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Report reveals looming shortages of rare-earth metals and minerals key to the energy transition as low commodity prices cause investors and mining firms to cut spending on critical mining projects

New analysis released today by McKinsey & Company indicates the world could see significant shortages of rare earth metals and minerals critical to the energy transition by 2030 due to a lack of funding for new mining projects. Soaring demand is creating a major trading opportunity with McKinsey analysis revealing a more than 170% growth in commodity trading value pools for metals in just 3 years.

The report, titled The Trading opportunity that could create resilience in materials reveals that surging interest rates and a reduction in available finance has seen mining companies cutting investment, with sector spending in aggregate falling to around $40 billion in 2022 despite the recent uptick from 2020 lows, thus jeopardizing the energy transition. 

2023 09 28 105647The report indicates imminent shortages of 20-50 percent across some rare-earth metals and minerals essential for renewables, power grids and EV batteries by 2030, driving demand for huge investment in new reserves.

Roland Rechtsteiner, Partner at McKinsey, said: “Our analysis shows commodity trading pools have nearly doubled year over year, reaching nearly $100 billion in 2022 and metals and minerals will make up an increasing share of the value pool in the coming years. Traders can capitalize on this opportunity by supporting increased liquidity and price discovery in rapidly evolving metals and minerals markets, providing ESG blending solutions tailored to each market and boosting risk management capabilities to provide these services for counterparties including new market entrants.”

Yet investors are currently reducing funding for new mining projects due to low commodities prices and long lead times for new mines, exacerbating supply chain shortages for green technologies. McKinsey notes that commodities are currently significantly underpriced despite massive demand with the Goldman Sachs Commodity Index only just starting to rebound from all-time lows vs the S&P 500.

It is anticipated that EV batteries and chargers alone may consume over 50 percent of all available cobalt and rare-earth elements and 36 percent of nickel resources by 2030. McKinsey highlights that recycling could only account for 10 percent of supply for minerals such as copper, lithium, and nickel by 2040 and potential substitute materials are still nascent.

Spencer Holmes, Associate Partner at McKinsey said: “There are many hurdles to developing new metal and mineral reserves with investors favoring other industries, and many proposed mines involving new technologies and inexperienced companies as well as ESG and permitting barriers. Mines take an average of up to 15 years to become operational and some projects planned today wouldn’t begin production until about 2040.

“Large energy firms could help address the renewable supply chain shortage at source by expanding into metals and minerals. Traders could also accelerate development by pre-financing junior mines and helping producers gain access to markets. Metals and minerals producers could also encourage long-term supply deals to pre-finance projects.”

McKinsey suggests three paths to help companies shore up their positions and find new opportunities amidst the growing uncertainty and complexity of commodities markets.

  1. Traders: Traders can help address metals and minerals shortages by supporting liquidity and price discovery in rapidly changing metals and minerals markets, providing ESG blending solutions tailored to each market, boosting risk management capabilities to provide these services for new market entrants and directly investing their own capital in alleviating the supply shortage
  2. Metals and minerals producers: Producers could negotiate long-term supply deals to pre-finance new mining projects, customize high quality metals to specific customer segments, explore new product differentiators (particularly green product price discovery) understand supply chain vulnerabilities such as over-reliance on some countries for solar parts and use trading to optimize their portfolio management
  3. Major energy companies: Big energy firms could expand into the supply chain to alleviate the shortage. For example, energy firms could harness their expertise to expand into metals and minerals

To read McKinsey’s findings in detail, click here.  

About McKinsey & Company: McKinsey & Company is a global management consulting firm committed to helping organisations create Change that Matters. In more than 130 cities and 65 countries, our teams help clients across the private, public, and social sectors shape bold strategies and transform the way they work, embed technology where it unlocks value, and build capabilities to sustain the change. 

Thursday, 28 September 2023 10:46

Net Zero Watch welcomes green light for Rosebank

Campaign group Net Zero Watch has welcomed the decision by the UK Government and the North Sea Authority to give the go-ahead to the giant Rosebank oil and gas field off the coast of Shetland.

The field could provide a significant proportion of the UK’s fossil fuel needs. At nearly 500 million barrels, Rosebank is the UK’s biggest undeveloped oil and gas field.

