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IRENA Report Highlights Challenges and Opportunities in Decarbonizing the Aluminium Industry

The International Renewable Energy Agency (IRENA) has released a report titled "Reaching Zero with Renewables: Aluminium Industry," which delves into the growing global demand for aluminium and its environmental impact. The report highlights the increasing demand for aluminium, especially in emerging economies, which is contributing to a rise in CO₂ emissions (1.1 Gt in 2022). Smelting alone accounts for about 75% of these emissions, which are influenced by the electricity mix used during the process.

Renewable energy sources like solar PV and wind are identified as key enablers in decarbonizing aluminium smelting, though challenges such as securing cost-effective power purchase agreements (PPAs), regulatory barriers, and power supply variability persist. The report calls for tailored decarbonisation approaches based on local renewable resource availability and smelter flexibility.

Additionally, emissions from alumina refining and carbon anodes contribute nearly 20% of total emissions. Though promising technologies like low-carbon refining and inert anodes exist, they are either expensive or not commercially viable yet. The report stresses the need for policy support, including internalizing environmental costs, creating markets for low-carbon aluminium, and establishing certification systems.