Australian government pledges $2 billion assistance to aluminium industry






The Australian government has announced a $2 billion pledge to convert the nation’s aluminium smelters to renewable energy, which it said will be transformative and mark a significant step reducing the nation’s carbon footprint and enhancing its manufacturing sector’s competitiveness on a global scale.

The investment is part of a broader initiative under the “Future Made in Australia” policy aimed at supporting industries crucial to the future economy.

Prime Minister Anthony Albanese (pictured on left) highlighted the strategic move at the Tomago aluminium smelter, emphasizing the dual benefits of slashing emissions and bolstering a critical sector.

“Labor believes moving the country’s $5.1 billion aluminium industry onto renewable energy will lower emissions significantly by 2030 while protecting a sector critical to the future economy,” The Australian Financial Review reports Albanese as saying.

The new policy will provide a decade-long production credit to producers for every tonne of green aluminium they manufacture up to 2036. This decision aligns with recent government actions such as the $13.4 billion in production tax credits for green hydrogen and critical minerals unveiled last year, which faced criticism from opposition parties as overly generous to billionaires.

Unlike previous supports, this aluminium credit does not require new legislation, enabling swift implementation through contracts with leading producers like Rio Tinto, Tomago Aluminium and Alcoa. 

Kellie Parker, Rio Tinto’s Chief Executive in Australia, commended the government’s commitment, stating it as “a critical piece in helping future-proof the industry against traditional energy sources that are becoming increasingly uncompetitive.”

This initiative is set to make Australia a pivotal player in the global shift towards sustainable production. According to the government, transitioning to low-carbon aluminium could help reduce national greenhouse gas emissions significantly, positioning Australia to meet international demand for green metals.

Industry minister Ed Husic (pictured on right) also backed the strategy, emphasizing the unique position of Australia’s full aluminium supply chain and its potential to secure well-paying jobs and drive growth in green energy sectors.

Picture: Albanese and Husic (credit X)

 

 



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