is a long- Eurometaux. port the professional and political work term partner in local communities. It is of these organisations. occasionally necessary at some plants Directorates and supervisory to organise public meetings to inform authorities people about potential hazards from Elkem’s activities are regulated by a operations and the measures that are number of laws, regulations and require- being taken to protect both the company ments in the countries in which we oper- and the local community from adverse ate. This entails maintaining an extensive impacts. One example of this is Elkem dialogue with, and reporting to, various Solar in Kristiansand. The company is supervisory bodies such as directorates subject to the Norwegian Major Accident and supervisory authorities. Elkem wants Regulation and is therefore obliged to to be a constructive partner. We comply hold regular information meetings for with applicable local regulations. At the local residents. same time, we are an active partner that wants to comment on what new instruc- Research centres tions will entail when they are imple- Elkem works extensively with many mented, and suggest changes. research centres around the world. Elkem’s researchers are based in Funding systems Kristiansand and at the Norwegian Support for R&D projects, especially in University of Science and Technology Norway and the EU, is important when (NTNU) in Trondheim. They work closely Elkem implements major, expensive R&D with institutions such as SINTEF, NTNU, projects on energy efficiency, reducing the Institute for Energy Technology emissions and other improvements. (IFE), and Teknova/University of Agder, Enova, the Research Council of Norway, and carry out industry projects through Innovation Norway, Siva, the business the Norwegian Ferroalloy Producers sector’s NOx Fund, the Environmental Research Association and the Eyde- Fund, and private actors such as the network. Our international research Competence Development Fund of partners include institutions such as Southern Norway, are important partners the Wuhan University of Science and in Norway. Elkem also receives funding Technology (China), L’Ecole des Mines under the Horizon 2020 programme in d’Alès (France), Fraunhofer Institute and the EU. Technische Universität Bergakademie Freiburg (Germany), Texas A&M The employees of the future University System (USA), Okayama Elkem wants to encurage young people University (Japan), KTH (Sweden) and to choose science subjects and educa- the University of Central Lancashire (UK). tions that are relevant to the industry. In addition to recruiting apprentices Business policy and trainees, Elkem uses school visits, Elkem’s centre of gravity is in Norway workweek placements, trade fairs and and the company wants to contribute other forums to meet pupils and students to, and influence, the general conditions near our production locations around the for Norwegian industry. This involves world. Employees in Elkem also teach in communicating what various policies upper secondary schools and universi- require and implicate when they are put ties via teacher programmes and adjunct into practice at plant level. Elkem is a professorships in Norway.
10 Elkem sustainability report 2014 ELKEM BUSINESS SYSTEM Tools for continuous improvement
Elkem Business System (EBS) is a set of fundamental principles, methods and tools that describes how employees at all levels should conduct themselves and how the organisation should work together to achieve common goals and continuous improvement. EBS forms the foundation of Elkem’s corporate culture and operations.
Individual responsibility performing his/her duties is an important to the underlying system and technical One of the main EBS principles is that management task in Elkem. Job obser- equipment. Those who perform the people are the driving force. Therefore, vation and cooperation, team organi- tasks are the experts, and together they each Elkem employee is encouraged and sation and annual appraisal interviews constitute Elkem’s resource base. We expected to actively find and suggest provide a basis for the professional attempt to live up to our core values in all potential improvements to the processes and personal development of Elkem’s of our activities, including collaboration he or she is involved in. In order to employees. with suppliers. ensure that everyone can take part in and contribute to improvements, all of The four main principles of Elkem 3. Eliminating waste Elkem’s plants have established arenas Business System are: Eliminating all forms of waste lies at for active daily improvement efforts. the heart of Elkem’s goal of continuous 1. Make to use improvement. Management responsibility The customer’s needs are always in Another key principle of EBS is that man- focus. This is also the case internally in 4. Processes in control agers must have in-depth knowledge Elkem, where everyone in the organisa- All processes shall be stable and predict- about critical processes. Therefore, tion is regarded as interlinked suppliers able, and variations shall be avoided. Elkem’s managers are present in the and customers in a value chain. Value organisation and regularly visit produc- added is a key component, both in rela- tion facilities to see for themselves what tions with our customers and suppliers is happening, talk with employees about and in our own organisation. production flow and any other issues, and encourage and discuss suggested 2. Empowered people improvements. Giving direct, specific Elkem ascribes 70 per cent of its suc- feedback on how each employee is cess to human input and 30 per cent
PROSESSES IN CONTROL
Elkem sustainability report 2014 11 ELKEM EMPLOYEES Continuous development
Elkem’s managers, together with Human Resources (HR), are responsible for ensuring that Elkem’s employees have the skills the company needs and that the Elkem Business System (EBS) is actively practised at all levels of the organisation. Along with technology and process know-how, improvement skills, i.e. EBS, are the core skills in Elkem.
Elkem employees portfolio in 2014 and now carries out with diverse backgrounds are obvious At year-end 2014, Elkem had 2,127 management development on multiple strengths for the company. Proximity to employees. Around half of these were levels and with a greater geographic the markets and good teamwork across working as operators at Elkem’s pro- breadth than before. The management geographic, cultural and individual dif- duction plants in Norway, Canada, development programmes are intended ferences are necessary for the company Brazil, China and Iceland. Elkem has to provide Elkem’s managers with train- to achieve its goals. EBS is based on sales offices in a number of countries ing in the practical challenges managers every employee playing an important and approximately 200 of its employees face, as well as a professional top-up role. Elkem’s employees are specialists were working in sales at year-end 2014. and an opportunity to build internal net- in their fields and should be listened to. Elkem’s total R&D staff at group and divi- works. This enables managers to learn This ensures both good operations and sional level number around 160 employ- from each other and aids the transfer of the best solutions when challenges arise. ees. Elkem’s head office is in Oslo, which skills across divisions and plants in the Elkem’s internal recruitment rules and its is also the base for central administrative global company. code of conduct for employees prohibit functions. all forms of discrimination. Elkem Business System (EBS) Apprentices and trainees Elkem’s EBS centre is a resource Corporate democracy Elkem actively uses the Norwegian centre and provides support to Elkem’s Elkem has been through many major apprenticeship scheme and Elkem’s divisions and plants when it comes to reorganisations in its more than 110- global trainee scheme to ensure the implementing EBS. All business areas year history. The international market group’s companies have a skilled work- also have dedicated personell with both Elkem operates in is highly competitive force in the future. A total of 48 appren- in-depth knowledge about EBS and the and exposed to market fluctuations, tices are currently training at Elkem’s division’s operations who has respon- and the need for restructuring is a plants. 10 of these are young women. sibility for ensuring that EBS is imple- constant challenge. Good teamwork We have a total of six trainees: four mented in the division. HR at the plant between employees and managers is women and two men. is, together with the local management, a prerequisite if Elkem is to cope with responsible for developing the plant in what are at times demanding market Skills development line with EBS principles. conditions, and has a long tradition of Elkem operates in a demanding market employees and managers working well in which there is a great need for con- Equal opportunities together. All plants and other units in tinuous development. The improvement The process industry is generally male Norway have unions representing both work needs to be fast paced and of good dominated. However, Elkem has noticed operators and administrative personell. quality. This means that employees’ that with more automation and less Outside Norway, Elkem complies with skills need to be developed constantly. heavy manual work, women are increas- local statutory requirements and values Elkem believes that the best way to ingly expressing an interest in working in good teamwork with, and the extensive develop people is for them to partici- the process industry. The percentage of involvement of, employees. In Norway, pate in improvement work and problem female employees has increased slightly five formal committees have been cre- solving in their day-to-day work. Elkem in recent years, but remains low. Elkem ated for contact between the company also offers a number of in-house training wants to achieve a better gender balance and employee representatives. Pursuant activities and courses to strengthen the among its employees and is striving to to the provisions of the Companies Act company’s core skills. Willingness to ensure that the proportion of female employees have two representatives and take on new duties and responsibilities trainees is at least 50 per cent. The total two observers on the board of Elkem AS. is also very important for an individual’s proportion of women in Elkem is 21 per learning and development. cent.
Management development Mutual respect Capable managers are a necessity for an Elkem is an international company with organisation that wants to obtain good Chinese owners and production and results. Elkem therefore further expanded sales offices in many countries. Having its global management development a global presence and employees
12 Elkem sustainability report 2014 Elkem sustainability report 2014 13 ENVIRONMENT, HEALTH AND SAFETY Zero tolerance for injuries and strains
Elkem’s health and safety work is based on a philosophy where we will not accept injuries or illnesses being caused by our working environment, and will do everything in our power to prevent them.
In the last few years the number of successful it is crucial that there is high 3. All injuries and high risk incidents injuries per year and the seriousness of awareness of safety throughout the have causes. The causes are always the injuries have stabilised at a relatively organisation at all times. linked to dangerous situations, dan- low level for the vast majority of units in gerous actions, or a combination of Elkem. However, injuries still occur and The injury prevention principles are these. Reporting and investigating all prevention work will be further intensified based on knowing the potential hazards, incidents and injuries allows us to find in 2015. understanding the likelihood of potential the causes and eliminate them before hazards occurring and their conse- they lead to more serious harm. Elkem experienced 22 injuries requiring quences, and effective work to eliminate medical treatment amongst our employ- or reduce potential hazards to an accept- 4. Effective prevention requires risk ees in 2014, the same number of injuries able level. Much of the prevention work identification, risk analysis, and the as in 2013. Three of Elkem’s 18 plants also focuses on behaviour, since statis- implementation of measures in order to accounted for half of these injuries, while tics show that the vast majority of injuries reduce unacceptable risk to an accept- seven of the plants experienced no inju- are caused by the actions of individuals. able level. ries at all. Typical injuries are sprains and small cuts or crush injuries to hands. The ‘Focus’ 5. Success depends on all employees most serious injuries were a number of ‘Focus’ is Elkem’s programme for envi- being actively involved in the EHS work instances where parts of fingertips were ronment, health and safety (EHS) in the and sharing the responsibility for ensur- amputated. workplace. ‘Focus’ is closely linked to ing a safe working environment. the Elkem Business System (EBS), and Our experience from the last few years the emphasis is on continuous improve- Assessed by the management shows that many plants manage to ment and each employee’s responsibility The status of the EHS work is discussed achieve zero or only one injury year after to contribute to good results. ‘Focus’ has every week at division and group man- year. This means that it is possible to five fundamental principles: agement level. Serious incidents and achieve a target of zero. Unfortunately, personal injuries are presented and dis- experience also shows that achieving 1. Improvements have no limits. cussed so that the lessons learned can zero injuries one year is no guarantee help lower the injury rates further. that injuries will not occur the following 2. All incidents and injuries can be year. To ensure that the EHS work is prevented (zero philosophy). Reporting and investigating all adverse
14 Elkem sustainability report 2014 incidents form an important part of exposure to hazardous situations com- Elkem’s improvement work. Reports pletely through technical measures on are produced by business areas every systems and equipment. In such circum- month. The focus is on serious incidents stances personal protective equipment and injuries, as well as reporting for must be worn. One example of this is official statistics. Detailed presentations exposure to dust, which in some work of the course of events that led up to an operations is at a level that necessitates incident, including root causes and les- the use of protective masks. sons learned, are produced for all seri- ous incidents. This enables the lessons However, personal protective equipment learned to be shared with other plants may give a false sense of security if one and similar incidents to be avoided at does not ensure that the equipment fits other locations in the future. and that the user is well trained in the use and maintenance of the equipment. Modifying hazardous equipment Elkem is currently running a long-term work in the relevant workplace is best One example of good prevention work project focusing on respiratory protective introduced and followed up for summer was the elimination of potential hazards equipment where employees who have temps and new employees. as part of the rebuilding of a lathe for to use protective masks can test the air- machining finished baked electrodes at tightness of their masks during use with The topics in 2014 were: Elkem Carboindustrial in Brazil. The pro- advanced measuring equipment. People ject stressed machine safety by correctly are different and it is therefore necessary • Lessons learned from 2013 protecting movable parts and safely to find out whether the mask allocated is • Noise using lifting equipment by remotely being used correctly, that it actually fits, • Energy insulation controlling the crane hook so that oper- and that it is airtight. • 5S (order, cleaning) ators did not have to stand as close to • Temporary staff the material during lifting operations. A Elkem also has a dedicated product • Hand and finger injuries series of other improvements were also committee tasked with purchasing and • Dust explosions achieved in the following areas: testing new personal protective equip- • Behaviour ment to ensure the best protection in all • Falls on same or lower level • Noise level work situations. • Dust level Sick leave • Wearing work position Topic of the month The average sick leave rate for Elkem’s • Potential falls Elkem’s central EHS staff circulate a spe- employees was 3.4 per cent in 2014, • Energy insulation during cleaning and cial presentation on an important topic compared with 3.7 per cent in 2013. maintenance almost every month. The first topic of the Ongoing activities to reduce sick leave • Better order and cleaning year is normally a review of injuries and include closely following up each lessons learned from the year before. employee during periods of absence and Testing protective equipment Before the summer holidays they always implementing adaptations to facilitate It is not always possible to eliminate review how the EHS standards and EHS graduated sick leave.
