The importance of aluminium for the global energy transition is undeniable, yet the fact remains that its production is one of the most carbon-intensive processes in the industrial sector. According to the International Aluminium Institute (2023), the aluminium value chain accounts for roughly 3 per cent of global direct industrial carbon emissions. Primary aluminium production, which involves three key stages, is the main contributor to this footprint. On average, each tonne of primary aluminium emits about 14.8 tonnes of carbon dioxide equivalent (CO₂e). When the emissions profile is broken down across the production chain, bauxite mining contributes around 0.1 tonnes of CO₂e per tonne of aluminium, alumina refining adds approximately 2.6 tonnes, and the primary smelting process accounts for 14-15 tonnes of CO₂e. This stark carbon intensity presents a structural challenge for an industry that is simultaneously positioned as a cornerstone of a low-carbon economy.

As a result, the sector is increasingly focused on deep decarbonisation pathways, with industry-wide targets aiming to reduce emissions intensity to around 11.5 tonnes of CO₂e per tonne of aluminium by 2030 and ultimately to as low as 0.5 tonnes by 2050. The key question is how these ambitious reduction targets can realistically be achieved while meeting the rapidly rising global demand for aluminium.

Advanced technologies: Inert anode and carbon capture & storage

While the world is wondering how to achieve decarbonisation in the aluminium industry, technologies like Inert Anode and Carbon Capture & Storage are quietly playing their key roles. Inert anode technology is a breakthrough process that replaces traditional consumable carbon anodes with non-consumable, inert materials. It releases oxygen as a byproduct instead of CO2, eliminating direct greenhouse gas emissions from the smelting process.

RUSAL, recently, has commissioned the first industrial electrolyser using inert anodes. The company that has been decarbonising its aluminium production by integrating renewable energy and recycled metal has made another step of progress by embracing inert anode technology. The new unit is designed to replace the most widely used smelting technology in Russia, demonstrating a practical pathway to decarbonise existing production infrastructure. With this launch, RUSAL becomes the first company globally to move inert anode technology from industrial trials into commercial implementation.

Also read: RUSAL goes greener: Innovative aluminium can made from 75% recycled aluminium and ALLOW INERTA to appear soon

For every tonne of aluminium produced using this technology, approximately 900 kilogrammes of oxygen are released into the atmosphere, eliminating direct greenhouse gas emissions from the smelting process itself.

For RUSAL, the technology has already moved beyond pilot stage. Since 2017, RUSAL has systematically advanced inert anode electrolysis, producing approximately 6,000 tonnes of commercial-grade aluminium (A7, or P1020) and demonstrating consistent process stability and product quality. RUSAL's low-carbon brand ALLOW INERTA - aluminium produced with inert anode technology - has already been supplied to customers across multiple industries.

With global policies in place aimed at tightening requirements on embedded carbon emissions, access to such materials becomes critical. Aluminium made with inert anode technology enables RUSAL to help customers meet the most stringent regulatory standards and position their own products as leaders in the low-carbon transition.

Like RUSAL, Alcoa and Rio Tinto through their joint venture have also brought forth their widely cited inert anode initiative, which is already in operation since late 2025. In November, Alcoa and Rio Tinto together launched the 450 kA commercial‑size inert anode cell at Rio Tinto smelter in Alma (Québec). However, the exact volume of the metal being produced and shipped from this new cell has not been disclosed.

Iceland‑based Arctus Aluminium in collaboration with local industrial partners like Nordural is also actively developing its own inert anode smelting approach focused on Vertical Electrode Cell (VEC) technology with vertical inert anodes and low‑temperature electrolyte operation. Germany’s TRIMET Aluminium is also one of them involved in inert anode development in collaboration with Icelandic partners, aiming to commercialise in Europe by around 2030

Among the advanced technologies, carbon capture has become another crucial system in the decarbonisation of aluminium production. RUSAL has brought Russia’s first industrial carbon capture, utilisation, and storage (CCUS) project, which captures CO₂ using a closed-loop water circulation system to prevent its release into the atmosphere. Over the next decade, this initiative is expected to eliminate 1.8 million tonnes of CO₂ equivalent emissions. This achievement is a key element of RUSAL’s broader strategy to reduce its carbon footprint and implement climate-resilient technologies.

Other technologies available in the market are HalZero, a proprietary technology from Hydro that uses a closed loop recycling system for carbon and chlorine to eliminate CO2 emissions from smelting. Then there’s Mechanical Vapour Recompression, which employs electricity to boost the pressure and temperature of waste steam, offering a highly efficient alternative to fossil fuel boilers in refining.

Not to forget, there are advanced recycling technologies and innovation in sorting and removing impurities for higher volume of recycled aluminium.

