Aluminium is everywhere. From the smartphone in your hand to the electric car in your driveway- this lightweight, rust-resistant metal is the unsung hero of modern life. But here’s the kicker—its production is a climate nightmare. The industry pumps out over 1.1 billion tonnes of CO2 annually, roughly 2% of global emissions.¹

With demand projected to skyrocket by 80% by 2050 (thanks to sectors like EVs and renewables), we’re at a crossroads. Do we keep churning out aluminium the old school, dirty way, or do we reinvent the process?²

Decarbonising aluminium isn’t just a “nice to have”—it’s a make-or-break move for hitting global net-zero targets. But let’s not sugarcoat it: this is a messy, complex puzzle. From bauxite mining to alumina refining, smelting, and recycling, every step in the aluminium value chain has its own set of hurdles. So, let’s unpack this together.

Why aluminium’s carbon footprint is a big deal

First off, let’s talk numbers. Producing one ton of primary aluminium emits about 16 tonnes3 of CO₂. For context, that’s like driving a gas-guzzling SUV for six months straight. Most of these emissions come from two steps:

1. Alumina refining: Converting bauxite into alumina (aluminium oxide) requires massive heat and leaves behind toxic “red mud” waste.
2. Smelting: Turning aluminium into molten aluminium using the 135-year-old Hall-Héroult process, which eats up enough electricity to power a small town.

But here’s the twist: aluminium is also a climate solution. It’s lightweight cars to cut fuel use, build wind turbines, and even replace plastic in packaging. The challenge? Cleaning up its act without stifling the industries that rely on it.

The four challenges of decarbonisation

1. The energy guzzler

The Hall-Héroult process is old and energy intensive process. Smelting alone gobbles 60% of the total energy used in aluminium production. To put that in perspective, global smelters consume about 3% of the world’s electricity—equivalent to powering all of India. And here’s the issue: most of that power still comes from coal. China, which produces most of the world’s aluminium, relies on coal for almost all of its smelting energy.

Switching to renewables sounds like a no brainer, but it’s easier said than done. Smelters need 24/7 power, and solar/wind are intermittent. Countries like Norway and Iceland (where 100% of smelting runs on hydro and to some extent geothermal) show it’s possible, but scaling this globally? That’s a trillion-dollar question.

2. Bauxite mining: The silent deforester

Aluminium starts as bauxite, a reddish ore dug up in places like Australia, Guinea, China, Brazil, India and many more countries. Mining isn’t just noisy and dusty—it’s a biodiversity killer. In Jamaica, bauxite mining has wiped out 5,000 hectares of forest since 2001.4 The process itself emits CO2 and perfluorocarbons (PFCs), gases many times worse than CO2 for global warming.

The industry’s addiction to “primary” aluminium (vs. recycled) doesn’t help. Only 35% of global aluminium comes from recycling, even though it uses 95% less energy. Why? Because we’re terrible at collecting scrap. The U.S. recycles just 35% of its aluminium cans—the rest end up in landfills (reported in 2022).5

3. Tech lag: Where’s the innovation?

Breakthroughs like inert anodes (which eliminate CO2 emissions from smelting) and carbon capture could be game changers. But most are stuck in lab purgatory. Take ELYSIS, a joint venture by Alcoa and Rio Tinto: after a decade of R&D, their zero-carbon smelting tech won’t hit commercial scale until next year. And carbon capture? Only a handful of pilot projects exist, like the UAE’s Al Reyadah plant, which captures 800,000 tonnes of CO2 yearly—a drop in the ocean.

4. The regulation rollercoaster

Imagine trying to play a board game where every player has different rules. That’s aluminium decarbonisation. The EU’s carbon border tax will soon slap fees on dirty imports, pushing companies to clean up. Meanwhile, China’s lax emission standards let smelters off the hook. This patchwork of policies creates loopholes and stalls global progress.

The light at the end of the tunnel: 5 real world solutions

1. Green Energy

Countries with cheap renewables are already winning. Norway’s Hydro uses hydropower to produce aluminium, with 75% lower emissions than the global average. Even coal-heavy China is testing the waters: the Yunnan province now runs 70% of its smelters on hydro.

But the real MVP? Solar steam. California Based GlassPoint is partnering with Saudi Arabia’s Ma’aden to use solar thermal tech in alumina refining. Their system uses mirrors to concentrate sunlight, creating steam without burning gas—cutting emissions by 60%. If scaled, this could save 600,000 tonnes of CO2 per refinery annually.

