September 29

En+ Presents Second Report on Progress Toward Net Zero

Russian energy and metallurgical holding En+ (LSE: ENPL; MOEX: ENPL), a leading global producer of low-carbon aluminum and renewable energy, unveiled the Company's achievements in reducing greenhouse gas emissions by 2050,  and climate goals adjusted for the current situation. The report presentation took place during En+'s Carbon Neutrality Day at Skolkovo Technopark.

Key participants in the event included En+'s Director of Capital Markets and Financial Products, Elena Ivanova; Directors of Sustainability at En+ and RUSAL, Anton Butmanov and Irina Bakhtina; Executive Director of the Skolkovo Center for Sustainable Development, Elena Dubovitskaya; Director of the Institute of Global Climate and Ecology named after Academician Y.A. Israel, Anna Romanovskaya; Nikolay Bulatov, Director and Head of Knowledge-Intensive Technologies and Innovation Economics at the Skolkovo Foundation, along with other experts in the low-carbon agenda.

Anton Butmanov, Director of Sustainability at En+, remarked, "The issue of preserving the ecology and resources of our planet remains at the forefront, becoming even more critical in Siberia and other regions of our operational activities due to current events. In response to external challenges, En+ has not only continued the implementation of sustainability projects but also regularly updates them in line with national and international requirements and best practices, expanding their scope."

En+ adheres to its previously announced plans to achieve carbon neutrality by 2050, with an adjusted interim goal of a 35% reduction in emissions targeted for 2035. Specifically, decarbonization in the energy sector will be realized through the implementation of energy-efficient technologies, transitioning heat generation to gas, constructing hydroelectric power plants, and neutralizing emissions through actions such as wetland drainage, afforestation, and carbon capture.

Irina Bakhtina, Director of Sustainability at RUSAL, added, "Nearly a third of RUSAL's total sales volume is now attributed to 'green' ALLOW aluminum (low-carbon footprint aluminum), and demand continues to grow steadily. Further reductions in greenhouse gas emissions in the metallurgical segment will be ensured primarily through the continued adoption of advanced electrolysis technologies, transitioning facilities to carbon-free energy sources, improving energy efficiency at all production stages, and expanding the use of secondary aluminum in line with the principles of a closed-loop economy."

Notably, the En+-organized event achieved full carbon neutrality. The Company offset greenhouse gas emissions through green certificates. Additionally, guests and participants planted 25 trees in the Skolkovo Technopark, and all plastic waste was sent for secondary recycling.

September 14

En+ Group presents the results of the first year of its transition to carbon neutrality

En+ Group (LSE, MOEX: ENPG), a Russian leader in low-carbon aluminum production and renewable energy, reported on the results of the first year in achieving the Net Zero strategy goals. The presentation took place as part of a round table organized by the Climate Partnership of Russia.

In 2021, En+ Group was one of the first companies in Russia to set the goal of becoming carbon neutral by 2050. The company's interim goal of reducing greenhouse gas emissions by at least 35% by 2030 was the most ambitious in the global aluminum industry at the time. Despite growing geopolitical pressure and external challenges related to disrupting supply chains, severing ties with international organizations, and limiting access to sources of green finance, the Group remains committed to its goals and follows the pathway presented a year ago.

Metals segment

Climate change projects have been an integral part of En+ Group's activities long before 2021: for example, the Group's metals segment, represented by RUSAL, set its first public climate goals back in 2007, as part of its "Strategy for a Safer Future". RUSAL's current strategic climate goals till 2025 were adopted in 2017. As per one of them, the metals segment pledged to purchase at least 95% of electricity for aluminum smelters from hydroelectric power plants and other sources of carbon-free energy generation by 2025. This goal was accomplished ahead of schedule - in 2021, the share of low-carbon electricity purchased for aluminum smelters exceeded 99% almost entirely due to hydro generation.

Another strategic goal of RUSAL is to reduce specific direct greenhouse gas emissions within the smelting processes by 15% by 2025 as compared to 2014. According to the results of 2021, this reduction amounted to 11.6%, which was largely achieved due to the consistent conversion of electrolysis facilities to the Eco-Soderberg technology.

