Media release – Climate Media Centre, 20 January 2025
Experts welcome support for aluminum smelting to go green
Federal government incentives to help the Australian aluminium smelting industry go green have been welcomed by experts, including spokespeople in the Hunter Valley.
The federal government is offering $2bn in credits to the country’s aluminium industry to speed up the transition to production methods which don’t generate climate pollution. Under the scheme, aluminium smelters switching to renewable energy by 2036 will get federal funds for every ton produced.
Prime Minister Anothony Albanese is holding a press conference in the Hunter at midday today near the site of the Tomago Aluminum Smelter, which is one of four major smelters in Australia. The others are in Portland, Victoria, Bell Bay, Tasmania and Boyne Island, Queensland.
The following experts are available for comment and analysis:
Simon Currie, Energy Estate co-founder and chief projects officer, said:
“Australia plays a leading role in the global aluminium supply chain from bauxite mining to alumina refining and our domestic aluminium smelters. Refining and smelting are energy intensive industries and Australia can lead the world in harnessing our abundant clean energy resources to produce green aluminium.
“Energy Estate develops large scale clean energy ecosystems focussed on industrial hubs like Gladstone and Newcastle and we work closely with Beyond Zero Emissions to promote the opportunities for renewable energy industrial precincts across regional Australia. 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. Green metal manufacturing in these hubs will anchor their transformation, attracting vital new industries such as renewable fuels, data centres and advanced manufacturing.”
Bob Hawes, Business Hunter CEO, said:
“The Hunter is one of the country’s major manufacturing hubs, and as such has huge energy demands for various industrial processes – large financial incentives are required to help our local businesses to transition to clean energy.
“If the aluminium smelter at Tomago can access these credits to decarbonise its processes, it will allow it to remain competitive in the global green metals market. This initiative will also have positive flow on effects and be of significant comfort to the range of support businesses that rely on Tomago Aluminium for their business. It has the potential to facilitate investment in new infrastructure and new processes, establishing and creating further business and employment opportunities for the Hunter region.”
Justin Page, Hunter Jobs Alliance coordinator, said:
“Having strong financial incentives to help Hunter’s manufacturers to decarbonise is only going to be good news for the region. When the Tomago smelter starts the transition to clean energy, these credits will help to finance new infrastructure and processes, giving new training and employment opportunities to Hunter workers. As the demand for green metals continues to increase, helping our aluminium sector transition to clean energy will allow our industry to remain competitive in global markets, creating greater job security for workers in the Hunter.”
Heidi Lee, CEO, Beyond Zero Emissions:
“The federal government’s announcement of $2 billion in production tax credits is a game-changer for Australia’s aluminium industry. Transitioning to renewable energy is essential for reducing climate pollution, and this initiative can position Australia as a global leader in producing green aluminium.
“Beyond Zero Emissions has long advocated for the transformation of energy-intensive industries like aluminium smelting and critical supply chains. Supporting smelters in Australia to embrace clean energy will secure thousands of jobs in our regions and catalyse new industries in clean technology and advanced manufacturing.
“This is a win for workers, the economy and the environment. With abundant renewable resources, Australia is uniquely positioned to lead the world in decarbonising heavy industry. This policy accelerates that transition and ensures a brighter future for communities in our industrial regions.”
Media release – Australian Aluminium Council, 20 January 2025
A globally significant step forward in securing a sustainable future for Australia’s aluminium industry
The Australian Aluminium Council welcomes the Australian Government’s announcement of a production credit for the aluminium smelting sector as part of its Future Made in Australia plan. This marks a globally significant step towards securing the future of Australia’s aluminium industry and strengthening Australia’s role as a leader in the energy transition.
“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,” the Council’s CEO, Marghanita Johnson, said. “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.”
Aluminium is fundamental to all aspects of modern life, from window frames in homes to food packaging, smartphones, and vehicles. It is also essential for defence applications such as military aircraft, armoured vehicles and naval vessels, underscoring the need to retain a strong domestic supply of the metal, from mine to market.
What many Australians may not realise is aluminium also plays a critical role in renewable energy technologies, including solar panels, electric vehicles and batteries. With global demand for aluminium projected to double by 2050 largely driven by the energy transition, Australia must act decisively to capitalise on its reserves of bauxite, alumina refining capacity and aluminium smelting potential.
“The natural advantages of our mineral reserves, renewable energy resources, and highly skilled workforce can give us a competitive edge, but only if supported by the right policy frameworks, over the right timeframe” Ms Johnson said. “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.”
Australia’s aluminium industry has long faced challenges including rising energy, labour, and capital costs, in parallel with protracted regulatory processes. The Australian Aluminium Council has consistently called for production credits for the aluminium sector to attract private capital and ensure the aluminium industry remains globally competitive. These new aluminium production credits should provide the some of the transitional support needed as Australia’s energy infrastructure and systems develop, and energy pricing returns to competitive levels. Today’s announcement lays the groundwork for:
-Access to reliable, lower-carbon energy at competitive prices;
-Support for capital investment in decarbonisation technologies; and
-Predictable and streamlined regulatory approvals, needed to support this implementation, across the aluminium value chain.
“Australia is one of the few countries globally with the full aluminium value chain—bauxite mining, alumina refining, aluminium smelting and extrusion—all undertaken domestically,” Ms Johnson said. “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.”
Ms Johnson emphasised the industry’s history of innovation and resilience, adapting to market changes since its inception in 1955. “With the right industry and energy policy framework, the aluminium sector can continue to play a pivotal role in Australia’s economy and industrial landscape,” she said.
This policy represents a step towards securing a sustainable, innovative, and successful future for Australia’s aluminium industry for generations to come.
