The Federal Government has committed $2 billion to Australia’s aluminium industry, including a credit to support smelters to switch to green energy by 2036.
The Green Aluminium Production Credit will offer incentives to aluminium smelters for every tonne of clean aluminium made over a period of ten years.
As Australia is the world’s sixth largest aluminium producer, the Federal Government said the credit puts the country in a position to:
- Expand its green footprint
- Reach net zero emissions by 2050
- Lever the country’s solar, wind and critical mineral resources with local aluminium manufacturing
- Continue developing a skilled workforce
- Build secure, well-paying jobs across regions
Federal Minister for Industry and Science, Ed Husic, said, “With an entire aluminium supply chain uniquely located right here in Australia, we’re well positioned to capture the rewards of the global green energy transition.”
Industry response
The Clean Energy Council welcomed the announcement as a move to lay the foundations for a future investment in clean energy technologies and local jobs.
Clean Energy Council Chief Executive, Kane Thornton, said the Federal Government’s announcement is an incentive to secure Australian industry and jobs for the long-term in a new era of clean manufacturing in Australia.
“Australia’s four aluminium smelters collectively consume around ten per cent of total electricity in the National Electricity Market, and their sustainable and long-term operation is critical to an orderly energy transition.
“Australia’s largest energy users are making the switch to clean energy – striking power purchase agreements with Australia’s clean energy providers – and this scheme will turbo-charge that transition, strengthening the international competitiveness of our local industries in the process.”
