Fall 2007 Issue


Initiative Highlights


Member Relations Management

KGHM Polska Miedź S.A. has agreed to become a member of the International Copper Association.

KGHM’s membership into the association officially was ratified by ICA’s Board of Directors at its meeting of 08 October 2007. Mr. Ireneusz Reszczynski, KGHM’s Vice President of the Management Board, was elected to ICA’s Board of Directors. Marcin Mostowy and Halina Spyrzynska were elected as members to ICA’s Program Review Committee.

KGHM was a member the ICA in 1990s, and has focused efforts in the European community as a member of the European Copper Institute (ECI) since 2004. To support its strategy of becoming more active and visible at a global level, KGHM decided to rejoin the ICA. ICA’s senior management and program managers and staff around the world look forward to KGHM’s participation and support of ICA’s efforts on behalf of the world’s copper industry.
MR

       


Operations

Peter Charlton, President of International Copper Association Asia, Ltd. has announced he will retire at the end of 2007.

ICA is fortunate to have such a strong team around the world, enabling the organization to fulfill Peter’s position from within. Peter’s responsibilities jointly will be undertaken by Richard Xu and Ajit Advani. Richard, Chief Executive Officer of ICA China, will be promoted to Regional Director, ICA Asia, and Ajit, Chief Executive Officer of the International Copper Promotion Council (India), will be promoted to Deputy Regional Director, ICA Asia.

Peter’s tenure with ICA was twelve years. He will continue working with ICA as a consultant.
 
In other staff-related news, Vera Abdurakhmanova joined ICA NY on 01 October 2007 as Accounts Payable Coordinator. Vera is responsible for recording invoices, paying our external vendors and regional offices, as well as recording expenses from the field offices.
Operations

       


Building Construction

International Copper Association China recently formalized relationships with leading copper sheet manufacturers and artisan decorative companies in establishing the Copper Decorative Building Material Alliance (China).

The inaugural meeting of the alliance held in September was supported by 14 organizations including government representatives, building industry associations, copper sheet manufactures, decorative building contractors and supply chain companies. Alliance members have committed to support and co-fund ICA’s range of market development promotions and business-to-business web portal. Promotional activities will include, and are intended to drive, more mass production of the wide range of exclusive decorative architectural and artisan products currently being produced throughout China. Several domestic application growth areas will be targeted in 2008, including pre-engineered and surface-treated composite curtain-wall cladding and elevator panels. The ICA-led alliance will steer this fragmented industry towards a more cohesive and effective use of limited promotional funding.

Prototype displays of pre-engineered curtain wall panels recently were displayed at the Canton International Export Trade Fair. Domestic applications of pre-treated Copper sheet can be seen on prominent construction projects such as Yifie Creative Street in Shanghai (pictured below).

BC
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Sustainable Electrical Energy (SEE)

Cast rotor motors now are commercially available. Siemens has introduced a line of integral horsepower motors up to 20hp that utilize cast copper motor rotors.

The motors are selling quite well, and Siemens has a backlog of orders. The motors surpass even NEMA Premium in efficiency, and can save the end-user thousands of dollars per year in operating expenses.

One case history, not yet published, features a mining company that purchased 150 of the Siemens cast rotor motors, an order valued at approximately $80,000. Due to operating savings, the expected payback is only 2.5 years.

We are told that other manufacturers are about to launch a line of “Super-Premium” motors that rival the cast rotor motor in efficiency. The motors supposedly contain a great deal more copper in the stator winding. So, even though made with a cast aluminum rotor, the total copper content of each motor comes close, or possibly exceeds the copper content of a cast rotor motor. The new lines may be launched this fall.

The US Department of Energy (DoE) still has not issued Minimum Performance Standards (MEPS) for distribution transformers as of this writing. Indications are that US MEPS will be near the NEMA TP1 levels, which is an improvement over current purchase practices of utilities, but not as high as the best efficiency available. CDA has brought this subject to the attention of several Congressmen, but it is not known if this action will affect any DoE decisions.

CDA has started video production on a new version of the Energy Efficient Motors and Transformers CD-ROM. The revised CD will add content on copper use in so-called “sustainable” generation forms, such as wind and solar.
SEE

       


Market Intelligence, Data and Measurement (MIDM)

ICA’s 2007 – 2011 Strategic Plan calls for the creation of a new Market Intelligence, Data and Measurement (MIDM) initiative, which was launched at the beginning of this year. In the third quarter of 2007, considerable progress continues to be made on this initiative.