Furthermore, RUSAL continues to improve its inert anode technology aiming at scaling up and makes limited shipments of aluminium produced with the use of this advanced decarbonisation technology. Inert anode technology enables the production of aluminium with the lowest carbon footprint. Greenhouse gas emissions are eliminated from the electrolysis process by replacing carbon anodes with inert anodes, resulting in the release of oxygen during aluminium production. At the moment, the pilot phase of aluminium electrolysis using inert anodes has achieved further improvements to the electrolysis technology. In the first half of 2022 alone, the industrial inert anode smelters in Krasnoyarsk produced over 3,700 tonnes of aluminium with the lowest carbon footprint in the world.

Decarbonisation projects are being implemented across all businesses in the metals segment. In the alumina business, work is carried out in a wide range of areas, from improving the thermal insulation and energy efficiency of equipment to the improvement of production processes. Russian alumina refineries have established and implemented energy efficiency plans to reduce greenhouse gas emissions. Aughinish Alumina (Ireland) is continuing a project to convert steam production from hydrocarbon fuel to electricity using renewable sources, which will further reduce the carbon footprint of alumina output. The Windalco alumina refinery (Jamaica) is undertaking projects to convert outdoor lighting to solar panels and upgrade the lighting systems in its production sites, warehouses and facilities.  

One of the ways to reduce greenhouse gas emissions at alumina refineries is to capture them. A number of alumina refineries in Achinsk and a number of others are piloting the capture of CO2 using alkaline sub-slurry water, using different variants of wet gas scrubbing units. The implementation of such measures is primarily considered for the calcination conversion as well as for the CHP emissions. The CO2 absorption effect ranges from 1 to 10%.

The metals segment pays great attention on projects providing compensation for its emissions, which, for technical and economic reasons, cannot yet be eliminated. For example, 1.1 million trees have already been planted in the Krasnoyarsk region and the Irkutsk region, 505,000 hectares in the Krasnoyarsk region are under aerial forest protection, which allows the annual absorption of 440,000 tonnes of CO2, and new forest-climate projects related to efficient forest management are being considered. Based on the results of the forest projects, recommendations for the planning, implementation and evaluation of forest climate projects are formed, which are seen as effective natural solutions in line with the principles of responsible investment.

"Despite the current geopolitical situation, we will strive to continue pursuing our objectives. Their relevance is driven by our sales markets. Sales of aluminium with a low carbon footprint under the ALLOW brand grew by 44% last year and came close to 1 million tonnes. Thanks to the electricity generated by our hydro power plants, the carbon footprint of ALLOW products is less than 4 tonnes of CO2-eq per tonne of aluminium (including direct and indirect energy emissions), while the global average is around 12 tonnes", said Irina Bakhtina, UC RUSAL's Director for Sustainable Development.

Power segment

In the power segment, one of the important projects 2021-2022 was the inventory of greenhouse gases from hydroelectric reservoirs. According to evolving scientific understanding, hydropower reservoirs both emit and absorb GHGs. Studies show that emissions from boreal reservoirs are lower than the global average. En+ Group has rejected the use of global averages and statistics and has committed to measuring the exact impact of its reservoirs. Since 2021, autumn measurements have been taken at the Bratskaya HPP and Ust-Ilimskaya HPP reservoirs. In 2022, additional winter measurements were taken at the Bratskaya HPP reservoir. Preliminary results of measurement processing show insignificant emissions of reservoirs, close to zero.

The Group continues to implement the modernization programme titled "New Energy", which is aimed at increasing electricity generation at the existing HPPs with the substitution of coal-fired electricity generation. In 2021, a new hydro unit at Irkutskaya HPP was launched, and work began to replace the next hydro unit. In 2022, the replacement of one impeller at the Krasnoyarskaya HPP and one impeller at the Bratskaya HPP are almost fully completed. Today, the Programme allows reducing GHG emissions by 2.44 million tonnes of CO2-eq annually. From 2026, this figure will increase to 2.5 million tonnes CO2-eq.

