Aluminum Company Novelis Aims to Decarbonize

Researched by Industrial Info Resources (Sugar Land, Texas)--According to the International Energy Agency (IEA) (Paris, France), direct emissions from the global aluminum sector have been rising over the past decade, driven by increasing production. One aluminum producer aiming to decarbonize its operations is Novelis Incorporated (Atlanta, Georgia), which said last week it plans to partner with Southern Company (NYSE:SO) (Atlanta, Georgia) subsidiary Alabama Power to "directly support the creation" of two unnamed solar generation plants in Alabama.

The IEA notes the average emissions intensity of aluminum production has seen "only a slight downward trend" in the past few years, and to reach net-zero emissions by 2050, the aluminum sector must "develop and deploy new technologies to reduce emissions from primary and recycled production, while the industry and its customers need to increase scrap collection, sorting and recycling."

Novelis will work with Alabama Power to provide 80 megawatts (MW) of solar power to its under-construction $2.5 billion grassroot aluminum rolling and recycling plant in Bay Minette, Alabama, near Mobile. The facility will cater to the beverage can market with flexibility to shift into automotive, and will be able to produce 1.3 billion pounds per year of finished aluminum goods. Construction is expected to wrap up in mid-2025. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Database can click here to read a detailed project report.

For more information on aluminum-related project activity in the U.S., including Novelis' automotive aluminum sheet mill plant expansion in Kentucky, see September 29, 2023, article - Aluminum-Related Activity Accounts for Billions' Worth of U.S. Projects.

According to an October 9 press release, the Bay Minette plant aims to be carbon-neutral for Scope 1 and 2 greenhouse gas emissions and will use the power from two yet-to-be-named solar projects to cover more than half of the plant's renewable energy needs. Doing so would result in avoiding 192 kilotons of carbon dioxide (CO2) emissions per year, Novelis said.

Plenty of other companies in the U.S. Metals & Minerals Industry are aiming to reduce emissions, in part by adding power generation units at their metals and minerals plants and mines. For more information, see October 12, 2023, article - U.S. Metals & Minerals Companies Aim to Reduce Emissions with Power Projects.

"Partnering with Southern Company and Alabama Power on renewable energy solutions, such as solar power, and exploring new technologies for carbon reduction will help us as we seek to meet our goals to reduce carbon emissions by 30% by 2026 and be carbon neutral by 2050 or sooner," said Suzanne Lindsay-Walker, Novelis' Vice President of Sustainability.

"The future of clean energy depends on unlocking these types of partnerships," added Chris Cummiskey, executive vice president for Southern Company Services.

For more information on Southern Company's project activity, see September 25, 2023, article - Southern Company Acquires Texas Solar Project.

The Southern Company-Novelis agreement entails the construction of two new solar plants in Alabama. According to the most recent data (through the second quarter) from the Solar Energy Industries Association (SEIA), the state ranks 29th in the nation in terms of installed solar capacity, up from 51st in 2022. However, the SEIA also noted solar makes up less than 1% of the state's electricity mix.

Industrial Info is tracking more than $1 billion worth of solar projects in Alabama, including hep Peak Clean Energy's (Louisville, Colorado) under-construction $120 million solar plant in Greenville, Alabama. The plant will utilize photovoltaic (PV) panels for 80 MW of solar generation. Construction is expected to wrap up in 2024. Peak Clean Energy is a unit of hep global GmBh (Baden-Württemberg, Germany). Subscribers to the GMI Power Project Database can click here to read more information.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).