European industry members welcomed EU-proposed emergency measures but warned they might not be enough to relieve the crisis-hit, energy-intensive aluminum industry.
The statement by the Brussels-based industry association, European Aluminium, came a day after the European Commission on Wednesday proposed a mandatory 5% reduction in electricity consumption during peak hours to ease the bloc’s dependence on Russian gas.
The European Commission also proposed energy market reforms, including the taxation of energy companies and the decoupling of gas prices from overall electricity bills.
'The short-term measures aim to reduce electricity demand and redistribute financial resources to exposed consumers, including energy intensives like the aluminum industry,' European Aluminium said, warning that these measures are not enough to save the energy-intensive aluminum industry from further production cuts, job losses, and possibly of a complete breakdown.
The group emphasized that although the suggested steps offer some much-needed short-term respite, they do little to address the persistently high energy costs, especially gas prices, and must be adjusted.
'We are glad to see the Commission listened to our calls for the need to safeguard hedging possibilities and introduce further incentives for signing renewable power purchase agreements. However, as one of Europe’s most exposed industries, we need much more relief from the exorbitant gas prices to keep our factories open,' it said.
The statement explained that primary aluminum production requires a high and constant supply of electricity to keep the metal in smelting pots liquid. As a result, energy costs account for 40% of total primary production costs under normal conditions.
'We’re extremely concerned about the survival of the aluminum industry in Europe and are worried that these proposals do not reflect the urgent need to support a critical industry like aluminum,' Paul Voss, European Aluminium’s director general, was quoted as saying in the statement.
Although the industry's losses could be compensated by increasing manufacturing in China, which 'has a carbon footprint almost three times higher than in Europe,' Voss said the industry would be put at risk of becoming completely dependent on imports for a material that is key to Europe’s green transition.
The group urged EU energy ministers to take additional measures during the next council meeting on Sept. 30.
By Sibel Morrow
Anadolu Agency
energy@aa.com.tr