Comments on: Power Costs in the Production of Primary Aluminum http://agmetalminer.com/2009/02/26/power-costs-in-the-production-of-primary-aluminum/ Sourcing & Trading Intelligence for Global Metals Markets Wed, 08 Feb 2012 15:39:20 +0100 hourly 1 http://wordpress.org/?v=3.3.1 By: Energy Pundit » Blog Archive » If Energy Were Free and Unlimited… http://agmetalminer.com/2009/02/26/power-costs-in-the-production-of-primary-aluminum/comment-page-1/#comment-27392 Energy Pundit » Blog Archive » If Energy Were Free and Unlimited… Wed, 18 May 2011 08:01:18 +0000 http://agmetalminer.com/2009/02/26/power-costs-in-the-production-of-primary-aluminum/#comment-27392 [...] ·       Correlation to standard of living. ·       Shipping costs. ·       Aluminum costs. addthis_url = [...] [...] ·       Correlation to standard of living. ·       Shipping costs. ·       Aluminum costs. addthis_url = [...]

]]> By: If Energy Were Free and Unlimited … — Colorado Energy News http://agmetalminer.com/2009/02/26/power-costs-in-the-production-of-primary-aluminum/comment-page-1/#comment-27376 If Energy Were Free and Unlimited … — Colorado Energy News Mon, 16 May 2011 21:41:11 +0000 http://agmetalminer.com/2009/02/26/power-costs-in-the-production-of-primary-aluminum/#comment-27376 [...] waste. [iv] World Prosperity · o Correlation to standard of living. · o Shipping costs. · o Aluminum costs. David Gold heads up cleantech investments for Access Venture Partners (www.accessvp.com) and is a [...] [...] waste. [iv] World Prosperity · o Correlation to standard of living. · o Shipping costs. · o Aluminum costs. David Gold heads up cleantech investments for Access Venture Partners (www.accessvp.com) and is a [...]

]]> By: Cleantech Insights | If Energy Were Free and Unlimited… http://agmetalminer.com/2009/02/26/power-costs-in-the-production-of-primary-aluminum/comment-page-1/#comment-27375 Cleantech Insights | If Energy Were Free and Unlimited… Mon, 16 May 2011 20:50:21 +0000 http://agmetalminer.com/2009/02/26/power-costs-in-the-production-of-primary-aluminum/#comment-27375 [...] So, the next time you hear complaints about high gas prices for our cars, remember that energy affects much more than just the cost of your ride to work or trip to the beach.  With this perspective in mind, it doesn’t take much to figure out what things would look like in the opposite scenario, where energy becomes extremely expensive and scarce as fossil fuels diminish.  It isn’t a matter of whether we will move away from fossil fuel consumption; it’s a matter of over what time period and with how much economic, national security and environmental pain along the way. The free market will most assuredly create more alternatives as energy prices rise.  If we could be confident that future increases in energy prices would be gradual over a long period of time and that global warming was not a concern, there would be little reason to take any particular action.  But history has already shown us that changes in fuel prices are unlikely to be gradual.  And the growing industrialization of major portions of the world such as China and India mean that world energy consumption is likely to grow roughly 50% over the next 20 years. This leaves little doubt about the direction of energy prices in a world dependent mostly on fossil fuels. From a venture capital perspective, it is this type of disruption that makes cleantech a compelling area for investment.  From a policy perspective, if we are faced with high energy prices for an extended period of time or if global warming creates environmental chaos, the negative impacts could be extraordinary and would impact virtually every part of our lives.   But, on the positive side, an expensive gas tank fill up would soon be the least of our concerns! [i] Transportation: ·       Fuel costs alone are roughly 45% of airline operating expenses and that doesn’t include energy costs incurred for ground support vehicles or buildings used by airlines. ·       Driving a car would cost 25%-35% less per mile. (@ $3.50/gallon gas cost). [ii] Water: ·       3% of all energy consumption used to move, treat water. 30% of municipal water agency expenses are energy. [iii] Food: ·       17% of all energy consumption goes to creating and getting food to the grocery story. http://www.p2pays.org/ref/08/07686.pdf ·       As a result, roughly $240B per year is spent in the U.S. on energy costs related to food. ·       This equates to roughly $2,000 per family unit per year http://www.bls.gov/news.release/cesan.nr0.htm ·       Those same family units spend roughly $6,400 per year on food. ·       Thus, if energy were free, food could cost roughly 31% less.  Then there is the energy cost of getting the food home, preparing it, clean dishes and disposing of waste. [iv] World Prosperity ·       Correlation to standard of living. ·       Shipping costs. ·       Aluminum costs. [...] [...] So, the next time you hear complaints about high gas prices for our cars, remember that energy affects much more than just the cost of your ride to work or trip to the beach.  With this perspective in mind, it doesn’t take much to figure out what things would look like in the opposite scenario, where energy becomes extremely expensive and scarce as fossil fuels diminish.  It isn’t a matter of whether we will move away from fossil fuel consumption; it’s a matter of over what time period and with how much economic, national security and environmental pain along the way. The free market will most assuredly create more alternatives as energy prices rise.  If we could be confident that future increases in energy prices would be gradual over a long period of time and that global warming was not a concern, there would be little reason to take any particular action.  But history has already shown us that changes in fuel prices are unlikely to be gradual.  And the growing industrialization of major portions of the world such as China and India mean that world energy consumption is likely to grow roughly 50% over the next 20 years. This leaves little doubt about the direction of energy prices in a world dependent mostly on fossil fuels. From a venture capital perspective, it is this type of disruption that makes cleantech a compelling area for investment.  From a policy perspective, if we are faced with high energy prices for an extended period of time or if global warming creates environmental chaos, the negative impacts could be extraordinary and would impact virtually every part of our lives.   But, on the positive side, an expensive gas tank fill up would soon be the least of our concerns! [i] Transportation: ·       Fuel costs alone are roughly 45% of airline operating expenses and that doesn’t include energy costs incurred for ground support vehicles or buildings used by airlines. ·       Driving a car would cost 25%-35% less per mile. (@ $3.50/gallon gas cost). [ii] Water: ·       3% of all energy consumption used to move, treat water. 30% of municipal water agency expenses are energy. [iii] Food: ·       17% of all energy consumption goes to creating and getting food to the grocery story. http://www.p2pays.org/ref/08/07686.pdf ·       As a result, roughly $240B per year is spent in the U.S. on energy costs related to food. ·       This equates to roughly $2,000 per family unit per year http://www.bls.gov/news.release/cesan.nr0.htm ·       Those same family units spend roughly $6,400 per year on food. ·       Thus, if energy were free, food could cost roughly 31% less.  Then there is the energy cost of getting the food home, preparing it, clean dishes and disposing of waste. [iv] World Prosperity ·       Correlation to standard of living. ·       Shipping costs. ·       Aluminum costs. [...]

