Global aluminum consumption is on a path to reach 124 million tons by 2030, but growth comes at an environmental cost. Production of the silvery white element is energy-intensive, pumping out more CO2 than most other metals. In the context of decarbonization pledges, the onus is on the aluminum industry to build a greener future. This Viewpoint examines the many facets of green aluminum with a focus on the Gulf Cooperation Council (GCC) and its potential to lead the change.
Aluminum is a core component of the world around us. From construction and industrials to transport and consumer goods, it functions as an electricity transmitter, an engine part, a smartphone’s casing, the cans we drink from, and more. This lightweight metal is nothing if not versatile, and global demand is rising. Industry players welcome the news, but growing demand doesn’t just bring financial gain; it also brings responsibility.
A decade ago, the term “net zero” had barely made any monumental waves. Today it’s mainstream, pushing stakeholders across the value chain to turn the silvery white element a shade of green.
Growth in global aluminum consumption over the next decade is expected to exceed 3% per year, according to CRU, from 100 million tons this year to 124 million tons by 2030, with transportation, electrical, and consumer durables driving demand. However, growth comes at an environmental cost: aluminum is the most energy-intensive of all metals, generating the highest CO2 emissions at around 15 tons per ton, according to Arthur D. Little (ADL) analysis (see Figure 1).
The majority of energy consumption and emissions in the bauxite-to-aluminum value chain originates from the aluminum-smelting process, followed by alumina refining (see Figure 2). Consequently, most technological advancements targeting decarbonization in the industry concentrate on these two stages of production.
The call to action is clear: growing consumer demand for green alternatives is compelling stakeholders to collaborate and innovate for a sustainable future. Gains will proliferate, not just for the planet, but for businesses and the economies of tomorrow.
Over the next decade, 16 million tons of additional green aluminum demand is expected globally, with hybrid and electric vehicles (EVs) driving approximately 70% of the total. Aluminum’s unique characteristics underpin this demand: it is lightweight, conductive, and resistant to corrosion, making it valuable and useful in a range of use cases across multiple industries. It is also infinitely recyclable and among the few metals with a clear, achievable pathway to zero-carbon emissions.
What’s more, aluminum is the only metal expected to have a high impact on future green demand and can crosscut most new clean technologies. Its usage in solar photovoltaics, concentrated solar power, EVs/battery storage, and electricity networks is particularly high. It is also used widely in the wind, hydro, bioenergy, electricity networks, and hydrogen arenas.
Despite aluminum’s many advantages and use cases, numerous trends focus on replacing it. Examples include the development of new fiber-based barrier technologies for Tetra Pak packaging, environmentally friendly alternatives to aluminum foil, and the use of magnesium alloys in manufacturing, which offer greater specific strength and energy absorption. Additionally, fiberglass is surfacing as a potential structural alternative to metals. Conversely, the substitution of steel with aluminum in construction is rising, as is the broader application of aluminum alloys.
Because demand for the metal is still high, removing hydrocarbons from power generation will be the main challenge to the green aluminum ecosystem. Smelters powered by fossil fuels are relatively new and have few options for power sources. As a result, coal powers around half of aluminum production — a reality that the industry must address through a combination of innovation, advanced technology, and commitment from stakeholders.
The GCC has the cheapest gas-based power in the world. With energy accounting for 50% of aluminum costs, it can produce aluminum in large volumes, at low prices, and with fewer emissions than coal-based production. There is also an increasing trend of using solar power for aluminum production, and the region has sunshine in abundance. Plus, the GCC has a strong supply base when it comes to raw materials like bauxite.
Outside of China, the GCC is the largest growing aluminum-producing region in the world, churning out more than 6 million tons in 2023, according to the International Aluminium Institute. Along with a reputation for innovation, vast energy supplies, and strong global links, the region is a prime location for the green aluminum industry to take root and thrive — and given the climate crisis, the need has never been greater.
Thanks to greater demand and wide-ranging use cases in green tech, aluminum can play a major role in building a sustainable future. China is by far the biggest player in the aluminum domain, producing more than 41.6 million tons last year, but when it comes to the rest of the world, the Gulf states are well placed to drive green momentum across the ecosystem:
To support the energy transitions of the GCC’s aluminum industry, ADL has identified four key pillars that can shape the path to green: (1) reducing CO2 emissions, (2) developing new technologies, (3) creating a circular economy, and (4) maximizing green market potential.
Leading multinational corporations are strategically refocusing their efforts to reduce their carbon emissions and meet ambitious environmental goals. Aluminum companies across the GCC region can gain actionable insights from the efforts and initiatives already underway to boost the green aluminum industry on the global stage.
In recent years, leading international companies with access to renewable power have launched innovative low-carbon aluminum products. Austrian aluminum processor HAI was a first mover, launching SustainAl 2.0 in 2021 — a product it claims can produce less than 4 tons of CO2/ton.
India’s largest aluminum producer, Vedanta, followed with the launch of Restora in February 2022, making similar claims regarding the product’s capabilities. Since then, Norsk Hydro and French-Spanish producer Aludium have each introduced products — CIRCAL and Aludium ECO 2.0, respectively — that reportedly have the potential to drive down emissions to 2 tons of CO2/ton.
These lower-carbon products are more costly to produce than conventional aluminum, but consumer appetite for sustainable offerings is rising. Many buyers are still reluctant to pay the premium attached, but that is beginning to change. In particular, B2C players are demonstrating increasing interest in low-carbon aluminum and will gradually require suppliers to submit lifecycle assessment data in response to the environmental concerns of their customers.
Among the international companies embracing greener aluminum is Belgian-Brazilian drinks multinational AB InBev, which has launched low-carbon cans. Jaguar Land Rover now requires all new vehicle designs to include upcycled aluminum, and Apple uses low-carbon aluminum across its devices. The iPhone maker’s green commitment goes even further; in July 2020, it announced its commitment to reach carbon neutrality across its supply chain and products by 2030 by reducing emissions by 75%. Apple also supports carbon removal through its sustainability initiatives, such as collaborating with aluminum suppliers to develop the first-ever direct (Scope 1) carbon-free aluminum-smelting process.
In addition to individual companies, entire industries are responding to consumer sentiment by forming coalitions dedicated to decarbonization:
cloud technology axon
Headquartered in France with an established footprint across the Unite...
