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ALRO S.A. Welcomes Adoption of EO on Compensating Indirect Emissions Costs

Strategic Insights

— 1 min read

Romanian aluminum producer ALRO S.A. has welcomed the adoption of an Emergency Ordinance (EO) that compensates indirect emissions costs embedded in the electricity price for energy-intensive companies. This support scheme aligns Romanian legislation with EU practices, preserving the competitiveness of the Romanian industry in Europe. The EU finances this compensation scheme through revenues obtained from auctioning greenhouse gas emission certificates attributed to Romania.

Key Takeaways:

  • The EO will compensate indirect emissions costs embedded in the electricity price for energy-intensive companies, including ALRO S.A.
  • The support scheme was prepared in accordance with European Commission Guidelines on certain State aid measures in the context of the greenhouse gas emission allowance trading scheme post-2021.
  • The EU finances this compensation scheme through revenues obtained from auctioning greenhouse gas emission certificates attributed to Romania.
  • The implementation of the EO will not impact the electricity costs borne by other Romanian consumers.
  • ALRO S.A. has expressed gratitude to the Romanian Government for implementing this scheme at both the European and national levels.
  • The company has maintained its presence in the international and local markets despite very challenging market conditions and taken measures to mitigate the costs.
  • ALRO S.A. will benefit from this EO as it will align the local legislation with the practices implemented in other EU countries.

Statistics:

  • ALRO S.A. has an installed production capacity of 265,000 tonnes per annum of electrolytic aluminium.
  • The company produces 47,000 tonnes per annum of recycled aluminium and has a total cast aluminium capacity of 332,000 tonnes per annum.
  • ALRO S.A.'s products are exported to the USA and Asia, in addition to the European Union.
  • The company has been listed on the Bucharest Stock Exchange since October 1997 and represents the first company in the aluminum industry present in both the Beta and Beta-TR indices.

Sources:

  • ALRO S.A. Press Release, "ALRO welcomes the adoption of the EO on compensating the indirect emissions costs embedded in the electricity price"

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