EP.237 Guillaume de Goÿs, CEO, Aluminium Dunkerque
Apr 1, 2025
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Guillaume de Goÿs, CEO of Aluminium Dunkerque and a leader in low-carbon aluminium production, shares insights on energy challenges facing Europe's aluminium industry. He highlights the impact of soaring energy and carbon prices, discussing the European Clean Industrial Deal's role in navigating these issues. The conversation covers the need for indirect emission compensation and the potential of Power Purchase Agreements. Despite the hurdles, Guillaume expresses optimism about collaboration and innovation in decarbonization efforts.
The aluminum industry's sustainability is jeopardized by soaring energy prices in Europe, necessitating urgent competitive pricing strategies for production viability.
Aluminium Dunkerque's commitment to reducing direct emissions by 70% by 2050 showcases proactive efforts to align industrial practices with decarbonization goals.
Deep dives
Energy Pricing Challenges
The aluminum industry faces significant challenges primarily due to rising energy prices, particularly in Europe where electricity costs have surged dramatically. An aluminum smelter can use over 13 to 14 megawatt hours per ton of aluminum produced, making the sector highly sensitive to fluctuations in electricity prices. Last year, prices soared to 300 euros per megawatt hour, leading to a 40% drop in primary aluminum production within the EU as manufacturers were forced to reduce their output. This situation highlights the urgent need for competitive energy pricing to ensure the sustainability of aluminum production in Europe.
Decarbonization Efforts
Decarbonization is a pressing goal for the aluminum industry, with Aluminium Dunkerque targeting a 70% reduction in direct emissions by 2050, alongside significant cuts by 2030. The company has already achieved low indirect emissions due to its reliance on nuclear and hydroelectric power, vastly reducing its carbon footprint compared to global averages. Key strategies include developing carbon capture technology and transitioning to inert anode technology, which can drastically cut direct emissions when implemented. These advancements demonstrate a proactive approach to meet both industry standards and environmental commitments.
Policy Implications and Market Dynamics
The European Commission's Clean Industrial Deal seeks to balance decarbonization and industrial competitiveness, yet concerns remain about the effectiveness of its measures. While the deal acknowledges the need for affordable energy and regulatory support, it primarily lays out long-term strategies without delivering immediate solutions for current challenges. Discussions are ongoing regarding the carbon border adjustment mechanism, which could heavily affect aluminum costs if indirect emissions are included, posing threats to competitiveness. A collaborative effort between industry stakeholders and policymakers is crucial to navigate these complex regulatory landscapes and support the future of heavy industry in Europe.
This week on Energy Unplugged, we’re delighted to welcome Guillaume de Goÿs, CEO of Aluminium Dunkerque. He joins our Head of France, Pierre Dennery, and Julia Breuing, Research Associate in our Berlin office to discuss the challenges energy consumers are facing from tariffs, electricity, and carbon prices.
Guillaume began his career in the tire industry at Michelin before transitioning to the aluminium sector, working first in Cameroon and later in France. He is now CEO of Aluminium Dunkerque, the largest aluminium smelter in Europe and a global leader in low-carbon aluminium production. He also serves as President of Aluminium France and sits on the board of UNIDEN.
Main topics include the following:
Challenges faced by energy-intensive industries in Europe and whether the European Clean Industrial Deal addresses them
Indirect emission compensation in Europe and its interactions with the Carbon Border Adjustment Mechanism (CBAM)
The potential role of Power Purchase Agreements (PPAs) and flexibility
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