Australia’s aluminium smelting and alumina refining industry is a cornerstone of the nation’s industrial base providing significant employment, regional economic activity, export earnings, and contributes to grid stability and energy security. As Australia’s electricity system transitions toward decarbonisation, new and emerging electricity-intensive sectors—such as data centres, hydrogen production, and critical minerals processing—are driving increased competition for renewable and firmed electricity supply.
Australia’s aluminium industry must be able to compete internally against other users to access this energy, as well as externally against other countries with state backing.
To inform future policy and investment decisions, the Australian Aluminium Council commissioned Rennie Advisory to undertake a socio-economic analysis of the value of aluminium smelters (and future alumina refineries) as large industrial users of electricity. The study compares the contribution of the aluminium sector with alternative current and future electricity users and assess how socio-economic value should be considered in energy allocation and planning decisions.
Read the report here:
Smelting Point (Australia’s Critical Window for Energy Market Reform during the Energy Transition)