In addition to increasing the capacity of existing HPPs, the Group is constructing new ones. The development of green energy corresponds to the low-carbon development strategy of the Russian Federation and ensures the socio-economic development of the regions. The small Segozerskaya HPP is being constructed for the diversion and feeder channels. Commissioning is planned for 2023. The Nizhne-Boguchanskaya, Motyginskaya, Krapivinskaya and Telmamskaya HPP projects are at different stages of development. Assessments of possible project financing mechanisms and environmental and social risks are underway.

En+ Group is carrying out projects in the field of hydrogen energy, such as the development of cryogenic tank containers. The project is aimed to facilitate the transportation of liquid hydrogen over long distances, which remains the main barrier for the development of hydrogen energy. A project to develop a hydrogen transport infrastructure concept for Krasnoyarsk is also underway.

Reducing greenhouse gas emissions for the power segment is closely linked to improving the energy efficiency of energy generation and transportation. A project to optimise the energy consumption of heating network pumping stations is ongoing. The project continues to work on optimising the modes of equipment. As a result - from 2021 to the first half of 2022, direct GHG emissions are reduced by 4.8 t CO2-eq. In 2021, the Group developed and adopted an energy efficiency programme for the Power segment, which includes measures to upgrade equipment and reduce network losses during electricity transportation. The programme resulted in savings of 138,067 thousand kWh from 2021 to the first half of 2022, equivalent to more than 53 thousand tonnes of CO2-eq. of indirect GHG emissions eliminated.

"Even in the challenging economic environment En+ Group remains a leading producer of green energy and a reliable supplier of aluminium with a low carbon footprint. We realise that in today's world solutions to global challenges, such as climate change, cannot come from the efforts of a single actor. The Group is contributing to global decarbonisation by teaming up with industry and like-minded stakeholders to advocate a full market transition towards a low-carbon future. Despite certain adjustments since February 2022, we are focused on supporting our projects, engaging external stakeholders and integrating sustainability and ESG values into our corporate strategy. We value transparency: we issue an annual Sustainable Development Goals report, a Sustainability Report and disclose information about our projects in the reports of the partnerships themselves. The experience of En+ Group and RUSAL in reducing greenhouse gas emissions is highlighted as a best practice by the Carbon Pricing Leadership Coalition - CPLC in its annual report 2021/22. Despite suspending relations with many international organisations, we are not simply reducing requirements to the Group's facilities, but are strengthening environmental controls and efficiency requirements of our decarbonisation projects", said Anton Butmanov, Director for Sustainable Development of En+ Group.

November 11

En+ Group confirms its Net Zero commitment at COP26

En+ Group confirmed its commitment to achieving Net Zero at the COP26 UN Climate Change Conference in Glasgow. The two-week climate conference has been attended by the heads of state and business representatives fr om more than 120 countries. It is expected to end on 12 November.

One of the key COP26 initiatives has been the Glasgow Financial Alliance for Net Zero (GFANZ). It has grown 25-fold since April to include 450 firms from 45 countries. Participants include commercial banks, insurance and audit companies, pension funds, rating agencies and stock exchanges that control a total of $130 trillion (£95 trillion) in assets. This accounts for around 40% of global assets. In addition, more than 40 countries, including the United Kingdom, Poland, South Korea and Vietnam, have committed through the Global Coal to Clean Power Transition Statement to phasing out coal power in the 2030s, for major economies, or 2040s globally, and to stopping public funding for new coal-fired power plants.

Another key topic of the summit was the conservation of forests. According to the UN, 420 million hectares of forest have been lost over the past 30 years. This represents an area larger than India. Currently 1.6 million hectares of forest is being lost globally every year. More than 100 world leaders, including Russia, Brazil, the USA and Indonesia, have promised to end and reverse forest loss and land degradation by 2030, committing nearly $20 billion of public and private funds to protect and restore forests. This agreement is part of efforts to lim it global warming to 1.5°C.

