GREEN ALUMINIUM IN THE SHORT TERM, A DREAM OR A REAL POSSIBILITY?

THE GOAL

It is a desire of the international community to reduce, as much as possible, greenhouse gas emissions in line with society's climate objectives as much as possible; therefore, given the high volumes of CO₂ emissions from the Aluminium Industry, this important sector industry faces great challenges to adapt to this global clamour.

THE CHALLENGE

But how big is the challenge facing the Aluminium Industry in terms of its obligation to support the fight against climate change? According to the International Aluminium Institute, the sector is responsible for 1.1 billion tons of greenhouse gas emissions per annum, and must undertake a plan to substantially reduce its carbon footprint.

Aluminium Sector Greenhouse Gas Pathways to 2050 - International Aluminium Institute

This reality in turn faces the challenge that as a consequence of the electro-intensive nature of primary aluminium production, and the majority use of electricity generated from fossil fuels, 90% of this footprint is from primary aluminium production processes, while primary aluminium currently makes up around 70% of annual metal demand.

Aluminium Sector Greenhouse Gas Pathways to 2050 - International Aluminium Institute

In this regard, Tim Murray in his article Where will Green energy come from? explains that in 2022 the world production was approximately 70M mt of which 77% was from fossil fuel power generation, an in terms of green energy (Wind, Solar, Hydro and Nuclear) only 23% coming from green energy.

Where will Green energy come from?

Additionally, the International Aluminium Institute also establishes that Electricity-related emissions dominate the 75% of sectorial emissions that smelting represents; consequently, that the most effective solution to reduce greenhouse gas emissions by the Aluminium Industry is the decarbonisation of the electricity used.

Aluminium Sector Greenhouse Gas Pathways to 2050 - International Aluminium Institute

THE OPTIONS

Knowing the solution, it seems that it is easy to give an answer to the problem, since it is enough to stop using electricity generated using fossil fuels, and use electricity generated from renewable sources, as simple as that !!!!.

But as Tim Murray explains, in terms of Green Energy the capital cost to build such plants is much higher than a fossil fuel plant. In addition, the time to construct green energy projects also takes longer given the significant amount of government regulations.

Furthermore, since primary aluminium is an industry that must receive electricity 24/7/365; therefore, the use of solar and wind energy, without the incorporation of the still expensive storage systems, is inadequate to be able to satisfy the growth of the demand for primary aluminium.

What to do then?

At this crossroads, important decisions must be made, since in order to satisfy the growing demand for aluminium, new aluminium smelters must be built, which during the Capex payment period require a sufficiently low electricity price to make these projects economically viable.

Given the above, if we add to this the Capex for the construction of electricity generating plants from renewable sources, the economic viability of sectors, primary aluminium and clean energy, may be compromised.

Where will Green energy come from?

All these realities and needs seem to suggest that the short-term solution to supply the planet with Green Aluminium is the construction of new aluminium smelters in those places, like Venezuela, that already have clean energy available, especially hydroelectric energy since it guarantees a 24/7/365 supply of energy as required by the electrolytic process for the production of primary aluminium, and at a price according to the cost structure of a new aluminium smelter.