Capral Aluminium’s Smithfield extrusion plant recently welcomed Minister for Industry and Science, Ed Husic MP, as the Australian Government unveiled its landmark $2 billion Green Aluminium Production Credit initiative.
This program, set to launch in 2028–29, is designed to support the transition of Australia’s aluminium smelters to renewable electricity, solidifying the country’s position in the global green metals market.
The credit will provide financial incentives for smelters that achieve significant emissions reductions before 2036, with payments linked to the volume of green aluminium produced over a 10-year period.
Given that Scope 2 emissions—primarily from electricity consumption—account for 85 per cent of aluminium smelting’s carbon footprint, the initiative represents a critical step in driving deep decarbonisation.
A review in 2030 will assess the program’s impact, while an additional $1.5 million investment over three years will help shape global green aluminium standards.
This aligns with Australia’s Future Made in Australia plan, reinforcing the nation’s role as a leader in sustainable metals production.
According to the Federal Government, with a fully integrated aluminium supply chain and over 75,000 jobs supported by the industry, Australia is well-positioned to capitalise on the growing demand for green metals.
The initiative will also leverage the Guarantee of Origin Scheme to track and verify emissions reductions, ensuring accountability and global competitiveness.
According to Capral, Minister Husic’s visit to the company underscores the industry’s pivotal role in Australia’s transition to a low-carbon economy.
“This program is set to transform the Australian aluminium industry, driving sustainability and supporting local manufacturing,” the company said.
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