Modernising Agreements and Transition to Renewables
Competitive advantage for low-carbon smelters
Aluminium smelter all-in cash costs
(Real US$2021 per tonne)
Hydro
Coal
Carbon costs
3,370
Power costs
Other costs
2,630
1490
750
1,420
1,520
1,650
770
770
1,190
200
100
700
290
290
330
2021e
2030
$50/t
2030
$100/t
2021e
2030
$50/t
2030
$100/t
Carbon price
assumption
60% of world's aluminium production in 2020
powered by coal
China accounted for ~75% of capacity
growth over 2010-20
Carbon intensity of coal smelters is over 7x that of
hydro smelters
Inert anodes could enable zero-carbon smelting
All non-carbon costs are regional weighted averages from CRU, 2021 (long-run uses 2030 costs). Hydro costs are based on a weighted average of Canadian
smelters. Coal costs are based on a weighted average of coal-fired Chinese smelters. Costs do not include CO2 charges from alumina refineries.
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