Ford, General Motors, PepsiCo, Rivian, and SunPower are among 14 companies that sent a first-of-its-kind letter to Energy Secretary Jennifer Granholm requesting funding to generate green aluminum. They are seeking some of the $6.3 billion in the IRA and Infrastructure Law targeted at the Industrial Demonstration Program which are designed to decarbonize the highest-emitting industries.
The demand for these funds far outstrips the supply. It’s possible the letter may help tip the scales in favor of aluminum. However, given steel and concrete are far bigger emitters, it’s no guarantee that aluminum will make the cut.
Aluminum is a key raw material for numerous cleantech sectors. Accordingly, it is expected that by 2035 the demand just from solar panels and wind turbines will drive aluminum demand above the total amount of all the aluminum produced in U.S. in 2022.
Emissions from aluminum stem primarily from power consumption. Aluminum is refined directly from ore and requires smelters operating at 1,700 degrees Fahrenheit. Approximately 20% of emissions come from the electrolytic reaction, but in 2021, it was estimated that about 70% of U.S. aluminum emissions came from electricity demand.
Why is this the case?
Only one plant in the U.S. runs on renewable energy – hydropower. All others run on fossil fuels -  including coal.
Unfortunately, there is a fly in the ointment in the plan to migrate the U.S. to green aluminum. We don’t manufacture much aluminum. Thirty years ago, there were 23 smelters in the U.S. Today only five remain. I’ll give you one guess as to where most aluminum is produced.
That would be China. India and Russia are also major producers. That means two of the three leading worldwide suppliers are in countries that are downright bad global citizens.
Another good reason to try and restart the aluminum industry, but this time on a green footing.