Net Zero Watch director Andrew Montford said:

"Nobody seriously disputes that the UK will require fossil fuels for decades to come – even the Climate Change Committee agrees. So the Government’s decision to sweep aside the green opposition that has been holding the development back for two decades is very welcome."

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The decision comes close on the heels of Rishi Sunak’s belated recognition of the failure of current Net Zero policies, and his announcement of a shift in emphasis. Mr Montford said:

"The poll bounce since Sunak’s Net Zero delays suggests that the only way the Conservatives can dream of retaining power is to dump as much of the ‘green crap’ as they can before the election, and the Rosebank decision shows that Mr Sunak knows it."

The decision comes as governments across Europe are weakening their commitment to decarbonisation policies, as recognition of their futility and the unbearable costs spreads. The continent has significant fossil fuel resources, which will be vital to keep the lights on in coming decades.

Net Zero Watch has repeatedly warned ministers and MPs in London and Brussels that they have a choice between exploiting Europe’s untouched fossil fuels or inevitable relegation of the continent to second division status.

Further information: European Fossil Fuels: Resources and Proven Reserves (pdf)

Andrew Montford
Director, Net Zero Watch
e: This email address is being protected from spambots. You need JavaScript enabled to view it.

Patrick Pouyanné, Chairman and CEO, and the members of the Executive Committee will present TotalEnergies’ Strategy & Outlook in New York today. The webcast of the presentation in English is available on totalenergies.com.

TotalEnergies stays the course of its balanced multi-energy strategy…

TotalEnergies reaffirms the relevance of its balanced multi-energy strategy considering the developments in the oil, gas and electricity markets. Anchored on two pillars, Oil & Gas, notably LNG, and Integrated Power, the energy at the heart of the energy transition, the Company is in a very favorable position to take advantage of changing energy prices.

Thanks to refocusing the oil and gas portfolio on assets and projects with low breakeven and low greenhouse gas emissions, and to the diversification into electricity, notably renewable, through an integrated strategy from production to customer, the Company is implementing its transition strategy while offering an attractive shareholder return.

…responsibly producing low cost, low emission Oil & Gas from a rich portfolio

While drastically lowering the emissions from its operations, TotalEnergies plans to grow Oil & Gas production by 2-3 % per year over the next five years, predominantly from LNG, thanks to its rich low cost, low emission upstream portfolio.

The Company will notably develop a top-tier pipeline of LNG projects (Qatar North Field Expansion, Papua LNG, ECA LNG and Rio Grande in US, Mozambique LNG) while leveraging its competitive advantage with leading positions in Europe regasification and in US exports. TotalEnergies will also concentrate efforts to develop its portfolio of high-return oil projects (Brazil, Gulf of Mexico, Iraq, Uganda) recently enriched with exploration successes in Suriname and Namibia.

The Oil & Gas business is expected to generate more than $3 billion of additional underlying cash flow in 2028 compared to 2023 at constant prices.

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…and developing a profitable and differentiated Integrated Power model to create a future cash engine of the Company

TotalEnergies is replicating its integrated Oil & Gas business model into electricity to achieve a ROACE of ~12%, equivalent to upstream Oil & Gas ROACE at 60 $/b, above the “utility” model traditional returns.

The Company is building a world class cost-competitive portfolio combining renewable (solar, onshore wind, offshore wind) and flexible assets (CCGT, storage) to deliver clean firm power to its customers. TotalEnergies is leveraging its purchasing power to optimize its investment costs and industrialize its renewable assets through digital to lower operating costs. By utilizing its fortress balance sheet, TotalEnergies will capture additional value from price volatility through merchant exposure.

The Company aims to grow its power generation to more than 100 TWh by 2030, investing $4 billion per year and increase cash flow from ~$2 billion in 2023 to more than $4 billion by 2028, becoming net cash-flow positive.

TotalEnergies expects to distribute about 44% of its CFFO in 2023 and increases shareholder distribution guidance to more than 40% of CFFO beyond 2023.

Given the strong fundamentals of the Company, the clear and disciplined investment policy, and the solid potential for cash generation growth in the coming years, the Board of directors has taken the following decisions:

  • In 2023, allocate $1.5 billion of the Canadian assets’ divestment proceeds to share buybacks, to reach $9 billion. The Company expects to return about 44% of CFFO to shareholders in 2023.
  • Increase the shareholder distribution guidance to more than 40% of CFFO through the cycles keeping net investments between $16-18 billion per year over 2024-28 to implement the transition of the Company.

