One of the consequences of Orkla's industrial operations is the consumption of substantial amounts of energy, which is a necessary input factor in the production processes. Energy consumption in 2008 totalled 11.1 TWh, 27 % lower than in 2007. This decline is ascribable to the agreement between Orkla and Alcoa to swap assets in two jointly owned companies, Sapa Profiles and Elkem Aluminium. Elkem Aluminium is defined as discontinued operations and is not included in the financial statements. Electricity accounted for roughly 65 % of total energy consumption in 2008. Elkem and Borregaard's own plants generated around 3.75 TWh of electricity from hydropower in 2008.
Energy-efficiency
All Orkla's businesses carry out energy-saving and investment projects on an ongoing basis to cut energy consumption and maximise the use of renewable energy. Energy management is an integral part of EHS work. The emphasis is on reducing oil consumption, either through efficiency improvement measures or by switching to other sources of energy for heat production.
A variety of energy-efficiency initiatives and investments have helped to achieve a continuous reduction in energy consumption. Many of Orkla's production plants have initiated and carried out projects aimed both at optimising energy utilisation in their own operations and exploring the potential use of energy in the local community in the form of district heating. These are a few examples:
- Hafslund has begun work on building a new waste incineration plant on Borregaard's factory site in Sarpsborg. The plant is expected to produce 200 GWh of steam for delivery to Borregaard in 2010. This will also reduce greenhouse gas emissions by around 50,000 tonnes.
- Elkem and Orkdal Fjernvarme have signed an agreement regarding the delivery of waste heat from Elkem's smelting plant at Thamshavn. With the present technology, it will initially be possible to supply up to 12 GWh/year of heat, but this is eventually expected to increase by up to 30 GWh/year.
- Elkem has made major investments in renewable energy sources in Norway. Work on extensively upgrading the Elkem Saudefaldene power plant was completed and the plant was ready to start up in autumn 2008. The NOK 1.9 billion development of the Saudavassdraget hydropower plant will increase production by 600 GWh, equivalent to the energy consumption of 30,000 households.
Improving energy efficiency is perhaps one of the most important ways of reducing greenhouse gas emissions in the short term, but the development of alternative energy sources is clearly also crucial to the effectiveness of climate-related efforts. In the past few years, Orkla has invested heavily in solar energy, based on the Group's silicon expertise and its extensive research in the field of metallurgy. Some of Orkla's other products, such as aluminium, lignin and Microsilica®, can also be instrumental in lowering energy consumption and thereby reducing emissions.
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Carbon footprint
Orkla analyses its carbon footprint and has plans in place to implement appropriate measures. The Group applies its expertise and know-how to improving and developing processes, production and products so as to mitigate and limit any adverse effects on the environment. In 2008 Orkla continued to invest substantial resources in acquiring more knowledge of climate challenges and how they affect the Group. Necessary action and potential measures were considered.
Orkla believes it is crucial to develop realistic goals and strategies for the Group's efforts to reduce its impact on the climate. This is a comprehensive, time-consuming process. Orkla has therefore begun by adopting a broad-based approach, and has entered into collaboration with several external research centres and specialist groups in order to expand its knowledge base. The aim is to conduct life-cycle analyses, in which adverse impacts on climate are analysed and documented throughout the value chain with a view to formulating specific objectives and plans for reducing greenhouse gas emissions.
At Orkla Brands, for instance, a feasibility project has been carried out to identify the impacts on climate at each stage of the value chain, from the cultivation and production of biological raw materials to the production of packaging used in the manufacture of food products. Based on this project, decisions will be made regarding future prioritisation or adaptation of measures to reduce greenhouse gas emissions. |