TREND IN NUMBER OF INJURIES per million work hours SICK LEAVE IN PER CENT
25 6,0
5,0 20
4,0 15 3,0 10 2,0
5 1,0
0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
No. of lost time injuries per million work hours (H1) No. of total injuries treated (H1 + H2)
Elkem sustainability report 2014 15 ENVIRONMENT, HEALTH AND SAFETY EHS audits for continuous improvement
Elkem’s own specialists carry out environment, health and safety (EHS) audits of all plants at two-year intervals. The goal is that all plants shall have the same high standard, in line with both Elkem’s own requirements and the statutory requirements, regardless of where they are located in the world.
An EHS audit of a plant is well planned No guarantee Checklist for Elkem’s EHS audits and lasts for up to three days, depending A good score one year is no guarantee on the plant’s size and complexity. The for achieving the same good result in the 1 5S, housekeeping & storage primary focus is safety, but health and the next audit, two years later. In addition 2 Fall control external environment are also touched to control and discussions about check upon. The management at a plant that is points and the company’s EHS system, 3 Mobile equipment audited must assess its own systems and plenty of time is set aside for inspections, 4 Confined space entry performance before the visit. The plant observing work situations, and discus- gives itself a score of one to ten, where sions on improvements in operations with 5 Energy isolation – lockout tag-out try ten is the best, for a list of factors. operators in each work area and manag- 6 Molten metal ers in charge. The purpose is to answer Improvement and learning questions, share best practice, and agree 7 Dust control The participants in the group that con- on clear standards. 8 Machine safety ducts an audit can vary, but as a rule they include Elkem’s EHS director, the The audit report includes a report where 9 Hot work and gas EHS manager in the relevant division, factors associated with the check points 10 Electrical safety and one or two EHS managers from are described with text and photos. The other plants. This ensures both the par- photos make it possible to communi- 11 Cranes, tackle and lifting equipment ticipation of best possible EHS expertise cate the message and standards to all 12 Emergency preparedness and the dissemination of best practice. employees, regardless of linguistic skills. Audits are not just about checking stand- They also make it easier to see the pro- 13 Projects and contractor work ards, they are also important tools for gress made from one audit to the next. 14 Fire prevention improvement and learning. Audits help to ensure that plants stay up-to-date on the 15 Personal protective equipment development of requirements and best 16 Chemicals and fibers practice and that they actively work on improving their systems and prevention 17 Environmental issues activities. 18 Buildings and structures
16 Elkem sustainability report 2014 EXAMPLE OF A AUDIT REPORT
Focus area: Comments / pictures:
Vehicle standard Generally good standard, but forklifts are not in compliance with corporate standard (open)
Vehicle condition and cleaning Generally good, but some defects on mirrors and seatbelts observed. Boundaries should be put around whole vehicle when defective.
Vehicle signals / lights
Pre-use checklist Good improvement from last audit
Vehicle / pedestrian segregation Good improvements in many areas
Traffic plans / signs and signals Speed limits and right of way not posted
Loading / unloading Good control with behavior during loading
Securing of load Load securing on finished products is not done on many trucks – must check legal requirements
Observed driving behaviour Behaviour varied between drives from very good to OK – seatbelts observed not in use 2 times
Some deviances observed – OK Overall good, but some key observations Deviations observed - need for more focused work
EHS-SYSTEM ASSESSMENT FOR ONE OF ELKEMS PLANTS 2009 - 2015
Commitment Work practice 5 controls Organising 2015 4 2013 3 Incident Education and 2010 management 2 training 2009 1
0 Hazard control Communication environmental
Hazard Measurement control health
Hazard control safety Risk assessment
Elkem sustainability report 2014 17 ENERGY AND THE ENVIRONMENT Energy efficiency and scrubbing measures in Elkem
Problem Measures Where Solution provides
Unused thermal energy from Energy recovery plant for All plants Hot water and steam for reuse production sale of hot water, steam or or sale electricity Poor resource utilisation Electricity for sale Unnecessary (indirect*) CO2 emissions Better resource utilisation Lower (direct*) CO2 emissions
Unnecessary electricity Ensuring stable furnace All plants Lower electricity consumption consumption for furnace operation and continuous operation development of optimum Better resource and raw material furnace operation utilisation Poor resource and raw material utilisation
Unnecessary electricity con- Energy efficiency measures All plants Lower electricity consumption sumption for plant operati- ons, other than furnaces
Poor resource utilisation and Better resource utilisation and higher costs lower costs
Inadequate control of silicon Collection of dust in scrub- All silicon and Valuable by-product dust from production bing system connected ferrosilicon plants – microsilica to silicon and ferrosilicon Less pollution and better quality Local pollution and loss of furnaces of life in local environment sellable by-product Processes under control Better reputation for the industry
Inadequate control of dust in Development of production All plants Improved working environment the workplace methods for avoiding dust and EHS results Deterioration of the working generation environment Reduced time/costs for cleaning Wasting sellable by-product Better extraction and and maintenance More cleaning and cleaning maintenance Sellable by-product
NOx emissions Introduction of new feed Elkem Silicon Up to 40 per cent lower NOx method, new furnace Materials’ plants in emissions Poorer air quality in the local design in line with research Norway environment results
SO2 emissions Use of raw materials with Raw material use in all Eliminates SO2 emissions less sulphur where plants Poorer air quality in the local appropriate. Plans for SO2 capture at Better reputation for the industry environment, odour SO2 capture and scrubbing Elkem Carbon Fiskaa
Runoff to the sea and Better control of diffuse Elkem Carbon Fiskaa Reduced supply of polluted dust ground of pollutants emissions into the surroundings that can be dispersed further by water Bio-purification of polluted Elkem Carbon, Brazil rain water at plants in Clean water tropical climates
* All of Elkem’s energy recovery facilities are installed in areas where the electricity is generated by hydroelectric power. Therefore, CO2 emissions are only reduced indirectly as the electricity that is no longer consumed by Elkem’s plants can be exported to areas where it can replace, for example, gas or coal power.
18 Elkem sustainability report 2014 EMISSIONS A circular economy for the climate and environment
Elkem’s sustainability philosophy is based on the general principle of producing as efficiently as possible and with the maximum reuse of all side streams, i.e. materials and energy.
Elkem’s goal of zero waste means that are credited with quotas for heat sales, year, while costs will vary according to the company attaches great importance energy recovery or using biocarbon for CO2 prices as before. to the recovery and use of side stream- chemical reduction. ing of all kinds. A circular economy, New technology where production and consumption are Regional quota schemes can present a Absolute emissions of CO2, NOX, and part of a cycle, is necessary if the world’s problem for companies that operate in a SO2 (sulphur) will in the short-term first population is to live well within the global market. For this reason the EU’s and foremost vary with production levels, earth’s resources. One example of this and Norway’s schemes to compensate because it takes a long time to change is described in the article ‘Zero waste to for the indirect effects quota trading production technology. This also applies landfill’ from Iceland on page 42. has on energy prices in Norway are very in those areas where technological important. Even though the ETS price breakthroughs have been made in the Elkem’s goal is to ensure that all the is currently low, it nonetheless entails form of scrubbing and changed pro- plants are equipped with suitable energy a mark-up in energy prices that has a duction processes, because phasing in recovery systems. Around 200 GWh significant effect on companies that new technology is often expensive and was recovered in 2014 in the form of consume a lot of power, such as Elkem. complicated. Elkem expects a significant electricity and 400 GWh in the form of Elkem received compensation of NOK drop in NOX and SO2 as new technology 1 steam and hot water. Examples of this 31 million in 2014 for the impact that becomes available. As far as net CO2 are described in the articles from Canada prices for CO2 had on energy prices. emissions are concerned, it will gradually and Bjølvefossen on pages 42 and 43. This compensation scheme is important become possible to utilise more biolog- to counter ‘carbon leakage’, i.e. com- ical materials in the reduction process In 2013, Elkem’s plants in Norway and panies in the European Economic Area as replacements for fossil coal. You can Iceland became subject to the EU’s (EEA) relocating outside the EEA and read more about this on pages 20, 24 system for trading CO2 quotas. Energy thus moving their emissions to another and 29. recovery measures at the plants and region. Both the awarding of free quotas the high consumption of charcoal over and the compensation for the impact of The work on reducing dust emissions many years result in lower net emissions the prices for CO2 on energy prices are has produced good results in recent of fossil CO2 and thus less need to pur- temporary schemes that will be gradually years. You can read about Elkem’s work chase quotas. tightened, meaning that Elkem’s alloca- on reducing dust emissions from silicon tions via these schemes will shrink each production on page 21. 242,000 quotas Elkem’s silicon and ferrosilicon plants are based on hydroelectric power, which means there are zero CO2 emissions 2 from electricity consumption. The CO2 CO2 EMISSIONS thousand tonnes SO2 (sulphur) EMISSIONS tonnes emissions largely stem from the actual production processes. You can read why 1500 7500 silicon production results in CO emis- 2 1450 7000 sions on page 24. 6500 1400 6000 In 2014 Elkem purchased 241,740 CO2 1350 quotas to cover its CO2 emissions from 5500 1300 the plants in Norway and Iceland, all of 5000 1250 which are covered by the EU’s emission 4500 trading system (ETS). This accounts 1200 4000 for about 22 per cent of Elkem’s allo- cated quotas. Companies like Elkem 1150 3500 are awarded 75 per cent of their needs 1100 3000 based on historical product data, but 2011 2012 2013 2014 2011 2012 2013 2014
1) Elkem appealed the decision and this was upheld by the Ministry of Climate and Environment in March 2015. However, the final amount of compensation has yet to be finally determined. 2) The increase of CO2 emissions from 2013 to 2014 is a result of full utilisation of production capacity in 2014.
Elkem sustainability report 2014 19 EMISSIONS
New investments result in lower NOX emissions
Furnace 2 at Elkem Salten was upgraded in the spring of 2013. The rebuild reduced the furnace’s NOx emissions by 40 per cent. This successful project will be continued with the rebuilding of the plant’s Furnace 3. Elkem’s solution to NOx emissions provides opportunities for significant environmental benefits in the smelting plant industry worldwide.
20 years of research and development lie in a greener way all over the world. The 2013. The result, a 40 per cent reduc- behind Elkem’s investments in furnace research and development work was tion in NOx emissions, was better than operations with significantly reduced NOx supported by the Research Council of expected. emissions. Elkem’s technological team Norway. in Trondheim has, in collaboration with Furnace 3 - the next project SINTEF/NTNU, developed a thorough Better than expected The rebuilding of Furnace 3 at Salten understanding of the formation of NOx The newly developed technology was has been approved as the next NOx at the top of furnaces. Much of the credit tested when Furnace 2 was rebuilt in the reducing project. The goal is to reduce for the results goes to an interdiscipli- spring of 2013. A new hood design, i.e. the furnace’s NOx emissions by 40 per nary team of representatives from Elkem the design of the top of the furnace, and cent, i.e. 425 tonnes per year. The rebuild plants and Elkem Technology. It is the the rebuilding of the oven for continuous is also expected to increase the yield fruit of patient efforts over many years supply of raw materials are the most of raw materials and produce further that are now being put into opera- important modifications. The effects of environmental benefits beyond the NOx tion. Elkem is sharing the results of its the rebuild were modelled at SINTEF/ reduction. One of the main challenges research so that other silicon smelting NTNU based on the results from pilot is that the modifications will be made plants around the world can benefit from tests and computer simulations. There while the plant is operational. Elkem’s them. The goal is that this knowledge will was a great deal of excitement surround- philosophy of zero EHS injuries serves as help to ensure that metals are produced ing the start-up of the new furnace in a guideline and one of the project’s main goals is for it to be completed without any EHS injuries.
