Australia is one of the world’s largest producers of bauxite. Photo: Australian Aluminium Council
The federal government’s announcement of a $2 billion Green Aluminium Production Credit has been welcomed by smelters and climate groups.
On a visit to the Tomago Aluminium Smelter in the Hunter, NSW, Prime Minister Anthony Albanese announced that such a scheme will provide targeted support for smelters switching to renewable electricity before 2036.
Support will be available for every tonne of clean Australian-made aluminium over 10 years. Australia is the sixth largest producer of aluminium with its entire supply chain located on shore.
“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,” Albanese says.
“We’ve got the resources, the workers, and the know-how – the only thing we don’t have is time to waste.”
Minister for Industry and Science Ed Husic says the scheme means “jobs up, emissions down and a secure future” for the aluminium industry.
PRODUCERS
Rio Tinto Australia CEO Kellie Parker says they are “incredibly pleased” by the news.
“This is a belief in manufacturing, it’s a belief in jobs and it’s a belief in aluminium industry,” she says.
The Australian Aluminium Council says it, too, welcomes the news.
“Until now, we have seen many other countries take decisive action to support their domestic manufacturing industries while Australia has been less proactive in comparison,” council CEO Marghanita Johnson says.
“Competitive energy is the critical 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.”
Global demand for aluminium is due to double by 2050 largely driven by the energy transition, the council says.
“The announcement of A$2 billion in production credits for the sector represents a substantial step forward in the journey for Australia to position itself as a leader in the global aluminium market,” Johnson says.
CLIMATE COUNCIL
The Climate Council says it, too, welcomes the news.
Climate Councillor and energy expert Greg Bourne says “green aluminium means less climate pollution, more regional jobs, and a stronger future for Australian manufacturing”.
“The aluminium sector, which consumes about 10% of Australia’s electricity, has a major role to play in cutting Australia’s climate pollution,” he points out.
“This investment transforms risk into opportunity. Cutting pollution from Australia’s aluminium smelters is a win for the climate and a lifeline for workers in communities like Newcastle, Gladstone, and Portland,” Bourne says.
“With facilities in Tomago, Portland, Bell Bay, and Boyne Island, Australia is well-positioned to lead the shift to green metals.
“The initiative will not only protect existing jobs but create opportunities in associated industries, from renewable energy to advanced manufacturing,” he says.
