Innovation in Energy Recovery

for Aluminum Industry

Presentation to Innovation Norway India.

Didier OSTORERO
General Manager
Cronus Technology AS

Didier.ostorero@cronustechnology.no
www.cronustechnology.no
DUBAL pilot plant - Process description

Off-gas heat recovery

Fluid pump

Side-wall heat recovery

Energy utilisation

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DUBAL pilot plant - Pilot results

• Pilot plant installed on side-wall of DX+ ULTRA pot

in Jebel Ali – start-up: May 2014
• Pilot running 24/7
• Recovered in 3 years ≈ 4,600 MWh. Effect ≈ 175
kW/pot, not included end walls
• Energy collected but not utilized (Phase 1)

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Cronus heat-pipe technology

A heat-pipe is a super conductor of heat with capacity 1000 times better than copper
4
Technology development and investment

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Energy consumption in Aluminum production

Specific Aluminum energy consumption

18,00

16,00

14,00
2,97

12,00 2,72
Energy (kWh/kgAl)

10,00

8,00
15,44

6,00 11,90
10,88

4,00

2,00

0,00
China GCC Europe

Energy recovery/utilization
China & GCC tomorrow's consumption
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Europe tomorrow's comsumption
 India Primary Aluminum industry in 2016

Aluminum produced 2 944 500 000 kg Al

Electricity consumption 43 268 000 000 kWh
Heat loss 21 634 000 000 kWh
Possible recovery 6 490 200 000 kWh
Possible CO2 saving 48 762 450 ton/year

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Source: http://www.careratings.com
Energy & CO2 savings potential in India
Only from Aluminum industry

8 062 360 Indian inhabitants

electricity consumption
Source: https://data.worldbank.org

Source: hhttp://metal-forex-trader.blogspot.no
28 683 794 Indian CO2 emission
Source: https://data.worldbank.org

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China aluminum production in 2016

Aluminum produced 31 641 000 000 kg Al

Electricity consumption 433 444 000 000 kWh
Heat loss 216 722 000 000 kWh
Possible recovery 86 688 800 000 kWh
Possible CO2 saving 65 016 600 ton

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Achievable Energy & CO2 savings in China

168 327 767 Chinese inhabitants

electricity consumption
Source: China Statistical Yearbook www.stats.gov.cn

55 000 furnaces
Source: www.world-aluminium.org/statistics
23 220 214 cars emission
Source: CO2 calculator www.norway.myclimate.org

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 GCC aluminum production in 2016

Aluminum produced 5 197 000 000 kg Al

Electricity consumption 66 625 000 000 kWh
Heat loss 33 313 000 000 kWh
Possible recovery 9 994 000 000 kWh
Possible CO2 saving 6 596 000 ton*

Source: www.world-aluminium.org/statistics 11
* CO2 saving: 0,66 kgCO2/kWh
Achievable Energy & CO2 savings in GCC

886 441 GCC inhabitant

electricity consumption
Source: Carbon footprint in the
Middle East http://www.carboun.com

Source: «The Middle East as an emerging hub» -

Walid Al Attar, Chief Marketing Officer - EGA

1 125 038 cars emission

Source: CO2 calculator https://norway.myclimate.org
1 car = 250 gCO2/km; 23,500 km/year.

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Energy utilization possibility - Overview

ALUMINIUM INDUSTRY WASTE ENERGY UTILISATION

ORC
Coal power plant

Hot water 75 -220 0C Hot water 75 -150 0C

Green electricity Green electricity

Hot water 75 -220 0C Hot water 75 -220 0C
Factory utilisation

Absorption chiller District Cooling

District heating

Hot water 90 0C Chilled water 5 0C

High efficiency Green High efficiency Green

energy energy

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Energy utilization possibility - ORC

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 Energy utilization - Absorption chiller
Energy recovered
from Aluminum cell

Energy
Cooling water recovered x 1,5 =
energy
generated for
chilling

Chilled water.