The inaugural teleconference for the newly-formed MIDM network was held on 07 September 2007. ICA MIDM network staff from China, Southeast Asia, North America, Latin America and Europe gathered to share details of their regional activities with their MIDM network colleagues. The call touched on common ground among the network. The themes most common among the group include the collection and analysis of recycling data, researching renewable energy markets, copper use databases and trends analysis were mentioned as key areas for MIDM development, going forward.

The MIDM network recently has been enlarged with Southeast Asia's appointment of Business Analyst, Tay Wee Lam. Wee Lam joined the copper family in July 2007. To begin, Wee Lam’s broad objectives are to analyse market movements in Southeast Asia and leverage competitive intelligence for the benefit of marketing programs. Wee Lam is based in the Singapore office and he will cover market research for the Southeast Asia region.

In the last newsletter, mention was given to increasing the availability of written research for European copper markets. Since that newsletter, two reports have been posted to the ICA Intranet MIDM folder. Also, these reports have been posted to a newly-launched “soft” market intelligence portal. If you would like to view these reports, and other information relevant to copper and its uses, please visit the ICA Intranet MIDM folder or click on the following link: http://www.leonardo-energy.org/copper/.
 
Further refinement of the world copper end-use dataset continues. New figures from the International Wrought Copper Council (IWCC), who are a major partner with ICA on this project, now are being integrated with ICA’s existing figures. Once this step in the process is complete, the next stage of the process requires ICA electrical specialists worldwide to certify the electrical figures in the matrix. 

The conclusion of the 2004 to 2007 Audit programs is just one of the achievements completed by MIDM in 2007. Both the European and US Power Quality program, and Europe, US and China SEE program audits now have been completed. These can be seen on the ICA intranet.
MIDM

       


OEM

The OEM initiative sets out to understand the copper using OEM industry responsible for a significant amount of copper use. As a result of cooperation with ICA and a specialized design team working with the Automotive industry, an energy storage system using approx 4 kg of copper was shown at IAA Frankfurt.

The device uses a reluctance-type motor as a concept for storing energy. The device has an energy density of 2800 KJ and power of 60KW. Cycling is unrestricted and weight is ten times less than that of a similar-sized ultracapacitor. Earlier adopters may be F1 racing teams.

A team meeting took place in Toronto, with special attention to communication across the network and a review of the initiative’s target companies. Marketing program managers, ICA technology and ICA Health and Environment were present.
OEM

       


Technology

Emergence BioEnergy Incorporate (EBI) is a Cambridge, MA-based company seeking to establish a distributed electricity production scheme in Bangladesh, where only 3% of a rural population of 100 million have reliable access to electricity, while creating thousands of micro-enterprises (or self-employment opportunities) for its rural poor.

With assistance from ICA, EBI has partnered with Infinia Corporation of Kennewick, WA to supply an advanced 1 kW Stirling engine, and with DEKA Research of Manchester, New Hampshire to provide a special bio-gas combustion system. The partners are developing a bio-gas fueled combined heat and power system targeted at rural areas of developing nations, with the initial target market in Bangladesh. Fueled by methane gas from anaerobically digested cow manure, the Infinia Stirling generator will supply an affordable source of electric power for lighting, appliances, and battery charging; and heat for crop drying, egg incubation and other agricultural purposes. The partners believe this system will facilitate and enable new paths of self-sustaining economic growth for rural villages…and an increased level of electrification and copper use. In addition to direct system consumption of approximately 12 kg of copper, the electrification and infrastructure development in turn, through increases in living standards, boost the consumption of other devices/appliances that use copper.

Emergence BioEnergy CEO, Iqbal Quadir, established the highly successful cellular telephone business in Bangladesh using the micro-credit lending facilities of Grameen bank. Quadir, also Founder and Director of the Massachusetts Institute of Technology's Program in Development Entrepreneurship, presented his concept of “power for the people” to the ICA Technology Steering Committee in June 2006 and received strong support. ICA agreed to provide financial, technical and commercialization assistance to Emergence BioEnergy.

Infinia is performing the system-level engineering and the development and supply of the core power system (engine/generator, heat recovery system, system electronics), and EBI’s partners will supply the anaerobic digesters and drying appliances. The core power system is based on and around the 1 kW free-piston Stirling engine from Infinia that is entering commercial production in 2007 in Japan for residential combined heat and power systems.

The project is in the development and pre-commercial stage where the primary goal is to prove the system functionality and product economics. This will be done by having multiple development systems fielded in Bangladesh in 2008 to validate the product capability and economics. At the completion of this development, EBI is planning for commercial entry in Bangladesh and Infinia and EBI will enter into a Joint Venture Operation for marketing, distribution, manufacturing, and sale of products for other developing countries. An estimated 500,000 mini power-plants may be installed with the potential for ~20kg of copper used in each system for energy generation and distribution.


