Assessing energy intensity and retrofit opportunities for the aluminum industry: Lessons from Vietnam

This study provides a novel analysis of energy and technology use in Vietnam's aluminum industry. Vietnam has the world's fourth largest bauxite reserves, and is developing a full aluminum supply chain, from bauxite mining to aluminum smelting. Aluminum production is one of the most energy-intensive industrial processes, yet Vietnam has relatively few domestic energy resources, and no data on energy use in its aluminum industry. This paper quantifies energy intensity in each phase of aluminum production in Vietnam in comparison to global estimates. The paper finds that Vietnam's aluminum production is more energy intensive than the global average, driven by high energy intensity in the alumina production phase. The paper identifies broad barriers to industrial energy efficiency in Vietnam and similar countries, and how these challenges can be incorporated in future research. Potential retrofit technologies are identified for Vietnam's alumina plants, including cost and energy saving potential for each technology. Analysis of net present value, including policy scenario analysis, indicates that some of these retrofit technologies are promising investments in the near term, with simple payback periods of less than ten years for four out of the five technologies identified. The energy footprint of Vietnam's aluminum industry is an important consideration for policymakers in Vietnam, given Vietnam's need for energy resources, and promoting efficient operation of Vietnam's aluminum industry will require additional technology and policy changes. This research demonstrates a mixed-methods approach that can be applied to address the challenges data-constrained planners face in developing energy-intensive industries worldwide.