Author: Ibragim Isaev
“Net-Zero” means reducing carbon emissions to a small amount of residual emissions that can be absorbed and reliably stored by nature or other carbon removal measures, leaving zero amount in the atmosphere. This is critical to limiting global warming to no more than 1.5°C above pre-industrial levels, as set out in the Paris Agreement. Currently, the Earth’s temperature has already risen by about 1.1°C since the end of the 19th century, and emissions continue to rise. To keep warming to 1.5°C, emissions need to be cut by 45% by 2030 and reach net zero by 2050. More than 140 countries, including major polluters such as China, the US, India and the European Union, have set net-zero emissions targets, covering about 88% of global emissions.
Azerbaijan and its contribution to the fight against climate change
A significant role is given to achieving Azerbaijan’s national emissions reduction target of reducing greenhouse gas emissions by 40% by 2050 compared to 1990 levels, as well as strengthening resilience and the ability to adapt to the adverse effects of climate change. The selection of Azerbaijan to host COP29 by a unanimous decision of the international community is an important recognition of its efforts, especially in the field of green energy. Azerbaijan sees this as an opportunity to strengthen global climate ambitions. The country stresses the need for immediate action to prevent global warming from exceeding the critical threshold of 1.5°C. With the window of opportunity shrinking every year, the most important thing now is to invest in a sustainable future to avoid irreversible consequences. The top priority is to reduce emissions quickly and sustainably to control rising temperatures and leave no one behind.
The COP29 Presidency’s plan is built on two key pillars: the first is to strengthen the climate ambitions of all participants, and the second is to secure the funding and other resources needed for real action to reduce emissions and adapt to climate change. Azerbaijan strives for inclusiveness and openness, taking into account the views of all stakeholders to achieve collective and fair solutions.
Azeraluminium’s commitment to climate goals and sustainability
Azeraluminium fully supports Azerbaijan’s climate goals, including current and future Nationally Determined Contributions (NDC). The company began preparing for decarbonization long before COP29, which is clearly visible in its investment program. Azeraluminium actively promotes sustainable development by forming partnerships and attracting investments in recycling and alternative energy projects.
Azeraluminium LLC is a leading company in the field of non-ferrous metallurgy of the Republic of Azerbaijan and the only producer of primary aluminum in the Caucasus. Despite this, total production volumes are not significant on a global scale. Nevertheless, the competitiveness of the products is ensured by the high share of value-added products in the export portfolio of Azeraluminium LLC, as well as the high quality of the final products. The Ganja Production Complex was put into operation in January 2012, the design capacity of the electrolysis production of primary aluminum is 50,000 tons. Subsequently, in addition to the production of primary aluminum, facilities were commissioned for the production of so-called aluminum semi-finished products: aluminum strip produced using continuous casting technology, as well as cold-rolled aluminum strip in the form of sheets and rolls. Thanks to a responsible approach to operation,
Azeraluminium’s head office is located in Baku, and production is in Ganja. The total area of the Ganja industrial complex is 81 hectares; 1,100 people work in production. It consists of 4 production sites, including an electrolysis building, an anode process shop, a continuous casting and rolling shop, a cold rolling and painting shop, as well as auxiliary infrastructure facilities. The region operates renewable energy sources, among which the most significant are the Mingachevir and Shemkir Hydroelectric Power Plants, the capacity of which many times exceeds the needs of Azeraluminium LLC.
The company produces primary aluminum, continuous casting coils and cold rolled products that meet high international standards and 95% of its products are exported to more than 15 countries, including the USA, Europe, Turkey and the CIS countries. Azeraluminium’s geographic location allows it to quickly deliver products to customers in various sectors such as construction, automotive, energy and packaging.
Decarbonization Azeraluminium
Azeraluminium says it plans to achieve net-zero greenhouse gas (GHG) emissions across its operations by 2050. This pathway covers both direct (Scope 1) and indirect (Scope 2) emissions, reflecting our strategic priority for sustainable development.
Our goal is to reduce direct and indirect emissions by 30% by 2030, and eliminate them where possible by 2050.
Our commitment to sustainability is an important part of Azeraluminium’s growth strategy. We believe that through a combination of innovation, strategic partnerships and an environmentally responsible approach, we will not only achieve our goals, but also inspire others in the market to do the same. This new phase is a natural continuation of many years of work to create a more environmentally friendly and responsible production.
Approach to decarbonization: economic feasibility and environmental sustainability
Every step towards decarbonization must be not only environmentally sustainable, but also economically feasible. The best way to achieve our emissions reduction targets is to launch new projects that are as environmentally responsible as possible while remaining financially viable. This approach will allow us not only to improve our environmental performance, but also to strengthen our financial results. Following the successful launch of these initiatives, we also plan to upgrade existing production processes to comply with the latest environmental requirements.