Elkem Salten received support for rebuilding Furnace 2 from the NOx Fund. The NOx Fund will also support the rebuilding of Furnace 3. The sup- port from the fund was the catalyst that ensured the completion of project. Salten Furnace 1 and the furnaces at Elkem’s
• Nitrogen oxides (NOX) are gases that smelting plants in Bremanger and Bjølve- How is NOX formed? lead to higher concentrations of tro- fossen are on the list of future projects. Silicon is the most common element pospheric ozone and acid precipita- in the earth’s crust. It is extracted from tion. These emissions can be harmful the mineral quartz. In its natural state, to ecosystems and vegetation, as tonnes* silicon is ‘married’ to oxygen. This is a well as health. NOX EMISSIONS marriage that only a very high tempe- • In Norway, the transport sector acco- 8000 rature can dissolve. Temperatures must unts for 58 per cent of the collective reach 1,500-2,000 degrees Celsius 7000 emissions, while industry accounts before silicon will release the oxygen 6000 for 11 per cent. it is bound to the quartz; only then 5000 does the substance become a useful • Elkem accounts for about 3 per cent 4000 product. of Norway’s total NOX emissions. • The business sector’s NO Fund 3000 Much of the released oxygen remarries X is a team effort in which affiliated 2000 with the carbon in coal, coke or companies can apply for support for wood in the furnaces and turns into 1000 emissions reducing measures. The CO2. But some lonely oxygen atoms processing industry does not pay 0 seeking a partner will always manage into the fund, but can still receive 2011 2012 2013 2014 to bind themselves to nitrogen in the support for cost-effective measures. The increase of NO emissions from 2013 to air instead and thus become nitrogen X 2014 is a result of increased production in 2014. oxides (NOX). * Elkem’s emissions globally
20 Elkem sustainability report 2014 EMISSIONS Fight against dust shows results
Capturing dust generated during tapping and casting molten metal is especially difficult. The fight against dust is a top priority in Elkem, and is fought on many fronts. The results for 2014 show that these efforts have produced good results.
Dust is a health hazard and a pollutant. been developing new types of local anti-dust action plans that include a series Dust also means waste because dust exhaust ventilation for the tapping area, of minor and major measures. One exam- particles are products that have gone which is one of the most difficult emission ple of an individual measure is changing astray. Dust ruins equipment, creates points for combating dust. This compre- the cleaning methods employed. Vacuum a need for intensive cleaning, and pre- hensive work has involved both mathe cleaning instead of sweeping or blowing vents choosing the optimum equipment. matical modelling and empirical data. away dust has produced great results. Elkem allocates significant resources to Broad participation from across the Elkem Changing work position in relation to dust combat dust for many reasons. However, organisation has been vital to the results. sources can also significantly reduce an extremely high temperatures and ultra individual’s exposure. fine particles that disperse very quickly Installed on several furnaces make it especially difficult to capture An industrial pilot for local exhaust ven- Good results the dust generated during tapping and tilation for the tapping area (‘doghouse’) Major investments and continuously casting molten metal. was installed on Thamshavn Furnace 1 improved routines have produced both in 2013. A similar system will be installed better working environments and lower Research and development on Bremanger Furnace 4 in 2015, and a diffuse emissions, i.e. emissions from The FUME research project identified planning study linked to installing similar a plant from sources other than chim- tapping and casting as primary sources local exhaust ventilation on Salten Fur- neys. Elkem improved the measuring of dust in the production of (ferro-)silicon. nace 1 has been completed. The technol- methods throughout 2014 to ensure that The project focused on understanding ogy is relevant for all of Elkem’s smelting all instances of diffuse emissions are the problem and new solutions for dust plants, but many concept studies and caught. The results have improved con- collection near sources with gas temper- technical calculations remain to be car- siderably, even with record high produc- atures of up to 1,400 degrees Celsius. ried out before the solution is tailored to tion and more extensive measuring. A new four-year research project was the different furnaces, each of which has initiated in 2015. This is intended to its own peculiarities with respect to pro- External interest produce knowledge about how nanoparti- cessing and structural conditions. Install- Dust is a problem for smelting plants all cle-sized, ultrafine dust is generated, how ing local exhaust ventilation technology over the world and Elkem’s development it affects health, and how employees can also involves major investments. The new work and practical experience of imple- be protected from it. The project has been technology will be introduced in line with menting new technology is of interest named ‘Demaskus’ and is a partnership furnace upgrades in the coming years. to many. For example, Ragnhild Jensen between, amongst others, SINTEF, NTNU from Elkem was a keynote speaker at a and St. Olavs Hospital. Fund supporters Action plans large conference in 2014 in Johannes- include the Research Council of Norway Not all dust fighting measures involve burg, South Africa. This brought together and the Norwegian Ferroalloy Producers investments that cost millions. Based on representatives from the African smelting Research Association. dust measurements that indicate the loca- industry. Elkem also publishes its dust tions with the greatest dust exposure, all research results. In parallel with this research, Elkem has of Elkem’s smelting plants have adopted
DUST EMISSIONS tonnes*
2500
2000
1500
1000
500
0 2011 2012 2013 2014
* Elkem international numbers
Elkem sustainability report 2014 21 ENERGY Energy leadership
Silicon alloy production is very energy intensive. Elkem’s production plants consume around 5 TWh of electrical energy every year, and around 7 TWh is consumed in the carbonaceous reduction materials used in the process. Elkem has introduced measures that have resulted in the recovery of around 600 GWh every year.
By introducing energy management into of Elkem’s plants are located in sparsely external or internal district heating. all plants, Elkem is in the process of ana- populated areas there is little demand lysing the total potential for increasing for heat from local communities or other Maintaining an intense focus on energy energy efficiency and investing in new industry. efficiency has made Elkem Thamshavn solutions that will contribute to major and Elkem Chicoutimi the world’s most improvements. The second method for energy recov- energy efficient plants for silicon and ery is based on using surplus heat to ferrosilicon production, respectively. The Energy efficiency produce electricity. In this case one first potential in Elkem’s other plants is also The most effective method of reducing has to convert it to high pressure steam/ enormous and a large number of projects the energy lost per produced tonne high temperature steam and then feed have been set in motion to realise this of silicon is to make the production it into a turbine and generator that gen- potential. process more energy efficient. Although erates electricity. The advantage is that Elkem has some of the most energy the electricity can be fed into the power Energy management efficient smelting furnaces in the world, grid. The problem is that two thirds of the Elkem is currently introducing energy we continue to work systematically on energy is lost. management systems that comply with improvements via a dedicated research ISO 50001 at all of our plants. This pro- and development project called Si 2020, Both methods are currently in use in cess has showed that even small meas- which focuses on smelting furnace Elkem. Elkem Thamshavn generates ures, such as better insulation, motor design, process control, and using raw around 160 GWh of electricity every inspections, lighting management, seal- materials more efficiently. Read more year. Elkem Bjølvefossen generates ing leaks in compressed air systems, and about Si 2020 on page 30. 50 GWh of electricity every year and is heating and cooling control, can produce now making investments to increase substantial savings, even though each Energy recovery this to 80–85 GWh. Elkem’s plant in individual measure is relatively small in From the smelting process, two main Chicoutimi, Canada, currently has the itself compared with the energy con- pathways result in energy recovery. Both capacity to supply up to 220 GWh of sumption of a smelting furnace. Potential have their advantages and challenges. steam each year to the Rio Tinto plant energy savings of 10 per cent (not linked that is its nearest neighbour. This is a to furnaces) have been identified. For the The first method is based on letting recovery rate of 70–85 per cent of the Norwegian plants, this entails 30 GWh of surplus heat be used directly in the form electrical energy supplied to Elkem saved energy per annum. This is equiva- of steam or hot water. Using steam and Chicoutimi. In addition to this, all of the lent to the electricity consumed by 2,000 hot water is very efficient, but since most plants recover more than 200 GWh as Norwegian households.
22 Elkem sustainability report 2014 Energy recovery: Energy management: The CNMP project: Upgrading the energy recovery plant at Almost all of the plants in Norway have At the end of 2014 Elkem’s Carbon Elkem Bjølvefossen with a new steam identified and started projects, with or Neutral Metal Production (CNMP) turbine plus a number of other improve- without support from Enova, aimed at project received NOK 7 million from the ments will increase production from saving energy and reducing specific uses Research Council of Norway to develop waste heat from around 50 GWh a year of energy. Below are a few examples: a concept that combines charcoal to more than 80 GWh a year. The project production with silicon and ferrosilicon is scheduled for completion in 2015. • Elkem Bremanger is implementing a production and energy recovery in both programme that includes new fre- processes. Using 100 per cent charcoal The main study for a new energy recov- quency management and new filters will make it possible to raise energy ery plant at Elkem Salten with the poten- that will save around 22 GWh a year. recovery up to the same level as the tial to recover 300 GWh a year has been • Elkem Bremanger and Elkem need for electrical energy in Elkem’s carried out. A final decision is pending. Thamshavn are implementing a number smelting furnaces. The increased use of projects for new casting technology of charcoal will also reduce our CO2 and classification technology that will emissions from fossil sources by up to produce higher yields equivalent to 95 per cent. 30 GWh of energy saved per year. • Elkem Salten and Elkem Solar have commenced work on a number of investments in new electrical equipment that will save up to 10 GWh a year.
Elkem sustainability report 2014 23 BIO CARBON Charcoal in silicon production
Charcoal is regarded as CO2 neutral. Using charcoal instead of fossil coal in the production of silicon and ferrosilicon could reduce Elkem’s CO2 emissions significantly. This is a key part of Elkem’s sustainable production strategy.
Silicon is produced using quartzite rock. easy available, fossil coal is a financially tigated the possibility of buying charcoal Silicon is formed in a chemical process attractive alternative. However, it is the from production plants in equatorial under high temperatures in a smelting main source of Elkem’s current CO2 countries where biomass grows rapidly furnace filled with quartz and carbo- emissions. that could provide a basis for indus- naceous materials. The process in the trial-scale charcoal production. Elkem furnace causes the oxygen in the quartz Elkem already uses some charcoal in the requires charcoal of a defined quality to bind with the carbon. Quartz that is smelting process and has for many years in large quantities for its production, free of oxygen is silicon. The carbon that researched the quality-related, techni- and buying a little from here and a little binds with oxygen becomes CO2. That is cal and practical aspects of replacing from there from small producers is not a why producing silicon always produces fossil coal with charcoal. Charcoal has practical alternative. Our experience from CO2. advantages as an ingredient in the smelt- these projects shows that the risk of ing process, but also disadvantages, becoming directly or indirectly involved Using charcoal because it contains trace elements that in deforestation, human rights violations, Today Elkem primarily uses fossil coal as diminish the quality of some of Elkem’s and corruption is very high. the carbonaceous material in our silicon products. and ferrosilicon production. Fossil coal Sustainable charcoal has many advantages: Elkem requires Dilemma Elkem has to establish very strict extremely large quantities of carbo- The main challenge today is that there controls for charcoal suppliers to avoid naceous materials of many different is no functioning market that can supply becoming complicit in such violations. qualities and the global fossil coal market the quantity of charcoal Elkem needs in Elkem has adopted a specification of can meet its needs. As well as being its production process. Elkem has inves- requirements for sustainable charcoal,
24 Elkem sustainability report 2014 THE SILICON (AND FERROSILICON) PROCESS
RAW MATERIAL Cleaned Carbon Quartz Consumable process gas electrodes
Electric energy
Boiler Filter
Crater
Liquid metal
Crushing Solidification Refining
Sizing Electric or heat MICROSILICA energy recovery
SILICON PRODUCTS
which all suppliers must satisfy, as Norway and, given the current situation, A collaboration has been established a basis for the further work on these estimates show that charcoal based on with the industry, the Norwegian issues. The requirements stipulate that Norwegian timber would be many times Ferroalloy Producers Research the timber must come from a sustainable more expensive than fossil coal. This Association (FFF), and the Norwegian source, that the working conditions in the would raise production costs and could authorities to both analyse opportunities production process must be acceptable result in Elkem’s products being priced and find sustainable solutions. and comply with human rights, and that out of the market. Such a situation would there will be zero tolerance of corruption be bad for the climate because most of Elkem is also working on technologies and breaches of the law. Elkem’s competitors in the global market and research that in the future may make use fossil coal in both their silicon pro- Norwegian timber attractive. The ultimate Norwegian timber duction and their energy production. goal is for Elkem to become carbon Charcoal produced using Norwegian neutral in the production of both silicon timber as the raw material does not carry Elkem wants to increase the proportion and ferrosilicon. Read about our CNMP the same degree of risk with respect to of charcoal in its production processes. project on page 29. sustainability, corruption, and human We are actively seeking business oppor- rights. The challenges here are availabil- tunities that makes it possible to increase ity, volume and price. Nor is there cur- the use of charcoal that are ethically and rently a production plant for charcoal in financially sustainable.
