Greenhouse gas emissions

Climate change is one of the greatest challenges of our time. For many companies, it is associated with the risk of stricter legislation or physical risks that could jeopardise business continuity or cause loss of asset value. However, for the companies of the Capital Group of Grupa KĘTY S.A. operating in the aluminium industry, transformation is more of an opportunity than a threat. In the context of the planned changes, aluminium can be surely described as ‘the material of the future’. The metal has an enormous potential due to its properties, such as durability, corrosion resistance, low maintenance costs and, above all, complete recyclability. It is a desirable material with a view to climate-neutral economy, and indispensable for the development of renewable energy and electromobility, as well as perfectly suited to the circular economy concept.

Since 2016, the domestic companies of the Capital Group of Grupa KĘTY S.A. have been recording climaterelated emissions. Thanks to that, it has been possible to precisely define goals for the subsequent years. Since 2020, we have been reporting our emissions within the Climate Change programme run by the Carbon Disclosure Project (CDP). Carbon footprint calculations are based on the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard. The value of emission is reported in metric tons, as an equivalent of CO₂. The greenhouse gas emitted by the Capital Group plants is mainly carbon dioxide originating from the processes of natural gas combustion in heaters and industrial furnaces, boilers, radiators, and thermal oxidisers. Moreover GHG include also CH₄ and N₂O from the combustion of fuels in vehicles, as well as HFC used as cooling medium.

For the year 2016 and 2020-2022, below presented are:

• direct greenhouse gas emissions (Scope 1);
• indirect emissions related to the purchased electricity and heat (Scope 2: ‘location-based’ and ‘market-based’ methods);
• intensity of greenhouse gas emissions in reference to production size (Scopes 1 and 2);
• selected emissions within Scope 3.

Greenhouse gas emissions intensity by companies located in Poland (Mg CO₂e/Mg)

Greenhouse gas emissions intensity by Grupa KĘTY S.A. (Mg CO₂e/Mg)

In 2022, the total emissions by the domestic companies of the Capital Group amounted to 163,100 tons of CO₂e (Scopes 1 and 2 – location-based method) and were by 8.2% lower than in 2021. The emissions of Grupa KĘTY S.A. in the same scopes were 73,100 tons of CO₂e , which is less by 9.13% y/y.

The total level of direct greenhouse gas emissions (Scope 1) is relatively low due to the nature of the in-house processes and high thermal efficiency of the systems and devices used. The Capital Group companies are not covered by the Community Emissions Trading Scheme (ETS), which means they are not exposed to the risk of stricter regulations in this respect.

Despite the potential advantages, the Group companies are taking a number of measures to increase the efficiency of their generation processes and reduce electricity and heat consumption, which translates into reduction of greenhouse gas emissions. In investment projects energy-saving equipment as well as environmentally-friendly sources of energy are used. Actions aimed at improving the energy efficiency of installations and buildings are of great importance.

Further measures are planned to accelerate arrival at the net-zero carbon target and lower the carbon footprint of processes and products. An investment project is pending at Grupa KĘTY S.A. to construct two press lines of 20 MN and 40 MN, where billets heater of low natural gas consumption and energy saving system will be applied, whereas the electric power fed from the grid will be adjusted to the actual demand. It has also been planned to install photovoltaic panels of 500 kW capacity. The system will be sufficient to partially cover the electricity demand of the planned engineering lines, and limit the energy supply from an external supplier. This will contribute to carbon footprint reduction.

An energy system optimisation process is currently underway at the ASS. The investment projects which have been carried out for many years, comprise state-of-the-art technology in the field of environmental protection and energy efficiency. The Capital Group companies operate in a sector which may benefit from the climate-change-related transformation. Therefore, further action will be taken to make the most of these opportunities by investing in innovative technologies, new products development and aluminium recycling.

We plan an increase in the share of aluminium scrap in the products made of soft alloys, extruded from the billets cast at the Kęty plant. We will extend the offer of aluminium building systems fulfilling the requirements of environmentally-friendly, passive buildings. In the Flexible Packaging Segment, we will increase the share of packaging films and laminates fit for recycling. In the coming years we wish to even better avail of the competitive advantage provided by aluminium, which fits in with the climate transformation and the circular economy like no other material.