]]> By: If Energy Were Free and Unlimited… | CleanTechies Blog - CleanTechies.com http://agmetalminer.com/2009/02/26/power-costs-in-the-production-of-primary-aluminum/comment-page-1/#comment-27353 If Energy Were Free and Unlimited… | CleanTechies Blog - CleanTechies.com Fri, 13 May 2011 09:01:03 +0000 http://agmetalminer.com/2009/02/26/power-costs-in-the-production-of-primary-aluminum/#comment-27353 [...] [ii] Water: · 3% of all energy consumption used to move, treat water. 30% of municipal water agency expenses are energy. [iii] Food: · 17% of all energy consumption goes to creating and getting food to the grocery story. http://www.p2pays.org/ref/08/07686.pdf · As a result, roughly $240B per year is spent in the U.S. on energy costs related to food. · This equates to roughly $2,000 per family unit per year http://www.bls.gov/news.release/cesan.nr0.htm · Those same family units spend roughly $6,400 per year on food. · Thus, if energy were free, food could cost roughly 31% less. Then there is the energy cost of getting the food home, preparing it, clean dishes and disposing of waste. [iv] World Prosperity · Correlation to standard of living. · Shipping costs. · Aluminum costs. [...] [...] [ii] Water: · 3% of all energy consumption used to move, treat water. 30% of municipal water agency expenses are energy. [iii] Food: · 17% of all energy consumption goes to creating and getting food to the grocery story. http://www.p2pays.org/ref/08/07686.pdf · As a result, roughly $240B per year is spent in the U.S. on energy costs related to food. · This equates to roughly $2,000 per family unit per year http://www.bls.gov/news.release/cesan.nr0.htm · Those same family units spend roughly $6,400 per year on food. · Thus, if energy were free, food could cost roughly 31% less. Then there is the energy cost of getting the food home, preparing it, clean dishes and disposing of waste. [iv] World Prosperity · Correlation to standard of living. · Shipping costs. · Aluminum costs. [...]

