The main conclusions and outcomes of the 2015 Paris Agreement, a landmark event in the fight against climate change, have significantly influenced ME Elecmetal’s Sustainability Strategy. The agreement’s urgent goal of limiting global temperature rise to “well below 2C °”, coupled with specific commitments made by countries worldwide — notably Chile’s pledge to achieve carbon neutrality by 2050 — is driving the company to consistently and progressively transition towards renewable energy generation.
As our clients shift their focus from measuring and reducing emissions within Scope 1 and 2 to including Scope 3 emissions in their management strategies, there is a growing emphasis on measuring the carbon footprint of the entire supply chain. Collaboratively, we aim to achieve carbon neutrality by the deadlines set by our clients.
In response to these challenges and opportunities, ME Elecmetal has made a firm commitment to reduce emissions at the global, regional, and local levels. Renewable energies play a crucial role in this strategy, underscoring the company’s unwavering dedication to sustainability and its contribution to the global fight against climate change.
To effectively manage scope 3 indicators and meet both global and local targets, our clients demand decisive action and regular reporting through tenders, contracts, and supplier evaluations. Major mining companies, which we serve with comprehensive solutions, are integrating our progress into their own operations, thereby enhancing their sustainability efforts. This collaborative approach ensures that we are aligned with our clients’ sustainability goals and contribute to their overall success in reducing emissions throughout their supply chains.
ME Elecmetal’s Sustainability Strategy, created in 2022, revolves around four key pillars:
Within the Environment pillar, ME Elecmetal places particular emphasis on implementing robust carbon management practices, enhancing circularity to reduce emissions, and optimizing the efficient use of operating resources like energy and water. These priorities reflect the company’s dedication to environmental stewardship and sustainability across its operations.
By implementing various initiatives for the generation of renewable energy, such as solar and wind power, ME Elecmetal aims to enhance efficiency in electricity usage and reduce carbon emissions. This strategic approach not only strengthens our commitment to sustainability but also contributes to minimizing the transfer of carbon emissions to third parties. Ultimately, our goal is to reduce the carbon footprint associated with each ton of product, further aligning with our sustainability objectives and promoting a cleaner, greener future for our operations.
“Based on our data, over 99% of the solar power we generate is utilized internally. For instance, in both 2022 and 2023, we produced approximately 550,000 kWh of solar energy annually, with only 1,500 kWh being exported back to the grid”,
Tiger Liu, Plant Manager, ME China.
“We are in the process of certifying the Rancagua plant to ISO 50,001 energy management standards. The audit was completed in early March 2024, and we anticipate obtaining certification, which will contribute to our efforts to reduce total energy consumption”,
Matías Bustos, VP Operations, Chile.
ME Elecmetal’s global operations have initiated renewable energy generation projects aimed at enhancing energy efficiency and reducing emissions across multiple regions.
Chile – ME Elecmetal South America
At the Rancagua facility, significant strides have been made in enhancing energy efficiency and reducing emissions through renewable energy projects. Presently, 50% of the electrical energy used at the facility is sourced from renewable sources, equivalent to approximately 25% of the total energy consumed. This energy mix comprises a combination of electricity and natural gas.
To further bolster this renewable energy usage, ME Elecmetal has taken the initial step of purchasing renewable energy attributes. This investment supports 50% of the facility’s electricity consumption and involves an annual expenditure of about USD 25,000.
Simultaneously, progress is underway on a project to install a solar plant covering the facility’s parking lots. Upon completion, this solar plant is anticipated to generate an additional 1.7 GWh of energy per year, equivalent to 5% of the facility’s total energy consumption. Importantly, this solar installation has been deemed the most feasible option in terms of implementation, as it does not interfere with the plant’s ongoing processes.
Furthermore, the Rancagua facility has recently obtained ISO 50.001 certification for energy management. Alongside the certification itself, the facility aims to achieve a 5% reduction in energy consumption by 2024 compared to the previous year.
ME Elecmetal China
At the Changzhou Plant established in 2014, ME Elecmetal has implemented a rooftop photovoltaic plant covering a significant portion of its facility. This initiative has enabled the plant to generate 550,000 kWh of electricity annually, with an impressive 99% of this energy being consumed internally. The electricity generated is primarily used in offices, molding, and milling processes, excluding the energy-intensive melting process.
The decision to install these solar panels was driven by two main factors. Firstly, China’s government actively encourages manufacturing companies to adopt green power generation systems and incentivizes the utilization of surplus energy by feeding it back into the grid, thereby allowing companies to obtain preferential prices for the remaining electricity. Secondly, ME Elecmetal aims to reduce carbon emissions associated with casting production, aligning with the company’s core values and responding to the increasing demand for sustainable practices from customers in the mining industry.
Moreover, China’s increasing focus on green power generation has resulted in a gradual reduction in carbon emissions per ton of product year on year, facilitated by diversification of the energy matrix.
In recent years, China has made significant strides in increasing the generation of green energy, resulting in a gradual reduction of carbon emissions per ton of product through diversification of the energy matrix. Despite ME Elecmetal China’s current generation of only 1.5% of its total energy consumption from renewable sources, the company has ambitious plans for the future. By 2026, ME Elecmetal China aims to expand its operations through a new project encompassing an extension of its plant spanning more than 1,000 m2.
In addition, ME Elecmetal’s 50-50 Joint Venture with Long Teng Special Steel has undertaken its own sustainability initiatives. Long Teng Special Steel has constructed a solar plant at its facility located at the port of Shanghai. This solar plant not only generates green energy but also enables the Joint Venture to obtain green credits for the energy produced. These credits contribute to offsetting emissions associated with the manufacture of grinding balls, furthering the environmental sustainability efforts of the partnership.
United States – ME Elecmetal North America
In the United States, both the Tempe, Arizona, and Duluth, Minnesota, plants are assessing options for integrating solar power into their energy mix.
In Tempe, where the city boasts more than 300 sunny days annually, ME Elecmetal has made significant progress in Kinect Energy with outcomes from these efforts anticipated by the third quarter of 2024.
Similarly, plans are underway to introduce solar energy capabilities at the Duluth facility by 2025. Currently, the facility receives power from Minnesota Power, operated by Allete Inc., which has made substantial investments in renewable energy, including solar and wind generation. Of its total distribution, 50% comes from wind and hydro power, while 33% is sourced from fossil fuels. Consequently, the energy mix for Duluth consists of 39% electricity (50% of which is renewable by Minnesota Power) and 61% natural gas.
Las Peñas Wind Plant
Additionally, as part of Elecmetal Holding, ME Elecmetal participates in the Las Peñas Wind Plant located in the Bío Bío region of Chile. This wind plant, operated through its subsidiary Cristalerias Chile, comprises four wind turbines capable of delivering 8.4 MWh directly into the Chilean National Electric System (SEN). These initiatives underscore ME Elecmetal’s commitment to sustainability and its proactive approach to incorporating renewable energy sources into its operations across different regions.
ME Elecmetal Grinding Media
An exemplary initiative demonstrating our commitment to renewable energies is the 50% reduction in the carbon footprint of SAG grinding balls produced by our business unit ME Elecmetal Grinding Media, specifically through our Joint Venture in China, ME Long Teng. This reduction is achieved through the integration of various factors, including the adoption of electric arc furnace technology and the incorporation of renewable energies into the production process. By implementing these measures, we are not only reducing our environmental impact but also advancing towards a more sustainable and eco-friendly manufacturing process.
