The Secondary Alloy Dilemma
Even better would be to use secondary alloys made from scrap. They offer a sustainable alternative. Still, their carbon footprint depends on the scrap's origin, divided into post-industrial and post-consumer categories. Post-consumer scrap is a favourable choice, with a carbon footprint of zero kilograms carbon dioxide per kilogram aluminium. Post-industrial scrap's carbon footprint considers the production process.
The type of alloy further complicates matters. Sheet metals and casting alloys have distinct characteristics. Sheet metals generally contain minimal alloying elements, while casting alloys with higher silicon content are used in automotive applications. These alloys require high purity, restricting elements like iron, copper, and zinc.
However, the challenge is sourcing scrap. High-iron sheet metals limit their utility as scrap sources, while casting alloys necessitates significant silicon addition, increasing the carbon footprint. The situation worsens when considering older vehicles with alloys like 226 or AlSi9Cu3. They cannot be recycled to high-elongation alloys. Scrap sources are limited, and securing a stable supply network is essential.
Energy Consumption of Aluminum Alloys
Foundries, known for their energy-intensive nature, face a pressing issue in Europe: the surge in energy costs. Thin margins have become standard, yet energy prices have remained stable for years. While metal prices can adapt to market changes, energy costs are fixed long before production begins. This fixture creates an unbearable situation for many foundries.
The transformation from solid aluminium ingots to finished parts is an energy-intensive process. It takes 657 kilojoules (0.183 kilowatt-hours) to heat a kilogram of aluminium to its 750 degrees Celsius melting point. An additional 390 kilojoules (0.108 kilowatt-hours) are needed to melt the aluminium.
CBAM is Going to Hit Hard
CBAM, a European Union (EU) policy tool, aims to combat carbon leakage and level the playing field for EU industries in climate change mitigation. It aligns the carbon costs of imported goods with those faced by EU producers. CBAM will focus on carbon-intensive sectors, imposing a carbon price on imports based on their carbon footprint. Importers must meet CBAM requirements for monitoring and verification to ensure accuracy.
CBAM could incentivise non-EU countries to adopt stricter climate policies and encourage EU industries to invest in cleaner technologies. Yet, concerns about trade tensions and global supply chains must be addressed.
The transition period for CBAM ends on January 1, 2026, meaning enterprises with non-EU suppliers will face carbon emission taxes, highlighting the importance of supporting local suppliers. Depending on the price of carbon emissions, these taxes can easily double the casting cost.
