Aluminum plays a critical role as a raw material in the effort to combat climate change. Nevertheless, the industry must undergo substantial changes to transition away from fossil fuels securely. Implementing a government-funded eco-friendly smelter could facilitate this shift.
Creating this vital metal requires a substantial and consistent source of electricity. A huge portion of this electricity is produced through burning fossil fuels, which makes aluminium manufacturers accountable for approximately 1.1 billion tonnes of CO2 emissions on an annual basis. This amount of emissions exceeds the annual emissions of the entire country of Australia by more than two-fold.Â
Aluminium production generates nearly one-third of the United States’ greenhouse gas emissions. Hence, cleaning up might pose a challenge. The Department of Energy displayed its readiness to take on the challenge by announcing $6 billion in funding for “industrial demonstration” projects in March to decrease the climate impact of heavy industries such as the aluminium industry.Â
The government’s cleanup effort could provide Century Aluminum Company with up to $500 million to build the nation’s first new aluminium smelter in 45 years. The Green Aluminum Smelter aims to double the country’s production of primary aluminium while reducing CO2 emissions by 75% compared to older smelters, thanks to improved efficiency and the use of renewable electricity. The grant, pending finalisation, is a significant vote of confidence for the industry, according to Annie Sartor, the aluminium campaign director at Industrious Labs.
Century Aluminium, a global producer, already operates a low-carbon smelter in Iceland that is capable of producing over 300,000 tons of aluminium each year. The organisation hopes that the Department of Energy funding will allow it to strengthen its presence in the US, where it has two smaller smelters—in Kentucky and South Carolina. The organisation hopes for this growth while significantly expanding its production of low-carbon aluminium.
Initially, the US used to lead the global production of aluminium. However, most smelters closed since the 1980s due to increasing costs and manufacturing shifting beyond the borders of the US. As a result, production declined by over 80% A recent report suggests that by 2035, the wind and solar industries of the United States alone could require nearly 8 million tons of aluminium annually, almost twice the amount produced in 2022. It shows how the demand for aluminium while abiding by the climate goals and laws put in place.Â
The production of aluminium is only part of the picture. Apart from building the infrastructure needed to produce aluminium, the search for clean electricity is required to create it. If Century Aluminium finds the necessary clean energy, changes in other industrial sectors can also be brought forward.