Elkem sustainability report 2014 25 ENVIRONMENT Monitoring plant water quality
Along with other industries located next to water, Elkem’s six Norwegian plants were ordered in 2014 by the Norwegian Environment Agency to draw up a programme for monitoring water quality. The monitoring must be performed in 2015 in compliance with the requirements stipulated in the Water Regulations.
Earlier experience of water be building up in the fjord (or other is well managed regardless of local monitoring in Elkem bodies of water) over a longer period. authority, county or national borders, Elkem Carbon and Elkem Bremanger and that each river basin district will, have already carried out water monitoring Monitoring in 2015 over time, achieve defined environmental on their own initiative for many years All the plants will now monitor water in goals. It is the catchment area and natural due to regulated, legal emissions to sea. line with the requirements of the Water boundaries that determine which river Elkem Bremanger started already back Regulations. For some of the plants this basin areas should be viewed together. in the 1980s. Elkem Solar and Elkem actually means reducing the scope of The causes of any poor environmental Carbon, which are both located at Fiskaa their previous water monitoring pro- conditions must be identified so that in Kristiansand, have collaborated on a gramme. The Elkem plants’ monitoring relevant measures can be implemented joint monitoring programme since 2010. programmes were approved by the to achieve improvements. Norwegian Environment Agency in the The Kristiansand fjord has long been one first quarter of 2015. The programmes The Ministry of Climate and Environment of Norway’s chosen pilot fjords for water describe various measurement param- bears national responsibility for coor- monitoring and Elkem has participated eters such as the possibility for mussel dinating and following up the Water in the ‘Fjordgruppa’ in Kristiansand consumption and sediment contamina- Framework Directive in Norway. The for many years. This is a collaboration ton, all depending on what is relevant responsibility for implementing measures between local authorities, county for the individual plant. The monitoring and monitor these will be divided accord- governors and local industrial actors with will take place during the summer/ ing to the ‘polluter pays’ principle. links to the Kristiansand fjord. Elkem early autumn of 2015. The results will Bjølvefossen has on its own initiative determine whether or not the monitoring The Water Regulations divide Norway monitored mussels since 2002, after it will continue for the rest of 2015. This into eleven water regions. The regions closed its landfill sites. Monitoring water decision will be made by the Norwegian vary greatly with respect to size and the is new for Elkem’s plants in Thamshavn Environment Agency in consultation with challenges they face. The water region and Salten, and the plants will, as in the consultants who will take samples authority must ensure the work is well Bjølvefossen, mainly monitor potential and assess the results of the monitoring. coordinated and guide it by putting run-off from its landfill sites to nearby in place plans and measures for each rivers and the fjord in 2015. Monitoring Natural boundaries region. Each body must attain better water sources near industry and landfill The EU Water Framework Directive environmental goals over a six-year sites is generally a good supplementary will be implemented in Norway via the plan period, i.e. by 2021, 2027 or, in method for checking Elkem’s own Regulations on a Framework for Water exceptional circumstances, 2033. emissions. It also helps discover any Management (Water Regulations). The adverse environmental effects that may goal of legislation is to ensure that water
26 Elkem sustainability report 2014 FINANCIAL RESULTS Profitable growth from a solid base
In 2014 the Elkem group achieved an annual profit after tax of NOK 303 million following growth in turnover of 11 per cent. Better markets, stable operations and favourable exchange rates made positive contributions to our financial performance in 2014. The company also expects profitable growth in 2015. Elkem has solid equity and almost no interest-bearing debt.
Elkem’s operating income in 2014 was shares in March 2014. In 2014, Elkem’s in Norway and REC Solar’s plant in NOK 8,652 million, compared with NOK share of the result in Elkem Solar was Singapore. 7,789 million in 2013, a rise of 11 per included on the income statement line cent. The increase was due to better ‘income from associated companies and Investments and R&D prices, favourable exchange rates and joint ventures’. Developing new, sustainable materials higher volumes. and production methods is considered The equity in the Elkem group amounted strategically important to securing a solid The net operating profit (EBIT) was NOK to NOK 8,757 million at year-end 2014. market position in the future. 611 million, compared with NOK 418 The equity ratio was 79 per cent, inclu- million in 2013, an increase of 46 per sive of minority interests. The company Elkem spent NOK 99 million on research cent. Greater demand for Elkem’s prod- had almost no interest-bearing debt. The and development in 2014. Among the ucts also led to higher selling prices. In company is owned by Bluestar Elkem most important projects are measures for addition to this, a weaker NOK exchange International in Luxembourg, which in increasing furnace efficiency, reducing rate had a positive impact on the result, turn is controlled by the China National the formation and emissions of NOx although it also resulted in higher prices Bluestar Group. and dust, and developing a completely for raw materials. High capacity utilisa- new method for carbon neutral metal tion resulted in somewhat higher costs Solar business production. as well. The weaker NOK produced In 2014, Elkem Solar was deconsolidated losses in the group’s currency hedging from the Elkem group after Guangyu NOK 546 million was invested in 2014. programme. International acquired 50 per cent of NOK 102 million of this was defined as the shares in March 2014. In November strategic investments. This includes the The annual profit after tax was NOK 303 2014 Bluestar Elkem Investment HK construction of an electrode paste plant million, compared with a loss of NOK announced an agreement to purchase in Malaysia, a new ferrosilicon produc- 628 million in 2013. The annual result for 100 per cent of the shares in REC Solar. tion plant in Paraguay (joint venture), 2013 was negatively impacted by Elkem The plan is to optimise the value chain the acquisition of MSC Europa GmbH, Solar to the tune of NOK 477 million. In from quartz extraction through to sales and a new energy recovery facility in 2014, Elkem Solar was deconsolidated of finished solar cell modules. This will Bjølvefossen. from the Elkem group after Guangyu be done through a close partnership International acquired 50 per cent of the between Elkem Solar’s plant in Fiskaa
OPERATING INCOME BY BUSINESS AREA NOK MILL. EMPLOYEES BY BUSINESS AREA
100% 9000 100%
80% 8000 80%
60% 7000 60%
40% 6000 40%
20% 5000 20%
0% 4000 0% 2008 2009 2010 2011 2012 2013 2014 2008 2009 2010 2011 2012 2013 2014
Other Silicon Materials Foundry Carbon Elkem group
Elkem sustainability report 2014 27 Elkem Technology
Elkem is dedicated to advancing the production of metals and materials through long term R&D and innovation projects. Through Elkem Technology more than 150 R&D professionals cooperate with notable research institutions around the world to develop more efficient, sustainable and advanced processes and products that the world needs.
28 Elkem sustainability report 2014 ELKEM TECHNOLOGY Elkem’s future is carbon neutral
this: Elkem is conducting research into tion. Elkem hopes to find an answer to Elkem is among the world’s cleanest the possibility of producing charcoal this dilemma. metal manufacturers but still emits at the same plant where ferrosilicon around 1.3 million tonnes of CO2 and silicon are produced and connect Research into zero waste each year. This may now be coming these production cycles to a thermal Elkem’s technological partners in the to an end. A research project in power plant. At optimal levels, the power project are SINTEF Energy Research generated will be greater than the power and Teknova. The research project is Elkem will lay the groundwork for full consumed. It will also be possible to scheduled to conclude by the end of scale production without net CO2 produce condensate, which can then be 2016. Elkem will then decide whether the emissions and without a net supply refined. project will be continued with large-scale of energy. tests in laboratories and industrial pilot The research project has been named plants. Carbon Neutral Metal Production (CNMP) It has long been acknowledged that it is and has been awarded NOK 7 million in CNMP is based on Elkem’s principle of possible to replace fossil coal with char- funding from the Research Council of zero waste: all the materials and energy coal, thus substantially reducing net CO2 Norway over a two-year period. Elkem’s put into production must be utilised. emissions depending on the amount of own investment will be just over NOK 8 charcoal used. Quartz consists of silicon million in the same period. The results Elkem has applied for patent protection and oxygen. The job of the carbon is to of the project could in the long-term, for CNMP, which will involve connecting release the oxygen. This takes place in a change how metal is produced around three plants: chemical reaction at high temperatures. the world with the corresponding positive Charcoal may increase the yield from the impact on CO2 emissions from smelting • A pyrolysis plant for the production process, meaning more silicon can be plants. To date, producing the metals the of charcoal and condensate. extracted from the quartz. world needs to build renewable energy • A smelting furnace for the production sources such as solar power and wind- of ferrosilicon or silicon. Revolution mills has been inextricably linked to the • A thermal power plant for the But Elkem’s ambitions are greater than CO2 emissions from the metal produc- production of electricity.
Elkem sustainability report 2014 29 ELKEM TECHNOLOGY Si 2020 – improved production process
The basic principles of silicon production are around 100 years old. A number of different improvement measures have resulted in a considerably better process. In 2011 Elkem decided to start a research programme that would carry out a thorough review of each step of the production process to examine the residual potential that remains with regard to better material yield and reduced losses, lower emissions, and more efficient energy consumption.