Vyacheslav Solomin, Executive Director of En+ Group said:

"The global community is ready not only to create commitments to sustainability, but also to take real action in line with the ESG agenda. The ambitious Net Zero goals announced at the summit can only be achieved through the combined efforts of all parties, including end users. In 2020, En+ Group called for mandatory carbon content and sustainability-related disclosure by metal producers, and for this transparency to be fully integrated with the existing trading system. This would enable buyers wishing to source responsibly and minimise the climate impacts of their procurement to make better-informed purchasing decisions. Today our call is especially relevant. It is important that market demand drives the growth of green initiatives. Another driver is hydrogen. The share of gas generation must also increase, especially in the second pricing zone (Siberia and the Far East). For example, coal-based power plants in the Irkutsk region alone emit 17 million tons of CO2."

Within the framework of COP26, conference attendees also discussed green financing, mass ecosystem restoration projects and other topics. En+ Group has held three joint panels in the Russian Pavilion: “Role of hydropower in the Energy Transition”, “Road to Net Zero. The Role of Carbon Pricing” and “Focusing on the Upstream: Key Challenges and Opportunities for Aluminium Sector Decarbonisation”. With the Climate Partnership of Russia, En+ Group also held a panel discussion “Interconnectedness of Nature and Climate. What can business do?”.

November 08

Growing consensus that we need a global price for carbon

Lord Greg Barker, executive chairman at EN+ and co-chair of the Carbon Pricing Leadership Coalition, joins CNBC from COP26 to discuss carbon pricing.

Videо: https://www.cnbc.com/video/2021/11/03/growing-consensus-that-we-need-a-global-price-for-carbon-en-ex...

November 04

Carbon pricing crucial to net zero, agree global policymakers and businesses at COP26

A panel of expert policymakers and business leaders has called for rapid introduction of carbon pricing around the world. Speaking at COP26 in Glasgow, leaders including Patricia Fuller, Canada's Ambassador for Climate Change, and Axel van Trotsenburg, Managing Director of Operations at the World Bank, urged more support be given to governments to put a fair and effective price on carbon, arguing this is essential for the shift to net zero emissions by 2050.

Convened by the World Bank’s Carbon Pricing Leadership Coalition and En+ Group, the panel backed carbon pricing as an effective tool for incentivizing green production and ensuring affordable access to low-carbon goods and services.

Alongside Mr van Trotsenburg and Ambassador Fuller, the panel included CPLC co-chairs Juan Carlos Jobet, Minister of Energy for Chile, and Lord Barker of Battle, Executive Chairman of En+ Group, who both highlighted carbon pricing’s vital role in keeping warming below 1.5°C. They were joined by Rachel Kyte, Dean of The Fletcher School at Tufts University and Former Special Representative of the Secretary-General of the United Nations for Sustainable Energy for All, and Joanne Yawitch, CEO of the National Business Initiative and member of South Africa’s Presidential Commission on Climate Change.

In line with recent findings from the CPLC, the panel agreed carbon pricing is yet to fulfil its potential despite widespread endorsement from global economists. They urged governments and cities to work with businesses and investors to find effective ways of pricing emissions that accelerate decarbonization and support a just transition. The panel also called for coherent and transparent emissions disclosure, arguing clarity on the carbon footprint of products is a crucial enabler of sustainable choices.

Lord Barker of Battle, Co-Chair of the Carbon Pricing Leadership Coalition and Executive Chairman of En+ Group, said:

“Carbon pricing can retool our economy to deliver net zero. It ensures those imposing costs on the future pay their fair share in the present, while backing the innovations we need to build a sustainable world. Carbon pricing is not a cost but a catalyst, accelerating us towards net zero efficiently, fairly, and with the urgency our planet demands.”

Juan Carlos Jobet, Co-Chair of the Carbon Pricing Leadership Coalition and Minister of Energy for Chile, said:

“Carbon pricing can play a substantial role in decarbonizing the world economy, at the required pace and effectiveness, bringing innovation and welfare to society, while protecting against economic downturns of different nature. To unleash its full potential so more GHG emissions are covered globally, robust, transparent, and efficient international rules are needed. To successfully implement carbon pricing as a driver for urgent, substantive mitigation actions, the panellists made a strong call for an effective coordination at different levels of decision making, including public, private, and financial sector actors.”

