The federal government will invest a record $2 billion in the aluminium industry to promote green metal production.
The 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.
Prime Minister, Anthony Albanese, said the credit will provide local aluminium smelters with confidence to invest, paving the way for more secure Australian jobs in our world-class aluminium industry.
“We’ve got all the ingredients right here for a world-leading metals industry – from the best solar and wind resources, to the critical minerals and facilities, as well as a highly skilled workforce,” he said.
“From Gladstone to Portland and Bell Bay to Tomago - Australia is already the sixth largest producer of aluminium in the world and we want to see that continue to grow.
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.”
Australia’s entire aluminium supply chain is uniquely located on shore - from bauxite mining to finished products.
Australian Conservation Foundation (ACF) climate and energy programme manager, Gavan McFadzean, said Australia’s four aluminium smelters generate around 16 million tonnes of climate-heating emissions a year – and that’s for their electricity use alone.
“Australia’s smelters are high emitters because most are powered by coal, making them uncompetitive in a low carbon global economy,” he said.
“Green aluminium exports have the potential to contribute to Australia’s economy for generations, unlike coal and gas exports that deliver very little for communities while damaging the climate.
“This announcement should help cut Australia’s emissions further and faster this decade.
“But to be consistent about climate action, the Albanese government must stop trying to walk both sides of the street – supporting clean export and manufacturing initiatives while also approving major coal and gas projects.”
Just before Christmas the Albanese government approved three coal mine extensions that will generate more than 850 million tonnes of lifetime emissions, the ACF said.