The Si 2020 research programme is a Broad research • CoRReSi is developing a new concept ten-year research project in Elkem that The goal of the Si 2020 programme has for the refining process through actively aims to improve the entire production been to establish research projects at controlling the temperature during the process for silicon (Si) and ferrosilicon universities and university colleges that refining process and through basic (FeSi), from the choice and supply of var- are directly linked to the internal projects research into the chemical reactions ious raw materials to casting metal and and are supported by the Research that take place in the metal ladle during the finished silicon product. Si 2020 has Council of Norway and the EU. The the refining. Other participants: SINTEF, identified a huge potential. The goal is following research projects have been Teknova and KTH in Stockholm. to find and develop new technology and established as part of the Si 2020 production methods that can increase programme: • CorSiCa is tasked with developing the silicon yield in the processes, from mathematical models of how casting quartz to finished product, while lowering • ESiP’s goal is to improve energy silicon and the subsequent cooling energy consumption and emissions and consumption in the furnace process by determines product quality and recom- making the processes cleaner and safer developing a new operation support mend equipment designs and opera- for employees. system that utilises new measure- tion methods to utilise this new knowl- ments, new understanding, and new edge in operations. Other participants: The Si 2020 programme consists of var- mathematical models of what is hap- SINTEF and Teknova. ious sub-projects that focus on selected pening inside the smelting furnaces. steps in the production, as shown in the Other participants: Cybernetica and • ReCoBa is an EU project aimed at figure below. Between 2012 and today, SINTEF. improving process control during research projects have been started in refining and casting. The project has the following areas: • BiOCarb+ is tasked with developing ten participants from a number of new knowledge about production and countries. Other industrial companies 1. Improving Elkem’s understanding of the use of biomass as a reduction involved include BASF and Thyssen the properties of raw materials and material in FeSi and Si processes. Other Krupp. how these affect the process. participants: SINTEF ER, NTNU, NFLI, 2. Improving Elkem’s understanding of Eyde-network and Norsk Biobrensel AS. Improved energy efficiency fundamental aspects of designing and The ESiP (Energy efficient Silicon operating smelting furnaces. • SiNG is looking into how natural gas Production) research project consists of 3. Developing new methods of monitoring can be used as a reduction material in subprojects 1, 2 and 3 in Si 2020 and furnace surfaces. FeSi and Si processes and studying includes the development of methods 4. More efficient refining of silicon and chemical reaction patterns in smelting for monitoring furnace surfaces, studies ferrosilicon. furnaces with the aim of increasing the at SINTEF of material and energy flows 5. Investigating how thin casting silicon extraction percentage of silicon by in the furnace process, and mathemati- can reduce losses and improve product 5 per cent. Other participants: SINTEF cal modelling of the furnace process at quality. and NTNU. Cybernetica. ESiP’s goal is to improve energy efficiency in silicon production
POSSIBLE IMPROVEMENTS IN EACH STEP OF THE PRODUCTION PROCESS
Charging Charge Off gas Microsilica Microsilica system surface Combustion formation production Raw Furnace materials Electrode Tapping Refining Product Casting operation process process quality
30 Elkem sustainability report 2014 through the use of a new operation sup- Producing results a smelting furnace in one of the smelt- port system that will be developed on the Elkem has already seen that Si 2020 has ing plants. This has resulted in better basis of new measurements, new pro- produced results. Findings from the ESiP operational stability and a very high cess understanding, and mathematical project have already been used in the silicon yield from this furnace. models. The project has received funding operation of the smelting furnaces. from the Research Council of Norway for Elkem University 2013-2016. • Camera systems have been installed The dissemination of new knowledge to to monitor the furnace surfaces at the rest of the Elkem organisation is a Silicon is extracted from quartz. With the two smelting plants. The new systems priority task. The main channel for this current methods of silicon production have proved important aids in manag- is the Elkem University, where process 80-85 per cent of the silicon is extracted. ing the furnace. engineers and other employees from The goal of the ESiP research project • New knowledge has been developed Elkem’s melting plants take part in a one is to increase the utilisation of the raw about how the material properties week ‘university’ with lectures on fun- material by at least 5 per cent without of the quartz raw material affect the damental process knowledge at which increasing energy consumption. By man- furnace process. A new test and the results from the Si 2020 projects are aging the production processes better, measurement programme for quality presented. The Si 2020 programme also Elkem can achieve energy savings of assuring quartz has been established offers shorter courses in specific fields. 200 GWh, if the method can be imple- based on this new knowledge. The Si 2020 programme also includes mented throughout the group. The • The mathematical models for the doctoral programmes at NTNU and KTH. Si 2020 programme focuses on maximis- furnace process and new process ing the silicon yield from raw materials to knowledge has been used to establish the finished marketable product. new, improved operating methods for
Elkem sustainability report 2014 31 ELKEM TECHNOLOGY Bringing industry together at a new research centre
A research centre headed by the a basis for growth and the formation of increasingly important, however in order Norwegian University of Science and new companies. to manufacture metals with the desired Technology (NTNU) will ensure that properties based on recycled metal it Five research areas must be possible to remove impurities. the Norwegian metallurgical industry Research is also needed into the utilisa- remains a world leader within energy- • Developing modelling tools for basic tion of all side-flows and waste/slag from efficient, environmentally friendly conditions production. and competitive production. Key NTNU and SINTEF have implemented a number of collaborative projects with the • Emissions and the environment Norwegian metal manufacturers were industry in order to quantify how mate- Norwegian producers lead the world behind its establishment, including rials develop throughout the production when it comes to environmental perfor- Elkem. processes. There is a need for exact data mance, low emissions and using the best in order to describe the materials’ prop- available technology (BAT). Nevertheless, From April 2015 the Norwegian met- erties in various conditions. The devel- there is a clear expectation from both the allurgical industry will stand together opment of computer tools to optimise industry and society that we need to do behind the name SFI Metal Production. production would be of considerable even better. SFI is an abbreviation for the Norwegian practical significance for the industry. name of the Centre for Research-Based • Metals and society Innovation (Senter for Forskningsdrevet • Primary metal production This field of research is based on some Innovasjon) and is a programme run by Metal production requires access to dilemmas linked to the production of the Research Council of Norway. The large quantities of good raw materials metal. member companies include manufac- and energy, and the processes involve • Metal production is based on limited turers of ferroalloys, aluminium and heavy CO2 emissions. Improved knowl- raw materials. titanium, academic institutions and the edge about raw materials is in all of the • The earth’s critical levels have already supply industry. project participants’ interests. The same been exceeded in many areas. applies to process improvements that • Today’s social and environmental The project is scheduled to run for eight could reduce energy consumption. challenges cannot be solved by market years and has a total budget of NOK 247 forces alone. million. NOK 102 million has been con- • Refining and recycling tributed by the industry, NOK 96 million Recycling materials is becoming has been contributed by the Research Council of Norway and NOK 50 million has been contributed by academic insti- tutions. The plan is to provide 15 new PhD studies in disciplines that fall within Project participants the project’s research fields. Academic institutions: Three main goals NTNU, SINTEF and Teknova
• Sustainable innovation: to provide Industry: industry in Norway with the best possible Hydro, Alcoa, Elkem, conditions for developing new, sustain- Eramet Norway, FESIL, able products and greener and more Finnfjord, Glencore Manganese energy and cost-effective production Norway, Wacker Chemical processes. Norway, Tizir Titanium & Iron and Alstom. • World leading research: to combine resources for implementing, testing and Glencore Nikkelverk and experimenting in industrial pilots to form Boliden Odda (zinc production) the basis for ground-breaking global are likely to join as partners projects. from 2018.
• Industrial growth: to create the foun- dations for quicker implementation of technological breakthroughs and ensure a more uniform utilisation of these in a total production run. This will produce competitive advantages that will provide
32 Elkem sustainability report 2014 Elkem sustainability report 2014 33 Elkem Silicon Materials
Elkem Silicon Materials is Elkem’s largest business area and one of the world’s leading suppliers of metallurgical silicon and microsilica. Elkem Silicon Materials supplies special products to customers in the chemical, solar, electronics, aluminium, construction, refractory, and oilfield industries worldwide.
34 Elkem sustainability report 2014 ELKEM SILICON MATERIALS Promising research into silicon batteries
Elkem’s research department has Special silicon Silicon and graphite been continuously charging and Elkem is carrying out research into Elkem has its own divisions of special- discharging a silicon test battery developing the silicon material that ists on both carbon and silicon who, works best in batteries. Elkem currently together with the Institute for Energy since September 2014. The results sells special silicon, Silgrain® e-Si, Technology (IFE) and SINTEF have tried so far are promising: the capacity produced at the plant in Bremanger. to find mix proportions with silicon that of the battery is more than that of Customers use Silgrain® e-Si in battery can withstand enough charging cycles current lithium batteries. tests, or in silicon/lithium batteries. for it to be used in, for example, a car. The watchmaker Breitling is one of the Gluing together microscopic particles of companies that have started using such silicon and graphite leaves enough room The more efficient the battery, the more batteries. Silgrain® e-Si was developed in in the structure for the silicon elements useful electricity becomes as an energy collaboration with a Japanese research to expand and contract without the sub- source. Silicon for batteries could centre, AIST Kansai. stance being pulverised. be a large market for Elkem. If this is achieved, as most people believe it In theory it will be possible to increase In 2015 Elkem Technology will conclude will be, this could be a market in which battery capacity tenfold by using silicon a three-year research project into the use Elkem could deliver thousands of tonnes as the anode. The problem with silicon, of silicon as the anode in lithium batter- a year. More efficient batteries will also however, is that it expands 400 per cent ies. Ongoing tests indicate that the new make solar energy, which is one of when it reacts with lithium during dis- anodes more than double the storage Elkem’s most important ventures, more charge. This can lead to the pulverisation capacity of lithium batteries compared useful. of the anode, meaning the battery cannot to today’s graphite anodes. be recharged.
Elkem sustainability report 2014 35 ELKEM SILICON MATERIALS – LEADERSHIP AND SUSTAINABILITY Vision 2050 and leadership
The Vision 2050 document from World Business Council sets a vision for the future: In 2050 9 billion people live well within the limits of our planet. To get there we must all dramatically change course.
In Elkem we believe that the innovative power of the business sector will and must make a huge contribution to get the world on track toward the Vision 2050 scenario. We also believe that the companies that deliver the innovative solutions the world needs will be those that succeed. Good future solutions will contribute to lower emissions, more efficient raw material utilisation and greater energy efficiency. Continuous processing saves energy In 1918 Elkem patented a method that freed smelting Elkem’s Leadership programme is a two-year management plants from having to cool down furnaces and stop pro- development programme for management talents in Elkem. duction when the electrodes were exhausted and had The programme includes participants from Norway, Spain, to be replaced. The method is called the Söderberg India, Iceland, Denmark, Canada, China, the Netherlands and method. The invention led Elkem to become a world- Germany, who have varied backgrounds and ties to the various wide technology company. Around 75 per cent of all business areas in Elkem. As part of the programme some of the smelting plants and furnaces worldwide use technology participants have been asked to prepare a report on whether and equipment purchased from Elkem. they believe Elkem has what it takes to survive the future sce- nario outlined in Vision 2050. The group will submit its analysis to Elkem’s executive management group in the autumn of 2015. A number of measures have already been identified that indicate that Elkem is on the right path in many areas when it comes to contributing to the solutions that are sought in Vision 2050.
Even smaller CO2 footprint for solar cell electricity Elkem Solar, which was established in 2009, produces silicon for the solar cell industry. Elkem’s method means that the production only consumes one quarter of the energy consumed by competi- tors. Ongoing development will reduce the energy Representatives from the Leadership group together in Kristiansand: Bente consumed even further. This makes solar cell energy Håland (Norway), Ivar Helvik (Norway), Florensio Quiros (Spain), Lotte Harlø even more climate friendly. (Denmark), and Brajesh Malviya (India).
Environmental problem becomes a profitable product Thick, white smoke used to pour from the silicon smelting plants’ chim- neys. A big environmental problem, but also the worst kind of waste: the smoke contained a profitable product with fantastically useful properties. Elkem Microsilica® is an emissions problem that has been turned into a profitable product. Elkem developed the scrubbing process and identi- fied uses for the silicon dust. This has resulted in a far lower impact on the environment from silicon plants the world over.
36 Elkem sustainability report 2014 CO2 neutral metal production To date, producing the metals the world needs to use renewable energy sources such as tsolar power and windmills has been inextricably linked to CO2 emissions. Metal production also requires great quantities of energy. The aim of Elkem’s ground-breaking CNMP (Carbon Neutral Metal Production) research project is to find a solution to this dilemma.
The goal is for Elkem to produce charcoal that will replace fossil coal at the same plant that produces ferrosilicon and silicon. These production cycles will be connected to a thermal power plant. In an optimum thermal power plant the power generated will be greater than the power consumed. It will 40 per cent lower NOx emissions also be possible to produce bio-oil, which can then Furnace 2 at Elkem Salten was upgraded in the spring of 2013. The be refined. The results of the project could in the rebuild reduced the furnace’s NOx emissions by 40 per cent. A similar long-term change how metal is produced around rebuild will be carried out on a number of Elkem’s furnaces and Salten the world with the corresponding positive impact Furnace 3 is first in line. on CO2 emissions from smelting plants.
Nitrogen oxides (NOx) are exhaust gases that cause acid rain and The research project is scheduled to conclude by higher concentrations of ground-level ozone. These emissions can the end of 2016. Elkem will then decide whether be harmful to ecosystems and vegetation and also to health. Elkem’s the project will be continued with large-scale tests solution provides opportunities for considerably lower NOx emissions for in laboratories and industrial pilot plants. the smelting industry worldwide.
A green alternative A lot of research and testing remains, but Elkem Carbon has already marketed and introduced a product in which coal tar pitch has been replaced with a binder based on substances from wood. ELSEAL® Type G has been developed for the aluminium industry. A steadily increasing number of customers want to use this new product that contains no PAHs or other hazardous substances, does not require the use of protective masks during installation, and does not produce hazardous waste.
Systematic continuous improvement More sustainable solutions are achieved through both technolog- ical leaps forward and continuous improvements. Eliminating all forms of waste is at the core of Elkem’s definition of what contin- uous improvements entail: all of the raw materials and energy put into production must be utilised. Elkem Business System (EBS) provides the foundation for Elkem’s corporate culture and operating philosophy, and is an important weapon in the fight against waste. EBS describes how Elkem’s employees at all levels should conduct themselves and how the organisation should collaborate to achieve continuous improvements.
