Caring for the Planet Integrated Annual Report 2024 SECTION 5 • DELIVERING SUSTAINABLE VALUE FOR OUR STAKEHOLDERS 149 Expanding Renewable Energy Integration While hydroelectric power is the primary renewable energy source used in our smelting operations, we are actively exploring the integration of other renewable energy sources into our production processes to further reduce the reliance on conventional energy. Details of the Group’s use of other renewable energy sources can be found in the Our Value Creation section below. Driving Operational Efficiency Beyond the adoption of renewable energy, the Group is focused on improving the overall energy efficiency of its operations. Process optimisation, equipment upgrades and retrofitting initiatives were adopted to manage energy usage. To further enhance energy performance, operational adjustments are continuously instituted across our manufacturing facilities. As a responsible aluminium producer, we strive to optimise efficiency, reduce consumption and transition towards renewable energy sources. Through active engagement in R&D initiatives, we continued to refine our operational processes to lower GHG emissions and to improve our energy efficiency. Our continued investments in technology-driven solutions strengthened our long-term sustainability objectives and supported our transition towards lower-carbon operations. OUR VALUE CREATION Further details on our energy efficiency measures and R&D initiatives can be found in the Climate Change and Sustainable Manufacturing sections of this SR 2024. Expanding Renewable Energy Integration In FYE2024, an additional 1.2 MW of solar power capacity was installed at PMBA Nilai 2, increasing the total capacity to 14.7 MW across casting and extrusion facilities, with an estimated annual reduction of 6,100 tCO2e in GHG emissions. Further expansion is underway with a total installation capacity of 6.3 MW of rooftop solar systems across our downstream entities, targeted for completion in 2025. This includes the construction of a 2.8 MW rooftop solar system at PMBA Klang, a 2.5 MW solar system at PMBA Nilai 1, and a 1 MW solar system to be installed at our China operations, covering workshops, warehouses, canteens, and parking facilities. Upon completion of the expansion, our total solar power capacity will increase to 21 MW in 2025, raising the estimated annual reduction in GHG emissions to 10,900 tCO2e. Equipment Upgrades Upgrading equipment is a key catalyst to enhancing energy efficiency, reducing emissions and improving operational effectiveness. Our efforts during the year included: • Installed a Computer Numerical Control machine at the fabrication department to reduce acetylene consumption. • Upgraded motors to high-efficiency models to achieve energy savings. • Replaced flexible joints to reduce friction and energy loss, lowering the power consumption of the main blower induction motor. • Replaced old frequency furnaces with energy-efficient models and improved insulation to reduce energy consumption. • Upgraded the melting furnace to achieve natural gas savings. • Upgraded homogenisation ovens to improve power and gas efficiency. • Upgraded the cooling chamber to increase energy efficiency and optimise processes. • Installed twin chamber melting furnaces at PMBA Klang, which enhances remelting capacity whilst reducing energy consumption. These furnaces optimise heat energy usage by capturing and reusing the heat during the charging process without affecting melting capacity, leading to significantly lower energy requirements. • Transitioned 34 diesel forklifts to electric forklifts across manufacturing facilities, which reduces estimated GHG emissions by 820 tCO2e annually and aligns with our broader efforts to integrate cleaner technologies into our operations. • Upgraded conventional natural gas and electricity meters to smart meters with remote consumption monitoring capabilities, improving overall operational efficiency.
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