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11712Re: [hreg] (unknown)

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  • Lynden Foley
    Oct 11, 2013
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      I would add that there is a reason that U.S. aluminum smelters are located in the NW  part of the nation so they can use hydro power from the Bonneville Power Authority. (the average price paid for electricity by aluminum smelters worldwide was $0.02 per kWh) I had no idea prices were that low. Don't forget that there are other weird things going on with the aluminum market, specifically Goldman Sachs warehousing large volumes of aluminum.

      On 10/11/2013 10:01 AM, wrpretired@... wrote:

      As a retired electrical engineer who worked in local refineries and chemical plants, I can say that as much waste energy as possible is turned to electrical energy in  the plants that I have worked in.  To keep their cost of purchased electrical power down, the plants install boilers and generators to produce electricity within their fences.  They burn low value byproducts or wastes to create steam for their processes but also to create power that supplements electrical power coming into their plants.  For those of you who understand the short story here, much of the internally generated power is used to correct power factors by using synchronous generators to offset the induction motor loads, increasing efficiency.
      I saw tremendous strides being made during my career, but tremendous strides still MUST be made to make our world safer.
      Warren P.
      -----Original Message-----
      From: Violeta Archer <violetatx9@...>
      To: hreg <hreg@yahoogroups.com>
      Sent: Thu, Oct 10, 2013 12:37 pm
      Subject: [hreg] (unknown)


      This aluminum plant closure due to electricity price increases in Ohio is very telling. . .  Many manufacturers in Europe are transitioning to on-site renewable energy generation to survive. This is happening in the U.S. (e.g. Google, Apple, etc for their power hungry data centers), but apparently it's not happening as quickly or as evenly across the board. 

      If it happened here, folks would be screaming about the associated job losses.   

      Best regards,

      Violeta Archer
      HREG president


      Energy Prices Shutter Ormet Aluminum Plant

      Electricity rate hikeshave forced aluminum producer Ormet Corp. to announce the closureof one of its plants in Hannibal, Ohio, reports Forbes. In February, Ormet filed for bankruptcy protection citing “exceedingly high and uncontrollable power costs.”

      Low metal prices have also been a contributing factor in the company’s problems: Prices for aluminum on the London Metal Exchange are now below the cost of production for many producers, according to the news service. But production costs have been pushed up exponentially by rising electricity rates and the factory – whose peak electricity demand is 500 MW, similar to that of a city the size of Pittsburgh – is currently operating at a loss, Forbes reports.

      In 2007, the average price paid for electricity by aluminum smelters worldwide was $0.02 per kWh, according to World Bureau of Metal Statistics. By contrast, 2007 saw industrial electricity customers in Ohio pay an average of $0.09 kWh, according to Ohio’s Utility Rate Survey, the news service reports.

      But last week the Public Utilities Commission of Ohio ruled that Ormet would have to pay for electricity at a rate substantially above what the aluminum maker said it needed to emerge from bankruptcy. Since 2009, Ormet has receiver around $308 million in subsidized power. Other industrialcustomers in Ohio have paid, on average, $2 to $3 a month to support the subsidy, which is the largest of its kind in the state, reports Forbes.

      Initiatives aimed at combating climate change have driven electrical rates for industrial customers in the UK and the EU up by 28 percent since 2003, according to research by Business Electricity Prices released in March, an online portal for businesses to compare electric costs across the UK. Business Electricity Prices says its system, which compares the business commercial tariffs across a number of the leading suppliers, shows a large gap between the one with the highest corporate prices, and the supplier with the lowest prices.

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