
The Australian government has announced a $2 billion investment to accelerate the transition of the nation’s aluminium smelters to renewable energy. As part of the Future Made in Australia policy, the Green Aluminium Production Credit will provide financial support to smelters that switch from fossil fuels to renewable energy sources, such as wind and solar, before 2036.
The production credits will be awarded for every tonne of green aluminium produced, encouraging companies to adopt cleaner energy practices over the next decade. Prime Minister Anthony Albanese emphasized the opportunity to leverage Australia’s resources, skilled workforce, and industry knowledge to position the country as a global leader in the clean energy transition.
Aluminium is crucial to renewable technologies like solar panels and electric vehicles, but its production is highly energy-intensive. With major operators such as Rio Tinto and Tomago Aluminium already working to replace coal-fired power with renewable energy, the new initiative aims to reduce emissions while fostering economic growth and creating jobs.
The four main aluminium smelters in Australia currently consume about 10% of the country’s total electricity, and the introduction of production credits is expected to help the sector become more competitive globally. Kellie Parker, CEO of Rio Tinto in Australia, expressed optimism that this support would help future-proof the industry and enable it to meet growing demand for low-carbon products.
However, industry leaders, including Innes Willox of the Australian Industry Group, stressed the need for ongoing support and efficient infrastructure development to ensure the successful rollout of renewables.
Source: pv-magazine-australia.com