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 Profitability and feasibility consideration – Overview

PROFITABILITY CALCULATION
Coal Power Plant Operating time (hours) 8768
Interest 0%
Generated electrical effect Price Income Income Pay back
CAPEX/kW CAPEX/288 cells (kW) (AED/kW) (AED/kW/year) (AED/year) (years)
2 180 176 774 400 17 280 0,3 2 630 45 453 312 3,9
(AED/kWel) (AED)

ORC Interest 0%
Generated electrical effect Price Income Income Pay back
CAPEX CAPEX/288 cells (kW) (AED/kW) (AED/kW/year) (AED/year) (years)
8 720 182 704 000 5 000 0,3 2630 13 152 000 13,9
(AED/kWel) (AED)

EGA Abu Dhabi 288 cells

Side wall cooling
Absorption chiller

Interest 0% District
Generated heat effect Price Income Income Pay back heating
CAPEX/kW CAPEX CAPEX/288 cells (kW) (AED/kW) (AED/kW/year) (AED/year) (years)
2 415 480 166 752 000 57 600 0,15 1315 75 755 520 2,2
(AED/kW) (AED/kWth) (AED)
Nominal thermal effect recovered Interest 0%
District
57600 CAPEX/288 cells Generated cooling effect Price Income Income Pay back
cooling
kWth 139 104 000 COP = 1.5 (kW) (AED/kW) (AED/kW/year) (AED/year) (years)
(AED) 86 400 0,15 1315 113 633 280 1,5

*1)
Factory utilisation CAPEX CAPEX/288 cells
Alumina Refining ?
use hot water 150 0C (AED/kWth) (AED) 0,15 1315

Note *1) cost unknown

Note *2) infrastructure not included

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Profitability and feasibility consideration – District
Cooling in UAE

Peak Monthly Demand for Dubai and Abu Dhabi covered by EGA heat recovery
1 900
1 800
1 700
1 600
1 500
1 400
Peak Monthly Demand (MW)

1 300
1 200
1 100
1 000
900
800
700
600
500
400
300
200
100
0
January February March April May June July August September October November December

Abu Dhabi DC demand Dubai DC demand Heat recovery supplied by EGA

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 Chinese smelters visited by Cronus
Interest - China (tAl)
Jinjiang Group
Nanshan Group 800 000 5 000 000

Xinfa Group
• Dongxing Aluminium – 1.7 MtAl/year : Henan Zhongfu 3 100 000
1 700 000

1 600 000
• Pilot plant for 3 cells Weiqiao Group
1 200
000
• Full scale for 164 cells Gansu Dongxing
Yunnan Metallurgical Group
1 000 000 1 200 000
Tianshan Aluminum

• SPIC – 2.5 MtAl/year :

• SPIC is one of China's top five power generators, one of China's three nuclear power developers
and operators, is a Fortune Global 500 company, is committed to global businesses.
• 140,000 employee
• Pilot plant to be fulfilled within 1 year
• Full scale to be implemented 1 year later – Joint Venture proposal between SPIC and Cronus
Technology

• Aluminium smelters in China:

• Budget offers have been sent to 8 diferrent smelters in China after visit by Cronus Technology

• Meeting with SPIC, Dongxing and others – January 2018

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Interest - EGA

• Emirates Global Aluminium (EGA):

• Pilot plant for 14 cells
• Full scale for 288 cells - delivered together with GE Power AS

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Interest - EGA

• Status after meeting december 6th, 2017:

• Dubai Carbon is very impressed about and enthusiastic to see this solution to be
implemented in UAE and other places in GCC.
• Dubai Carbon Centre of Excellence was established in 2011, by an agreement between the Dubai Supreme
Council of Energy and the United Nations Development Programme, in the presence of H.H. Sheikh
Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai,
H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, and UN Secretary
General Ban ki-Moon.
• EGA confirmed their will to utilize the energy from the smelter with optimal
solution
• EGA suggested to make a trial for utilization of the energy on the existing
Cronus pilot in DUBAL, Jebel Ali.
• EGA expressed their wishes to have Cronus as a partner in the development of
EGA’s smelter technology

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Interest – General Electric Power

• Who are they?

• One of the biggest service and technology supplier for Aluminium producers
• GE Power: 55,000 employees in 150 countries
• GE Power has office in Oslo, Norway
• Agreement from GE Power ready for Cronus signature:
• Worldwide exclusivity for GE/Cronus
• 7 years validity, automatic prolongation if not cancelled after 7 years

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Interest – Fives Solios

• Who are they?

