German aluminum industry needs to prepare for the gas crisis and make contingency plans

The aluminium industry is highly energy intensive and the German aluminium industry is preparing for extreme conditions in terms of uncertainty in gas supply. "Preparing for a bad situation involves companies making contingency plans," HinrichMahlmann, president of the German aluminium association, said on July 1, 2022.

He added: "It's about which gas users shut down first. However, this is only possible up to a point, after which the companies will have to shut down production lines. Contingency plans need to include managing liquidity in such a way that the company survives at least for a while. But that time is also limited."

The German aluminium industry employs more than 60,000 people from about 240 companies. Including Norsk Hydro Aluminium, Speira and Trimetal Inum. The industry recently reported sales of nearly 22 billion euros. The aluminium industry, along with the chemical, steel, glass and paper industries, is a major gas consumer in Germany.

"The availability of natural gas is critical for industry and its production processes," Mahlmann said. The product will undergo multiple heat treatments. This includes melting during recycling or heating during processing."

There is no easy way to replace natural gas, nor can it be replaced in a short period of time. According to a survey of German aluminium companies, almost nine out of ten cannot switch to other sources of energy if gas is not available in the short term. Even if gas supplies were cut by 30%, most companies would stop production.

In Germany, however, energy-intensive sectors are stepping up lobbying to prevent fuel rationing in the event of a gas emergency.

Based on a discussion of system relevance and priorities, Mahlmann reports, "The federal government surveyed major gas end consumers and drew their conclusions from them. "If a manufacturer of aluminium packaging for the pharmaceutical industry does not have access to its primary ingredient, that has important implications for the all-important pharmaceutical industry, and electric car manufacturers cannot sell cars without aluminium battery cases."