About TotalEnergies
TotalEnergies is a global multi-energy company that produces and markets energies: oil and biofuels, natural gas and green gases, renewables and electricity. Our more than 100,000 employees are committed to energy that is ever more affordable, cleaner, more reliable and accessible to as many people as possible. Active in nearly 130 countries, TotalEnergies puts sustainable development in all its dimensions at the heart of its projects and operations to contribute to the well-being of people

Thursday, 28 September 2023 10:34

Emerson Ventures Invests in First Resonance

Strategic investment from Emerson’s corporate venture capital arm supports First Resonance's ION Factory Operating System

Emerson (NYSE: EMR) has just announced it has made a strategic investment through Emerson Ventures, its corporate venture capital arm, in First Resonance, a Los Angeles-based start-up transforming manufacturing with its ION Factory Operating System (OS). Through Emerson Ventures’ value-add strategic investment approach, Emerson’s investment will support further growth and development of First Resonance’s ION Factory OS, which enables companies across industries to conduct day-to-day operations and connect workflows to power modern operations, from production to supply chain procurement and quality.

2023 09 28 103352“As Emerson continues to accelerate its growth as a leading global automation company, we are constantly searching for innovative companies supporting the development of world-changing software and technologies,” said Thurston Cromwell, vice president of development and innovation, and head of Emerson Ventures. “This strategic investment brings together Emerson’s deep expertise in automation and First Resonance’s operating system that helps companies modernise their technology, automate their processes and build transformational products of the future.”

With its discrete manufacturing platform that equips manufacturers with a digital thread, ION helps remove barriers by providing tools to improve collaboration, move information more freely, and use the power of data to deliver insights that result in better quality and faster delivery.  

“First Resonance’s mission aligns well with Emerson’s focus on innovation and its ongoing commitment to support manufacturers building revolutionary products,” said Karan Talati, co-founder and chief executive officer of First Resonance. “From climate and energy to new forms of transportation, space exploration and robotics, we are empowering companies to address the most pressing global challenges across both traditional and emerging industries. Through our people, the ION Factory OS, and now with the support of Emerson, we will continue to empower thousands of engineers, operators and manufacturers to connect and supercharge the future.”

About Emerson
Emerson (NYSE: EMR) is a global technology and software company providing innovative solutions for the world’s essential industries. Through its leading automation portfolio, including its majority stake in AspenTech, Emerson helps hybrid, process and discrete manufacturers optimise operations, protect personnel, reduce emissions and achieve their sustainability goals. For more information, visit Emerson.com.

About First Resonance
Used by next generation manufacturers building world-defining hardware like spacecraft, power plants, and robots, First Resonance provides software to visionary companies where flexibility and quality traceability are critical for success. The ION Factory OS by First Resonance makes it possible for engineers to rapidly move from complex prototypes to seamless production, accelerating the development cycle. With ION Analytics, decision-makers get real-time visibility into bottlenecks in the manufacturing process, empowering them to iterate quickly and at scale, resulting in faster time to market. For more information on First Resonance please visit: https://www.firstresonance.io.

Rio Tinto has awarded Metso an order for ten HP Series cone crushers to be installed at the Tom Price iron ore mine in Western Australia. This order follows the initial award of six HP series cone crushers in late 2022. The crushers in the initial order are currently being delivered to the Paraburdoo iron ore mine and the Pilbara mine. The latest order is booked in the Minerals segment’s third-quarter 2023 orders received.

“The HP500™ cone crushers will replace the long-serving Symons cone crushers. The compact and versatile HP Series crushers are a step change in the crushing process, enabling maximum operator safety and easy maintenance as the key components can be accessed from the top of the crushers. They provide a more sustainable solution, delivering high output with decreased energy consumption despite their smaller size. Additionally, the new crushers feature an option for digitizing the operation,” explains Julius Mäkelä, Vice President, Mid-size and Mobile Crushers at Metso.

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The compact size of the HP500™ cone crusher is well suited as a replacement for Symons crushers. The HP500™ is utilized in aggregates production, quarrying applications, and mining operations worldwide.

Read more about Metso HP500™ cone crushers on our website.

Metso is a frontrunner in providing sustainable technologies, end-to-end solutions and services for the aggregates, minerals processing and metals refining industries globally. By helping our customers increase their productivity, improve their energy and water efficiency and environmental performance with our process and product expertise, we are the partner for positive change.

