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Interviews

AL Circle x Klaus Schmitz: Why US aluminium furnaces lag today and strategies to modernise

INTERVIEWEE
AL Circle x Klaus Schmitz: Why US aluminium furnaces lag today and strategies to modernise
Category
Interview
Date
21 Aug 2025
Source
AL Circle
Detail

In an interview for "American Aluminium Industry: The Path Forward", Klaus Schmitz, Vice President, Sales and Marketing Thermoprocessing Plants, Otto Junker, discussed the modernisation of US aluminium furnaces and recycling systems with direct context to decarbonisation, electrification and operational efficiency. The discussion further also show how legacy batch melting systems remain dominant due to high replacement costs, space constraints and production risks, yet growing decarbonisation targets and regulatory pressures are pushing operators to explore induction melting, advanced recycling and power-to-heat technologies. Safety, automation and cybersecurity are critical considerations, while KPIs such as energy source, metal yield and process stability are emerging as benchmarks for sustainable operations.

AL Circle: Many US aluminium smelters and foundries still operate legacy batch melting systems. From your technical vantage point, what factors (other than upfront cost) are hindering widespread adoption of induction melting or modern channel-holding systems? 

Klaus Schmitz: Otto Junker provides advanced induction melting systems that can be used to melt and cast aluminium and, when powered by renewable energy, lead to a drastic reduction in the CO2 footprint. Investments in such systems are typically long-term, spanning years or even decades. Capital goods of this type are generally operated until the end of their service life for reasons of investment cost, space requirements and, last but not least, to maintain continuous production output. Typically, a single unit or just a few systems handle the entire production output. Replacing one of them at the same location often results in a production loss of 20-30 per cent, spread over several months needed for dismantling and installation. Such a step is often seen as difficult to implement within ongoing operations. Yet we are observing a growing openness to long-term efficiency gains, driven by decarbonization targets, energy market developments, and changing investment priorities in the industry, a shift we actively support by helping operators evaluate and implement viable modernisation paths.

AL Circle: Otto Junker’s recycling furnaces claim a high metal yield from contaminated scrap. In North American aluminium operations, what obstacles limit the deployment of such systems? 

Klaus Schmitz: The Otto Junker melting units and processing plants for contaminated scrap offer excellent metal recovery rates. The demand for aluminium recycling plants is growing rapidly in both the USA and Europe. The high demand for aluminium overall and the environmental benefits of recycling aluminium are driving this demand. We are confident that we will be able to generate orders in the foreseeable future, supported by Otto Junker’s local branch and service centre in the US. 

Stricter environmental regulations in Europe have been a key driver for advanced recycling systems, and we assume that, with rising sustainability expectations, more North American operators will increasingly consider long-term investment strategies in this area.

AL Circle: Power-to-heat electrification is gaining traction globally. How feasible is converting aluminium furnace capacity from fossil fuel to electric heat, given grid constraints, intermittent renewable sources, and industrial demand?

Klaus Schmitz: First of all, we see strong incentives for operators in the conversion from fossil fuels to renewable electric heat in the production of aluminium and aluminium products. This offers broad opportunities for retrofits as well as for designing new plants from the ground up. The topic of power-to-heat is highly relevant for the area of aluminium heat treatment. With our storage system at up to 1,000°C, the performance is very effective for operational temperatures of up to 400°C. This mainly applies to peripheral processes, such as foil annealing. For other applications, especially in food-related industries with typical temperatures of approximately. 250°C, this is feasible for a much wider range. On the one hand, our power-to-heat systems relieve the grid by absorbing excess electricity, particularly from renewable energy sources. Without such storage systems, this excess electricity would have to be blocked. On the other hand, the installation of a power-to-heat system requires a sufficiently powerful local grid connection, which in many places initially requires corresponding investments in the grid infrastructure.

To explore the full interview and gain deeper insights into the aluminium furnace, click here.


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