Strategies for achieving decarbonization goals
Due to the extremely high energy consumption of primary aluminum production, our priorities are to create partnerships and attract investments to ensure Azeraluminium’s full transition to alternative energy sources. We plan to build 100 MW solar power plants at the first stage, which will be an important step towards decarbonization and will meet the company’s current energy needs. However, with an increase in primary aluminum production capacity by 50 thousand tons per year, as well as an expansion of continuous casting and metal rolling capacities, we intend to increase the production of alternative energy to 250 MW.
Aluminum can be recycled an unlimited number of times, and recycling requires significantly less energy compared to the production of primary metal by electrolysis. To develop aluminum recycling capacity, partnerships were created with foreign companies. In the near future, it is planned to build a processing plant with a capacity of about 100 thousand tons per year. This move, together with the introduction of alternative energy sources, will allow us to produce green aluminum and bring us closer to our decarbonization goals.
These two steps – the transition to alternative energy sources and the development of aluminum processing – are already technologically possible and achievable today. However, further decarbonization will largely depend on technological breakthroughs in the production of primary aluminum.
The most discussed and researched technology is inert anode technology, which allows replacing carbon anode blocks. Burning carbon blocks emits the largest amount of Scope 1 greenhouse gases per ton of finished metal. The technology of inert anodes that are not consumed by electrolysis and do not emit GHGs will be revolutionary for the industry, provided that economic efficiency is achieved. This technology, first explored in the first half of the 20th century, would significantly reduce carbon emissions from the aluminum production process. Despite the fact that work in this direction has been going on for decades, the technology is not used in industrial production. However, over the past 5 years, a number of foreign companies have announced significant successes, starting the production of metal with a zero carbon footprint on test electrolysis lines in the Russian Federation. Once inert anodes become economically feasible and industrially applicable, it will bring us and other companies in the aluminum industry closer to the goal of zero emissions
artificial intelligence will further optimize industrial processes. In the aluminum industry, AI will play an important role in improving the efficiency of production processes, increasing energy-efficiency of production and reducing environmental impact, bringing us closer to a more sustainable future.
Forward-Looking Statements
This document contains statements regarding future events and expectations that may be considered forward-looking statements. Forward-looking statements include words such as “anticipates,” “intends,” “seeks,” “states,” “possible,” “develops,” “will achieve,” “believes,” “could,” “estimates,” “expects.” “, ”predicts”, “goal”, “plans”, “seeks”, “sees”, “should”, “will” and other similar expressions. All statements by Azeraluminium that express expectations, assumptions or projections about the future, other than historical facts, are forward-looking statements.
Forward-looking statements are not guarantees of future performance and are subject to various risks, uncertainties and changes in circumstances that may affect actual events. Although Azeraluminium believes that the expectations reflected in the forward-looking statements are based on reasonable assumptions, the company cannot guarantee that they will be achieved. Actual results may differ materially from those projected in these statements due to a number of factors, including economic conditions, changes in regulations, technological advances, unforeseen circumstances and other risks that are difficult to predict.
Azeraluminium undertakes no obligation to update these forward-looking statements in response to new information or future events unless required by law.
Contact for media and investors:
Ibrahim Isaev
[email protected]
How can AI-driven analytics improve energy management and emissions monitoring in industries like aluminum production?
Ustainable model. By employing AI-driven analytics, Azeraluminium intends to enhance energy management systems, optimize production lines, and monitor emissions in real-time. This will not only enable precise control over resource utilization but also aid in making informed decisions that drive decarbonization efforts.
As part of its commitment to sustainability, Azeraluminium also recognizes the importance of engaging with stakeholders and promoting awareness around sustainable practices. The company plans to collaborate with governmental bodies, non-governmental organizations, and educational institutions to promote initiatives that foster a culture of sustainability, both within the aluminum industry and beyond.
Azeraluminium’s journey towards decarbonization is not just a response to global climate challenges but is aligned with Azerbaijan’s strategic vision for a green economy. By scaling up investments in renewable energy and developing efficient recycling processes, Azeraluminium exemplifies how industry leaders can contribute positively to environmental sustainability while remaining competitive in the market.
Azeraluminium is taking meaningful steps towards achieving its decarbonization goals by:
- Committing to net-zero GHG emissions by 2050.
- Targeting a 30% reduction in direct and indirect emissions by 2030.
- Investing in renewable energy projects and partnerships for solar power generation.
- Building aluminum recycling capacity to decrease reliance on primary aluminum production.
- Exploring advanced technologies, such as inert anode technology, to enhance production efficiency and reduce emissions.
- Leveraging artificial intelligence for optimizing production processes and environmental management.
- Engaging with stakeholders to promote sustainability initiatives and awareness.
By adopting these strategies, Azeraluminium not only seeks to fulfill its corporate sustainability goals but also aims to set an industry benchmark for responsible and eco-friendly practices in the non-ferrous metallurgy sector.