The decarbonization of the European aluminum die casting industry

The European Commission has recently presented the Action Plan on Steel and Metals, an action plan that focuses on the metals supply chain, in particular aluminum and steel, aiming to solve a series of economic, environmental and geopolitical issues related to these sectors. The plan is part of a broader context, closely linked to the European Union's decarbonization objectives of aluminum die casting: the Clean Industrial Deal, which aims to foster the sustainable growth of European industries through the ecological transition. In particular, a substantial declared objective is to achieve zero greenhouse gas emissions by 2050, a goal that requires a profound restructuring of the main industries, including the metallurgical one.

One of the key aspects of the plan concerns the fight against unfair competition that occurs globally, with particular attention to supplies from some Eastern countries. These countries, in fact, do not always comply with the same environmental regulations and industrial policies adopted in the European Union. To this end, the Commission proposes to strengthen measures to combat unfair competition, by imposing new duties on certain goods imported into the metal supply chains. Furthermore, the plan provides for the possibility of interventions on internal production capacities, in order to limit any excess production that could destabilize the European market and slow down efforts to reduce the operating costs of the sector.

Strategies to reduce energy costs, improve efficiency and promote the decarbonization of aluminum die casting

Another key issue concerns the cost of energy, which is a major cost item for metal industries. In response to this challenge, the plan suggests the establishment of energy purchasing groups, with the aim of obtaining more favourable energy tariffs for European companies. This approach could be crucial in helping industries reduce operating costs while addressing the challenges of volatile energy prices. The Commission also urges companies to make full use of the tax benefits offered by various Member States, introduced to mitigate the impact of fluctuating energy costs.

The adoption of practices that encourage the use of renewable energy, in particular green hydrogen, is another key element of the plan, which aims to improve the energy efficiency of die casting and reduce the carbon intensity of energy-intensive industrial sectors, such as many metals. These decarbonisation technologies for foundries represent the future of the sector, enabling it to achieve increasingly stringent environmental objectives.

A significant aspect concerns the issue of the delocalisation of raw material production. Aluminium, in particular, has seen increasing delocalisation in recent years, with negative impacts on European production capacities and local industrial policies, with the result that the EU imports over 80% of the primary aluminium used by the European downstream. Absolute clarity on the Carbon Border Adjustment Mechanism (CBAM), which should come into force in January next year, is essential for possible reversals of the trend. The CBAM is a mechanism designed to adjust the price of carbon at European borders, where appropriate by charging the cost to products from countries that do not respect environmental standards similar to those of the European Union. The plan also includes the extension of the CBAM to certain downstream aluminium and steel products by 2025, broadening the scope of application and thus creating a fairer market for these essential semi-finished products.

Circular economy and metal scrap management

The action plan also focuses on promoting the recovery and recycling of metals, an area in which the EU has what it takes to be a global leader. Effective management of metal scrap is crucial to reducing dependence on the raw materials we lack and to promoting a circular economy that, in addition to reducing environmental impacts, allows European industries to be more flexible and competitive. The Commission also proposes specific measures to regulate the international trade of metal scrap, in order to ensure adequate availability for European companies. These measures should aim to keep the export of valuable scrap under control, to the benefit of countries outside the EU.

At the same time, it is indicated that it is necessary to optimise the technical classification of scrap itself to improve its accessibility and the quality of recovery, and to establish a clear definition of the technical requirements for metal scrap, in order to facilitate its recycling. An adequate classification of materials will help to simplify the recovery process, improving the efficiency of the entire recycling system and increasing the competitiveness of local industries. In this perspective, the action plan also provides tax incentives for companies that invest in decarbonisation technologies for foundries, thus encouraging the adoption of more sustainable and environmentally friendly practices.

Decarbonization of aluminum die casting as a strategic factor of competitiveness

There is no doubt about the validity of the intentions and directions indicated, the effective implementation of the plan is crucial for its success, the proposed measures will however have to be accompanied by precise and coherent lines of action, with constant monitoring of the progress achieved. Collaboration between the various industrial sectors, the European institutions and national governments will be essential to translate the proposals into concrete actions; just as the creation of a system of incentives, regulatory measures and support for intersectoral cooperation will represent the fundamental step to make the action plan a success. The synergy between the different actors involved will in fact be able to facilitate adaptation to future challenges, from the transition towards the use of renewable hydrogen to the optimization of metal recycling and recovery capacities.

Finally, the goal of achieving zero emissions by 2050 cannot be considered only as a distant deadline, but as a challenge that must be addressed with urgency and determination. The metals sector plays a crucial role in this process, given that energy-intensive industries, such as primary aluminium production and steel, account for a significant portion of CO2 emissions in Europe. The transition to a more sustainable production model requires constant commitment from all the actors involved: from companies that will have to innovate their technologies to improve the energy efficiency of die-casting, to governments that will have to implement adequate support and monitoring policies, to consumers who will have to be an active part in requesting products with a lower environmental impact.

In conclusion, the European Commission's action plan for the metals sector, in particular aluminium and steel, is proposed as an ambitious strategy and a mandatory path to address the global challenges of unfair competition, decarbonisation of aluminium die-casting and circular economy. It will be essential to translate the objectives into concrete actions, with measures that involve all industrial sectors and that promote cooperation between the various EU member states. Only in this way will it be possible to guarantee a more competitive, sustainable industry in line with the zero emissions objectives by 2050.

Source: A&L Aluminium Alloys Pressure Diecasting Foundry Techniques