Axel van Trotsenburg, Managing Director of Operations, World Bank, said:

“As the world’s largest financier of climate action in developing countries, the World Bank Group is deeply committed to helping countries take meaningful action on climate and development together. Carbon pricing can play a key role in incentivizing low-carbon investments, if well implemented. That’s why the World Bank has been supporting integrated carbon pricing efforts – that put people and communities at their core - and we will continue doing so through our new Climate Change Action plan (2021-25).

Last year, carbon pricing policies generated about $53 billion in revenue for economies. However, there are too few such policies in place and many prices are still too low to be effective. Through programs like our Partnership for Market Implementation, we’re helping build the relevant capacities and institutions to enable our clients unlock the full potential of carbon pricing in their economies.”

November 01

En+ Group delegation to attend COP26

En+ Group (LSE: ENPL; MOEX: ENPL), the world’s largest producer of low-carbon aluminium, will attend the COP26 UN Climate Change Conference in Glasgow. This is the most significant climate event since the 2015 Paris Agreement.

Over the course of COP26, government and business leaders will discuss ‘Net Zero by 2050’ initiatives, ‘green’ financing, mass ecosystem restoration projects, and possible reporting procedures to measure progress in line with the Paris Agreement. On 3 November En+ Group will hold three joint panels in the Russian Pavilion: “Role of hydropower in the Energy Transition”, “Road to Net Zero. The Role of Carbon Pricing” and “Focusing on the Upstream: Key Challenges and Opportunities for Aluminium Sector Decarbonisation”. Together with the Climate Partnership of Russia, En+ Group will also hold a panel discussion “Interconnectedness of Nature and Climate. What can business do?”.

En+ Group’s delegation will be led by Lord Barker, Executive Chairman of En+, who will also take part in a number of key COP26 events.

Executive Director of En+ Group Vyacheslav Solomin will talk about the "Russian power-metals complex on the way to Net Zero" on 11 November at the side-event of the Russian delegation "Low-Carbon Development Pathways: The Role and Approaches of Russia". The side-event will be moderated by the head of the Russian delegation, the Deputy Chairman of the Russian Government, Alexey Overchuk. Speakers will include Maksim Reshetnikov, Minister of Economic Development, Alexander Kozlov, Minister of Natural Resources, Alexey Likhachev, Director General of Rosatom, and Sberbank CEO Herman Gref.

Vyacheslav Solomin said:

"The introduction of a carbon tax for those manufacturers who do not want to invest in technology to make their products green is an important step that cannot be postponed. This is the only way clean and green technologies can become competitive, and vulnerable green sectors of the economy can be protected. We are confident that in the future, companies that care about their reputation will outright refuse to cooperate with manufacturers whose products and raw materials do not comply with environmental regulations."

COP26 will take place in Glasgow from Sunday 31 October and last for two weeks. The conference was originally scheduled to take place in 2020, but was postponed due to the COVID-19 pandemic. More than 25 thousand people are expected to attend, including the heads of state or government of more than 120 countries.

September 22

En+ Group, V&A and Nebbia Works unveil stunning aluminium pavilion to raise climate awareness at the London Design Festival ahead of COP26

En+ Group and the V&A, the world’s leading museum of art, design and performance, will today unveil a stunning pavilion made of the world’s lowest carbon primary aluminium, as a focal point of the London Design Festival’s tribute to COP26. The pavilion, titled “Between Forests and Skies”, has been designed by Nebbia Works, a London based, multidisciplinary design studio, with a heritage in architecture, furniture design and art direction.

 The beautiful, immersive, rectangular platform pavilion (length 13.5m x width 9m x height 2.4m) has been produced from 27 individual sheets of low-carbon aluminium, bolted together with circular connection plates. The ‘legs’ of the forest, on which it delicately stands, are waterjet-cut-outs of each sheet, elegantly peeled down from the ceiling to open up vistas to the sky. Standing in a shallow pool of water in the V&A’s stunning courtyard, light travels up the reflective metal from the water to the sky. Visitors are able to walk freely below the silvery canopy.