Elkem sustainability report 2014 37 ELKEM SILICON MATERIALS International language of improvement
Traditionally Elkem Business System economics, HR and legal departments. When Elkem’s employees learn how to (EBS) has been used at the plants, use EBS, it is first and foremost through as an improvement tool. Elkem Common platform working on concrete situations where Elkem Silicon Materials operates in many improvements are required. Silicon Materials has systematically countries. This extensive EBS process tried to ensure that all employees has shown that EBS provides employees One case that was chosen in the EBS in the division work according to with different professional backgrounds, training in Shanghai involved how to the principles in EBS. The result is different areas of responsibility, and reduce the turnover rate, i.e. how many different cultural backgrounds with a employees leave in the space of a year. increased competitiveness. common frame of reference. Thanks The turnover rate in Shanghai companies to the EBS training, which practically is generally around 18 per cent. This is Elkem Business System (EBS) describes all employees in the organisation have very high and means that companies in how employees at all levels should undergone, a common ‘language of Shanghai spend an unnecessarily large conduct themselves and how the organ- improvement’ has been established that amount of resources on recruitment and isation should work together to achieve everyone understands. EBS provides training new personnel. common goals and continuous improve- a common cultural platform across ment. Because EBS is the essence of national boundaries and professional Elkem’s business in Shanghai is more Elkem’s corporate culture and operating affiliations. fortunate with turnover of less than 5 per philosophy, it is important that it is really cent. The HR department drew up a case ingrained in all employees. After two years, the results are as that involved how Elkem could manage follows: to sustain this low turnover rate. What That is why the whole of Elkem Silicon has a positive effect that makes people Materials’ organisation in Europe, • Better process stability at all plants want to stay with the company? What do America and Asia for two years have • Greater yields from most furnaces the competitors offer? Are new meas- worked on how the division can use EBS • Greater uptime ures needed to sustain this low rate? to improve its competitiveness. Elkem • Fewer quality non-conformities The participants in the workshop were Business System (EBS) has expanded • Lower maintenance Elkem’s employees in sales and adminis- from being an improvement tool for the trative positions in China and other Asian plants to also cover purchasing, sales Learning from tangible situations countries. and marketing departments, finance and At the core of EBS are improvements.
38 Elkem sustainability report 2014 ELKEM SILICON MATERIALS Elkem Silicon Materials’ plants
Elkem Bremanger, Norway Elkem Salten, Norway Established 1928 Established 1967 No. of employees 105 No. of employees 165 Produces Silicon for electronics and solar cells. Produces Silicon for aluminium, chemicals Elkem Microsilica® for concrete and (silicones) and electronics/solar cells. oil wells. Elkem Microsilica® for concrete, refractory Certifications ISO 9001 certified since 1990. materials and polymers (plastic/rubber). ISO 14001 certified since 1999. Certifications ISO 9001 certified since 1991. ISO/TS 16949 certified since 2007. ISO 14001 certified since 1999. Certified in accordance with EN Certified in accordance with EN ® 13263-1:2005 Microsilica® for concrete. 13263-1:2005 Microsilica for concrete.
Elkem Thamshavn, Norway Elkem Tana, Norway Established 1930 Mine established 1973 by Sydvaranger AS, acquired by No. of employees 155 Elkem 1983 Produces Silicon for chemicals, aluminium and No. of employees 38 of whom 22 are employed by Elkem solar cells. Elkem Microsilica® for Tana and 16 by a subcontractor. concrete and refractory products. Produces Quartzite for the ferrosilicon and silicon Certifications ISO 9001 certified since 1992. industry, both for Elkem and for external Certified in accordance with EN plants. 13263-1:2005 Microsilica® for concrete. Certifications ISO 9001
Elkem sustainability report 2014 39 Elkem Foundry Products
Elkem Foundry Products is a leading supplier of metal treatment solutions to the cast iron industry and also supplies high quality, specialised ferrosilicon products to the steel industry. The products, which are well-supported by our experienced technical service teams, provide innovative solutions for iron foundries and steelworks worldwide. Our main customers are the car industry, pipe manufacturers and engineering companies.
Facts Elkem Foundry Products
Ferro is a prefix that indicates a link to iron, and ferrosilicon is an alloy consisting of a combination of iron and silicon. Ferrosilicon is produced by carbothermal reduction of quartz. Quartz reacts with carbon (in coal, coke, woodchips) under high temperatures. Iron is added during the process.
Various ferrosilicon qualities are used in the steel industry, where silicon is used to remove oxygen in the steel melt. It is also used as an alloying addition to make various steel grades. The amount of ferrosilicon added depends on the steel quality: e.g. stainless steel (sinks, cutlery, kitchens), steel for elec- trical purposes (motors, generators, trans- formers), carbon steel (railway tracks, coils) or specialty steel (ball bearings, tools).
Inoculants are ferrosilicon-based alloys that contain iron, silicon, and other minerals such as barium, calcium, aluminum, zirconium, strontium and cerium. These are alloys that are added to cast iron (both grey and ductile cast iron) in order to get the desired iron qualities (machinability, thermal conductivity, strength etc).
Ferrosilicon-magnesium contains iron, silicon, magnesium, calcium, aluminum and rare earth elements. The alloy is added to cast iron in order to make ductile cast iron.
40 Elkem sustainability report 2014 ELKEM FOUNDRY PRODUCTS Elkem helps lower car industry emissions
In its pursuit of climate friendly also key to more energy efficient cars. Less waste – better products solutions, the car industry is Elkem Foundry Products is always look- choosing engines made of cast New cars are being built with turbo ing for more efficient and environmen- chargers to increase the energy effi- tally friendly solutions for its production iron to meet the requirements for ciency of the engine. This means that processes. Using renewable energy, low CO2 emissions. Elkem Foundry the engines do not need to be as large, recovering heat from the furnaces, and Products supply vital input for although the higher pressure and tem- utilising all residues is part of Elkem modern car engines. peratures in the engines does mean that Foundry Products’ strategy. they have to be more solid. Production mistakes are expensive Transport accounts for around one quar- Myth on cast iron and not environmentally friendly. Elkem ter of global CO2 emissions. The greatest Because cast iron is three times as heavy Foundry Products’ job is to produce alloys contributor is the private car fleet. Both as aluminium it is a common perception that improve the production process of the EU member states and other coun- that a cast iron car engine must be heav- iron foundries and steelworks the world tries have therefore passed regulations ier than a similar one in aluminium. This over. Technical experts (the service team) that force through significant reductions is not correct. Cast iron is stronger and from Elkem Foundry Products visit cus- in emissions. The EU has adopted regu- stiffer than aluminium and can, therefore, tomers around the world to ensure they lations that state that all new cars must be produced with thinner walls, which are using alloys that are suitable for their have maximum emissions of 130 grams makes them lighter. end products and the production process. CO2 per kilometre in 2015 and 95 grams per kilometre by 2021. The reduction Environmental benefits Elkem Foundry Products’ service team from 2015 to 2021 will be 26 per cent. Using cast iron also has other environ- gathers several times a year to share The reduction from the level in 2007 will mental benefits: experiences. This means that customers be 40 per cent.1 always have access to the best practices • The production of cast iron is up to ten from around the world. This is one exam- Lighter cars times less energy intensive than the ple of how Elkem’s vision of zero waste is CO2 emissions are proportional to fuel alternatives. disseminated. consumption. In the pursuit of more • 100 per cent of the cast iron produced energy efficient cars there are a lot of with input from Elkem can be recovered. A special market manager was appointed factors at play, but two things are the • The cast iron industry represents an in 2014 who specifically focuses on the most important: Reducing the weight important part of the recovery industry: car industry to help them achieve their of cars and increasing the engine’s 80-90 per cent of the iron that is pro- goals. utilisation of fuel. Since the engine is the duced usually comes from recovered heaviest part of the car, the engine is scrap.
Cast iron • Inoculants are added to ensure the cast iron achieves the properties the end product requires. This is ferrosili- con with aluminium, calcium, barium, zircon, strontium or cerium added. • Adding Elkem’s alloys enables iron foundries to produce iron products with the best possible properties and with low error margins with respect to mechanical properties, surface quality, machinability and casting mistakes. All foundries are different. Elkem therefore has many different inoculants and around 100 different ferrosilicon- magnesium qualities to choose from. • Cast iron has been in use for more than 2,500 years. © arosoft / Shutterstock.com
1) http://ec.europa.eu/clima/policies/transport/vehicles/cars/index_en.htm
Elkem sustainability report 2014 41 ELKEM FOUNDRY PRODUCTS Zero waste to landfill
A clear goal has been set for Elkem the plant. The word ‘waste’ is no longer plant also has a 10 per cent stake in Foundry Products’ plant in Iceland: used: all side streams are resources with the recovery company Endurvinnslan. nothing from the production process potential value and should be described Elkem Iceland is working together with appropriately. industrial companies throughout Iceland should end up in landfill sites. With- to find solutions that can increase reuse out any increased cost, impressive One prerequisite for implementing meas- and lower landfill rates by offering to take progress has been made. ures is that they should not increase over fractions that Elkem can use in its costs; rather they should improve the own production. This could, for example, financial situation. This double sustain- be using recycled construction materials In 2010 34 per cent of all side streams ability principle means that the risk of as a source of carbon during the smelt- from the plant’s production ended up in setbacks is reduced, because the recy- ing process. This produces lower net landfill sites. In 2011 the management cling of side streams also has positive CO2 emissions because the construction and employees set a clear goal for them- financial results. materials are biological and regarded as selves: zero waste to landfill. climate neutral. There are many physical side streams No time limit was set because no one in a large ferrosilicon plant: ore, ‘fines’, knew how this ambitious goal should be timber, plastic, iron, paper, cardboard, PERCENTAGE OF WASTE SENT achieved in detail. Instead, goals were food waste and so on. The idea is to TO LANDFILL set for a year at a time, based on ideas reduce the waste and thereafter sort it. 40 and knowledge they accumulated. What can be used in the plant’s own 35 This method has produced results: from production is put back into the process. 35.4 per cent ending up in landfill sites What Elkem cannot use is sent to other 30 in 2010, the plant was down to 11.3 per forms of recovery. Ultimately, one is left 25 cent in 2014. In 2015, the goal is to get with fractions where no way of reusing 20 below 10 per cent. or recovering has yet been found, that 15 presently end up in landfill sites. 10 Good finances Achieving the goal of 100 per cent Working together 5 recovery of the side streams has The vast majority ends up in a landfill 0 necessitated changing the culture at site owned by the industry itself. The 2010 2011 2012 2013 2014
More electricity from the world’s oldest energy recovery plant
With support from Enova Elkem is 2016. The plan for the plant is to gen- crisis in 1973 was an eye opener for the expanding and upgrading the energy erate 77 GWh by then. The electricity world for the need to improve energy generated will be fed into the grid and consumption. Since the plant was going recovery plant in Bjølvefossen, which cover the power consumed by around to be rebuilt, it was natural to try to find has been in operation since 1977. 4,000 Norwegian households. solutions in which the energy is used. For The investment means that the plant Elkem’s part, the expectation of changes will increase the energy recovered Prescient in the Norwegian power regime, with the from around 50 to 80 GWh per year. When Bjølvefossen’s energy recovery end of state power contracts, was an plant was constructed in 1977, it was important factor in the decision to make The electricity generated is fed into the world’s first in the industry. Bjølve- the investment.’ the grid. fossen has recovered energy from both of its furnaces since 1982. Energy prices The energy recovery plant in Bjølve at the time were very low, which made fossen is to undergo a significant rebuild energy recovery not very profitable. Jon that aims to both improve energy Kildahl, who was the managing director efficiency and ensure that the plant at the plant from 1981-1987, explains the complies with new statutory require- background for the remarkable decision ments. The project has a budget of NOK to make the investment back in 1974: 116 million. The extensive upgrade of ‘The authority’s order to scrub emissions the plant started in October 2014 and is from chimneys meant that the plant had expected to be completed in February to be modified. At the same time, the oil
42 Elkem sustainability report 2014 ELKEM FOUNDRY PRODUCTS Energy efficient plant in Chicoutimi becomes even better
One of the furnaces in Elkem Foundry’s con. This has resulted in the furnace pro- Elkem Chicoutimi is in every way a plant in Chicoutimi, Canada, was ducing more heat in the form of exhaust modern, sustainable production unit. gases than before. The heat from the gas The plant uses electricity generated expanded and redesigned in 2014. that goes to the recovery plant has also by its own hydroelectric plant and the As well as increased ferrosilicon increased from 400 to 600 degrees Cel- quartz is obtained locally. The plant uses production, the rebuild resulted in sius. Both provide a basis for more steam a larger proportion of wood chips as a more energy efficient furnaces and production. The plan is to raise the exhaust reduction agent than what is normal in more recovered energy. gas temperature further to 700 degrees the industry and leads the way when it Celsius. This means that, under optimum comes to recovering ‘fines’, i.e. small conditions, the plant can produce 38 particles of the finished material that About 3 kilometres away from Elkem tonnes of steam per hour, which is equiva- would otherwise be regarded as waste. Foundry’s plant in Chicoutimi, its neigh- lent to 210 GWh of recovered energy. At Elkem Chicoutimi, this is added to bouring company, Rio Tinto Alcan, needs the tapping ladle in molten metal that a lot of hot steam. This used to be met 40 per cent lower CO2 emissions has just been tapped from the furnace. by a number of boilers fired by oil or Rio Tinto Alcan’s CO2 emissions have This means more product without higher natural gas. In 2013, Elkem opened a been considerably reduced thanks to energy consumption. recovery plant that produces some of the the steam from Elkem. The delivery steam the neighbouring plant needs. This of 140 GWh of steam reduces emis- Surveyed footprint means that Rio Tinto Alcan has reduced sions by around 40,000 tonnes. The In 2012 the university in Chicoutimi its consumption of heating oil and gas, annual emissions of CO2 from Elkem’s conducted a study of the CO2 footprints and thus reduced its emissions of CO2 plant in Chicoutimi are around 100,000 of Elkem Chicoutimi’s 20 most important and other exhaust gases. tonnes, meaning that 40 per cent of the products by surveying the emission of emissions are indirectly offset by the CO2 equivalents throughout the produc- More steam production neighbouring company. The upgrading tion chain. This provides the customers The power consumed by the furnace has of Elkem’s plant will result in further with information about the CO2 footprint increased from 28-30 MW to 34 MW in reductions from Rio Tinto Alcan. Elkem Chicoutimi’s products adds to the order to increase the production of ferrosili- customer’s own processes and products.
