Aluminium Federation

This article is part of the Climate project of Spinwatch.

The Aluminium Federation (ALFED) is the UK trade association for the aluminium industry, based in West Bromwich. It provides technical support and lobbying services in Westminster and in Brussels on behalf of members ranging from smelting companies, recycling companies and end of line products. ^[1] ALFED also run the All-Party Parliamentary Group for the UK Aluminium Industry, which they refer to as 'the Aluminium Federation's All-Party Parliamentary Group'^[2]

Direct members

Alcoa Europe Flat Rolled Products
Bridgnorth Aluminium Ltd
Novelis Europe
Rio Tinto Alcan ^[3]

Associate members

Member associations

Lobbying for industry subsidies

According to their 2009 Annual Report, the ALFED states:

Could our Government and its legislators have done more to protect and assist British manufacturing? The answer is an unequivocal Yes! One thing is for certain, it would have done even less without the strong and persistent voices of the manufacturing Trade Associations, both individually and through groupings such as Metals Forum, of which ALFED is a Member.^[6]

In a parliamentary debate in February 2010 MP Philip Dunne, a member of the ALFED's All-Party Parliamentary Group for the UK Aluminium Industry, reveals that 'the Government tried to put in place a rescue package worth some £12 million a year for four years to subsidise energy costs' at the now-closed Anglesey Aluminium smelter, claiming that this massive package had nonetheless failed. He quotes David Bloor, managing director of Anglesey Aluminium who had 'explained to Members at a presentation in December'^[7] that;

Anglesey Aluminium could not afford to buy power in the UK and reach a breakeven financial position. This is because the worldwide price of aluminium does not include a cost of carbon.^[8]

Another member of the ALFED's all party parliamentary group Albert Owen has supported the heavy subsidisation of the price of electricity to the Anglesey Aluminium smelter, which was affected in January 2009 by EU legislation banning state subsidisation of private companies. He supported a £48 million package to save the smelter, which closed in Sept 09 after the proposal was turned down.^[9]

Effective lobbying led to Business Secretary Peter Mandelson calling Rio Tinto Alcan's chairman to make an unsuccessful personal plea against the closure of the Anglesey Aluminium smelter.^[10]

Lobbying for climate change policy exemptions

ALFED has lobbied hard against the reduction of rebates from the Climate Change Levy to energy intensive industries from 80% to 65%, which will come into effect in 2011. They argue that the aluminium industry has already reduced emissions by 39% since 1990, and omitting to add that aluminium is the most energy intensive metal to produce and that overall emissions have increased dramatically and demand is predicted to double by 2020.^[11]

On February 2nd 2010 Philip Dunne and Albert Owen of ALFED's All-Party Parliamentary Group for the UK Aluminium Industry raised this issue in a House of Commons debate (see Philip Dunne for more). Two days later an Alfed delegation met the UK business, innovation and skills minister Pat McFadden to discuss this issue and others affecting the industry. Alfed said:

The minister acknowledged these points and said that he would investigate the issue.^[12]

They are also lobbying the EU and EC on changes to the EU Emissions Trading Scheme which will for the first time include primary and secondary aluminium smelters in its scope. Their annual report states:

Discussions are ongoing with the EC to confirm that Aluminium is a sector at risk and that it will receive sufficient free-allowances to continue with production in Europe. ALFED will continue to work diligently to ensure that Climate Change legislation is fairly applied and does not create an environment whereby UK Aluminium manufacturing is driven offshore by draconian Carbon Reduction targets.^[13]

The term 'carbon leakage' refers to the risk that aluminium smelters will re-locate where energy and carbon policy compliance is cheaper (the global South), and, they argue, carbon standards are lower. Though this may well be the case, this effect should be acccounted for by the Clean Development Mechanism which was based on the rationale that it is cheaper to pay for carbon reducing technologies in the global south than here in the West. It is also an interesting admission from the UK aluminium industry that if they go elsewhere in the world they will not bother with such high environmental standards, but will adapt to the policy of the state in which they operate.

A Freedom of Information response from the Department of Energy and Climate Change in May 2010 revealed regular communication between DECC and ALFED on the Climate Change Agreement (CCA). ALFED repeatedly expressed their concern over tighter targets, arguing that due to the economic climate the industry should be considered at risk and exempted from targets^[14]. The response reveals that ALFED have also tried to secure exemptions to the CCA for on-site electricity generation (arguing that more expensive energy could also push them abroad), for secondary smelters (recycling) and for the magnesium sector^[15]

ALFED Chief Exec Will Savage re-stated the carbon leakage argument when he wrote to Energy and Climate Change Secretary Ed Miliband in January 2010 in support of an earlier appeal by Gareth Stace of the Manufacturers Climate Change Group (who spoke to ALFED on the Climate Change Levy in March 2010):

'Proposals to "lead the way" and move the UK's energy reduction targets from 20% to 30% will hasten the demise of the UK manufacturing and create "Carbon Leakage" to those parts of the world with less energy efficient manufacturing sectors, having completely the opposite effect than that strived for at Copenhagen.'^[16]

In 2000 the ALFED submitted a joint proposal on the proposed Climate Change Levy to the government with The Chemical Industries Association, the British Ceramics Federation, the Paper Federation of Great Britain, the Food & Drink Federation, and the Non-Ferrous Alliance calling. The proposal suggested that energy intensive industries should be given some exemption and trusted instead to work together to "promote an energy-efficient culture" and learn from each other's best practice.^[17]. Their lobbying was successful and led to the 80% rebate on the levy which they achieved.