The pavilion is positioned in the V&A’s John Madejski Garden at the V&A from 18 September to 17 October to coincide with London Design Festival (18 to 26 September). It is a tribute to COP26, the world’s largest climate conference, where world leaders will be gathering in November to accelerate action towards the goals of the Paris Agreement and the UN Framework Convention on Climate Change. Following the conference, the aluminium from the pavilion will be recycled for future climate campaigns.

September 21

We are future-proofed against rising fossil fuel prices, says chairman of energy company En+

Gregory Barker, En+ executive chairman, unveils the details of the company’s latest environmental commitment to achieve a net zero target by 2050.

Video: https://www.cnbc.com/video/2021/09/20/we-are-future-proofed-against-rising-fossil-fuel-prices-says-c... 

September 21

En+ Group publishes Pathway to Net Zero

Aluminiumtoday.com

EN+ Group has published its Pathway to Net Zero Report, which provides details of the the initiatives being undertaken across the En+ Group to achieve climate targets announced in January of this year.

In January of this year, the Group announced its ambition to become net zero by 2050 and to reduce greenhouse gas (GHG) emissions by at least 35% by 2030. The plans set out in the report aims to meet these sector leading targets by reducing GHG emissions across the whole value chain in line with 1.5°C pathways. By 2050, the company aims for its activities within the Group’s value chain to have no net impact on the climate from GHG emissions. The targets cover GHG emissions that are under our direct control (Scope 1) and indirect GHG emissions related to energy generation (Scope 2) in accordance with the GHG Protocol Corporate Standard.

September 20

En+ Group publishes Pathway to Net Zero

20 September 2021 – EN+ Group IPJSC (the “Company”, the “Group” or “En+ Group”) (LSE: ENPL; MOEX: ENPL), the world’s largest producer of low-carbon aluminium and independent hydropower, today published its Pathway to Net Zero Report (“the Report”), which provides in comprehensive detail the initiatives being undertaken across the En+ Group to achieve its sector-beating climate targets announced in January of this year.

The full Report is available on the Company’s website at link.

In January of this year, the Group announced its ambition to become net zero by 2050 and to reduce greenhouse gas ("GHG") emissions by at least 35% by 2030. The plan set out in the Report aims to meet these sector leading targets by reducing GHG emissions across the whole value chain in line with 1.5°C pathways. By 2050, the aim is that activities within the Group’s value chain will result in no net impact on the climate from GHG emissions (Scope 1 and Scope 2).

Lord Barker, Executive Chairman of En+ Group, said:

“In January we set sector-beating climate targets but credible targets need a credible action plan. Today we have made good our promise to come forward with a stretching and detailed route map to Net Zero. While this is only the start of the journey and our plan will necessarily be updated over time to reflect developments, we will always be guided by science-based targets and commit to openly reporting our progress.

“It is incumbent upon industry leaders like En+ to drive change. Our leadership will help transform supply chains and support a shift in mindset for consumers by offering them affordable and desirable sustainable choices. Therefore, I am delighted that getting greener is also making us more efficient, opening the way for innovative low-carbon products to become lower cost and more competitively priced for the end consumer.

“We cannot change the world in isolation - collaboration and partnerships are critical. En+ will continue to work with industry peers to promote transparency on carbon reporting and will support initiatives that will drive innovation and improve access to lower carbon metals.

“Sustainable businesses the world over need access to low-carbon aluminium. We simply can’t build a low-carbon economy without this vital green metal. Now more than ever, aluminium is the material of the future.”

Vladimir Kiriukhin, CEO of En+ Group, said:

“I am proud to present our net zero pathway, which is built on very strong foundations. As a business, we have the capability and the experience to produce a detailed plan that we are confident will allow us to meet our demanding GHG reduction targets. This is real testament to the significant work of the Group over many years to make our business both highly efficient and highly responsible. With more than 98% of our aluminium already made using hydropower, breakthrough technologies, such as our inert anode smelting process, will be critical to moving En+ to the next level of GHG reduction, and we benefit from a strong heritage in innovation leadership in our sector.

