Decarbonisation Technology - May 2024 Issue

Recycled aluminium: a key enabler in the energy transition Acceptance and use of recycled aluminium is a clear example of how circular economy thinking leads to emissions reductions throughout the supply chain

William Beer Tunley Environmental

I n today’s industrial landscape, there is a noticeable surge in the demand for low- carbon materials, significantly reshaping the supply chain of numerous industries and prompting a paradigm shift towards sustainability and environmental responsibility. This surge is compelling businesses to re-evaluate their sourcing, production, and distribution processes, seeking out environmentally sustainable alternatives. Aluminium is becoming one of the world’s most recycled materials. The use of recycled aluminium, together with low-carbon virgin aluminium, is effectively decarbonising the whole supply chain. This article shows how end users are adapting and, in so doing, creating a demand for decarbonised products. The aluminium industry faces challenges related to its substantial carbon emissions footprint and the need for sustainable production methods. Recycled aluminium stands out as a more environmentally friendly

alternative due to its lower carbon footprint, by-passing the most energy-intensive steps in the production process. The industry’s shift towards clean, cost-competitive, and low-carbon aluminium production powered by renewable energy sources is essential for supporting the energy transition. The increased use of recycled aluminium also significantly reduces the environmental footprint associated with bauxite extraction and processing. Decarbonisation efforts across the aluminium value chain, including the use of renewable-generated electricity and carbon-free technologies, are critical for achieving sustainability goals. The aluminium industry plays a vital role in decarbonisation more broadly, including solar photovoltaics (PVs) and electric vehicles (EVs), which in turn contribute to the increasing demand for aluminium. Aluminium demand Global aluminium demand is expected to grow (see Figure 1 ), with an estimated increase of 33.3 Mt from 86.2 Mt in 2020 to 119.5 Mt in 2030 (CRU International, 2022). This growth is anticipated to be primarily driven by the transportation, electrical, construction, and packaging sectors. In the transport sector, the growing demand for EVs is forecast to increase demand for aluminium from 19.9 Mt in 2020 to 31.7 Mt in 2030. Additionally, the electrical sector is forecast to witness a significant rise in demand, reaching 15.6 Mt in 2030, driven by the implementation of renewable energies and

Figure 1 Aluminium demand is set to grow

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