Failure to meet climate change agreements

In ALFEDs parliamentary breakfast meeting March 23rd 2010 the Aluminium Federation's Immediate Past President Henry Dickinson revealed their concern over the cost of complying with climate change agreements, and showed that they were failing to meet these targets with the 'innovation' and technology methods they promote:

Unfortunately our primary sector has had to buy large amounts of carbon units in the past year as the reduced level of activity and significant extra power associated with pot shutdowns and start-ups has reduced power efficiency and meant that Climate Change Agreement targets could not be met – a double whammy when prices and volumes were sharply reduced and hardly helpful to UK manufacturing. We hope and assume that electrolysis will continue to be exempt from CCL (Climate Change Levy) after 2012, but are braced to expect a reduction in the CCL rebate from 80% to 65% on other energy usage.^[18]

Carbon Capture and Storage

In ALFEDs parliamentary breakfast meeting March 23rd 2010 the Aluminium Federation's Immediate Past President Henry Dickinson said:

Our remaining primary producers at Lynemouth and Lochaber are investing in new power equipment and actively investigating carbon capture & storage. BIS and DECC are fully informed of these activities^[19].

Supplying aluminium for weapons

The link between aluminium and arms is often hidden by aluminium companies. However an estimated 30% of aluminium is used in the 'defence' (arms) industry, making it a 'strategic metal' which is stockpiled by most governments. Dewey Anderson, an ex-Congressman published a little known 1951 text 'Aluminium for Defence and Prosperity' which describes the necessity of large amounts of aluminium for war and how 'more than any other industry, aluminium is dependent on government policies and government actions for more production and consumption'.^[20]

This link between aluminium corporations, governments and war still rings true today. In ALFEDs parliamentary breakfast meeting March 23rd 2010 the Aluminium Federation's Immediate Past President Henry Dickinson describes orders for aluminium to use in the war in Afghanistan:

The rolling sector has seen continuing delays in the aerospace market, but with 4 years worth of orders in hand at Airbus demand remains good. Urgent requirements from the Ministry of Defence for Afghanistan continue to buoy demand, but earlier anticipation and authorisation of such requirements would make life easier for producers!^[21]

Public Affairs

ALFED are active in public affairs matters, as is evident in their 2009 Annual Report;

In November 2008 the principal guest at their Annual Dinner was former BBC political editor John Sergeant, while in 2009 it was political commentator and journalist Matthew Parris.^[22]

They hold an annual lunch for Senior Civil Servants at which ALFED give presentations on key issues affecting the industry (such as climate change and subsidisation).^[23]

ALFED have sponsored an exhibition called the ‘Challenge of Materials’ Gallery at The Science Museum in London since 1997, which contains information on aluminium supplied by ALFED. In March 2009 ALFED’s Public Affairs Committee held a meeting there. In June ALFEDs Chief Executive Will Savage and public affairs Exec discussed upping the aluminium based content in the Birmingham science museum and Millenium Point, aiming to access 'families enjoying a day out together and school children studying science through the National Curriculum'.^[24]

Influencing Universities

ALFED have been running a University competition aimed at student designers and engineers called 'the Power of Aluminium' since 2008, which offers a prize of £1500 for designs using aluminium. ^[25]

It also runs (and is expanding) a long-established University lecture programme, co-ordinated by consultant Dr David Harris (ex ALFED Secretary General).^[26]

Accessing politicians

ALFED and the European Aluminium Association held a joint exhibition from 10-14 November 2008 in the Upper Waiting Hall of the House of Commons. The guest of honor at its opening was Minister of State for Wales, the Paul Murphy MP. ^[27]

ALFED also holds an annual parliamentary lunch which 'attracted a record attendance from members of both Houses in May 2009' and was hosted by Baroness Gardner of Parkes, Vice Chair of ALFED's All-Party Parliamentary Group for the UK Aluminium Industry.^[28]

Aluminium- green and clean?

Al Fed's website promotes a number of educational and information services to people outside the industry, including 'on-line education material for schools'^[29].They are active in publishing and disseminating figures on the benefits of aluminium, especially in terms of its green credentials. These claims center on the issues of recyclability, energy savings from lighter aluminium cars and planes, it's use in 'eco building' and the carbon efficiency of the refining and smelting processes due to technological advances and use of 'renewable energy' for power. Some of these claims are examined in more detail in this section:

According to Al Fed's website:

The current recycling rate for aluminium drinks cans in the UK is 52% (2008 figure).

