Energy Efficiency Opportunities Presentation September 2011

1. Energy Efficiency Opportunities PresentationSeptember 2011 Bruce Philpott Energy Champion Simcoa Operations Pty Ltd

2. Presentation Overview • Background on Simcoa • Silicon production process • Simcoa’s energy profile • EEO Opportunities – 2 examples • Evaluation of the EEO process

3. Simcoa Operations Pty Ltd

4. Silicon Production

5. Simcoa Operations Pty Ltd • Simcoa is a fully integrated silicon smelting operation located in the Kemerton Industrial Park • Australia’s only silicon producer • The site consists of a sawmill, two charcoal retorts, two 27MVA submerged arc furnaces, a filter house , a product handling plant and baghouse as well as site services, laboratory, administration and maintenance areas.

6. Kemerton Silicon Smelter

7. The Silicon Industry • Silicon is used in both chemical and metallurgical processes, ultimately producing a range of high-tech products • The majority of the world’s silicon is produced in China, Europe and South America.

8. The Silicon Industry • Silicon is produced by the reduction of quartz at 3000 - 4000°C using a carbon reductant • SiO2 + C → Si + CO2 • Particularly carbon and energy intensive • International benchmark in process efficiency

9. Silicon Products • PV Solar Cells • Silicone rubber • Synthetic oil • Optical fibre • High strength aluminum alloys • Silicon chips • Synthetic quartz

10. Energy Profile • Total energy use at the Kemerton site is approximately 1.5 PJ per year. • The submerged arc furnaces use about 90% of the site’s electrical power with a load of 41 MW • The process is highly endothermic requiring approx 11 MWh/tonne of silicon • The furnaces are currently operating at worlds best practice levels in terms of electrical efficiencies, so opportunities for improvement are limited.

11. Energy Efficiency Initiatives • Considerable scope for projects that can capture and use waste heat from the smelting process or minimize furnace downtime. • Projects that recover energy (waste heat) are normally only feasible if considered at the design stage.

12. Energy Savings through EEO • Assessment identified 10 opportunities with a total energy saving of 41,000 GJ • 4 of these opportunities have been implemented, 4 are to be implemented, 1 is under investigation and 1 not to be implemented.

13. Example Opportunity Replacement of steel contact pads with copper pads Energy saving calculated as ~10,000 GJ.

14. Example Opportunity Optimize use of ladle pre-heater Natural Gas Historically spare ladles heated under gas fueled pre-heaters so that they could be immediately called into service – with better planning they can be maintained at a lower temperature, which is increased before use Energy saving calculated as ~8,400 GJ.

15. Examination of the EEO process • Being one of the first participants it was difficult to estimate resources needed – in hindsight probably under-resourced • Identified savings that did not require significant expenditure (for example ladle preheating) • Use of energy bandwidths, while sometimes necessary, can be confusing

16. Lack of continuity of staff makes reporting difficult • Second cycle will provide an opportunity to apply the knowledge and skills learnt from networking, workshops etc • Short payback period does not make opportunities a sure thing i.e. other variables such as technical risk, cash flow, other strategic priorities etc will influence decision making

17. For new plant – EEO evaluation at design phase would be helpful – for example new silicon furnace is designed for future energy recovery