Headquartered in Espoo, Finland, Metso employs over 16,000 people in close to 50 countries and sales for 2022 were about EUR 5.3 billion. The company is listed on the Nasdaq Helsinki. metso.com

TotalEnergies EP Angola Block 20 has finalized the sale to PETRONAS ANGOLA E&P LTD (PAEPL), a company belonging to the PETRONAS group of companies, of a 40% interest in Block 20 in the Kwanza Basin in Angola. The transaction was completed for an amount of $400 million as at January 1st, 2023, subject to customary price adjustments.

TotalEnergies retains the operatorship and a 40% interest in Block 20, alongside PAEPL (40%) and Sonangol Pesquisa e Produção S.A. (20%).

2021 07 28 124820Block 20 contains the Cameia and Golfinho oil discoveries, located around 150 km southwest of Luanda. These discoveries are planned to be developed through a system of subsea wells connected to a FPSO (Floating Production, Storage and Offloading unit) with an oil production capacity of 70,000 barrels per day, which will be the seventh FPSO developed by TotalEnergies in Angola. The project will include the best available technologies to minimize greenhouse gas emissions and the facilities will be designed for zero flaring, with the associated gas entirely reinjected into the reservoirs.

“TotalEnergies is pleased to welcome Petronas, one of its strategic partners, on Block 20 in the Kwanza basin. With Sonangol and Petronas, we have established a solid partnership that will collectively enable us to take the final investment decision for the development of the Cameia and Golfinho fields, with the support of the Angolan authorities”, said Nicolas Terraz, President, Exploration & Production at TotalEnergies.

About TotalEnergies in Angola
Present in Angola since 1953, TotalEnergies employs 1,500 people in different business segments. With a diversified business portfolio, from deep offshore assets that represents around half of the country’s oil production, service stations in partnership with Sonangol and renewables, TotalEnergies in Angola is a key actor for an equitable energy transition of the country.

About Block 20
Blocks 21/09 and 20/15 were merged into Block 20/11 ("Block 20") by presidential decrees in July 2023.

About TotalEnergies
TotalEnergies is a global multi-energy company that produces and markets energies: oil and biofuels, natural gas and green gases, renewables and electricity. Our more than 100,000 employees are committed to energy that is ever more affordable, cleaner, more reliable and accessible to as many people as possible. Active in nearly 130 countries, TotalEnergies puts sustainable development in all its dimensions at the heart of its projects and operations to contribute to the well-being of people

Akobo Minerals AB (Euronext and Frankfurt: AKOBO) (OTCQX:AKOBF), the Scandinavian-based Ethiopian gold exploration and boutique mining company, has just announced  that its shares will now trade on the OTCQX Best Market under the ticker symbol of AKOBF.

The OTCQX Best Market is the highest market tier of OTC Markets on which 12,000 U.S. and global securities trade. Trading on OTCQX will enhance the visibility and accessibility of the Company to U.S. investors.  Akobo Minerals' shares will continue to trade on the Euronext Growth in Oslo under the symbol AKOBO, and on the Frankfurt Stock Exchange under the symbol AKOBO.

The OTCQX Best Market provides value and convenience to U.S. investors, brokers and institutions seeking to trade AKOBF. The OTCQX Best Market is OTC Markets Group's premier market for established, investor-focused U.S. and international companies.  To be eligible, companies must meet high financial standards, follow best practice corporate governance, demonstrate compliance with U.S. securities laws, be current in their disclosure, and have a professional third-party sponsor introduction.

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Akobo Minerals has positioned itself as the leading mining and exploration company in Ethiopia – a country with vast untapped resources. In terms of mining, Akobo is nearing the complete construction of the Segele gold mine, a uniquely high-grade asset. In terms of exploration, Akobo has a rapidly expanding portfolio of exploration targets with high grade intersections at depth and at surface. The Segele mine has an Inferred and Indicated Mineral Resource of 68,000 ounces yielding a world-class gold grade of 22.7 g/ton, combined with an estimated all-in sustaining cost (AISC) of USD 243 per ounce. The gold mineralised zone at the Segele Mine continues at depth, this and the exploration targets have good potential to have a positive impact on future resource estimates and mine-life. The company plans a strategic expansion of the exploration licence in order to open a new gold province. 