]]> By: admin http://agmetalminer.com/2009/02/26/power-costs-in-the-production-of-primary-aluminum/comment-page-1/#comment-27233 admin Thu, 05 May 2011 13:22:25 +0000 http://agmetalminer.com/2009/02/26/power-costs-in-the-production-of-primary-aluminum/#comment-27233 Kevin, You will want to get in touch with Jorge Vazquez at Harbor Aluminum. I believe they have a tie-up with a firm that publishes detailed production costs by country. LAR Kevin, You will want to get in touch with Jorge Vazquez at Harbor Aluminum. I believe they have a tie-up with a firm that publishes detailed production costs by country. LAR

]]> By: Kevin http://agmetalminer.com/2009/02/26/power-costs-in-the-production-of-primary-aluminum/comment-page-1/#comment-27232 Kevin Thu, 05 May 2011 11:41:23 +0000 http://agmetalminer.com/2009/02/26/power-costs-in-the-production-of-primary-aluminum/#comment-27232 Do you have any data on the costs of electricity in Mozambique and South Africa? Specifically, do you have any numbers on the plants which are supplying to the Mozal smelter, which is supposedly producing aluminum at a much lower cost than anywhere else in the world? (Also for a Masters Thesis) Thanks! Do you have any data on the costs of electricity in Mozambique and South Africa? Specifically, do you have any numbers on the plants which are supplying to the Mozal smelter, which is supposedly producing aluminum at a much lower cost than anywhere else in the world?
(Also for a Masters Thesis)
Thanks!

]]> By: Almarzouqi http://agmetalminer.com/2009/02/26/power-costs-in-the-production-of-primary-aluminum/comment-page-1/#comment-13644 Almarzouqi Sun, 26 Jul 2009 01:59:05 +0000 http://agmetalminer.com/2009/02/26/power-costs-in-the-production-of-primary-aluminum/#comment-13644 Dear Stuart, Thank you for your article, it is useful for my master thesis on Aluminium Industry. You have mentioned the electricity price rate in China, Australia and in Russia, do you have the references for these data? if you do, would you mind providing me the references please? I am also interected in the smelters' electricity price in UK, Europe in order to analyse the reason why China's primary production operating cost is higher than the rest of the world. I would highly appreciate you support. Small observation, some other main operating costs were not considered here, such as; labour cost, alumina, carbon anod, caustic soda, etc that are involved in the process. So, some smelter may enjoy low electricity price but are facing other operating costs that lead to their closure. I would appreciate your expert advise on this. my email is: Ahmed.almarzouqi@kcl.ac.uk Thanks in Advance, Ahmed Almarzouqi Dear Stuart,

Thank you for your article, it is useful for my master thesis on Aluminium Industry.

You have mentioned the electricity price rate in China, Australia and in Russia, do you have the references for these data? if you do, would you mind providing me the references please?

I am also interected in the smelters’ electricity price in UK, Europe in order to analyse the reason why China’s primary production operating cost is higher than the rest of the world. I would highly appreciate you support.

Small observation, some other main operating costs were not considered here, such as; labour cost, alumina, carbon anod, caustic soda, etc that are involved in the process. So, some smelter may enjoy low electricity price but are facing other operating costs that lead to their closure. I would appreciate your expert advise on this.

my email is:
Ahmed.almarzouqi@kcl.ac.uk

Thanks in Advance,
Ahmed Almarzouqi

]]> By: stuart http://agmetalminer.com/2009/02/26/power-costs-in-the-production-of-primary-aluminum/comment-page-1/#comment-13224 stuart Mon, 20 Jul 2009 08:28:15 +0000 http://agmetalminer.com/2009/02/26/power-costs-in-the-production-of-primary-aluminum/#comment-13224 Dear Hernan, I am afraid I dont have any numbers specifically for Norway, you could try contacting Norsk or Elkem direct and see what they will share with you. Much of Norways capacity is hydro based so in theory power costs should be low, and most (although not all) of their smelters are of larger (150-300kt) size so they have the economies of scale that come with larger smelter installations. Dear Hernan, I am afraid I dont have any numbers specifically for Norway, you could try contacting Norsk or Elkem direct and see what they will share with you. Much of Norways capacity is hydro based so in theory power costs should be low, and most (although not all) of their smelters are of larger (150-300kt) size so they have the economies of scale that come with larger smelter installations.

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