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Tech 02


Tech 03
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Health and Environment

ICA’s modern-day Health and Environment Program has been in existence for 15 years. It is guided by an overall ICA five-year strategic plan (with objectives and key actions), a set of stewardship principles, and a set of programmatic objectives.

As the Program evolved and shifted its emphases, so has the copper industry’s leadership in shaping it. Throughout, the centerpiece of the Program’s governance has been the Health and Environment Program Advisory Committee (HEPAC), composed of ICA member-company representatives, and its Executive Committee. More recently, there is growing recognition of the importance of industry technical involvement in articulating the year-to-year strategic thrust and content of the Program and the identification of regional priorities in Asia, Europe, Latin America, and North America — particularly the regional commonalities and differences in priorities. Accordingly, two deliberating bodies have been reinvigorated: (1) three Technical Subcommittees (Ecotoxicity, Human Health, and Stewardship) reporting to HEPAC, and (2) four Regional Health and Environment Committees (one for each region), reporting to ICA’s Regional Councils or Boards. 

The year-to-year content of the Program is a multi-step process (Figure 1) that ensures its continuing relevance to the copper industry’s needs for market defense, protection, and development.  This team-driven approach to designing the Program has resulted in its effectiveness and industry support, year after year.

Health and Environment
HE

       


Communications  

According to ICA’s Global Communication strategy, the promotion of copper’s antimicrobial properties is a primary objective, especially considering the pending registration of copper’s antimicrobial properties by the U.S. Environmental Protection Agency (EPA). With this in mind, Procobre Chile accepted an invitation from the Chilean Mining Ministry to participate in an exhibition during “Mining Month,” from 25 August to 15 September 2007, focusing on the antimicrobial properties of copper.

A large audience, primarily students and academia, visited the exhibition and were informed about these properties of copper, and its applications and uses, with an emphasis on copper’s role in health.

The colorful exhibit itself encompassed twenty square meters, and served as a platform to disseminate information about the different areas where copper’s antimicrobial properties can be developed. Materials shown included sanitary ware, clothes with copper oxide, scaled salmon cages made of copper alloys, and a glass cabinet with copper daily-use implements. A video screen showed PowerPoint presentations regarding copper’s antimicrobial properties.

More than 1,000 people visited the exhibition and 34 sessions were performed. The initiative also had media coverage that highlighted the new use of copper in our life.
Communications

       


Funding and Partnerships

Thanks to the continued strong efforts of ICA Network members and staff, the 2008 Operating Plan, approved by the Program Review Committee and Board of Directors, includes a record $25.5 million in co-funding. This represents more than a three-fold increase compared to the level prior to 2003, when ICA initiated a vigorous pursuit of partnerships supporting the demand for copper.

The cumulative, incremental impact of these dedicated efforts over the six-year period 2003 through 2008 is more than $50 million higher than if budgets had stayed at pre-2003 levels. 

Worth noting is that the traditional fabricator partners in the copper supply chain will contribute 40% of the co-funding, while 60% will come from third parties. This second group includes the Global Environment Facility (GEF), for energy efficiency and solar water heating projects the ICA jointly will implement with the United Nations Development Program and the United Nations Environmental Program, and the U.S. Government. A potential increase in third-party funding is pending, as various projects still are waiting final approval.

Specifically, during recent months, the GEF Council approved $7.8 million for energy efficiency standards and labeling (the BRESL project) over a five-year period. ICA helped develop this project, as it positively will impact copper tonnes. The U.S. Congress is moving towards finalizing 2008 funding of energy efficient motor development using copper rotors, and supplemental support for two antimicrobial projects initiated in 2007, namely infection control through installation of copper alloy touch surfaces (three pilot hospitals), and improved air quality of HVAC systems.
Funding

       


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Top Regional Stories



Asia

More than sixty academicians, scientists, industry experts and senior professionals participated in the ICA China’s Annual Technology Forum and 2006 Technology Proposal Call Awarding Ceremony, which was held in Beijing on 20 September 2007, to discuss the reasonable use of copper to bring a better quality of life to people in China.

Three winning projects will be supported by ICA China throughout the whole process. Meanwhile, a new round of 2007 ICA China Technology Proposal Call began, with an expansion from Mainland China to Hong Kong, Taiwan and Korea.
 
Media specializing in coverage of general, business, and trade on energy efficiency, building construction, appliances and technology were invited to the event, and press interviews were carried out with ICA management, members, winners and authorities. To date, a significant number of in-depth media clippings have been published and collected, with six original articles and many reprints. The tone of the articles is positive and highlights ICA’s key messages and endorsement by other authorized third parties. The public relations value of these clippings is estimated at $80,000, to date.