Apart from monitoring direct and indirect emissions related to energy consumption (Scopes 1 and 2), Grupa KĘTY S.A. started to register some Scope 3 emissions related to the purchased materials and their ‘upstream’ transport. In 2021 there were only disclosed emissions related to materials used in the in-house production of billets from soft alloys. In 2022 the reported carbon footprint relates to the purchase and transport of all materials, including the aluminium billets bought.

Moreover, we present a verified carbon footprint in Scope 3 for selected products:

• aluminium profiles extruded from billets manufactured at the Kęty plant;
• certified façade and window-and-door systems of Aluprof S.A.

Additionally, the certificate has been published on the ITB [the Polish Building Technology Institute] sustainable building portal, thanks to which the profiles are acceptable in the ‘green’ buildings certification systems, such as BREEAM, LEED and DGNB. A relatively low carbon footprint of the profiles manufactured at Grupa KĘTY S.A. was achieved thanks to the high content of aluminium scrap in the melting charge. The Kęty plant recycles not only aluminium scrap originating at the Capital Group subsidiaries, but also scrap purchased on the market. By recovering aluminium, the plant saves a lot of energy needed to produce primary aluminium, thus limiting air and water pollution. At the ASS, similar EPD declarations were obtained for Aluprof S.A. building systems.

The companies of the Capital Group control the quantity of dusts and gases emitted to air. The monitoring proves that the limits set out by law and administrative decisions have been kept. The total emissions level is well below the allowed limits. Apart from greenhouse gases, the EPS emits to air: sulphur dioxide, nitrogen oxides, carbon monoxide, dust and small amounts of inorganic compounds. The sources of emission are the processes of natural gas combustion and chemical treatment of aluminium elements. The main pollutants emitted by the ASS plants include sulphur dioxide, nitrogen oxides, carbon monoxide, dust, sulphuric acid, hydrogen chloride, fluorine, inorganic acids and aliphatic hydrocarbons. The FPS companies emit volatile organic compounds (VOC) to air, originating from the processes of printing, coating and lamination of packaging, as well as dust and gases from gas combustion in engineering and heating plants, plus sulphuric acid and chromium compounds from the electroplating line.

The emission calculations were made in compliance with the applicable methods of determining pollution emissions for the purpose of charging fees for the use of the environment, depending on the specifics of the processes involved in the emissions origination. The pollution emissions were determined with the use of the following calculation methods, based on the results of periodical measurements (measuring indicators), in reference to process balances and the National Centre for Emissions Management (KOBIZE) indicators applicable to the combustion of fuels, as well as indicators available in literature, among other things.

Compared with 2021 most of the indicators, both in nominal values and in reference to production, dropped. At Grupa KĘTY S.A. the percentage change was: -17% for dusts, -43% for SO2, -11% for NOx, and -29% for CO. For the domestic companies of the Capital Group, the reduction was: -6.6% for dusts, -35% for SO2, -13.8% for NOx, and -24% for CO. Annual chlorine, ozone and VOC (the only substances for which an increase was recorded), are at low or negligible level. The achieved effect is a result of actions consisting in utilities consumption reduction, specifically natural gas for process and heating purposes, which translated into lower dusts, CO, SO₂, and NOx emissions.

The most effective proved to be:

1. At the FPS – afterburning optimisation by the use of regenerative thermal oxidation, burners inspection, continuous monitoring of exhaust ventilation. This resulted in natural gas consumption reduction by over 22% y/y, as well as limitation of VOC emissions due to improved afterburning efficiency. Modification of process and heating boilers by way of replacement of gas burners with gas-oil burners, and their optimisation. Close-down of the worn-out process boilers.
2. At the ASS – installation of induction heaters for two profile extrusion lines.
3. Heat recuperation from three compressors to heat process water at the powder coating plant, installation of a photovoltaic kit to heat water, replacement of heating boilers with energy-saving ones.

The companies of the Capital Group have been successfully carrying out actions for the limitation of the emissions to air for many years. For further reduction, we have planned optimising the process of fuels combustion, increased energy efficiency of buildings and systems, as well as plant modernisation.