Calculate Embedded Emissions for Unwrought Aluminium (HS7601)

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Payable emissions (tCO₂e/t)

Total CBAM Cost (€)

Notes:
There may be a difference when calculating the price with respect to import volume, carbon price, and benchmark emissions, as the embedded formula may result in minor variations due to decimal rounding. Therefore, the actual value may vary.

CBAM is applicable to trade volumes starting from 50 metric tonnes. For trade volumes below 50 metric tonnes, CBAM does not apply.

Usage Procedure – How to use the CBAM Calculator Sheet

Enter or update values only in the INPUT
PARAMETERS section (Highlighted in blue) , including
the carbon price, benchmark emissions, CBAM
chargeable percentage (as per the phase-in year),
and imported quantity.

The system will automatically calculate the payable
emissions and the total CBAM cost (€) based on the
inputs provided.

Notes:
• Change any input value to automatically update CBAM cost.
• Formula used: Carbon price × payable emissions × quantity.
• Model aligned with CBAM supplier-side illustrative methodology.

22 JULY 2022 AL CIRCLE

Exacerbating energy prices drive Romania's only alumina refinery into hibernation for 17 months

EDITED BY : RUPANKAR MAJUMDER 2MINS READ

The Romanian aluminium giant Alro stated that the nation's sole alumina refinery, Alum, located in Tulcea, plans for a temporary production halt by putting the cause of 'prohibitive' energy prices.

Energy prices drive Romania's only alumina refinery into hibernation for 17 months

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During its July 20 filing to the Bucharest Stock Exchange, the management proposed for approval by the general meeting of shareholders, which will take place on July 29, 2022, a temporary suspension of alumina production operations starting from August 1, 2022, for an estimated 17-month period.

Gheorghe Dobra, the CEO of Vimetco and chairman of the board of directors at Alum, said, "The energy crisis has escalated the economic crisis generated by the pandemic from 2021 as a result of the accelerated increase of the electricity and natural gas prices with a negative impact on the production costs for calcined alumina and electrolytic aluminium. The natural gas cost per tonne of alumina is significantly higher than the actual price of one tonne of alumina imported and delivered to Alro."

Alum explained that these measures, which are fully compatible with the technology used in its alumina refinery, are designed to preserve the group's assets and guarantee its financial stability to face the challenges ahead in the current economically challenging environment.

In the last quarter of 2022, natural gas prices increased tenfold to over 180 euros per MWh, up from 18 euros in the first quarter of 2021. The power price overran the quotations of 500 euros per MWh for Q4 2022, from 60 euros per MWh in the previous year's first quarter.

Currently, the CO2 emission certificates cost over 90 euros each, up from 25 euros at the end of 2020.

"The alumina produced by Alum would reach a cost of more than $900 per tonne, while the price of alumina on the international markets is around $500 per tonne. The weight of energy products in the total cost of alumina is notably high, reaching $500 per tonne in 2022", the CEO added.

By shutting down three electrolysis potrooms, Alro has reduced primary aluminium production by 60%, and Alum has revised its production schedule to match Alro's needs for calcined alumina. Still, alumina has become extremely expensive with an unsustainable increase in prices.

The Tulcea plant will lay off some 500 employees. Still, it will maintain a core group of specialists to carry out R&D, logistics, maintenance, and repair work, in preparation for a quick restart of production once energy market conditions return to normal.

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