SUSTAINABILITY REPORT Cont’d Our Initiatives In realising our interim carbon reduction targets, Press Metal plans to optimise its existing smelting technology, explore new technology, and embrace innovation to improve energy efficiency and decarbonise production processes. The Group’s efforts are focused on two (2) fronts, i.e. R&D initiatives and improvement projects by the respective entities. Our R&D projects are focused on three (3) main themes; energy reduction, decarbonisation, and industry 4.0 transformation. As part of our climate change efforts, we have invested RM16.5 million in FY2022 in the following R&D projects: Project Description 3 Field Measurement Pot Study Determined improvements to the pot designs and operational controls; magnetic, electric, and thermal management. The study found that further energy-efficient methods can be implemented to improve energy use. Electrolyte recovery A study was conducted to explore possibilities to improve energy efficiency and stability of pot temperature using quality cover materials. As a result, the project successfully increased the recovery capacity and improved the extraction of valuable material from waste generated to be reused in the electrolysis process, thus improving energy efficiency. Potline side ventilation A new potline side ventilation was introduced to provide better working environment at the potline. With better ventilation, the maintenance workers can attend to the Pot Tending Machine effectively. Accordingly, improved working condition has increased the quality of maintenance work which resulted in better pot health and performance. Pot cover replacement A root cause analysis was conducted by our in-house specialist to study the impact of pot covers as part of the analysis on pot efficiency. Deteriorated pot covers caused heat loss and increase anode effects during the electrolysis process. This discovery led to the replacement of better pot covers which provide better insulation and durability. Electric carbon preheater Introducing electrification of the preheater for the carbon pre-casting process to reduce consumption of fossil fuels. Read more on our Sustainable Manufacturing initiatives in the Economics section of this Report Below are some of the initiatives we have undertaken to support our climate change efforts. Initiative Description Installation of solar panels We invested RM4.0 million to install solar panels with the capacity of 1,248 kW which are estimated to avoid 736 tCO2-eq annually. GHG Reduction Plan The smelting operations have established a GHG Reduction Plan that focuses on improvement in electrolysis process; reducing impacts from anode effects and improving energy efficiency. Steps undertaken include conducting frequent checks on feeding points, pots, anode current distribution, and anode cover quality. Anode Effect Control Plan The smelting operations have developed an Anode Effect Control Plan to identify the potential factors that trigger anode effects. This has contributed to enhanced feeding and tapping-hole process conditions as well as the overall work quality. Cover material protection A study was conducted to identify the cause of heat loss during the electrolysis process. The result showed that adding the crystalline substance to the electrolyte improved insulation, provided protection against oxidation during electrolysis, therefore reduction of GHG emissions. Green Supply Chain Project In collaboration with the Society of Entrepreneurs and Ecology (“SEE”) Ecology Association, we are developing a Green Supply Chain Project which focuses on enhancing energy efficiency such as replacing equipment with energy-efficient alternatives and creating an energy-saving lighting system. Smart Factory Project The Smart Factory Project that was rolled out at PMI aims to improve energy efficiency through digitalisation; the installation of electricity and natural gas meters to upload data into data management system. Arising from this enhancement, the local government (Bureau of Industry and Information Technology of Foshan City) recognised PMI as one of the leading players towards digitalisation. PRESS METAL ALUMINIUM HOLDINGS BERHAD 123
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