Australia Pledges $2 Billion, $1.2 Billion Credits for 10-Year Green Aluminum Plan

Jan 20, 2025, 01:34 AM

Australian Prime Minister Anthony Albanese has announced a $2 billion initiative to transition the country's aluminum industry to renewable energy. The plan includes a $1.2 billion green aluminum production credit, which will incentivize smelters to use renewable electricity over the next decade. The program aims to reduce the aluminum sector's reliance on coal, which currently accounts for 10% of the nation's power consumption, and aligns with Australia's broader goal of achieving 82% renewable energy by 2030. Major aluminum producers such as Rio Tinto, Tomago Aluminium, and Alcoa are expected to benefit from this initiative. Tomago Aluminium, the country's largest producer and electricity consumer, has set a goal to transition to nearly 100% renewable energy by 2029, with electricity costs currently comprising 40% of its expenses. The government views this as a significant opportunity to reduce emissions, create jobs, and position Australia as a leader in green metals. Critics, however, argue that the high costs of renewable energy remain a barrier to achieving low-cost production.