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Energy—Approach
Alcoa has emphasized energy efficiency since the early days of the company. In 1900, the electrical energy requirements to make a kilogram of aluminum from alumina were more than 55 kilowatt hours (kWh) of electricity. By 2000, our electrical energy requirement was reduced to 15 kWh per kilogram. Today, our best plants can produce primary metal using only 13.3 kWh per kilogram.
In 2006, we implemented the development of an innovative slotted anode (electrode for aluminum smelting) that was awarded the State of Indiana's Governor Award for Environmental Excellence in the energy efficiency category. Similar progress is possible at other types of plants, and we are dedicated to further reducing our energy requirements.
In addition to the ongoing energy reduction activities at the location and business unit levels, we continued work on energy innovation in 2006, with the goal of significantly changing the way we acquire and use energy. The initial activities deal with solar energy options for our manufacturing plants, waste heat recovery and reuse from large energy-using unit operations, and process modifications that will reduce the energy input requirements for some major manufacturing systems.
Currently, we self-generate more than 1,000 megawatts of electricity, and we are investing more than US$1 billion to sustain and increase this position around the world. For instance, we are modernizing the power plant at our Newburgh, Indiana, facility, completing the modernization and re-licensing of our U.S. hydro facilities, and continuing to invest in new hydro-electric facilities in Brazil.
In late 2006, we announced the signing of a memorandum of understanding with India's Council of Scientific & Industrial Research to partner in collaborative research projects that address critical global issues, such as energy efficiency, alternative and renewable energy sources, environmental technologies, and multi-material engineered solutions.
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