Climate Commitment Act fuels Kaiser Aluminum's $9.6 million boiler upgrade

The state of Washington has allocated nearly $5 million to the Kaiser Aluminum plant in Spokane Valley to aid in replacing two outdated steam boilers. This initiative, under the Climate Commitment Act, aims to substantially reduce the plant's greenhouse gas emissions, marking a noteworthy step in the state's environmental efforts.

Kaiser Aluminum, headquartered in Franklin, Tennessee, with operations spanning 15 industrial facilities across the United States, is set to replace its 1943-built steam boilers. The replacement project, costing approximately $4.8 million each, will be equally funded by the state and Kaiser. This investment is part of the broader Climate Commitment Act, introduced in 2021 by Governor Jay Inslee. The act, funded by a carbon credit auction that raised $1.5 billion, focuses on climate resilience, clean transportation, and reducing health disparities.

The new boilers are projected to reduce the facility's annual greenhouse gas emissions by about 13,000 metric tons, equivalent to removing over 3,000 gasoline-powered cars from the roads annually. Kaiser must procure these boilers by 2027 to adhere to the state's conditions. The funding is a strategic measure to encourage large companies like Kaiser to stay in Washington, despite stringent environmental regulations.

State Sen. Mike Padden highlights the significance of the Spokane plant, employing around 11,000 people. The state's financial support underscores its commitment to maintaining local employment while advancing environmental goals. The designation of Kaiser as an "Emissions-Intensive, Trade-Exposed entity" allows it to receive most of its emissions allowances for free, incentivising gradual decarbonisation.

Since 2006, Kaiser has invested approximately $400 million to modernise its Spokane Valley facility, enhancing efficiency and reducing carbon intensity. State Sen. Mark Mullet and State Rep. Mike Volz commend the company's proactive environmental efforts, recognising that such investments are crucial for long-term sustainability. The Climate Commitment Act continues to be a contentious topic, with upcoming elections set to determine its future.

Washington’s investment in Kaiser Aluminum signifies a forward-thinking approach to balancing industrial growth and environmental responsibility. As the state navigates the complexities of climate policy, the support for Kaiser highlights a commitment to sustainable industrial practices, promising a greener future for Washington. 

If you wish to learn about the international aluminium market, have a look at AL Circle's special report, Global Aluminium Industry Key Trends to 2030.