Aluminium Expo | EU Aluminium Sector Needs Pragmatic Approach to Energy Transition and Rethinking CBAM

Evangelos Mytineos, CEO of Greek diversified metals and energy company Mytineos, said that the pressure of energy transition has intensified the "survival" challenge faced by the European aluminium industry, and the EU's upcoming Carbon Boundary Adjustment Mechanism (CBAM) is not capable of protecting European aluminium producers from international competition in the decarbonization process.

Mytineos said European aluminium producers were struggling to adapt to a sluggish terminal market against the backdrop of low economic growth, particularly in Europe's largest market, Germany, high energy prices and increasing pressure to reduce emissions.

He said his company was one of the first to recognize that synergies between energy and metal sectors could make it more resilient in the costly race to decarbonize.

According to aluminium expo, the company has one of the lowest production costs in the industry due to synergies with its energy business and its status as the largest vertical aluminium producer in the EU.

As a result, although Hellenic Aluminium, Mytineos' aluminium business, is not immune to weak demand and price volatility, it will be able to operate its alumina refinery and aluminium smelting plants at full capacity in 2023.The company's aluminium production was 239.0 thousand tons in 2023, an 1% increase compared with 2022, comprised of 183.0 thousand tons of primary aluminium as well as 56,000 tons of recycled aluminium. Aluminium oxide production in 2023 increased by 1% year-on-year to 869,000 tons. Commenting on the plight facing EU producers, Mytineos noted that "demand for aluminium in Europe is very low due to the poor performance of European economy”. He also pointed out that energy prices will remain a major challenge for the industry as electricity accounts for around 40% of the total cost of aluminium production.