Alcoa to supply Nexans with low-carbon aluminum, including metal from ELYSIS™ technology
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Insights
Alcoa's partnership with Nexans to supply low-carbon aluminum using ELYSIS™ technology represents a significant advancement in sustainable manufacturing practices. This technology aligns with global efforts to reduce carbon emissions, which is a critical component of corporate environmental responsibility. The use of inert anodes in aluminum smelting to produce oxygen instead of carbon dioxide is a transformative approach that could set a new industry standard, potentially influencing the entire value chain from raw material extraction to end-product manufacturing.
From a sustainability perspective, the adoption of such technology by major players like Alcoa and Nexans could accelerate the transition to greener alternatives in the metals industry. This shift is likely to be well-received by environmentally conscious investors and consumers, who are increasingly demanding that companies take tangible steps towards reducing their carbon footprint. It also may provide these companies with a competitive edge in markets where regulations on carbon emissions are becoming more stringent.
Alcoa's announcement could have broader market implications, particularly within the aluminum industry and sectors dependent on high-conductivity metals. The move towards low-carbon aluminum may influence pricing structures for aluminum products, especially if demand for greener materials continues to rise. Companies that invest early in sustainable production methods might enjoy a 'first-mover' advantage, potentially capturing market share from competitors slower to adapt to environmental concerns.
Furthermore, the partnership could serve as a catalyst for innovation, prompting other companies to invest in similar technologies or to seek out collaborations to improve their environmental credentials. The market may respond favorably to such initiatives, as they align with a growing trend of sustainable investing. Investors might look to companies like Alcoa and Nexans as examples of firms positioning themselves for future growth in a low-carbon economy.
The financial implications of Alcoa's supply agreement with Nexans could be substantial, especially considering the potential for reduced operational costs associated with the ELYSIS™ technology in the long term. By eliminating direct greenhouse gas emissions, Alcoa may benefit from lower carbon taxes and incentives for clean technology, improving its financial metrics. However, the initial investment in developing and scaling up this technology is likely significant and the return on investment will depend on the commercial viability and acceptance of the ELYSIS™ aluminum.
Analyzing the potential impact on Alcoa's profitability requires a close examination of the cost savings from reduced emissions against the capital expenditures and R&D costs. If the technology proves to be economically viable, it could lead to an improved bottom line for Alcoa and potentially increase its stock market valuation. Additionally, Nexans' commitment to using low-carbon aluminum could signal to investors a proactive approach to sustainability, potentially affecting its investor appeal and stock performance.
- Alcoa will supply Nexans with low-carbon aluminum rod that will contain metal from the breakthrough ELYSIS™ technology
- ELYSIS™ is a technology partnership that is ramping up a process that eliminates all direct greenhouse gas emissions from the traditional smelting process, emitting oxygen as a byproduct
- Aluminum rod produced from ELYSIS™ technology will have lower CO2 emissions
Nexans will be the world’s first cable manufacturer to use metal from the breakthrough ELYSIS™ process, which replaces all greenhouse gas emissions with oxygen. The technology uses proprietary materials, including inert anodes, first developed at the Alcoa Technical Center near
Several Nexans facilities in
This latest announcement further builds on the two companies’ historic long-term relationship. Alcoa already supplies Nexans with EcoLum™, a primary aluminum with a carbon footprint that is nearly three times lower than the industry average.1
Since the launch of ELYSIS™ in 2018, the technology company has produced R&D quantities of the metal. Alcoa is marketing and selling its share of the ELYSIS metal, which has also been used for the wheels on the Audi eTron GT, the automaker’s first electric sports car. Apple is also an investor in the technology and has used ELYSIS metal for some of its products.
ELYSIS is a key component in Alcoa’s technology roadmap of research and development projects that also includes projects such as the ASTRAEA™ metal purification process and the Refinery of the Future.
This agreement fully highlights Nexans’ position at the forefront of the sustainable electrification of the world and regarding crucial issues such as low-carbon emissions.
Renato Bacchi – Executive Vice President and Chief Commercial Officer at Alcoa:
“Alcoa is well positioned to supply low carbon aluminum for the world’s transition to renewable energy, as we know that the true impact of decarbonization will also include the choice of materials used to build the infrastructure for generation, transmission and distribution networks. While we are developing ELYSIS™ for the future, we are also supplying low-carbon aluminum today with our EcoLum™ metal, which can help customers meet their own sustainability goals and lower their carbon footprints.”
Vincent Dessale – Nexans Chief Operating Officer Senior Executive VP:
“In the fight against climate change, solutions that support the world’s energy transition make a real difference. By increasing our use of low-carbon aluminum, we want to lead the way toward a sustainable electrification of the world: the rod produced with this breakthrough technology could eliminate a significant portion of carbon dioxide emissions in the future. We are proud to be the world’s first cable manufacturer to use metal from the breakthrough technology ELYSIS™.”
1: Alcoa’s EcoLum™ primary aluminum is produced with less than 4.0 metric tons of CO2e for every ton of metal, including both direct and indirect (Scope 1 and Scope 2) emissions from mining, refining, smelting and casting. EcoLum's emissions intensity vs. the global average per ton of per ton of CO2e/ton of aluminum is approximately three times better than the global average of 13.3, based on CRU emissions intensity data, 2022
About Alcoa Corporation
Alcoa (NYSE: AA) is a global industry leader in bauxite, alumina and aluminum products with a vision to reinvent the aluminum industry for a sustainable future. With a values-based approach that encompasses integrity, operating excellence, care for people and courageous leadership, our purpose is to Turn Raw Potential into Real Progress. Since developing the process that made aluminum an affordable and vital part of modern life, our talented Alcoans have developed breakthrough innovations and best practices that have led to greater efficiency, safety, sustainability and stronger communities wherever we operate. For more information, visit www.alcoa.com
About Nexans
For over a century, Nexans has played a crucial role in the electrification of the planet and is committed to electrifying the future. With approximately 28,000 people in 42 countries, the Group is paving the way to a new world of safe, sustainable and decarbonized electricity that is accessible to everyone. In 2022, Nexans generated
About ELYSIS™
ELYSIS is a technology partnership created thanks to a ground-breaking partnership between two global industry leaders – Alcoa and Rio Tinto. ELYSIS’ goal is to revolutionize the way aluminum is produced across the globe, with technology that enables the production of metal without direct carbon dioxide emissions during the aluminum smelting process, instead emitting oxygen. The company uses inert anodes that replace the carbon anodes traditionally used during electrolysis, which is the process used to make primary aluminum. ELYSIS is currently working to scale up its zero-carbon smelting process so it can be licensed for either retrofits of existing smelters or the construction of new ones. It operates an Industrial Research & Development Center in
Learn more at www.elysis.com
View source version on businesswire.com: https://www.businesswire.com/news/home/20240131324761/en/
Alcoa Investor Contact:
James Dwyer
412-992-5450
James.Dwyer@alcoa.com
Alcoa Media Contact:
Jim Beck
412-315-2909
James.Beck@alcoa.com
Source: Alcoa
FAQ
What is the breakthrough technology that Alcoa will supply Nexans with?
What are the environmental benefits of the ELYSIS™ process?
What type of products will Nexans manufacture using the aluminum produced from ELYSIS™ technology?
What is the carbon footprint of Alcoa's EcoLum™ primary aluminum compared to the industry average?
Which companies have used the ELYSIS metal?