Similarly, Rusal has introduced its ALLOW brand, offering aluminium produced with renewable energy sources, thereby achieving a lower carbon footprint. These efforts reflect a growing industry trend towards sustainability and environmental responsibility.

2. Recycling

Recycling works. How? Copy Brazil. The country’s 98% recycling rate comes down to two things: cash incentives for collectors and a solid sorting infrastructure.
Tech is also levelling up. Startups like Sortera Alloys use AI-powered sensors to sort scrap metal 10x faster than humans. Meanwhile, Novelis is building the world’s largest recycling plant in Alabama, aiming to churn out 600,000 tonnes of low carbon aluminium by 2025.

3. Game-Changing Tech

Inert anodes are the holy grail. Unlike traditional carbon anodes (which burn up and release CO2), inert anodes are made of metal alloys that don’t degrade. ELYSIS claims their tech could cut smelting emissions to zero and save $20 billion globally by 2050. But scaling requires retrofitting smelters—a risky, costly move.

Carbon capture is another dark horse. Alcoa’s Kwinana refinery in Australia is testing a system that injects CO2 into concrete, turning waste into building material. It’s early days, but if it works, it could lock away millions of tons of CO2. However, Alcoa Corporation in August 2024 announced it plans to fully curtail production in 2024 at its Kwinana Alumina Refinery in Western Australia, with the process beginning in the second quarter.

4. Strong policy

Governments need to stop waffling. Canada’s carbon tax has pushed smelters like Alouette to cut emissions by 15% since 2020. The EU’s CBAM tax will force importers to pay up unless they go green. But policies need teeth: mandate recycled content (like California’s 50% rule for cans) and fund R&D.
Initiatives like the First Movers Coalition serve as a platform for companies committed to purchasing emerging climate technologies. Thus it creates market demand that accelerates their development and deployment.

Within the aluminium sector, FMC members pledge to procure a significant share of their aluminium from low-carbon sources. Companies like Apple and Ford have pledged to buy 10% of their aluminium from near-zero sources by 2030. This creates demand, pulling greener tech into the mainstream.

5. Consumers: Vote with wallet

You’ve got power. When Apple started using Hydro’s low carbon aluminium in iPhones, it sent shockwaves through the supply chain. BMW followed suit, sourcing 43% of its aluminium from renewables. Even Budweiser is in the game, selling “low carbon” cans in the UK.

Look for certifications like the Aluminium Stewardship Initiative (ASI), which audits producers on sustainability. If enough of us demand green metal, companies will listen.
Decarbonising the aluminium value chain

Sustainable mining

The International Aluminium Institute (IAI) has updated its Sustainable Bauxite Mining Guidelines, emphasising the industry’s commitment to minimising social and environmental repercussions during both operational and post-closure phases.

Key considerations include robust governance frameworks, proactive community engagement, stringent health and safety protocols, and comprehensive environmental management plans. By adhering to these guidelines, mining operations can reduce their ecological footprint and foster positive relationships with local communities.

Alumina production

The Bayer process, the predominant method for refining bauxite into alumina, is both energy-intensive and generates significant waste, notably red mud—a highly alkaline byproduct posing environmental disposal challenges. Addressing the carbon footprint and waste management issues in alumina production is, therefore, a crucial component of the industry’s decarbonisation strategy.

The IB2 technology offers a transformative solution by enhancing the extraction of alumina from low-quality bauxite ores. Developed through extensive research, this process reduces caustic soda consumption and minimises red mud output, thereby decreasing hazardous waste and associated environmental risks.

Moreover, the IB2 method enables refineries to utilise locally sourced bauxite (mainly in China), reducing dependence on imported high-grade ores and the carbon emissions linked to transportation. This advancement not only optimises resource utilisation but also aligns with broader sustainability objectives.

The road ahead: No silver bullets, but plenty of opportunities

Let’s be real: there’s no single fix. Decarbonising aluminium needs a mix of will, cash, and cooperation. Countries with clean energy must lead by example. Tech giants need to invest in innovation. And you can push for change by choosing recycled products and holding brands accountable.

The aluminium industry is at a turning point. It can cling to the status quo and fuel climate chaos or reinvent itself as a climate ally. The tools are there. The question is, do we have the will to use them?

1 IAI
2 IAI
3 CarbonChain
4 https://www.diva-portal.org/smash/get/diva2:982889/FULLTEXT01.pdf
5 https://www.bcg.com/publications/2022/whats-holding-back-aluminum-recycling-in-the-us