“Over the past years, primary metal smelters in Canada have incrementally moved towards digitalisation, focusing on automation and robotisation,” Jean Simard, President and Chief Executive Officer of Aluminium Association of Canada

- Category
- Interview
- Date
- 06 April 2024
- Source
- AlCircle.com
As President and CEO of the Aluminium Association of Canada since 2009, Jean Simard is the industry’s official representative and spokesperson with governments, business associations and the media, as well as with international organisations linked to the industry. He holds a degree in Civil Law from the University of Ottawa and is a member of the Barreau du Québec. He possesses extensive professional experience in public and government relations, mainly in sustainable development, energy, and environmental affairs. Prior to joining the AAC, he was Vice-President of Sustainable Development, Public and Governmental Affairs at Gaz Métro, a Quebec-based energy company.
AL Circle: How do you foresee the growth of the aluminium industry in Canada? Which end-user sector do you think will drive the aluminium industry in 2024?
Mr Jean Simard: As a low-carbon primary aluminium producer, Canada is certainly well-positioned to contribute to the decarbonisation of North America over the coming decades. This means maintaining at least our market share, as we produce 80% of the continent's primary metal.
For electrification, from solar panels passing through transmission lines all the way to EVs, aluminium remains "the high impact cross-cutting" critical material per excellence to decarbonise North America.
In the short-term, EV will remain the fast growing sector. Although other sectors, such as packaging and construction, won't be the main drivers, there will still be growth in beverage cans and sub-sectors for construction i.e. mostly exterior panels and HVAC.
AL Circle: How have digitalisation and technological advancements shaped the Quebec aluminium industry over the past few years? What developments do you project for this year?
Mr Jean Simard: Over the past years, primary metal smelters in Canada have incrementally moved towards digitalisation, focusing on automation and robotisation. This is done through historical partnerships with Quebec-based equipment manufacturers. Quebec is home to many world-leading equipment and technology manufacturers involved in the industry’s digitalisation, like EPIQ, Dynamic Concept, and Alizent. The digitalisation process is growing where there is molten metal and also in the other downstream manufacturing processes.
AL Circle: How is the Quebec aluminium industry addressing environmental concerns and sustainability? What initiatives or strategies have you undertaken as an association to help the industry reduce carbon emissions?
Mr Jean Simard: These have been fundamental aspects of our industry development in the last decades. This is why we stand today among the best performers in the world on these concerns. A lot of efforts and capital are being invested by member producers to continually improve their performances.
While our plants have the lowest carbon emissions in the world, we are actively pursuing R&D on key game-changing technological solutions such as inert anodes, CCUS and biochar.
As to the sustainability element, we have been pursuing a responsible production initiative with membership as part of our pathway to remain amongst the first quartile of performers in the future, maintain our social contract with our host communities, and ensure the attractiveness of our industry to future generations.
AL Circle: What key regulatory challenges or opportunities is the Quebec aluminium industry currently facing, and how is the association addressing them?
Mr Jean Simard: Improving our record on air emissions based on currently available and implementable technologies is one opportunity for the Quebec industry while maintaining actual production. Another is addressing the new frontiers of operation and environmental licenses, such as biodiversity and wetlands protection. Finally, industrial transition in a changing world based on values, access to renewable energy, and traceability.
AL Circle: How are you, as an association, supporting your members in navigating market fluctuations and industry dynamics?
Mr Jean Simard: As a highly trade-exposed industry, we constantly monitor geopolitics and its impact on our markets' metal movement. We are maintaining close contact with government authorities to ensure robust border management, respect for WTO rules, as well as trade agreements within the North American trading space. We believe that markets will increasingly require transparency on proof of origin and documented characterisations of the metal, such as carbon footprint and other attributes. From this perspective, the association and its members have developed and implemented the first digital traceability platform, enabling robust daily tracking from the smelter to the border of all primary metal as it leaves the smelters. We have been working in partnership with our US and Mexican counterparts to ensure comprehensive and robust border management around the USMCA trading space.
AL Circle: What growth do you foresee for aluminium production and consumption in Quebec? How are you assisting the manufacturers to optimise their production capacity?
Mr Jean Simard: With 90% of our production going to foreign markets, mainly the US and to a lesser extent in Europe, we believe that the future implementation of a carbon pricing mechanism at the border and the growing demand for low-carbon products will create an ideal levelised playing field for our metal.
The steps from low CO2 to no CO2, be it through inert anodes, CCUS or others, will be highly capital-intensive and require agile and adequate public policy in the future. As an energy-intensive industry, we will also require continued access to competitively priced renewable energy to maintain and grow capacity.
Domestic growth and consumption in a relatively small market such as Quebec require leveraging government procurement through a responsible approach to call for low-carbon material in public tendering processes. In a low critical mass market like Quebec or Canada, this is the most robust call to markets for realignment of investments towards low CO2 responsibly produced material such as aluminium in infrastructures and green buildings. It's the most strategic signal Quebec and Canada could give to the market with strong potential for investment alignment towards using aluminium including its downstream processing development.