Century Awarded Second DOE Contract To Improve Efficiency Of Primary Aluminum Production; Project Targets Cell Control.

RAVENSWOOD, W.V.--(BUSINESS WIRE)--Dec. 17, 1999--

Century Aluminum Company has been awarded its second U. S. Department of Energy (DOE) contract in two years to participate in improving the operating and energy efficiencies of the primary aluminum production process. The contracts are part of the DOE's Industries of the Future program that seeks to improve energy efficiency among the nation's energy-intensive industries.

In the most recent contract, a team made up of Century Aluminum, Applied Industrial Solutions, and West Virginia University has been given a three-year-contract to develop a production management solution to improve the operational efficiencies of aluminum reduction plants. The "Intelligent Pot Control" project is a $2.3 million cooperative agreement that includes a 30 percent investment by the participating organizations.

The project will employ an expert computer system to assist in directing operations personnel in maintaining optimum operating conditions for aluminum smelter cells.

A second strategy will employ artificial intelligence to enhance the cell control systems now in place. These unique, next generation control strategies will be based on software developed by Gensym Corporation, an industry leader in developing intelligent software for monitoring, diagnosing and controlling production systems. The project offers significant benefits in energy savings and potential emission reductions.

Describing the project, Richard Love, technical manager for Century Aluminum, said:

"It has been a long-standing goal to apply modern computer control strategies to make the aluminum industry more globally competitive and environmentally sensitive. If we can achieve even small gains in energy savings and lowered emissions, Century can realize substantial cost improvements and environmental gains. The potential gains from applying this technology across the entire primary aluminum industry could be significant."

Jan Berkow, president of Applied Industrial Solutions, a Morgantown, WV consulting firm, and Dr. Larry Banta, associate professor in West Virginia University's Mechanical and Aerospace Engineering Department, said:

"To compete globally, companies must take advantage of operational information to make more informed decisions that maximize operational efficiencies. This technology offers new and expanded opportunities for capturing this critical information."

Applied Industrial Solutions, the prime contractor, will also be responsible for the commercialization and support of the new computer solution once it is developed.

Earlier Project Focuses on Cell Lining

An earlier project, funded in 1998, focuses on the use of additives to the carbon used to line reduction cells. In this $1.91 million project, Century Aluminum is teamed with EMEC Consultants, NSA Division of Southwire Company and SGL Carbon.

Preliminary research conducted by EMEC Consultants, that yielded a U. S. patent, indicated that adding boron oxide to the carbon improved cell operation, cell life, cathode performance, and options for disposing of spent potliner material.

Potential energy savings from the project are estimated at approximately $5,000 per cell per year. Aluminum reduction plants are typically comprised of several hundred cells. Century's Ravenswood (WV) Reduction Plant, for example, operates with 672 cells. The technology is expected to be applicable on most existing cells.

Currently, the team is compiling technical feasibility and performance data, and researching the effects and benefits from additives to the lining of traditional cells. Tests, now being performed in laboratories, are moving to industrial cells later this year. Full-scale testing will begin in late 2001.

Century Aluminum (NASDAQ: CENX) operates 168,000-metric tonnes per year (mtpy) of primary aluminum capacity at Ravenswood, WV, and holds a 26.7 percent share in a 210,000-mtpy reduction plant at Mt. Holly, SC. The company is based in Monterey, CA.