Energy Efficiency

Energy efficiency is part of ICL’s comprehensive approach to reduce its environmental impact. ICL invests significant efforts to implement energy conservation measures in its facilities worldwide. \

ICL’s global corporate energy efficiency program, Ambition Creates Excellence (ACE), launched by the Company in 2013, promotes energy efficiency and conservation at ICL’s facilities and the development of a standard energy efficiency methodology to be applied at all of ICL’s sites. ACE’s energy efficiency projects range from Company-wide energy management and conservation methodology programs to optimization of production equipment and raising awareness of energy conservation, among ICL’s employees and contractors.

The ACE program delivers significant operational and maintenance savings, as well as quality improvements beyond its core environmental aim to reduce fuel and electricity consumption and greenhouse gas emissions.

ACE’s main energy efficiency projects implemented to date include:

Optimizing the control and equipment usage in production processes
Widespread adoption of variable frequency drive (VFD) technology to improve both electrical efficiency and process control
Greater efficiency in the production of key utilities, including compressed air, vacuum, and steam
Deployment of advanced control systems for automatic shutdown of unused equipment, and air conditioning systems
Widespread rollout of LED lighting technologies

7.3

By 2030, double the global rate of improvement in energy efficiency

As part of the ACE program, ICL is implementing new and improved mandatory internal energy management systems. ICL sites are accredited ISO 50001 by external accreditors (mandatory at ICL’s largest energy consuming sites), or by an internal energy management system assessed by an internal verification team (small and medium energy consuming sites). All major energy consuming sites have been accredited by ISO 50001 or the internal standard. In total, 15 out of 17 of ICL’s largest sites, accountable for approximately 90 % of ICL’s total global energy consumption, have been accredited by ISO.

For additional information regarding ISO certifications see EHS Performance.

ICL’s energy policy applies to all of its global production sites. The policy focuses on energy efficiency practices and management systems described herein. ICL recently updated the policy with updated details of ICL’s steps to deploy renewable energy.

Increasing Focus on GHG Reduction

The ACE program’s methodology is focused on energy efficiency, circularity, waste reduction, water savings and carbon emission reduction opportunities. This transformation is expected to minimize all greenhouse gasses (i.e. not just those resulting from energy consumption, but also those that result from processes, refrigeration systems, etc.).

Success Metrics

To date, our ACE energy efficiency plan has reduced energy expenses by approximately $100 million between 2013-2022, compared to 2012 (base year). Specific savings in 2022 amounted to approximately $12 million. Our current goal is to achieve an additional $14 million in savings in 2023. Cumulative energy savings since the Energy Center of Excellence began operating in 2005 are estimated at approximately $202 million (not including savings from the transition to natural gas). Not all cost saving initiatives reduce energy consumption, such as our efforts to adapt production and/or maintenance schedules to increase usage of lower tariff energy supplies or convert from fuel oil to natural gas.

$100M reduction in energy expenses between 2013-2022

$202M cumulative energy savings since 2005

$12M was saved through ACE in 2022

ICL's goal is to achieve annual year-over-year improvement of energy intensity in over 50% of all product-based intensity KPIs.

To ensure that the ACE plan conserves energy, and as part of the requirements of ISO 50001, ICL uses product-based energy intensity key performance indicators (KPIs). These KPIs, measured in terms of MWh/tonne produced, are tracked for over 60 key products. These are products that either have high production quantities or high energy consumption.

Energy efficiency and circular economy collaboration

Improving energy efficiency can go beyond ICL’s operational boundaries and include external collaborations with partners working together with ICL to achieve energy savings. Our ICL Neot Hovav facility purchases low pressure steam from the Ramat Negev Energy Company. This steam is a byproduct of the electricity generation process at Ramat Negev, that was previously not utilized. The externally purchased steam replaces most of the steam that ICL Neot Hovav previously generated in its own boilers, thus significantly reducing the site’s natural gas consumption and emissions. This collaboration has produced a significant increase in overall efficiency as well as emission reduction for both companies

Energy in the Making - using hydrogen by-product as fuel

At ICL’s Dead Sea site, bromine and chlorine is produced for various industrial needs. Hydrogen is emitted as a by-product of this production process. As part of an overall air emissions reduction initiative, it was decided to use the hydrogen byproduct as fuel (which has no emissions other than water vapor). We are in an advanced stage of examining a hydrogen fueled generator system as a combined cycle. The system will supply the bromine chlorine plant with electricity, as well as heat, and will enable the bromine chlorine plant to reduce its air emissions.

Sustainability Reporting Disclosures:

Disclosure: SASB: RT-CH-130a.1