“The mission to fight climate change is a global priority which unites our employees across all regions of Group’s business. We are motivated to help the aluminium industry drive meaningful change, and I look forward to keeping our stakeholders updated on Group’s progress in the years to come.”

Overview of initiatives

Following the announcement of the net zero target, the En+ Climate Change Taskforce was formed.

Over the past few months, the Taskforce has been working on a wide range of initiatives and measures, along with a timeline for their implementation that will allow the Group to achieve its climate change ambitions.

The Report encompasses the plans at the production facilities of both the Metals and Power segments, and covers all material sources of GHG emissions under operational control.

The targets cover GHG emissions that are under our direct control (Scope 1) and indirect GHG emissions related to energy generation (Scope 2) in accordance with the GHG Protocol Corporate Standard.

Targets are set for emissions abatement, avoided emissions solutions, and compensation measures.

Abatement measures are a core element of the pathway to net zero. The Group intends to implement technologies to prevent the release of GHGs into the atmosphere by reducing or eliminating sources of emissions associated with all of the Group’s operations, products and value chain including by:

-          shifting to pre-baked anode and inert anode technologies for smelters; and

-          shifting from carbon intensive fossil fuels to liquefied natural gas (LNG), natural gas, biofuels and green hydrogen, or using renewable power for heating processes.

The Group remains committed to its industry-leading ‘New Energy modernisation programme’ which aims to improve efficiencies by increasing the energy output from the same volume of water passing through hydropower turbines at the Group’s power plants. It will also work to reduce electricity losses during transmission from generation facilities to consumption sites. Ongoing investments in the New Energy programme will total USD 284^[1] million through to 2026, including funds already invested in the project (~USD 150 million). At the Group’s smelters, all new plants built or modernised as part of this new investment programme will be inert anode ready, so that production of zero carbon aluminium can be ramped up as soon as the technology is ready for production on an industrial scale.

In April 2021, En+ announced that its Metals segment had produced the world’s lowest carbon primary aluminium - less than 0.01 tonnes of CO2 equivalent per tonne of metal (Scope 1, Scope 2 - direct and indirect energy emissions) - using its proprietary inert anode technology. This revolutionary technology completely eliminates emissions of GHG from the reduction process, while reducing the cost of production by saving anodes.

The pathway to net zero also covers recycling, shipping, use of solar power and hydrogen, nature-based solutions and carbon capture. It also outlines En+ Group’s approach to working in partnership with organisations across the globe to decarbonise its ‘hard-to-abate’ industry supply chain.

Taken together, these measures will allow the reduction of the En+ Group’s absolute GHG emissions (Scope 1 & 2 & 3) by at least 60% from current levels by 2050. The residual emissions cannot be eliminated by applying existing technology – these emissions need to be compensated for by developing new technical and utilising nature-based solutions. Technical solutions are expected to be focused on carbon capture, utilisation and storage technologies. Nature-based solutions are solutions that allow the capture and storage of CO2 using natural processes. Since 2019, the Group has implemented extensive forestry projects.

The Group is committed to the highest levels of transparency and will regularly report on progress.

[1] For the purpose of this Report RUB-denominated CAPEX of Power segment is translated to USD by the rate of 74 RUB/USD.

January 20

Decarbonising aluminium will require a united front

Financial Times, 20.01.2021
The world's largest industrial polluters must transform the way they do business This week En+ Group pledged to reach net zero greenhouse gas emissions by 2050 with a reduction of at least 35 per cent by 2030, the most demanding near-term target yet set by any global aluminium company.

January 19

En+ Commits To Zero GHG Emissions By 2050

Aluminiuminsider

Anglo-Russian energy and metals company En+ Group IPJSC announced yesterday its intention to reduce its greenhouse gas emissions by at least 35 percent by 2030 and net zero by 2050. The firm’s board of directors signed off on the goal earlier this week and created a task force led by Chief Operating Officer Vyacheslav Solomin to determine how to achieve these lofty goals. One of its first steps will be to discuss the goals with customers, suppliers, investors, and communities.

