The Federal Government will today unveil a $2 billion plan to support the production of ‘green aluminium’.
The initiative will see aluminium smelters receive production credits for every tonne of green aluminium produced using renewable energy, with $2 billion allocated to the scheme until 2036.
The funds have been allocated as part of the Federal Government’s Future made in Australia bill, which aims to drive Australia’s net-zero by 2050 ambitions.
Prime Minister Anthony Albanese will officially announce the funding during a visit to Tomago Aluminium’s smelter in New South Wales today.
“Investing in the Australian-made aluminium industry is a massive opportunity – to create well-paid jobs in our regions and suburbs, and set Australia up for the future,” Albanese said, as reported by the ABC.
“We’ve got the resources, the workers, and the know-how – the only thing we don’t have is time to waste.”
Rio-backed Tomago, touted as Australia’s largest aluminium smelter, called on the Federal Government to offer aluminium refiners support last year after its chief executive Jerome Dozol said electricity prices were becoming too expensive for operations to continue without intervention.
Rio Tinto itself also called on the Federal Government to get involved in November after it had received assistance from the Queensland Government for its Boyne aluminium smelter.
“Rio Tinto is driving the development of 2.2 gigawatt of renewables and the Queensland government has offered support, which helps us get part of the way there,” Rio chief decarbonisation officer Jonathan McCarthy said at the time, as reported by the Australian Financial Review.
“Extra support required includes transmission lines to deliver the renewables being underwritten by industry.”
Rio released a statement today celebrating the news, which it said will significantly advance both regional communities and the nation’s manufacturing capabilities.
“As traditional energy sources for heavy industry become increasingly uncompetitive, today’s announcement is a critical piece in helping future-proof the industry,” Rio Tinto chief executive Australia Kellie Parker said.
“Such support is crucial for sustaining and growing regional economies.
“As global industrial customers and consumers increasingly focus on low-carbon products, this support signals Australia’s potential to be a major supplier of the aluminium needed for the global energy transition, creating a foundation for local businesses and manufacturing to thrive.”
The Australian Aluminium Council also joined the chorus of approval, declaring the policy represents a step towards securing a sustainable, innovative, and successful future for Australia’s aluminium industry for generations to come.
“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,” Council chief executive officer Marghanita 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.”