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Recycling and the role of recycled aluminium

Recycling and incorporating recycled aluminium is a proven solution to significantly reduce carbon emissions, as it consumes 3 to 5 per cent of the energy needed for primary metal production. Furthermore, about 80 to 95 per cent of greenhouse gas emissions can be reduced at aluminium recycling compared to primary metal production. This means, instead of 15 tonnes of CO2e generated from one million tonne of primary aluminium, only 0.52 tonnes of CO2e are emitted per tonne of recycled aluminium. Some of the notable recycled aluminium brands are owned by Hydro, Novelis, EGA, Alcoa, and Capral Aluminium.

Owing to the 75 per cent post-consumer scrap content, Hydro’s recycled aluminium boasts a carbon footprint as low as 1.9 kg CO2e per kg of aluminium. Also, with some variants containing up to 100 per cent recycled aluminium, have a carbon footprint below 0.5 kg CO2e per kg of aluminium. Alcoa’s recycled aluminium contains at least 50 per cent of recycled content, while ALBA’s, available in four variants, come with 15 per cent, 20 per cent, 30 per cent, and 50 per cent, recycled aluminium content, respectively. ALBA also offers recycled aluminium that generates net-zero to up to 4 tonnes of CO2e per tonne of aluminium. Capral’s recycled aluminium generates less than 8 kg and 4 kg CO2e per kg of aluminium, respectively, made from a mix of post-consumer scrap and low-carbon primary aluminium. 

These companies’ initiatives towards producing recycled aluminium do not end here. Novelis has pledged to incorporate 75 per cent of recycled content in its products by 2030 and has launched the "3x30" vision to advance circular solutions, while Alcoa is developing the ASTRAEA process to purify post-consumer scrap, allowing lower-grade scrap to be used in high-end applications. 

Also read: Global aluminium scrap trade trend: US sells, Asia buys

While global aluminium majors have advanced their recycled aluminium capabilities, RUSAL has taken a distinct technological lead in this space. The company has developed an electrolysis-based process to produce high-quality aluminium directly from scrap, including off-grade materials with higher impurity levels. This approach enables the conversion of lower-quality scrap into metal of P1020 grade, in addition to achieving low carbon footprint as this technology boasts high energy efficiency with about 9 MWh of energy consumed to produce one tonne of aluminium from scrap.

Recycled aluminium mixed with primary aluminium produced from renewable energy is another practice towards decarbonisation, followed by EGA. The company offers aluminium containing both recycled metal as well as primary produced from renewable energy.

Renewable energy in decarbonisation

Talking about the usage of renewable energy in producing aluminium reminds of RUSAL, which carries out 90 to 98 per cent of aluminium production with the use of renewable power. RUSAL’s low-carbon aluminium brand ALLOW offers the metal produced using hydropower energy, with a footprint below 4 tonnes of CO2e (Scope 1 and 2).

Primary aluminium industry can reduce carbon footprint by 60 to 75.5 per cent with the usage of renewable energy as a source of power, albeit subject to baseline energy mix and specific production technologies used. Electricity consumption is the single largest contributor to aluminium’s carbon footprint, accounting for approximately 70 per cent of total emissions globally. Coal-fired aluminium production typically generates round 12.7 to 20 tonnes of CO2e per tonne of aluminium. In contrast, with the use of renewable energy, such as hydropower or wind, carbon footprint remains between 4 and 5 tonnes of CO2e per tonne of aluminium.

Even in the United States and Europe, aluminium is produced predominantly with the use of hydropower, which is why the industry in those countries has carbon footprint of about five tonnes of CO2 per tonne. Aluminium produced by Century Aluminum uses 100 per cent renewable energy, sources being hydro and geothermal, generating below 4 tonnes of CO2 per tonne of aluminium.

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There are companies that are even exploring beyond local green grids by planning to set up production complexes powered by renewable energy. For instance, AM Green in India has entered into an agreement with Mitsui & Co. to explore investment options for constructing a green aluminium complex with capacity 1 million tonnes per year. The complex will have an aluminium smelter and alumina refinery powered by renewable wind and solar backed up by pumped hydro storage. This could be the first fully-integrated renewable energy aluminium plants globally. Rio Tinto in partnership with AMG Metals and Materials and NALCO are also planning to build integrated aluminium capacity. NALCO is actively installing captive wind and solar capacity to cut emissions at facilities.

Given India’s rapidly growing electrical sector, RUSAL has particularly developed innovative, high-performance aluminium-scandium wire rod that offers higher strength and durability than other aluminium alloys, without compromising electrical conductivity. This product brings the discussion full circle that aluminium is central to energy transition while its production demands decarbonisation. This product of RUSAL reflects that dual reality – engineered for electrical infrastructure and produced using more than 99 per cent renewable energy.

The market fundamentals support this direction. In 2024, the global electrical sector drove strong aluminium demand, accounting for 16.3 per cent of total consumption. This trend is driven by large-scale investments in energy infrastructure and clean energy, with global investments exceeding USD 2 trillion.

Overall, while the aluminium industry faces significant challenges in reducing its carbon footprint, the combination of recycling, renewable energy, and technological advancements such as inert anode and carbon capture presents a promising path toward achieving the sector’s decarbonisation goals.

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Note: The image is AI-generated and is used for illustrative purposes only