Jørgen Evjen, CEO of Akobo Minerals, said: “I am pleased to reach the milestone of trading on OTCQX, as this will make it easier for U.S. investors to invest in Akobo. After 13 years of hard work, the timing is right for new investors to invest in this great adventure. We are establishing the first new commercial mine in Ethiopia since 1994, with first pour of gold in sight. And from our exploration work we see the potential in discovering a possible million-ounce deposit. This is just the beginning, and we welcome all new shareholders on board. Ethiopia is going to be the new hot spot for mining in Africa over the next 10 years. We have a head start and are first movers”.

About Akobo Minerals 

Akobo Minerals is a Scandinavian-based gold exploration and boutique mining company, currently holding an exploration license covering 182 km2 and a 16 km 2 mining license with an ongoing mine development in the Gambela region and Dima Woreda, Ethiopia. The company has established itself as the leading gold exploration company in Ethiopia through more than 13 years of on-the-ground activity. 

Akobo Minerals has an excellent relationship with local communities all the way up to national authorities and we place environment and social governance (ESG) at the heart of our activities – as demonstrated by a planned industry-leading extending shared value program. 

Akobo Minerals has built a strong local foothold based upon the principles of sound ethics, transparency, and communication, and is ready to take on new opportunities and ventures as they arise. The company is uniquely positioned to become a major player in the future development of the very promising Ethiopian mining industry.

Akobo Minerals has a clear strategy aimed at building a portfolio of gold resources through high-impact exploration and mining, whilst adhering to a lean business operation.

The company is headquartered in Oslo and is listed on the Euronext Growth Oslo Exchange and Frankfurt Stock Exchange under the ticker symbol, AKOBO.

Akobo Minerals AB (OTCQX: AKOBF) trades on the OTCQX Best Market. Companies meet high financial standards, follow best practice corporate governance, demonstrate compliance with U.S. securities laws, and have a professional third-party sponsor introduction. Investors can find current financial disclosure and Real-Time Level 2 quotes for the Company on www.otcmarkets.com.

Akobo Minerals fully meets and complies with all parts of the JORC code, 2012. For further information, see https://www.jorc.org/ 

About OTC Markets Group Inc.

OTC Markets Group Inc. (OTCQX: OTCM) operates regulated markets for trading 12,000 U.S. and international securities. Our data-driven disclosure standards form the foundation of our three public markets: OTCQX® Best Market, OTCQB®Venture Market and Pink® Open Market. Our OTC Link® Alternative Trading Systems (ATSs) provide critical market infrastructure that broker-dealers rely on to facilitate trading. Our innovative model offers companies more efficient access to the U.S. financial markets. OTC Link ATS, OTC Link ECN and OTC Link NQB are each an SEC regulated ATS, operated by OTC Link LLC, a FINRA and SEC registered broker-dealer, member SIPC.

Monday, 18 September 2023 11:39

Komatsu introduces Smart Quarry Site

The OEM-agnostic fleet management system to follow-up your entire fleet.

Are you looking for a tool that can further improve the productivity and fuel efficiency of your quarry and heavy construction equipment? That will allow you to monitor and improve workplace safety in real time while reducing overall emissions on site? Komatsu Europe is pleased to announce our upcoming Smart Quarry Site all-in-one fleet management solution that gives you all this – and more!

Smart Quarry Site is scheduled to be released by Komatsu at the end of 2023, following its sneak preview at bauma 2022. This brand agnostic solution focuses on six key areas: safety, site management, production, machine health, maintenance, fuel consumption and CO2 emissions for quarry operations and large civil construction projects.

Smart Quarry Site provides real time data of all machines in your fleet, of their payloads and production rates. It helps you to increase safety and production and reduces operating costs by identifying issues and bottlenecks. You will be able to quickly make decisions to optimize your fleet’s efficiency.

“Smart Quarry Site gives our quarry and large construction customers an ongoing real-time overview of every machine’s movement and condition and allows to visualize opportunities and achieve targets for each”, says Daniel Heussen, General Manager Business Transformation at Komatsu Europe. He adds: “Important KPI’s for the whole fleet, such as payload, fuel use and machine work time, are reported to let site managers make educated decisions without having to spend hours analysing raw data.”

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With a unique ID, each operator can login to the system and receive instant information. The in-cab screen gives real time feedback on current payload, material type and destination.