Elkem Foundry Products’ plants
Elkem Bremanger, Norway Elkem Iceland Elkem Chicoutimi, Canada Established 1928 Established 1975 Established 1967 No. of employees 87 No. of employees 146 No. of employees 96 Produces Ferrosilicon-based Produces Various ferrosilicon Produces Ferrosilicon-magnesium, alloys (inoculants) grades ferrosilicon-based alloys Certifications ISO 9001, ISO 14001, Certifications ISO 9001, (inoculants), various ISO TS 16949 ISO 14001 ferrosilicon grades. Certifications ISO 14001-2004 ISO 9001-2008 Elkem Bjølvefossen, Norway Established 1905 Elkem Foundry China No. of employees 154 Established 2005 Produces Ferrosilicon- magnesium and No. of employees 63 various ferrosilicon Produces Ferrosilicon-magnesium grades Certifications ISO 9001:2008, Certifications ISO 9001 and ISO OHSAS 18001-2007 14001 (ISO 50001 is planned Q4/2015)
Elkem sustainability report 2014 43 Elkem Carbon
Elkem Carbon is a world leading supplier of carbon electrode materials, lining materials and specialised carbon products for metallurgical processes for the production of ferro-alloys, base metals and primary aluminium. Elkem Carbon serves the metallurgical smelting and primary aluminium industries.
44 Elkem sustainability report 2014 ELKEM CARBON Clean is profitable
The systematic work on combat- Interdisciplinary improvement groups standard, which facilitates effective work ing dust has borne fruit for Elkem work on dust reducing measures where against dust. According to the Floor of Carbon. The plants in Norway and the goal is to eliminate root causes. The excellence standard all shifts must leave strategy is to remove the largest sources the production premises clean and tidy. China are leading the way in the of dust first. Eliminating these has ena- battle against dust. In 2014, the bled the company to achieve major dust Inspiring requirement to wear a protective reductions and the air and machinery are The dust reduction work is inspiring mask in the production hall at Fiskaa now so clean that even minor sources of because it means a great deal for all dust are noticeable. These are sealed as parts of production. Primarily, dust in Kristiansand was rescinded. they are detected. reductions means a lot for employees. Elkem Fiskaa achieved an important goal In 2010, Elkem Carbon set an ambitious Detecting dust sources is a regular in 2014 when the general requirement to goal of zero dust in production. Given task on all shifts. When dust leaks are wear a protective mask in the production that finely crushed, dried coal (anthracite) detected, they are sealed immediately. hall was rescinded. Eliminating and is one of its most important input factors, Leaks are therefore never left open for sealing sources of dust provides control this was an ambitious goal. Many in the very long. over a number of important factors: industry consider it impossible to achieve dust-free, clean production premises. In 2014 the plant in Fiskaa introduced a • Greater well-being thanks to a better However, systematic work on combating practice whereby production stops if the physical working environment, dust has produced very good results for filter system stops. This has resulted in because dust wears on people Elkem Carbon. In Norway, dust levels are everyone paying extra attention to how • Greater operational stability for reduced from 4 mg/m3 to 0.64 mg/m3 in the filter system is working and error machinery and equipment, and five years. The result for the first quarter correction takes place before the conse- reduced repair and maintenance costs of 2015 was 0.46 mg/m3. Elkem Carbon’s quences become so serious that the filter because anthracite dust is abrasive plant in China has also achieved very system fails. and wears out equipment good results. • It enables the introduction of more A fixed standard has been established in cost saving automated processes Virtuous circle South Africa – Floor of excellence – for and the use of equipment that cannot Changing equipment has a great effect: how the production plant should be fitted tolerate high dust loads new equipment has better seals and is out. This means the gradual upgrading of • Reduced pollution because dust can smaller, meaning the extraction is more each floor of the plant according to a set be a source of PAH emissions. effective. New sieves and new mixers result in large reductions in dust. Less dust in production premises provides opportunities to introduce automated solutions where the machinery would otherwise be unable to withstand the wear from dust. In turn, automated solutions result in less dust. For example, Elkem Carbon has considerably reduced the use of trucks and now uses conveyor belts for inwards transport in production premises. This avoids stirring up dust.
DUST EMISSIONS ELKEM CARBON FISKAA DUST EMISSIONS ELKEM CARBON mg/m3 air CHINA mg/m3 air 5 5
4 4
3 3
2 2
1 1
0 0 Reference Actual Actual Actual Run rate Target New target 2013 2014 2015 Target 2010 2012 2013 2014 2015 2015 2017 per march 2015
Elkem sustainability report 2014 45 ELKEM CARBON A green alternative
Coal tar pitch is an important ingre- Celsius, and transforms into a very solid Product on the market dient in Elkem Carbon’s products. material, with good properties for con- One important area of use for coal tar It is also a substance that presents ducting electricity and heat, at around pitch is as a binder in ramming paste 1,000 degrees Celsius. In other words, used as a lining material in smelting risks to health and the environment. it is a very suitable material for use in a furnaces. This lining enables furnaces to Elkem Carbon is, therefore, in the smelting furnace. The disadvantage is withstand temperatures of up to 2,000 process of developing a green that coal tar pitch contains polycyclic degrees Celsius. The ramming paste is alternative – a green binder – without aromatic hydrocarbons (PAHs). A number baked rock hard on the inside of the fur- of components are toxic, genotoxic or nace at a high temperature and normally known harmful effects. The project carcinogenic. The use of PAH containing has a useful life of 6-7 years. This means has been successful so far, but the products is expected to be even more that it will take a long time to test the work is complicated and requires a strictly regulated in the future. product. long time horizon. In order to develop a product that can However, Elkem Carbon has already replace coal tar pitch as a binder in marketed and introduced its first product its products, Elkem has entered into a based on a green binder, ELSEAL® Type research collaboration with Borregaard to G, for use in the aluminium industry. An develop a binder based on substances increasing number of customers want from wood, i.e. a biological, green to use the new product, which has a alternative. The project is supported by number of advantages compared with the Research Council of Norway and traditional products based on coal tar Innovation Norway. pitch. Some of the advantages:
A green alternative to coal tar pitch will • Contains no PAHs or other hazardous have a positive impact in several ways: substances. it will reduce PAH emissions and the • Does not require the use of protective Coal tar pitch is a fantastic substance employees’ exposure to them, and it will masks during installation. from a technical perspective. It is solid at reduce the industry’s CO2 footprint. • Produces no hazardous waste room temperature, liquid at 200 degrees • Is easier to handle.
46 Elkem sustainability report 2014 ELKEM CARBON Broad Based Black Economic Empowerment
As part of the South African equal Elkem’s policies • A school kitchen has been built opportunities policy, which aims to In order to deliver excellent results on for the Jeremiah Ndaka Primary rectify historic inequalities for BBBEE Elkem Carbon Ferroveld, in School. The school is situated within conjunction with co-owner Samancor 5 kilometres of the plant and offers disadvantaged ethnic groups, the Chrome, has implemented policies in the schooling to 1,450 pupils. The South government has implemented laws following areas: African government gives allowances that govern how companies should to schools in disadvantaged com- contribute to redress these 1. Employment equity through appoint- munities that allows the schools to ing people in line with a strategy of provide a cooked meal to each child disparities. preferential employment of previously every day. This kitchen will improve disadvantaged ethnic groups. the quality and hygiene of the meals Each company has a scorecard that 2. Skills development through continu- provided to the children. rates their impact on the Broad Based ous training of employees and offering • Elkem Ferroveld has contributed to Black Economic Empowerment (BBBEE) scholarships and training for commu- the furnishing and medical equip- policies. These include: nity members. ment of a primary health clinic that 3. Preferential procurement through will allow all members of the commu- • Ownership awarding contracts to black owned nity access to primary health care. • Management control companies as well as developing black The health services offered include • Employment equality owned businesses. dental, optical as well as general • Skills development 4. Socio economic development through medical services. • Preferential procurement working with the community to improve • Enterprise development the lives of community members within The Broad Based Black Economic • Socio-economic development the communities that the company Empowerment Act (53/2003): Codes initiatives operate. of Good Practice on Black Economic Empowerment was adopted on The following projects have been 9 February 2007. It replaced earlier undertaken: editions of the act.
Elkem sustainability report 2014 47 ELKEM CARBON Lower PAH emissions
Today Elkem Carbon’s products have been heavily reduced. Elkem nated water, in order to be able to purify contain PAHs and the company is Carbon Fiskaa’s goal is to lie below the water, is one of many measures. systematically working to reduce 50% of its permitted emissions, even Extensive maintenance has been carried with higher production. Elkem Carbon is out on the water pipes to avoid leaks. its PAH emissions. By developing systemically combating dust, with good Work is being carried out at all the plants products that do not contain PAHs, results. This has an impact on Elkem to reduce the amount of water consumed Elkem Carbon wants to minimise Carbon’s PAH emissions to air. A stable in production. PAH emissions both from its own production process in a well maintained facility is also required to avoid unneces- In tropical regions, biological scrub- production and from its customers’ sary PAH emissions. bing methods can be used to remove production. PAHs and other contamination from Reduction of PAH emissions rain water and other storm water. At You can read more about Elkem Carbon’s to water Elkem Carbon’s plant in Brazil water is development of products that do not Elkem Carbon Fiskaa’s PAH emissions to scrubbed by being fed through three contain PAHs in the article ‘A green water were heavily reduced from around basins: one containing old trees, one alternative’. Read more on page 46. 650 kg to around 10 kg per year. Work is containing plants, and one containing being done on various emission reducing bacteria. This scrubbing method will Reduction of PAH emissions to air measures. Separating water streams also be adopted at Elkem’s new plant Elkem Carbon’s PAH emissions to air of clean cooling water and contami- in Malaysia.
PAH EMISSIONS TO AIR, ELKEM CARBON FISKAA PAH EMISSIONS IN PROCESS WATER, ELKEM CARBON FISKAA Gram/tonne of finished product Kg PAH 16/year m3/year
7,00 140 000 240 6,00 220 120 000 200 5,00 180 100 000 160 4,00 140 80 000 120 3,00 100 60 000 80 2,00 40 000 60 1,00 40 20 000 20 0 0 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
PAH-16 Process water Licence PAH
48 Elkem sustainability report 2014 ELKEM CARBON Elkem Carbon’s plants
Elkem Carbon, Norway Elkem Carbon products Established 1904 No. of employees 73 employees, 5 apprentices Anthracite and electrically calcined anthracite Anthracite, which is the purest form of coal, is found Produces Electrically calcined anthracite, naturally in coal mines and has a carbon content of Söderberg electrode paste, 92-98 per cent. Thermally treating solid raw materials, carburisers (Elgraph), ramming paste also called calcination, turns the anthracite into an Certifications ISO 9001:2000, ISO 14001 electroconductive, pure and resistant materials. This is called electrically calcined anthracite.
