Industry moves to decarbonise the aluminium sector

Mission Possible Partnership (MPP), in collaboration with the International Aluminium Institute (IAI), has released a transition strategy to make the global goal of net zero by 2050 viable for the aluminium industry.

The strategy details what the global aluminium industry could look like in a zero-carbon world, and what is required to get there in terms of energy, infrastructure, financing and policy. The strategy deploys a combination of low carbon power, new technology for smelters and refineries, increased recycling and improving material efficiency to drive rapid decarbonisation, while also meeting increased demand over the coming decades.

Today, the aluminium sector accounts for about two per cent of global emissions and four per cent of electricity consumption.

Matt Rogers, CEO of MPP, said: “This Aluminium Transition Strategy is operationally relevant and industry-backed, not wishful thinking or pie in the sky. We know how to reduce emissions, initially deploying resources and technology available today. The imperative is to act now, in this decade: we’re working with industry, supply chains and finance to deliver the clear thinking and asset-by-asset plans to make net zero viable.”

Miles Prosser, IAI secretary general, said: “Aluminium has been at the forefront of many industrial and engineering innovations of the 20th century and continues to power a sustainable future. Meeting growing demand sustainably is a challenge for the entire value chain, but the industry is committed to finding the solutions needed to reduce the carbon intensity of our metal. We are pleased to collaborate with the Mission Possible Partnership on the Sector Transition Strategy for Aluminium, building on the IAI’s GHG Pathways and taking the next steps towards implementation and climate action across the sector. The scale of the decarbonisation challenge is clear – deep emissions reductions at a scale and pace never before seen. Last year, the IAI modelled a 1.5 Degree Scenario to guide its members’ efforts to meet global climate goals. The modelling is broadly aligned with IEA’s Net-Zero by 2050 scenario, combined with the IAI’s material flow analysis and future demand scenarios. This data also informs this work by the MPP. As an industry, we have an opportunity to continue to advance our sustainability credentials, and we are ready to work with key stakeholders across the value chain on these efforts to deliver more sustainable products and services today and for future generations.”

Key insights from the strategy report include:

• Power decarbonisation is critical to the transition. All smelters need to switch to low carbon power by 2035, implying an annual demand of approximately 1,000 TWh.
• Commercialisation and deployment by 2030 of low carbon anodes and new refining technologies is a condition for sectoral decarbonisation within a 1.5°C-aligned sectoral ‘carbon budget’.
• Recycling and improved material efficiency will play a critical role. Clean power and new technology are necessary but not sufficient: the supply of recycled aluminium can increase from 33% in 2020 to more than 50% by 2050.
• Market development to boost demand for low-carbon aluminium will help to mobilise investment. Higher costs for zero emissions aluminium are estimated in the region of US $400 USD per tonne by 2035 (equivalent to less than 0.5% of the cost of a new car).
• Total investment required over the coming three decades is approximately US $1 trillion to decarbonise the primary aluminium sector, of which more than 70% is required for supporting infrastructure, primarily for power supply.

To view the full report, Making Net-Zero Aluminium Possible, click here.