The Clean Energy Council welcomes the Federal Government's announcement of a $2 billion production credit for the aluminium sector to switch to reliable, renewable electricity – a move set to help retain aluminium manufacturing on Aussie shores and lay the foundations for future investment in clean energy technologies and local jobs.
Aluminium plays a critical role in renewable energy technologies, including solar panels, electric vehicles and batteries. While global demand is set to double by 2050 largely driven by the energy transition, competition in the sector is fierce, and future competitive advantage will depend on access to low-cost, low-emissions electricity.
Clean Energy Council Chief Executive, Kane Thornton, said the Government’s announcement, is an incentive to secure Australian industry and jobs for the long-term in a new era of clean manufacturing in Australia.
As the world’s second largest producer of both bauxite and alumina with the best access to solar and wind resources in the developed work, Australia is ideally positioned to be the long term home of clean aluminium production.Kane Thornton Clean Energy Council Chief Executive
“There are tens of thousands of people employed in both the aluminium and clean energy sectors in Australia, and this announcement is good news for the health of both of these vital industries.
“Australia’s four aluminium smelters collectively consume around 10 per cent of total electricity in the National Electricity Market, and their sustainable and long-term operation is critical to an orderly energy transition.
“Australia’s largest energy users are making the switch to clean energy – striking power purchase agreements with Australia's clean energy providers – and this scheme will turbo-charge that transition, strengthening the international competitiveness of our local industries in the process.
“But this is not only about securing existing industries – it sets the foundation for the growth and expansion of green metals production in Australia over the long term. We won’t attract new investment in clean metals production if we can’t retain the industries we’ve got.
Mr Thornton said that the scheme was an important element of a suite of policies to position Australian industries for the future.
“To ensure that the clean manufacturing in Australia can flourish, this scheme will need to be complemented by continued public investment in a fit-for-purpose transmission network and efficient planning and approvals assessment processes for the clean energy sector,” he said.
ENDS
For more information or to arrange an interview, contact:
Liam Straughan
Clean Energy Council Media Officer
+61 409 470 683