Alcoa and Rio Tinto Announce World’s First Carbon-Free Aluminum Smelting Process
May 10 2018 - 2:22PM
Business Wire
- A revolutionary process to make
aluminum produces oxygen and replaces all direct greenhouse gas
emissions from the traditional aluminum smelting process.
- Alcoa and Rio Tinto launch new joint
venture, Elysis, for larger scale development and commercialization
of the process, with a technology package planned for sale
beginning in 2024.
- Alcoa, Rio Tinto, the Government of
Canada, the Government of Quebec and Apple agree to provide a
combined investment of $188 million (CAD).
- Apple helped facilitate the
collaboration between Alcoa and Rio Tinto on the carbon-free
smelting process, and has agreed to provide technical support to
the JV partners.
- Technology represents the culmination
of decades’ worth of research and development. Elysis will have
access to a host of patents and intellectual property.
- Rio Tinto’s Vincent Christ named Chief
Executive Officer of Elysis.
Alcoa Corporation (NYSE: AA) and Rio Tinto (NYSE: RIO) today
announced a revolutionary process to make aluminum that produces
oxygen and eliminates all direct greenhouse gas emissions from the
traditional smelting process.
Executives of Alcoa, Rio Tinto and Apple were joined by Canadian
Prime Minister Justin Trudeau and Premier of Québec Philippe
Couillard for the announcement, which signals the most significant
innovation in the aluminium industry in more than a century.
To advance larger scale development and commercialization of the
new process, Alcoa and Rio Tinto are forming Elysis, a joint
venture company to further develop the new process with a
technology package planned for sale beginning in 2024.
Elysis, which will be headquartered in Montreal with a research
facility in Quebec’s Saguenay–Lac-Saint-Jean region, will develop
and license the technology so it can be used to retrofit existing
smelters or build new facilities.
When fully developed and implemented, it will eliminate direct
greenhouse gas emissions from the smelting process and strengthen
the closely integrated Canada-United States aluminum and
manufacturing industry. The new joint venture company will also
sell proprietary anode and cathode materials, which will last more
than 30 times longer than traditional components.
Canada and Quebec are each investing $60 million (CAD) in
Elysis. The provincial government of Quebec will have a 3.5 percent
equity stake in the joint venture with the remaining ownership
split evenly between Alcoa and Rio Tinto.
Apple is providing an investment of $13 million (CAD). The
company helped facilitate the collaboration between Alcoa and Rio
Tinto on the carbon-free smelting process, and Apple has agreed to
provide technical support to the JV partners.
Alcoa and Rio Tinto will invest $55 million (CAD) cash over the
next three years and contribute specific intellectual property and
patents.
The patent-protected technology, developed by Alcoa, is
currently producing metal at the Alcoa Technical Center, near
Pittsburgh in the United States, where the process has been
operating at different scales since 2009. The joint venture intends
to invest up to $40 million (CAD) in the United States, which would
include funding to support the supply chain for the proprietary
anode and cathode materials.
Vincent Christ, an experienced leader with more than 30 years’
experience at Rio Tinto Aluminium, has been named Chief Executive
Officer of Elysis. Most recently, he has served as head of
technology, research and development and automation programs. He
holds an engineering degree in electronics and industrial
information technology.
Quotes:
“This discovery has been long sought in the aluminum industry,
and this announcement is the culmination of the work from many
dedicated Alcoa employees. Today, our history of innovation
continues as we take aluminum’s sustainable advantage to a new
level with the potential to improve the carbon footprint of a range
of products from cars to consumer electronics.”Alcoa President and
CEO Roy Harvey
“This is a revolutionary smelting process that can deliver a
significant reduction in carbon emissions. It builds on the key
role aluminium has to play in driving human progress, by making
products infinitely recyclable, stronger, lighter and more fuel
efficient. Rio Tinto is proud to work with Alcoa, Apple and the
governments of Canada and Quebec, to drive an innovation that can
transform the industry and our customers’ supply chains.”Rio Tinto
chief executive J-S Jacques
“Today’s announcement will create and maintain thousands of jobs
for Canadians, significantly reduce Canada’s carbon footprint, and
further strengthen the aluminum industry in North America. It is a
truly historic day for the aluminum industry – and for all Canadian
aluminum workers – who play such an important role in our economy
and our country’s future.”Prime Minister of Canada Justin
Trudeau
“With the establishment of this new facility, Québec will
continue to lead the world in the development of advanced aluminium
smelting technologies. Our investment will play a key role in the
large scale development of this carbon-free aluminium smelting
technology, so it can be deployed and deliver significant
environmental benefits with well paid, highly skilled jobs here in
Québec.”Premier of Québec Philippe Couillard
“Apple is committed to advancing technologies that are good for
the planet and help protect it for generations to come. We are
proud to be part of this ambitious new project, and look forward to
one day being able to use aluminum produced without direct
greenhouse gas emissions in the manufacturing of our products.”Tim
Cook, Apple CEO
Quick Facts about Elysis
- Our name refers to the process at the
center of aluminum smelting, the electrolysis of alumina. It’s a
tribute to our history, but it indicates a fundamental change that
will be known as the Elysis process.
- Elysis will directly employ 100 people,
including research and development, management and sales.
- At the Elysis facility in Québec,
employees will work on the commercialization of the world’s first
zero-carbon aluminum smelting technology.
- In Canada, the technology could
eliminate the equivalent of 6.5 million metric tonnes of greenhouse
gas emissions, if fully implemented at existing aluminum smelters
in the country. That represents an amount roughly equal to taking
nearly 1.8 million light-duty vehicles off the road.
About Alcoa
Alcoa (NYSE: AA) is a global industry leader in bauxite,
alumina, and aluminum products, and is built on a foundation of
strong values and operating excellence dating back nearly 130 years
to the world-changing discovery that made aluminum an affordable
and vital part of modern life. Since developing the aluminum
industry, and throughout our history, our talented Alcoans have
followed on with breakthrough innovations and best practices that
have led to efficiency, safety, sustainability, and stronger
communities wherever we operate. Visit us online on www.alcoa.com,
follow @Alcoa on Twitter, and on Facebook at
www.facebook.com/Alcoa.
Dissemination of Company Information
Alcoa Corporation intends to make future announcements regarding
company developments and financial performance through its website
at www.alcoa.com.
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Alcoa CorporationInvestor Contact:James Dwyer,
412-992-5450James.Dwyer@alcoa.comorMedia Contact:Jim Beck,
412-315-2909Jim.Beck@alcoa.com
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