The Australian Government is investing $2 billion in the nation’s aluminium industry, as part of its Future Made in Australia initiative.
Under the investment, aluminium smelters switching to renewable energy by 2036 will receive federal funds for every clean and reliable aluminium made in Australia over a 10-year period.
“Investing in the Australian-made aluminium industry is a massive opportunity — to create well-paid jobs in our regions and suburbs, and set Australia up for the future,” Prime Minister Anthony Albanese says.
Minister for Industry and Science Ed Husic says there is an entire aluminium supply chain located in Australia, and the nation is well-positioned to capture the rewards of the global green energy transition.
“Communities and businesses rely on aluminium smelters, and we have an opportunity to partner with the private sector to support these secure well-paying jobs into the future,” Husic says.
Energy Estate co-founder Simon Currie says the refining and smelting are energy intensive industries and Australia can lead the world in harnessing clean energy resources to produce green aluminium.
“Accelerating the decarbonisation of the aluminium smelters at Boyne and Tomago can secure their long term future and protect the jobs of thousands of skilled workers,” Currie says.
“Green metal manufacturing in these hubs will anchor their transformation, attracting vital new industries such as renewable fuels, data centres and advanced manufacturing.”
The Australian Aluminium Council says it has consistently called for production credits for the sector to attract private capital and ensure the industry remains globally competitive.
With the government’s decision, the council notes these new production credits should provide some of the transitional support needed as Australia’s energy infrastructure and systems develop, and energy pricing returns to competitive levels.
CEO Marghanita Johnson says competitive energy is the foundation that enables Australian businesses to compete internationally.
“Today’s announcement is an important step in support of the industry’s transition to the competitive, reliable, lower carbon energy needed for the aluminium industry to secure a sustainable future,” Johnson says.
“This policy supports not just resource extraction but also the transformation of those resources into high value finished products, creating more than 75,000 direct and indirect jobs, predominantly in regional Australia.”
Aluminium plays a critical role in renewable energy technologies, including solar panels, EVs, and batteries. Due to energy transition, the demand for aluminium is projected to double by 2050.
Not only is aluminium important for the energy transition, but the resource is used in window and doorframes, industrial and household applications, automotive components, and more.
Write to Aaliyah Rogan at Mining.com.au
Images: Alcoa & Stock