The overall recycling rate for all aluminium packaging (including drinks cans, foil, foil containers and aerosols) is 36% (2008 figure).

Recycling aluminium requires only 5% of the original energy required to produce the primary metal.^[30]'

Although recycling aluminium is indeed 95% more efficient than primary production it still takes the same amount of energy as producing new steel ^[31] Major aluminium producer Alcoa sources only 20% of its aluminium from recycling. Overall recycling rates are 33% and, according to US Aluminium Association figures, going down^[32].

Aluminium is an 'energy bank'. 75% of all the aluminium ever produced is still in use today, having been through countless recycling loops of its lifecycle.^[33]

As well as recycling aluminium using the same energy as producing new steel, the primary smelting process is one of the most energy intensive and polluting industrial processes on earth, earning aluminium the title 'solid electricity' in the industry^[34]. An estimated 5 billion tonnes of bauxite have so far been mined from the earth, creating just less than a billion tonnes of aluminium. If we use Al Fed's figures that 75% are still in use that suggests that around 200,000,000,000 tonnes (200 thousand million tonnes) are currently in landfill and could theoretically be mined and recycled.^[35]

Approximately 30% of aluminium is used for arms manufacture and defense^[36] ^[37]. This fact is disguised in industry figures as 'transport' or 'construction' but is evident in aluminium's status as a 'strategic metal' for the US and UK governments, which is stockpiled for military purposes ^[38].

Electrical power efficiency of primary aluminium smelters worldwide, surveyed by the International Aluminium Institute, improved by 4% between 1990 and 2008.

To date, the UK Primary Aluminium Industry has reduced its emissions by 39%, relative to 1990 levels.

Electricity consumption in primary aluminium smelters has been reduced by one-third since the 1950s and by 7% since 1990.^[39]

Though considerable technological advances have been made aluminium remains a much more carbon intensive metal than other metals, for example steel. Aluminium production accounts for ca. 1% of global greenhouse gas emissions,producing 13.1 tons of CO2 equivalent per ton of aluminium ^[40]. Technological advances have led to 20-25% emissions savings in the smelting process in recent decades but overall emissions are increasing and there is no concrete intention to reduce them. In fact, Alcoa predicts a 20% increase of CO2e emitted per year from ca.335 million tonnes of CO2e in 2000 to ca. 400 million tonnes in 2020^[41].

Over 50% of aluminium is produced worldwide using clean, renewable, hydro-electric power.^[42]

The aluminium industry has historically been linked to the hydro power industry due to the large, cheap and continuous supply of energy needed to refine and smelt aluminium. Due to the low economic return per energy unit, smelting is increasingly geared towards countries developing with low energy and labour costs, and large and powerful rivers which are less politically sensitive to dam than in the Western world^[43]. Hydro power, and particularly the mega hydro projects common for aluminium smelting, have considerable ecological consequences which are particularly well detailed in Patrick McCully's book 'Silenced Rivers: The Ecology and Politics of large dams'^[44] These include greenhouse gas emissions from rotting organic matter in reservoirs which are in some cases much higher than for an equivalent gas fired power station ^[45]. These greenhouse gas emissions and other indirect emissions from hydro are not included in industry audits.

Every kilogram of aluminium used in a car's manufacture saves 20 kilograms of CO2 emissions over a vehicle's lifetime.^[46]

This figure does not take account of the increase in emissions from primary processing and smelting when substituting aluminium for steel in cars (see above).

Affiliations

ALFED is a member of Metals Forum ^[47]

ALFED works with a number of other aluminium bodies including:

Funding

ALFED is funded by member's subscriptions and commercial activities such as delivering training and support services for Members and for the Gulf Aluminium Council. ^[49]

People

ALFED staff

Will Savage Chief Executive
Richard Mahoney Public Affairs Executive
Tom Siddle Technical Manager
Tony Franchina Technical Executive
Margaret Lane P.A. to the Chief Executive
Sylvia Battersby Administrator
Ann Gough Administrator
David Harris Technical & Training Advisor
Ken Campbell CCA Advisor
Geoff Doyle Technical Advisor ^[50]

Former staff

David Harris - Former Secretary General. Now a consultant.^[51]
Geoff Budd^[52]
Gerald Howell President in 1983. Possible associations with Hawker Siddeley arms company, a founding member of BAe Systems.^[53]
A R Woodward Technical Advisor ^[54]
L P Matthews^[55]
Gordon Polson Secretary General 2005- .Presviously director general of the National Association of Steel Stockholders ^[56]
Rebecca Ashby
Mark Askew
Brian Glover
David Keevil
Richard Mahoney
Ron Moult
Justin Ratcliffe
Gillian Robinson^[57]
Eileen Chipperfield
Annelli Gilbert^[58]