Europe and Africa

Using ICA-funded science and advocacy, the Scandinavian CDA and ECI have each obtained regulatory agreement on significant issues impacting the industry’s ability to sell competitively into the building construction sector.

The new draft of the Environmental Program of the city of Stockholm no longer contains guidelines restricting the use of copper products. In 2002, Stockholm published recommendations against the use of copper for external architectural applications, except for prestigious buildings, and for its use in water distribution.

After five years of targeted, science-based advocacy – partly based on ICA-funded models for bioavailability and roof runoff – the Scandinavian CDA has been able to secure the removal of these restrictive practices. While these markets are not large in tonnage terms, Swedish environmental policy often is mirrored into that of the EU. It was, therefore, very important to be successful here.

At the September Member State review of ECI’s copper Voluntary Risk Assessment, agreement was reached on the risk characterization chapters for water and sediment. In completing these reviews, Member States want to recognize remaining uncertainty by introducing safety, or assessment, factors. These result in lower quality standards (safe limit values) that put pressure on the emission levels from the industry’s products.

After a long and detailed review, the Member States agreed that the quality and breadth of the copper dossier was such that no assessment factor was necessary. This is the first time, ever, that any metal risk assessment has achieved such a result.





Latin America

In an excellent example of best practice sharing within the ICA Network, in August 2007, Procobre Mexico utilized a case for gas installations (developed by Procobre Chile) in two workshops for CRE (Regulatory Energy Commission), AMPEGAS (Mexican Association in gas LP) and AMGN (Mexican Association of Natural Gas) in Mexico City.

More than 100 inspectors for gas installations attended the International Congress of Gas LP organized in Queretaro City. Results of these workshops were: a) the current review of national gas safety standards, and b) the evaluation to include the certification of gas installations for housings starting in 2008.

Procobre Chile and Conmetal held several meetings in Argentina with the country’s primary gas distributors, IRAM (Standardization and Certification) and ENERGAS (Federal Regulatory Organization of Gas). They all agreed to collaborate towards the use of copper tube for gas installations, and a process for approval in IRAM is in progress.

Conmetal agreed to participate as a stakeholder in the promotion of copper tubes for hydraulic and gas facilities in Colombia. Also, Nacobre and IUSA were invited and they are evaluating the possibility of participation.





North America

The U.S. Department of Energy (DoE) has adopted new energy conservation standards for liquid-immersed and medium-voltage, dry-type distribution transformers.

According to David Brender, national program manager for electrical applications for the Copper Development Association Inc., the new, minimum standards greatly will contribute to increased usage of copper in these transformers, despite the current relative material cost of copper.

The DoE action applies to liquid-immersed and medium-voltage, dry-type distribution transformers manufactured for sale in the United States, or imported to the United States, on or after 01 January, 2010. This affects the estimated manufacture of more than 1.3 million liquid-immersed and 300,000 dry-type units per year, and appears to require almost all units to utilize copper-wound-primary coils. CDA is assessing the potential impact on copper consumption; however, preliminary estimates suggest an increase in demand approaching 10,000 tonnes annually.
 
CDA and its partner organizations have been working for several years with the DoE to effect the new standards. According to Brender, “This is a major achievement for the copper industry. Although the standards embrace both aluminum- and copper-wound transformers, space considerations and reliability make copper the clear winner for years to come.”
 
The DoE estimates that life-cycle energy cost-savings to those investing in compliant transformers substantially outweighs any incremental cost of the units (including the current, relatively high cost of copper). For liquid-immersed transformers, an increase in first costs of 6–12 percent is accompanied by a decrease in operating costs of 15–23 percent, corresponding to a similar drop in electrical losses. For medium-voltage, dry-type transformers, an increase in first costs of 3–13 percent is accompanied by a decrease in losses and operating costs of 9–26 percent.

DoE estimates the standards will save approximately 2.74 quads of energy over 29 years (2010–2038). This is equivalent to all the energy consumed by 27 million American households in a single year. “A significant contribution to the ‘green’ power of copper,” Brender says.

By 2038, DoE expects the energy savings resulting from the new standards to eliminate the need for approximately six new 400-megawatt combined-cycle gas turbine power plants. The total energy savings from the standard will result in cumulative greenhouse gas emission reductions of approximately 238 million tons of carbon dioxide from a variety of generation sources. This is an amount equal to what would be saved by removing 80 percent of all light vehicles from U.S. roads for one year.






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