The task force will also consult experts from around the world as it works to complete a report on implementing those goals this September, ahead of the UN COP26. The task force will report to En+ Group’s Executive Chair Lord Barker of Battle. He elaborated on the plan in an emailed statement. “Once again the En+ Group is showing ambitious sector leadership on the biggest environmental issue of our time. These climate change targets and the roll out of a detailed route map to meet them, are yet more tangible evidence of our commitment to lead the global aluminium industry into the low-carbon economy. We will achieve this transformation with relentless scientific innovation and a change programme driven right across the whole group. This will require continued investment in major scientific advances such as our pioneering inert anode technology and critical industrial process improvements, as well as implementation of net zero initiatives for the hardest ‘last mile’ emissions.”

 “The Group can draw on its long record of not just R&D but also execution excellence and experience in process optimisation: these are in the Group DNA,” he continued. “Our metals business has already massively over achieved in meeting existing carbon reduction targets.The target of emitting less than 2.7 tonnes of CO2 equivalent per tonne of aluminium (scope 1 and scope 2 from electrolysis) by 2025, was met in 2017! That is why, although I don’t underestimate the huge challenges ahead in meeting these targets, we face them with growing confidence.” Joan MacNaughton CB, independent non-executive director, said the plan is simply the next step in a longer-term goal.

 “Two years ago the reconstituted En+ Group board set a new level of ambition for environmental performance. Today we take a huge step towards fulfilling that promise. We are determined to be at the leading edge of what this sector, being one of the hardest to abate, can do to transition to a low carbon business model.” “The new En+ Board made a commitment to implement the highest levels of ESG across the company with a particular dedication to the best environmental stewardship,” explained Christopher Burnham, Senior Independent Director of En+ Group. “Today represents the result of this concerted effort led by Lord Baker, and the Board, to fulfill this commitment.”

January 18

En+ commits to become carbon neutral by 2050

S&P Global Platts

London — Russian energy and aluminum company En+ Group said Jan. 18 that it aims to reduce its greenhouse gas emissions 35% by 2030 and achieve carbon net-zero by 2050.
They are the most ambitious carbon reduction targets yet seen in the global aluminum industry, setting a new standard in one of the most energy intensive industries, said En+, adding that the targets are in line with the Paris Agreement and the European Green Deal, and are promotive of the global transition to a low-carbon economy.
The plan covers Scope 1 and 2 emissions across the group's entire operations, including aluminum production, heat and electricity generation, and are benchmarked against En+'s 2018 emissions.
"Our metals business has already overachieved in meeting existing carbon reduction targets," said En+ executive chairman Greg Barker. "The target of emitting less than 2.7 tonnes of CO2 equivalent per tonne of aluminium (scope 1 and scope 2 from electrolysis) by 2025, was met in 2017. That is why, although I don't underestimate the huge challenges ahead in meeting these targets, we face them with growing confidence."
Achieving the new milestones will require yet more transformations, such as inert anode technology. To plan and implement the necessary changes, the company will set up an En+ Climate Change Taskforce, led by chief operating officer Vyacheslav Solomin.
Before publishing its final net-zero strategy in September 2021 ahead of the UN COP26 in Glasgow, En+ said it will engage in consultations with relevant external stakeholders, including suppliers, customers, investors, local communities and international experts.
With an annual production capacity of 3.9 million mt, En+ is the largest aluminum producer in the ex-China world. Its 15.1 GW of installed hydropower capacity also makes it the largest independent hydropower company globally.
In 2019, the group's metals business in aluminum company Rusal, produced 6% of the world's aluminum and its power unit, EuroSibEnergo, generated more than 64 TWh of carbon-free hydropower, according to En+.
Rusal produces aluminum with the bulk of the power supplied by EuroSibEnergo. En+ says more than 98% of Rusal's aluminum production is powered by renewable hydropower, and through that it boasts one of the lowest carbon footprint among aluminum companies worldwide.