Aluminium industry reports decline in greenhouse gas emissions

New data from the International Aluminium Institute (IAI) reveals that, for the first time, total greenhouse gas emissions from the global aluminium sector did not grow, even though aluminium production grew.

The 2022 data, the latest available, shows aluminium production grew by 3.9% from 104.1 million tonnes to 108.2 million tonnes. However, greenhouse gas emissions from the industry showed a slight decline from 1.13 giga-tonnes CO2e to 1.11 giga-tonnes CO2e, and the GHG emissions intensity of primary aluminium production (the average quantity of emissions from the production of a tonne of primary aluminium) has been declining since 2019. In 2022, intensity declined by 4.4% from 15.8 tonnes CO2e per tonne to 15.1 tonnes CO2e per tonne.

Aluminium is a key enabler to reduce emissions in other sectors – automotive, transport, building & construction, and food & drink packaging. This opportunity is met by both primary and recycled aluminium, with primary aluminium production growing from 67.1 million tonnes in 2021 to 69.0 million tonnes in 2022.

IAI Secretary General Miles Prosser said: “Our challenge is to reduce emissions while growing production. Aluminium demand is expected to grow significantly over the decades ahead, because of its role in decarbonisation economy-wide. This will tend to drive increased emissions. But at the same time, the industry is reducing the average emissions intensity of each tonne of production.

“The 2022 data shows the effectiveness of work by the aluminium industry to reduce the emissions intensity of production. While much remains to be done, 2022 was the first year that these intensity reductions offset production growth.

“The transformation needed in the industry to meet global climate targets is much bigger than the early changes we are witnessing. Emissions reductions must be deeper, faster and more widespread, but for the first time, we can talk about heading in the right direction.

“If we continue to see investment and implementation of low-carbon energy sources and GHG reduction technologies, 2021 could be the year that GHG emissions from the aluminium industry peaked.”

The last time the aluminium industry's GHG emissions did not grow was in 2009, resulting from the global financial crisis. However, that coincided with a decline in production.

The recent trend is a result of significant investment by the industry in research, development and implementation of new technologies, innovative techniques, and changes in energy supply. The IAI has tracked more than 50 projects across the global industry that are contributing to this trend – in all the major production regions and addressing all the required technology pathways.

Of particular note are changes in the electricity supply used in aluminium smelting, the most significant component of the aluminium industry's GHG emissions. A shift towards more hydropower by China, the world’s largest aluminium producer, and increased use of renewable electricity in other regions, including the Middle East and Australia, contribute to the observed decoupling. Investments are also occurring in other key emission reduction technologies, including fuel switching in alumina refining and increased aluminium recycling rates and efficiency.

The IAI hosted a press conference where questions could be asked in relation the data. When asked to clarify whether the IAI’s has seen areas lacking in reducing GHG emissions, in contrast to the Middle East, China and Australia, Miles Prosser stated:

“No, I wouldn't say there's anywhere that's lacking. One of the things that's notable to me is if I look across our membership and even more broadly across the industry, I can't see a company that's not taking action of some sort to reduce emissions. The examples given in the press release were ones that we had particularly seen, but I wouldn't want to suggest that they're the only three examples where there are low or zero emissions.

“One thing that is worth noting is that this isn't going to be exactly the same process across all locations around the world. The other thing is that some of these things are often tied up in contractual arrangements, so it may not be possible for a company to immediately switch its power supply from one source to another. But one thing that I think is noticeable is that the direction of movement is the same for everybody, and it's noticeable that it's something that is happening right across the industry. I can't think of a participant that's not taking these sorts of actions.”

When asked whether the aluminium industry is on track to meet sustainability and GHG reduction goals, the Mr Prosser commented:

“What we're seeing here are the first results of those significant investments that are occurring. So, the level of investment that is occurring and the fact that action is occurring right across the industry that says something about us being on track and it’s now showing up in the data.

“They're all positive signs. I think numerically, if you look at the trajectories we need to be on, we're probably a bit above those and we're probably going to be like that for the first few years because it takes time to make these investments and for those investments to kick in and start to make an impact.

“Yet we [are aware that we] are saying lots of action is happening, but we [are aware that we] need to continue that and scale it up and amplify it. And I think that's where we're at at the moment. There's an encouraging level of action occurring. It's starting to impact on emissions, but by no means should we sit back and think that we're on the right track yet; we still need to do more and faster.

“We are acknowledging it's an encouraging start, but we need to speed up and scale up is the is the easiest way to look at it.”

When asked if the IAI anticipates the current geopolitical conflicts having a negative effect on GHG reductions, Miles Prosser answered:

“Those things will obviously have an impact, particularly if you're looking to get collaboration at an international level. But there are a couple of answers. One is that there is still very good collaboration at an international level and we're seeing that grow. We're seeing more interaction, for example, between the industry in China and the industry elsewhere in the world on some of the key technology issues. And the second answer is that collaboration can occur at a country level. For example, ELYSIS in Canada, where companies that are operating in Canada are collaborating to develop technology that could be applicable elsewhere in the world. They're collaborating in their facilities there, but once that technology is developed, it would be applicable elsewhere in the world.”

Summarising the announcement and data transparency, Mr Prosser said:

“Finally, just to note that as an industry, we've got a pretty good record of being transparent on some of the key metrics around our industry including greenhouse gas emissions reductions. This data release and it would have happened anyway, whether it was good news or not, but this data release is part of that process of transparency.”