Net Zero Industry Tracker 2024 Aluminium

Technology pathway 1: Electricity decarbonization Renewable grids and electricity power agreements, combined with storage technologies to manage capacity volatility, offer a promising path for cleaner smelting and secondary production. However, these solutions are likely to incur additional costs in the short term. Another approach is the use of CCUS with captive power plants that rely on fossil fuels where renewable energy sources are not available. This method currently carries a cost premium of up to 30% in certain regions.430 Additionally, nuclear- powered small modular reactors (SMRs) present an alternative, though this technology is still in the early stages of development. Technology pathway 2: Reduction of direct emissions Process emissions contribute around 15% of the industry’s emissions. Inert anodes and CCUS are pivotal technologies for low-emission smelting. Inert anodes are projected to become commercially viable after 2030, although they may lead to a 9% increase in production costs. CCUS applications in smelting are still in the early stages, and due to the low CO2 concentrations in smelting flue gas, this approach is expected to involve higher costs for carbon capture. Emissions from fuel combustion contribute another 15% of the industry’s emissions. Thus, implementing low-emission refining technologies is essential for reducing thermal energy emissions in the refining process. Technologies such as electric boilers and mechanical vapour recompression (MVR) are vital for this purpose. MVR technology, which addresses the digestion process responsible for 70% of refining energy consumption, is anticipated to become available after 2027.431 For the remaining 30% of energy used in the calcination process, emerging technologies like hydrogen calciners and electrified calciners have the potential to lower emissions. Technology pathway 3: Recycling and resource efficiency Increased recycling can lead to a significant reduction in annual emissions, since secondary production emissions are much lower than primary production emissions. To achieve this, the availability of post-consumer scrap (which currently stands at 70%) needs to approach 100% by 2050.432 The development and implementation of technologies that enhance scrap quality, such as advanced scrap sorting and purification methods, will be crucial in making this transition successful. Net-Zero Industry Tracker: 2024 Edition 7