Hi team, Julio quintero writing from orlando,
Germany and its energy strategy known as the "Energiewende", aiming for 80% of its electricity to come from renewable sources by 2050. In 2019, a significant milestone was reached when renewables generated 46% of the country's electricity, with wind (26%) and solar (9%) leading the way.
With plans to add 95GW of renewable capacity by 2030, Germany has invested significantly in the sector, reaching $35 billion in 2019 in wind and solar projects. Future offshore offshore wind auctions promise to add another 20GW to this growing capacity.
Germany's Aluminum Industry: Focus on Recycling and Primary Production Challenges
The country has positioned itself as a European leader in aluminum recycling, recycling approximately 90% of the aluminum it consumes, well above the European average of 47%. Companies such as Novelis and Hydro are at the forefront of this initiative, operating processing and recycling plants in Germany, using both post-industrial and post-consumer waste.
However, primary aluminum production has experienced a significant decline, falling from 750 thousand tons in 2000 to only 250 thousand tons in 2019. This decline is mainly due to high electricity costs, which account for around 40% of production costs. Currently, Trimet Aluminium in Essen operates the only remaining large smelter, although its production is well below its maximum capacity of 560,000 tons per year.
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German Market and Economy
With a GDP of $4 trillion in 2019, Germany is not only the largest economy in Europe, but also the fourth largest globally. Sectors such as mechanical equipment, automotive and renewable technologies are pillars of its economy, with companies such as VW, Mercedes, BMW, Siemens Gamesa and Enercon leading their respective fields.
Despite the challenges presented by trade wars and the global slowdown, GDP growth of 1.1% in 2020 and 1.4% in 2021 is expected. Germany continues to focus on its export capacity under the recognized "Made in Germany" label, aiming for sustainable growth.
Germany's Recycling Industry
Germany not only excels in aluminum recycling, but also in solid waste recycling, with one of the highest recycling rates in the world (66%). Its recycling market generated revenues of $88 billion in 2019, processing millions of tons of plastic and steel/scrap annually.
By 2023, positive growth in recycled material volumes and revenue is expected, driven by recycling of metals, e-waste, plastics and used oils. However, challenges include a shortage of recyclable materials in international markets and the need to improve waste collection and sorting processes, as well as a lack of skilled labor.
