Can energy transformers reduce costs for the Aluminum industry in the US

The United States is the largest producer, importer

, and recycler of aluminum in the world. Its aluminum industry produces 6 million metric tons of primary aluminum, making U.S. the single largest producer of primary aluminum in the world. The country consumes 12 million metric tons of aluminum each year. Great demand for the lightweight, high-strength, and recyclable structural metal allows aluminum to play a crucial role in the U.S. economy. Aluminum has a vital presence in heavy industries such as infrastructure, transportation, aerospace, packaging, defense and construction.

Energy demand in the Aluminum Industry

Like many processes of metal production, aluminum production too leans heavily on energy. The production of primary aluminum for example relies heavily on electrolytic process that is highly energy-intensive. According to a Manufacturing Energy Consumption Survey (MECS), the U.S. aluminum industry consumes over 800 trillion Btu of energy every year, including electricity losses. This amount represents slightly more than 1% of all energy and 3% of all manufacturing energy used in the country.

Increasing costs and difficulty in procurement of fossil fuel, and the need to keep greenhouse gas emissions in check, have cast serious doubt on the global competitiveness of the aluminum industry in the U.S. The last few years have therefore seen an active move by the industry to keep costs down and improve its overall efficiency of energy consumption. Thankfully, technical progress and the use of recycling have allowed the aluminum industry in the country to reduce its energy demand by over two.

In an effort to further reduce the industry's consumption of energy, the Energy Information Administration (EIA) encourages aluminum manufacturers to undertake a number of energy-management initiatives, including energy audits, electricity load control, purchase of power under special rate schedules, and others. Overall, 68% companies in the industry reported engaging in at least one energy-management activity in recent times. But are these energy saving methods adequate? Obviously more can be done by focusing on energy efficient transformers.

Can energy-efficient transformers reduce energy demand in the Aluminum Industry?

Transformers are the vital link between production and consumption of energy. They step up and step down electricity as it travels hundreds, even thousands of miles. A significant amount of energy lost in transmission is determined by the age and condition of transformers.

Standard transformers operate at 90% to 95% efficiency under full load and their efficiency drops at lighter loads. This is due to inefficiencies in the transformer core. Unfortunately, average transformer loads run between 34% and 50% of the transformer's total capacity. With majority of electricity consumed in the U.S. running through transformers at these lower loads, large amounts of energy is lost each year.

These low efficiency transformers are found in the aluminum industry as well and one way to save millions of Btu of energy each year is to replace these low efficiency transformers with energy-efficient transformers.

Cost of energy-efficient transformers versus cost of production

Transformers are inherently efficient machines. However, even minor losses add up to huge amounts as they stay energized 24x7 all year round.

Compliant energy transformers are able to maintain National Electrical Manufacturers Association (NEMA) Class 1 efficiency levels even at 35% load. This is accomplished by using higher-grade grain-oriented core steel. Increasing the energy efficiency of a transformer allows a unit to retain its level of production with less energy.

Compliant energy-efficient transformers, however, cost more than their lower-efficiency predecessors due to higher cost of better performing grain-oriented steel, increased labor and additional raw material required. While compliant transformers call for higher investment due to higher purchase costs, end users, including aluminum manufacturers can save thousands of dollars over a transformer's life by curtailing energy losses. Additionally, the reduced energy loss enables the industry to stay competitive by keeping energy prices down. The energy efficient transformers also reduce total cost of ownership and operating costs.

Can energy transformers reduce costs for the Aluminum industry in the US

By: Mike Dickinson

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