Rio Tinto to expand its AP60 low-carbon aluminium smelter in Quebec
June 12 2023 - 9:22AM
Business Wire
Rio Tinto will invest $1.1 billion (CAN$1.4 billion) to expand
its state-of-the-art AP60 aluminium smelter equipped with
low-carbon technology at Complexe Jonquière in Canada. The total
investment includes up to $113 million (CAN$150 million) of
financial support from the Quebec government. This expansion, which
will coincide with the gradual closure of potrooms at the Arvida
smelter on the same site, will enable Rio Tinto to continue meeting
customers’ demand for low-carbon, high-quality aluminium for use in
transportation, construction, electrical and consumer goods.
The investment will add 96 new AP60 pots, increasing capacity by
approximately 160,000 metric tonnes of primary aluminium per year,
enough for 400,000 electric cars. As a result, there will be a
total of 134 AP60 pots and a capacity of approximately 220,000
tonnes per annum. Construction will run over two and a half years,
with commissioning of the new pots expected to start in the first
half of 2026 and the smelter fully ramped up by the end of 2026.
Once completed, the expanded smelter is expected to be in the first
quartile of the industry cost curve.
This new capacity will offset the 170,000 tonnes of capacity
lost through the gradual closure of potrooms at the Arvida smelter
from 2024. In addition, Rio Tinto will add 30,000 tonnes of new
capacity through the commissioning of the previously announced
recycling facility at Arvida in the first quarter of 2025. These
facilities will ensure Rio Tinto’s casting facilities at Complexe
Jonquière continue to provide value added products that meet
customers’ needs, including integrating recycled post-consumer
aluminium into primary aluminium alloys.
The AP60 smelting technology was developed by Rio Tinto’s
Research and Development teams and is amongst the most efficient
and lowest carbon technology currently available at commercial
scale. When combined with the hydropower used at Rio Tinto’s
operations in Canada, it generates one seventh of greenhouse gases
per tonne of aluminium when compared with the industry average, and
half the emissions when compared to the technology currently used
at the Arvida smelter.1
The project will generate up to 1,000 jobs during the peak of
construction and approximately 100 permanent jobs will be
maintained as a result of the expanded smelter.
Rio Tinto Chief Executive Jakob Stausholm said: “This investment
is aligned with our strategy to decarbonise our value chains and
grow in materials essential for the energy transition. Our AP60
technology is already proven and producing some of the lowest
carbon aluminium in the world, thanks to the expertise of our
highly qualified workforce and access to renewable hydropower. This
is the most significant investment in our aluminium business for
more than a decade and it will further strengthen Rio Tinto’s
high-quality and low-carbon offering to our customers as they also
work to reduce their own carbon footprint.
“I would like to thank both the Government of Canada and
Government of Quebec for their support in progressing this project.
We are also continuing to work together on the future
implementation of the ELYSISTM zero carbon smelting technology at
our Quebec facilities.”
Quebec Premier François Legault said: “A great momentum is
building in our regions for our green economy. The aluminium
industry in Saguenay-Lac-Saint-Jean has always been a real source
of pride and has created considerable wealth in the region. Today's
announcement will breathe new life into this industry with greener,
less polluting processes. The use of AP60 pots will halve GHG
emissions in aluminium production. With the upcoming ELYSISTM
technology, Quebec aims to become the world champion of green
aluminum.”
The Honourable François-Philippe Champagne, Canada’s Minister of
Innovation, Science and Industry, said: “Canada has all it takes to
be the global green supplier of choice. And that is why our
government is collaborating with key industry actors like Rio Tinto
to produce the world’s greenest aluminium. By supporting the
production of green metals, we ensure Canada will remain at the
forefront of the economy of tomorrow. When economic benefits are
paired with a commitment to developing green solutions, it’s a win
for our industry, our cleantech ecosystem and our workers.”
In addition to this investment in low-carbon aluminium, Rio
Tinto is working with the Governments of Canada and Quebec towards
a deployment of the ELYSISTM zero carbon aluminium smelting
technology at its Saguenay–Lac-Saint-Jean facilities. With the
current development pathway, ELYSIS aims to have its technology
available for installation from 2024 and the production of larger
volumes of carbon-free aluminium approximately two years later.
Rio Tinto and the Government of Canada have also signed a
Memorandum of Understanding that deepens their commitment to
strengthen supply chains for low-carbon primary metals, critical
minerals and other value-added products. The cooperation will also
aim to support projects that have the potential to grow Rio Tinto’s
activities in Canada, including the current and future
decarbonisation of the aluminium supply chain.
The investment in the AP60 smelter is already included as
replacement capital expenditure in Rio Tinto’s capital investment
guidance for 2023 to 2025. The Group’s capital expenditure guidance
of $9 billion to $10 billion in both 2024 and 2025 remains
unchanged.
Note to editors
Photos and videos of the existing AP60 aluminium smelter at
Complexe Jonquière can be downloaded using this link:
https://we.tl/t-Mub5RYH7Co
This announcement is authorised for release to the market by
Steve Allen, Rio Tinto’s Group Company Secretary.
1 The AP60 technology generates approximately 1.6 tonnes of CO2e
per tonne of aluminium produced, compared to approximately 3.2
tonnes of CO2e per tonne of aluminium for the Arvida smelter’s
current technology, and over 12 tonnes of CO2e per tonne of
aluminium for the industry average.
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