Definition

Solvay’s energy consumption is made up of four components:

1. Non-renewable primary fuels (coal, petcoke, natural gas, fuel oil, etc.), which are used for internal production of steam, electricity, and mechanical energy, and in manufacturing processes (coke and anthracite in lime kilns, gas in dryers, etc.);
2. Renewable primary fuels (biomass);
3. Purchased steam;
4. Purchased electricity.

To comply with Global Reporting Initiative requirements, steam and electricity generated from fuels and sold to a third party are deducted from the total. Energy that is purchased and sold afterwards to a third party without any transformation is not accounted for.

Management approach

In the field of energy supply, Solvay has consistently implemented programs to reduce its energy consumption. While Solvay has industrial activities such as synthetic Soda Ash plants and Peroxides – mainly in Europe – that consume large amounts of energy, it also operates a range of industrial activities whose energy content is relatively low as a percentage of the sales price, especially in the fluorinated Polymers business. The Group considers secure and competitive energy supplies to be particularly important and has taken the following strategic initiatives:

• Technological leadership in processes and high-performance industrial operations to minimize energy consumption;
• Diversification and flexible use of the different types and sources of primary energy;
• Upstream integration in steam and electricity generation (gas cogeneration, biomass or secondary fuels cogeneration, etc.);
• Periodic review of the condition of industrial sites’ energy assets and connections;
• A strategy of supply coverage with long-term partnerships and medium- to long-term contracts, with price-hedging protection mechanisms when needed;
• Direct access to energy markets when possible (gas hubs, electrical grids, financial spot and futures exchanges);
• Regular forecast reports on energy and raw material price trends, which are sent to businesses to help them anticipate sales price realignments.

Solvay Energy Services optimizes energy purchasing and consumption for the Group and helps Global Business Units manage energy and greenhouse gas emissions.

Energy being a key factor for Solvay’s activities, Solvay has stepped up its SOLWATT^® energy efficiency program, which aims to continuously optimize the industrial processes involved in its energy production and supply.

In 2019, Solvay continued to disseminate technological breakthroughs to improve the overall energy efficiency of its operations.

Indicators and objectives

In 2012, Solvay undertook to reduce its energy consumption by 10% (1.3% per year on average) by 2020 at constant activity scope. Its energy intensity indicator covers both primary energy from fuels (coal, petcoke, coke, anthracite, fuel-oil, natural gas, biomass, etc.) and purchased steam and electricity.

In 2019, primary energy consumption was 3% lower than in 2018. This variation is linked to changes in reporting scope (-1.6% for Rosen, in Rosignano, Italy) modification of production (-1% in Denvya, in Bulgaria) and miscelleanous (-0.4%).

Fuel consumption from non-renewable sources increased in 2019. This variation is mainly attributable to Rosen ( Rosignano , Italy)  with an increase of 12.8 PJ of Natural Gas consumption . The solid fuels from non-renewable sources decrease by 2 PJ with the increase of the biomass consumption.

Biomass consumption increased of 1.1 PJ in 2019 with on top up the assets in Brotas (Brazil), Dombasle (France), Rheinberg (Germany),  Zhangjiagang (China) and a new project in India.

In 2019 secondary energy purchased for consumption was 7 PJ lower than in 2018.

In 2019, the sale of self-generated secondary energy to third parties increased by 9 PJ. The evolution is mainly explained by an increase of sales of 9.1 PJ of Rosen (Rosignano, Italy).

2019 key achievements

Solvay has taken concrete steps in the form of large investments, such as the start-up of the mega hydrogen peroxide (HP) plant in Saudi Arabia and the recent replacement of two gas turbines with more efficient units, one in the Spinetta cogeneration unit (Italy) and one in the Rosignano cogeneration unit (Italy). In 2019 Solvay increased its biomass heat production beyond the facilities in Brotas (Brazil), Dombasle (France), Rheinberg (Germany), Zhangjiagang (China), and Gunsan (South Korea), and in Panoli (India), and in Devnya (Bulgaria) and conversion of coal  boiler into biomass in Rheinberg (Germany).