Data can be exchanged between machines via a mesh network of peer-to-peer connections. When a machine is in an area with no connectivity, data shared on this network will automatically upload once one of the mobile machines comes back within range.

Thanks to this mesh network, the loader and truck will connect, allowing the loader’s operator to optimise the trucks’ payload with every cycle.

The easy-to-use dashboards and real-time view facilitate quick access to fleet and production information for all back-office personnel. At a glance, they provide necessary details and insights on several aspects of your jobsite, such as safety, production, idling, CO2 and fuel and machine status.

Would you like to receive a quick overview on topics such the pre-start checks or production? Configure the report and timing of choice and it will be sent to your mailbox at the scheduled time.

Make the Smart decision!

Main features
√ Fleet management solution for quarries and large construction sites – follow your whole fleet in one system.
√ OEM-agnostic.
√ Real time data collection from the machine can bus.
√ Ruggedised tablet in every machine, showing actual payload, overall production, type of material and safety messages.
√ Pre-start checks.
√ Operator ID.
√ Real-time view of every machine movement and machine condition working status.
√ Dashboards (Utilization / Emissions and fuel / Fleet focus / Production / Operator dashboard.)
√ Automated and configurable reports (For example: production, pre-start completion ratio and fleet utilisation)
√ Safety warnings.
√ Mesh network, allowing machines to connect with each other

√ One solution for your whole fleet.
√ Increase productivity and fuel efficiency.
√ Monitor and improve site safety.
√ Reduce overall site emission.
√ Manage machine utilisation and reduce unnecessary idling.
√ Reduce overall operating costs.
√ Machine health follow-up.
√ Save time:
⇒ Automated data collection
⇒ Quick overview of your whole fleet


About Komatsu
Komatsu is an industry-leading manufacturer and supplier of equipment, technologies and services for the construction, forklift, mining, industrial and forestry markets. For over a century, Komatsu equipment and services have been used by companies worldwide to develop modern infrastructure, extract fundamental minerals, maintain forests and create technology and consumer products. The company’s global service and distributor networks support customer operations, tapping into the power of data and technology to enhance safety and productivity while optimizing performance.

As a result of an energy ecosystem by Kiilto and the heating company Lempäälän Lämpö, the district heating network in the Sääksjärvi area makes use of carbon-neutral district heating during the summer months. Kiilto benefits by getting closer to its carbon balance targets.

Plenty of waste heat is created in industrial processes at the Kiilto plant, which has already been utilised in the heating of Kiilto’s own premises. However, during the warm season, there is more heat than needed. Thanks to a partnership that began in September 2022, this waste heat is being utilised in the Lempäälä district heating network.

District heating produced with waste heat increases during the summer, and so far 1,100 MWh of energy has been produced into the district heating network. This has resulted in a decrease in natural gas consumption of approximately 1,000 MWh in the Sääksjärvi area.

“The Sääksjärvi customers consist of households, housing companies and industry. According to calculations by Finnish Energy, one detached house uses about 18 MWh of energy per year, meaning that the benefits created by the energy ecosystem are significant. People do not heat their homes much during the summer, but they can enjoy a carbon-neutral warm shower,” says Toni Laakso, CEO of Lempäälän Lämpö.

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Waste heat from industrial processes

At the Kiilto plant, waste heat is the result of excess energy created in the industrial processes. For example, polymerisation in adhesive manufacturing processes is an exothermic reaction that releases heat energy. Hot melt adhesives are manufactured by warming the mixture to a high temperature, followed by cooling with water in the later stages.

Kiilto has been recovering heat created in its processes in order to heat their premises since 2018. This has resulted in considerable savings in the amount of energy they have had to purchase, thereby reducing the use of natural gas and consequently reducing the carbon footprint of their operations.

“Since we began to recover waste heat, our energy consumption has fallen and CO2 emissions have reduced by more than 500,000 kilogrammes per year,” says Petri Heljo, Supply Chain Director at Kiilto.

The ecosystem benefits both parties

When the ecosystem was planned, it was discovered that the peak waste heat periods at the Kiilto plant and the energy use profiles of the residents and industrial businesses in the Sääksjärvi area were a close match.

“When people in Sääksjärvi take their morning showers, the morning shift is at its busiest at the Kiilto plant. During the evenings, the need and production of energy also coincide,” says Vesa Juhannusvuori, Technical Manager at Kiilto.

