The Australian Government has announced a record $2 billion production credit for the nation’s aluminium sector to switch to reliable, renewable electricity.
Supercharging the local metals industry, a new Green Aluminium Production Credit will provide targeted support to Australian aluminium smelters switching to reliable, renewable electricity before 2036.
Facilities will be eligible for support for every tonne of clean, reliable Australian-made aluminium they make over a period of 10 years.
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This credit will provide local aluminium smelters with confidence to invest, paving the way for more secure Australian jobs in our world-class aluminium industry.
Australia is already the sixth largest producer of aluminium in the world. Increasingly the world is looking to import clean, reliable metals—like Australian-made aluminium—which represents a massive opportunity for growth in a decarbonising global economy.
Prime Minister Anthony Albanese said, “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.
“We’ve got the resources, the workers, and the know-how—the only thing we don’t have is time to waste.”
The Clean Energy Council has welcomed the federal government’s announcement.
Clean Energy Council CEO Kane Thornton said, “As the world’s second largest producer of both bauxite and alumina with the best access to solar and wind resources in the developed work, Australia is ideally positioned to be the long term home of clean aluminium production.
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“Australia’s four aluminium smelters collectively consume around 10% 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.
“But this is not only about securing existing industries—it sets the foundation for the growth and expansion of green metals production in Australia over the long term. We won’t attract new investment in clean metals production if we can’t retain the industries we’ve got.”