• One of the biggest service and technology supplier for Aluminium producers
• Aluminum industry: carbon, reduction and casthouse
• Provides industrial solutions and associated services that meet customers’ needs and requirements
in terms of performance, product quality and environmental footprint
• Fives and its Aluminum dedicated teams - 800 people based in France, the U.K., Canada, Australia,
Bahrain, South Africa, United Arab Emirates - have proven operational excellence in dealing with
major projects worldwide, while respecting deadlines, costs, contractual performance guarantees
and safety
• 60 years of experience in industrial engineering with extensive expertise in managing turnkey
contracts
• Fives Solios wishes to extend its portofolio with energy recovery from Aluminum
cells
• Cronus invited for a meeting in Paris on December 15th 2017.
Attending the meeting:
• Mr. Bijan COUR Fives SOLIOS CEO
• Mr. Serge DESPINASSE Fives Aluminium Technology and IT Director
• Mr. El Hani BOUHABILA R&D Manager
• Mr. Christophe BOUCHE Carbon Technical Director
• Mr. André PINONCELY Fives Aluminium Technology
• Mr. Jeremy NEVEU Environment Technical Director Aluminium

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Patents – Patents owned by Goodtech

• Patents owned by Goodtech:

• Cronus Technology has the right to use the below patents everywhere in the world

Patent Name Patent number Patent status

Sidelining
GCC 18695 Not found
EPO 11827027.1 Pending - Refusal to be expected
Canada 2811873 Pending
South Africa 2013/01798 Granted
USA 13/825752 Abandoned
Eurasia/EUPO 2013/90309 Withdrawn

Sidelining component ordering

GCC 22501 Not found
EPO 12840196.5 Granted
Canada 2847160 Pending
South Africa 2014/01378 Granted
USA 14/234827 Abandoned
Eurasia/EUPO 201490508 Withdrawn

Surface texture
Norway 20140845 Granted

Heat recovery
Norway 20150613 Granted

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Market plan

Sales Promotion Activity Goal of the Activity Schedule

Presentation of Cronus for Rusal Inquiry for pilot/installation Q1 2018

Presentation of Cronus for Hindalco Inquiry for pilot/installation Q1 2018

Presentation of Cronus for Chalco Cooperation development Agreement Q1 2018

Presentation of Cronus for EGA/Dubal Clarification of Quotation Q3/Q4 2017

Presentation of Cronus for Kubal Identification of possible project Q2 2018

Presentation of Cronus for Hydro General presentation of technology Q2 2018

Presentation of Cronus for Rio Tinto Identification of possible project Q3 2018

Presentation of Cronus for SNC Lavalin Presentation of technology for management Q4 2018

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 Investment

The way Cronus is planning their activities do not requires large investment.
Investment in fixed assets such as office facilities, computers, software, furniture
and fixtures etc. will be paid by the project.

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Value creation

• Value creation in India:

• All engineering, administration jobs will be created in Norway & India
• All programming, software development will be done in India
• Electrical panels to be produced in India
• Oil Skid design and production will be done in India
• Electrical insulation solution to be designed and produced in India
• Site supervision, installation & commissioning to be done in India

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 Risk assessment

Limited risk assessment of the Cronus Technology business case indicates the likelihood
that a risk occurs and the estimated economic consequence on EBITDA level. The
purpose of the risk assessment is to identify the main risks and take adequate action to
reduce them.
Main risks:
1) Cronus fail to succeed with the products – it takes longer time to get contract.
2) Limited investment interest for production – delay in customer decision will limits
sales and roll out.
3) Quality issues – inconsistent product quality due to heterogeneous production sites
and input material.
4) Equipment and engineering partner agreements take more time to sign on and to
implement.
5) Commercial roll out is more difficult than expected – limited access to channels and
distribution
6) Production costs are higher than expected, and this results in a lower margin for
Cronus
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Risk assessment

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Cronus expectations

• Contact, with Innovation Norway, aluminum smelters in India:

• Hindalco
• Vendata
• Balco
• Nalco

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