WWF stands by Alcoa scorecard rating - revises AGL rating upwards
18 Sep 2008
On September 3, WWF released a Fossil Fuel Power Generator Scorecard that highlighted the major Australian power companies currently unprepared for a low carbon future.
The scorecard rated the major fossil fuel power generator's generation mix, policies and low emission research, development and investment. This was done with a view to informing recent discussion around proposals to provide compensation to electricity generators and other "strongly affected" industries under the Government's Carbon Pollution Reduction Scheme Green Paper.
The scorecard awarded 2 stars to firms which had more than 50 per cent of their generating capacity comprised of gas or renewable power stations. One star was awarded to firms with 10 to 50 per cent of their generating capacity gas or renewable. Firms with less than 10 per cent of their generating capacity gas or renewable received no stars. One star was awarded for a quantified emission reduction target and 1 or 2 stars for investment in low emission research or renewable energy.
WWF wrote to all firms audited, requesting information in relation to generating capacity and low emission research, development and investment. In instances where WWF did not receive a response, it relied upon the list of principle power stations appended to the House of Representatives' recent inquiry and subsequent report into geosequestration technology. The conservation organisation also referenced company websites and annual and sustainability reports.
Alcoa did not respond to WWF's request for information.
Alcoa has a single brown coal-fired power station at Anglesea in Victoria. The power station is one of the oldest and most polluting in the country and does not have an emission reduction target. It is irrelevant that Alcoa could make the situation worse - as it suggests in its September 4 response to the scorecard - by closing the plant and using power from even more polluting Victorian power stations. Alcoa has not reduced emissions from Anglesea.
Alcoa asserts that it has a gas-fired power station in its Pinjarra refinery. This power station is not listed in the House of Representatives' report and material on Alcoa's website suggests that this plant only provides steam to Alcoa's operations - with another firm being the owner of the electricity generated by this plant. If Alcoa does indeed have a gas-fired power station, it is unfortunate it did not respond to WWF's letter so that information could be incorporated.
Alcoa has not adopted quantified pollution reduction targets in respect of its electricity generation capacity. It has adopted global emission reduction targets in respect of its direct emissions (essentially industrial process but no doubt including some electricity generation). However, these targets are not reduced to a national level. There is little point in adopting global targets if attempts by Australian Governments to reduce emissions are met by opposition by Alcoa nationally.
As for Alcoa's carbon sequestration technology trials, these relate to industrial process emissions - not electricity generation - so were not scored. WWF-Australia was unable to find any evidence of Alcoa investing money in low emission energy generation research and development or renewable energy generation for its power plants although a variety of general assertions were made of "support".
WWF-Australia also disputes the claim that if Alcoa withdraws from Australia it will have a negative impact on the environment. Alcoa's website clearly indicates that Alcoa's proposed new smelters will be built in locations where hydro or geothermal zero emission power will be used instead of highly polluting coal.
While refuting Alcoa's response, WWF-Australia admits to an error of fact in relation to AGL on the Power Generator Scorecard. WWF-Australia awarded three stars to AGL instead of four - the additional star awarded for 'Low Emission Generation Mix'. This error arose from a typographical error in the analysis documents. WWF apologises to AGL for this error.
Paul Toni
Development and Sustainability Manager
WWF-Australia
WWF's media release and scorecard
4 Sep: Aussie power generators flunk carbon test
Alcoa's Response to WWF Carbon Report
It is absurd and inaccurate to suggest that Alcoa is unprepared for a low-carbon future.
Alcoa took a voluntary global leadership position on addressing climate change and reducing greenhouse gas emissions in 1996. In 2003, Alcoa achieved its target of reducing global direct greenhouse gas emissions by 25% from a base year of 1990. Since 2003, Alcoa has further reduced global direct greenhouse gas emissions to 33% below 1990 levels.
Alcoa is continually reducing greenhouse gas emissions through energy efficiency, productivity improvements and new technology. Alcoa's operations in Australia are among the most greenhouse and energy efficient in the world. For example, alumina produced by Alcoa in Australia uses just over half the energy and produces less than half the greenhouse emissions compared to alumina produced in China.
The Anglesea Power Station runs at benchmark efficiency for a plant of its age and has the lowest GHG emissions per megawatt hour for brown coal generators in the state. If Alcoa was to replace the power from Anglesea and acquire it from the other state generators, then this would have a negative environmental impact on the overall state emissions (approx. 750,000 tonnes of additional CO2, using an average of the La Trobe Valley generator emissions).
Alcoa has made significant efficiency gains in both direct and total emissions per tonne of product (GHG intensity) across operations. We have reduced direct greenhouse emissions per tonne of production at our smelters by 61% from 1990 levels and at our refineries by 11% from 1990 levels. Alcoa's gas-fired alumina refineries are among the most efficient in the world and include co-generation at our Pinjarra refinery.
Alcoa is a leader in the area of environmental reporting. Alcoa was one of the earliest companies to join the Australian Government's Greenhouse Challenge Plus Programme which is designed to improve energy efficiency and reduce greenhouse gas emissions from industry. We have been voluntarily reporting our emissions to the Federal Government under this Programme for several years, and have responded readily to new regulations like the National Greenhouse Energy Reporting System. We produce Environmental Improvement Plans (EIPs) for each of our sites nationally, developed in consultation with our communities and the EPA. The EIPs detail our emissions reduction targets and action plans to achieve these targets. All these reports are publically available and can be found on our website, along with our Sustainability Report 07.
Alcoa's global research and development facility at Kwinana in WA has brought Carbon Capture technology to the industry, already in operation at our Kwinana refinery and taking the equivalent of 17,500 cars off the road. We are supporting the development of Wind Power at our Portland Aluminium smelter, and Alcoa has invested significant resources in assessing the feasibility of clean coal technology in recent years. The mining operations have successfully trialled an environmentally friendly diesel that has the potential to reduce CO2 emissions from its mining fleet by around 25 percent.
We are working relentlessly to ensure an appropriate Carbon Pollution Reduction Scheme is implemented that supports industrial competitiveness, Australian jobs, and greenhouse solutions. Driving the aluminium industry off shore will achieve none of these aims and would have an even greater negative impact on the environment.
All our reports are available at www.alcoa.com.au along with our full position on climate change.
Media contact: Michaela Southby, 0400 127 427
http://www.alcoa.com/australia/en/news/releases/2008093_responsetowwf.asp, accessed 10 September 2008