Elkem Carbon, China Pitch Coal tar pitch is used as a binder in various carbon Established Elkem started production at the plant in materials, including ramming paste and electrode paste. May 2000 Tar is the raw material used to produce pitch. Tar itself No. of employees 107 employees, 3 apprentices is a by-product of metallurgical coke production, Produces Electrically calcined anthracite, Söderberg which is used in furnaces for the production of iron. electrode paste, ramming paste Certifications ISO9001:2000, OHSAS 18000 Electrode paste Electrode paste consists of calcined anthracite and pitch, and is supplied as briquettes, blocks or finished cylinder-shaped electrodes. Smelting plants need Elkem Carboindustrial, Brazil electrodes because they conduct electricity and help Established 1976 provide sufficient heat energy to the smelting furnaces. No. of employees 94 employees, 2 apprentices Electrodes are also needed where production is based on smelting electrolysis, which is a chemical process Produces Electrically calcined anthracite, created using electricity, with the production of Söderberg electrode paste, electrodes, aluminium being a prime example. ramming paste Certifications ISO 9001:2000, ISO 14001, ISO 18000 Ramming paste Ramming paste seals joints and prevents the furnace from being damaged by molten metal. The paste is Elkem Carboderivados, Brazil installed by ramming, i.e. using vibration and pressure. The paste is then ‘baked’ in connection with the Established 1976 furnace’s start-up process. No. of employees 40 employees, 1 apprentices Produces Pitch and other raw materials for the Calcined anthracite and pitch are the main compo- production of electrode paste and nents of ramming paste. Elkem Carbon’s products are ramming paste developed to provide the best possible work environ- Certifications ISO 9001:2000, ISO 14001, ISO 18000 ment and are so-called cold ramming pastes, which are installed at room temperature. The exposure to PAHs from the binder is thus minimal. Elkem Carbon is systematically working on developing new and more Elkem Ferroveld, South Africa – joint venture environmentally friendly solutions, and also offers pro Established 1974 ducts with alternative binders that do not contain PAHs. No. of employees 70 Produces Electrically calcined anthracite, Carburisers Söderberg electrode paste Manufacturing products in iron foundries using electric furnaces and scrap iron as the raw material requires Joint venture Elkem and Samancor Chrome the addition of carbon material. These are called car- burisers. The further development of technical solu- tions at Elkem Carbon’s plant in Kristiansand means Elkem Carbon, Malaysia that Elkem produces Elgraph®, which is a very high ® Elkem Carbon Malaysia is under construction and is expected quality carburiser. Elgraph has a low sulphur, nitrogen to be commissioned during 2015. The plant had 6 employees and volatile organic compounds content, and satisfies at the end of the first quarter of 2015. the increasingly strict requirements to such products from iron foundries and steel manufacturers.
Elkem sustainability report 2014 49 Elkem Solar
Elkem Solar has developed and industrialised proprietary breakthrough production technology for solar grade silicon that consumes 75 per cent less energy than traditional methods. Elkem Solar is a joint venture where 50 per cent is owned by Elkem and 50 per cent by the Guangyu International Investment Company.
50 Elkem sustainability report 2014 ELKEM SOLAR Elkem expands its solar venture
Elkem and Bluestar’s solar energy International, which is not part of the Here, solar energy has turned the energy strategy is now following two main Bluestar Group, it will not be possible to market upside down: while prices used tracks: optimising production merge Elkem Solar and REC Solar into a to rise strongly in the morning, when single legal entity immediately. However, everyone was showering and turning at the plant in Kristiansand and all of the parties agree on optimising on their coffee makers, prices now drop repositioning the business through the production process from quartz to because the sun rises. the acquisition of REC Solar. finished solar cell panels with the aim of producing the world’s most cost and Focus on costs energy efficient solar cell panels. Elkem Solar has experienced dramatic The production of ESS® represents the fluctuations in prices for solar grade world’s most energy efficient produc- Strong market growth silicon. In January 2012 the market price tion of solar grade silicon, with energy The market for solar energy continues to was around USD 32 per kg, a year later consumption that is one quarter of the grow rapidly. The average rate of growth the market price had halved. Prices are traditional Siemens process. With hydro- from 2003 to 2014 was no less than 50 currently fluctuating around USD 20 per electric power as its source of electricity, per cent. New output of 45 GWh solar kg. Focusing on costs is vital to surviv- no one can beat Elkem Solar’s climate energy was installed on a global basis in ing in the industry. By integrating Elkem footprint. 2014. Solar downstream with REC Solar the entire produced volume of ESS® will In 2014, Elkem Solar in Kristiansand China is becoming the country with always have a buyer, even if the market increased its production to its full capac- the largest total solar energy capacity. for solar determines the prices. ity of 6,000 tonnes per year. The plan is China, the US and Japan account for to expand to 7,500 tonnes per year. 55 per cent of demand. Germany has the largest installed capacity in the EU. The process in Elkem Solar will then be further optimised and simplified. The two final production steps will lower costs by a further 40 per cent. The work will be done in collaboration with REC Solar in Singapore. This will be revolutionary compared with traditional processes and the production of new ESS® will con- sume about 11 KWh per kg compared with between 60 and 120 KWh per kg for competitors’ polysilicon.
Acquisition of REC Solar Elkem AS’ owners, Bluestar Elkem Investment HK, acquired REC Solar in May 2015. Since Elkem Solar AS is 50 per cent owned by Elkem AS and 50 per cent owned by Guangyu
INSTALLED SOLAR CAPACITY GLOBALLY per year in GW Elkem Solar, Norway 50000 45000 Established 2001 40000 35000 Joint venture Elkem and Guangyu 30000 International Investment 25000 Company (50/50) 20000 Produces Silicon for the solar cell 15000 industry 10000 5000 No. of employees 187 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Source graphic: SolarBuzz, IHS and Elkem
Elkem sustainability report 2014 51 LOGISTICS Managing all transport in and out of the company
Elkem has chosen a logistics model in which the company itself manages all transport of goods into the company’s production units, between the company’s plants and out to customers. This general rule ensures Elkem a high level of predictability and allows the company to better manage and influence environmental and safety factors through the supply chain.
Logistics form an integral part of main- taining control over the total flow of goods, from raw materials ordered to delivery of the finished product to the customer. Many companies order their raw materials delivered, free of charge, to the factory gates and let customers pick up the products once they are finished.
Stipulates environmental and EHS criteria Elkem instead, as a general rule, chooses to manage this part of the logis- tics itself. This allows Elkem to stipulate clear health, safety and environmental criteria for ships, vehicles and other means of transport that provide transport services, as well as to ensure the best Challenges more than 700 destinations worldwide. possible flow of goods in and out of the As of 1 January 2015, new sulphur emis- This generates a significant amount of plants. Drivers and crews must have sion requirements were introduced in parts transport and complex supply chains. In the skills and knowledge necessary to of Europe, within SECA (Sulphur Emission Norway alone, about 2 million tonnes of satisfy all safety requirements. Elkem’s Control Area). In 2014, Elkem signed products are transported to and from the corporate social responsibility policy is freight contracts for 1 million Mt of sea- plants along the coast. Up to 1 million appended to all transport contracts and going cargo for a period of between three tonnes of quartz are transported to com- it always asks for the logistics provid- and five years for transport wholly or partly pany and non-company smelting plants er’s own corporate social responsibility within this area. We are facing a period from the quartz mine in Tana alone. policy. of great uncertainty in the market with respect to what effect these requirements 90 per cent by ship Can refuse loading will have on shipping companies’ costs. Elkem uses most means of transport to One example of what this entails is that Elkem’s long-term approach in this period get its products safely and efficiently to Elkem has introduced a ‘safe truck initia- will help the shipping companies to posi- their destinations on time. More than 90 tive’, which means that if there is reason tion themselves so they can comply with per cent is transported by ship for both to doubt whether a truck and/or driver the new requirements while we ensure the cost and environmental reasons. The satisfy national safety requirements, best possible cargo rates in this period of overall global picture per year looks like loading shall be refused. Drivers must uncertainty. this (does not include all transport inter- be able to make themselves understood nally in China, Brazil or South Africa): at the plants and English is a minimum Complex supply chain requirement at Norwegian plants. Elkem currently operates 14 plants on - About 2 million tonnes bulk by ship all continents and has two plants under - About 30,000 containers by ship If any incongruity is not remedied, it is construction. Elkem supplies more than - More than 10,000 other types of trans- regarded as a breach of contract and the 300 different types of products that port job (vehicles, trains, barges/canal provider may lose its contract. have to be picked up and/or delivered to boats).
52 Elkem sustainability report 2014 THE HISTORY OF ELKEM 110 years of innovation
Elkem’s history starts in 1904 when industry entrepreneur Sam Eide (1866–1940) established the company. The goal was to become a major industrial company with a global outlook based on Norwegian natural resources, hydropower and know-how.
1904: Elkem is founded by Sam Eyde, brothers Magnus and Knut Wallenberg and Knut Tillberg.
1919: 51 different companies belong to the Elkem sphere, including Norsk Hydro (later Yara), Kristiansand Nikkelraffineringsverk (later Xstrata).
1917: Elkem patents the Söderberg electrode, which is still in use in about 75 per cent of the world’s smelting plants today.
1920s and 1930s: The Great Depression: almost all of Elkem’s companies are sold.
1958: Elkem becomes an aluminium producer.
1963: Elkem joins forces with Alcoa as a partner.
1965: Elkem helps to found Norway’s first oil company, NOCO.
1972: Elkem merges with Christiania Spikerverk, becomes Norway’s largest industrial company and helps to found Saga.
1980: Elkem buys seven ferrosilicon plants in Norway, the US and Canada, and becomes the world’s largest producer of ferroalloys.
2005: Elkem takes over aluminium profiles company, Sapa, which employs around 14,000 people. Elkem owns 23 per cent of REC.
2005: Orkla acquires Elkem.
2009: Elkem ceases its aluminium production. Alcoa takes over the plants.
2011: China National Bluestar buys Elkem from Orkla.
Elkem sustainability report 2014 53 CHAIRMAN OF THE BOARD
Our license to operate
Elkem has clear ambitions for growth. Our vision is to the production of silicon (Si99) at the Elkem plant in Salten, expand our business as part of an industry with zero Norway, to the production of specialised silicone at Bluestar emission, zero injuries and no waste of resources or energy. Silicones International in France. This project has been a In other words a 100 per cent recycled economy, creating great success, contributing to more than 20 million Euros in values without harm to anyone. savings. The next step will be the formal integration of the French and Norwegian entities. Some might say that this is a utopian idea. My belief is that it is the only way to secure our license to operate in the Making electricity from the sun makes it possible to bring future. This is the philosophy behind the resources we put people the obvious benefits of electricity without the into R&D, our focus on continuous improvements and our environmental disadvantages connected to power plants investments in new equipment. running on coal, oil or even gas. After having bought REC Solar our aim is to make this production process even Let me illustrate this: We have installed energy recovery more efficient and sustainable. The fact that our Norwegian systems at five of our plants, and the strategy is to install plant runs on hydro energy, gives our solar panels a huge this at all our plants. In the short run, low energy prices may climate advantage. I hope that we will be able to expand make such investments expensive, if not to say unprofitable. our production both in and outside Norway, bringing clean In a broader perspective it is very clear to me that we electricity to people all over the world. cannot afford to waste energy. Elkem’s vision is to reduce the number of work place injuries Elkem’s owner, Bluestar, turned 30 years in 2014. Our to zero. I am proud to observe that our Bluestar plants in founder, Ren Jianxin, established China’s first professional China, Yongdeng and Xinghuo, have also made important industrial cleaning company – the Bluestar Co. – in 1984, progress in this regard. The number of total recordable along with seven people and a 10,000-yuan loan. Since injuries at the two plants with 109 employees, fell from then, Bluestar has gradually grown into being one of China’s 20 in 2013 to 14 in 2014. most successful chemical companies. Bluestar is centered on the chemical industry, new chemical materials and animal nutrition. Bluestar is also a global investor in new business. A key to Bluestar’s success has been to integrate the Bluestar companies in order to optimize production processes. Also important is Bluestar’s focus on bringing professional management from different parts of the world together, in order for them to learn best practice from each Robert Lu other.
One example of such integration is Bluelco, a project that aims to optimise the entire silicone value chain, from the extraction of quartz in the mine in Tana, Norway, through
54 Elkem sustainability report 2014 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: Marit Flinder Johannessen Text: Stakeholder AS Design: fdesign.no Photo: Elkem/Nicolas Tourrenc. Front page picture: Jon Petter Thorsen Aptum. Print: Konsis Advanced materials shaping the future