AL Circle: What properties of high-end binder grade pitch make it suitable for use in the aluminium manufacturing process, and how is Epsilon looking into expansion in the Indian aluminium industry?

Vikram Handa: The binder pitch that we make is for the aluminium industry to make anode, which comprises 15 per cent binder pitch, and the other 85 per cent is Calcined Petroleum Coke (CPC). It is a mechanical process where everything is crushed, blended and then baked. When the anode is baked, it goes into the pot, both anode and cathode, where electrolysis happens. The strength of the anode depends on how long it lasts in the electrolysis process, which means it’s consumable and is defined by binder pitch properties.

The entire process is highly controlled because a lot of power is consumed, and the aim is to maximise the yield of aluminium. A high-end binder pitch is something that gives customers better yields. We have the means to make different grades of binder pitch, and we work closely with customers to do this. We supply the pitch to customers, which is then qualified for commercial scale. It takes somewhere around six to eight months to get the feedback. High-end binder pitch is essential to manufacturing premium aluminium products.

Let’s take other applications, like aerospace or space applications or very high-end metal installations where high-purity aluminium or a special aluminium alloy is needed. This is designed based on the pitch availability. Factors like a very low percentage of Zinc matter a lot in pitch to give better yields in aluminium.

Talking about the Indian market in the past few years (last seven to eight years), we have not seen much expansion of the aluminium segment in India. A major expansion was Hindalco, and some expansion was happening at Vedanta. In the next two to three years, we foresee growth in the aluminium industry in India, which is good for us as well as for the overall industry. We look forward to them as long-term customers and to catering to them in the future. But in India, the steel growth has been happening much faster than the aluminium growth, leading to the generation of more coal tar, hence, more pitch, whereas aluminium is not growing at the same pace, and that is why a company like us has focused a lot on exports of pitch, because today, the pitch production is much more than what Indian market could consume.

AL Circle: Aluminium is in an energy-intensive industry. The smelting process, along with the entire production process, leads to a lot of carbon emissions. As we talk about analysing the smelting process, the electrolytic process, is there a plan? Is there any way this binder pitch or the anodising process can, in the future, control carbon emissions and make it a little more energy/environmentally efficient?

Vikram Handa: The two most significant raw materials used to make aluminium are power and bauxite. If you look at coal tar pitch, it’s between 1 and 2 per cent of the production cost. It’s a very low cost in the whole manufacturing process, but it’s essential for the quality and yield of aluminium. Aluminium is one of those metals that give you a premium for green aluminium. And we see companies are quite focused on recycling aluminium. And the market gives them a premium. Pepsi or Coke gives a premium for a recycled aluminium can versus a virgin aluminium can.

In India, we see that our customers are trying to move to other power sources. They’re trying to use more renewable power. We are one of the unique companies that did a life cycle analysis of our coal tar pitch two years ago, and we shared it with customers, because customers have sustainability goals, and our product fits right into their sustainability (matrix or number). We are producing coal tar pitch with a lower carbon footprint, which definitely benefits them. The aluminium industry recognises the same and is willing to recognise us as a preferred source or supplier for pitch because it has a lower carbon footprint. This is one industry that’s mature enough and, has a very clear ESG road map and is very particular about looking at sources that comply with the ESG road map.