Although waste heat was available for the need at the right time, building the ecosystem required considerable investment. The challenge was to make the investment profitable for both parties. But with careful planning, it was made to work.

“The ecosystem is bi-directional, meaning that during the cold season, Kiilto buys district heating produced by means of bio-based energy from Lempäälän Lämpö to heat our premises when our heat pumps do not produce enough. Thanks to the new system, the Kiilto plant has been able to reduce its natural gas consumption considerably, taking Kiilto closer to its carbon neutrality targets,” says Heljo.

In an ecosystem where excess energy is transferred to meet needs in the vicinity, the benefits include energy self-sufficiency and not having to transfer over long distances.

Kiilto and Lempäälän Lämpö forerunners in sharing economy

Industry creates plenty of waste heat, but the challenge is to transfer it cost-efficiently to wherever it is needed at a specific time. However, new technologies nevertheless enable energy cooperation between industry and energy companies. The pioneering work by Kiilto and Lempäälän Lämpö has attracted plenty of interest, and the lessons learned will be further refined in the future.

“The current ecosystem has been a major pioneering project, and we have learned a lot about the technology and processes. The energy markets do not have an unlimited supply of primary energy sources, so in future we must gain better access to smaller energy flows, and focus on energy sharing. We will be looking for more partners with which we can apply the lessons learned here,” says Laakso.

Kiilto Group plans to be carbon-neutral with regard to its own operations be 2028.

“We are heading in that direction by reducing the need for fossil fuels and by adopting carbon-neutral forms of energy,” Heijo says. “We evaluate these measures in all our operating premises, and always consider the synergies with the environment and the local community.”

TotalEnergies and Air Liquide have signed an agreement for the long-term supply of green and low carbon hydrogen to the TotalEnergies refining and petrochemical platform in Normandy. The project will contribute to the decarbonization of the Gonfrevillle site, reducing its CO2 emissions by up to 150,000 tons a year. This cooperation between Air Liquide and TotalEnergies is aligned with the two companies’ shared commitment to contributing to decarbonize industrial operations in the Axe Seine corridor.

2023 09 18 112114The project calls for the supply of 10,000 tons of green hydrogen per year to the TotalEnergies platform in Normandy and up to 5,000 tons per year of low carbon hydrogen starting from the second half of 2026. It is comprised of two integrated parts:

  • The production of green and low carbon hydrogen by the Normand’hy electrolyzer, which will be built and operated by Air Liquide, with a total electrical capacity of 200 MW. TotalEnergies will have access to half of this production capacity, corresponding to the amount of hydrogen supplied to its refinery.
  • TotalEnergies will supply around 700 GWh/year of renewable and low carbon power to the Air Liquide electrolyzer for half of its capacity, i.e. 100 MW, corresponding to the share of hydrogen delivered to the TotalEnergies refinery in Normandy.

"This partnership with Air Liquide is a new step in TotalEnergies' ambition to decarbonize the hydrogen used by its refineries in Europe by 2030. By supplying the electrolyzer with renewable electricity from solar and wind projects, TotalEnergies is making the most of its positioning as an integrated power supplier," said Bernard Pinatel, President Refining & Chemicals.

“This Memorandum of Understanding with TotalEnergies illustrates our ability to offer concrete decarbonization solutions to our customers. Air Liquide Normand’Hy will contribute to the decarbonization trajectory of our assets; it is also in line with our commitment to accompany the industry and mobility sectors in their path to reducing their carbon footprint. Our collaboration with TotalEnergies also strengthens hydrogen development in Normandy. Supported by the French State and the European Union, the Air Liquide Normand’Hy project confirms our commitment to develop renewable and low-carbon hydrogen production by electrolysis technology at industrial scale.” said Pascal Vinet, Executive Vice President and a member of Air Liquide’s Executive Committee, supervising notably Europe Industries activities.

About TotalEnergies
TotalEnergies is a global multi-energy company that produces and markets energies: oil and biofuels, natural gas and green gases, renewables and electricity. Our more than 100,000 employees are committed to energy that is ever more affordable, cleaner, more reliable and accessible to as many people as possible. Active in nearly 130 countries, TotalEnergies puts sustainable development in all its dimensions at the heart of its projects and operations to contribute to the well-being of people.

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