Rio Tinto And Hydro Invest $45M In Carbon Capture For Aluminium

Rio Tinto and Hydro have agreed to a strategic partnership to develop carbon capture technologies for aluminium smelting. Over the next five years, the two industry giants will invest a combined $45 million in a bid to overcome one of the biggest challenges facing the aluminium sector: reducing carbon emissions from the electrolysis process, which accounts for 75% of a smelter's direct emissions. This collaboration is part of a larger push to speed up the industry's transition to net-zero emissions by 2050.

Under this collaboration, Rio Tinto and Hydro will share research, development costs, and results while evaluating and scaling up carbon capture technologies from the laboratory tests to commercial feasibility. Both companies will work to test their solutions that capture CO2 from flue gas. This is a great challenge since its concentration is very low, around 1%. The companies need to overcome the technology barrier by pooling their resources with a view to bringing effective solutions to the market.

The research work and pilot tests will primarily take place at the Rio Tinto European facilities and at Hydro sites in Norway. Geographical spreading is advantageous as both companies get to use infrastructure that is established, as well as knowledge garnered through experience on their operations during the development of these innovative decarbonisation technologies. Rio Tinto and Hydro will still drive independent efforts for achieving net-zero emissions while remaining within the confines of the cooperation; this actually gives credence to the multipronged nature of industrial decarbonisation efforts.

Rio Tinto Chief Executive Jakob Stausholm cited collaboration in efforts toward reaching climate goals. "Through the partnership with Hydro, we're evaluating some of these carbon capture technologies for use at aluminium smelters and, together, are discovering more effective ways to take advantage of each other's strengths and research capacities in meeting this climate change challenge," he said. In such words, emphasis is put on solving the challenge together as opposed to single-handed attempts toward massive decarbonisation.

To that effect, Hydro President and Chief Executive Officer Eivind Kallevik explained carbon capture technologies remain an essential piece in its approach to a net-zero world. "Carbon capture technologies are key to the decarbonization of existing smelters, and the partnership with Rio Tinto will further the pursuit of fit-for-purpose solutions toward the faster achievement of a net-zero aluminum production future," he said. He adds: innovation and alliances.

Rio Tinto and Hydro are part of a larger trend in the aluminium industry to find cleaner production methods. Both companies are already working on pioneering projects to reduce emissions. Hydro has been advancing its HalZero technology, a carbon-free smelting process, while Rio Tinto has played a significant role in the ELYSIS joint venture, which focuses on developing a breakthrough technology for carbon-free aluminium smelting.

Carbon capture has become a critical component of decarbonization strategies for hard-to-abate sectors like aluminium production. For industries in which renewable energy can easily substitute for fossil fuel, aluminium smelting poses specific challenges, however, since the electrolysis process is inherently energy-intensive. Existing carbon capture technologies are too primitive to effectively capture and store CO2 emissions from flue gas. The research and development work led by Rio Tinto and Hydro targets these challenges with the aim of bringing viable solutions to commercial scale.

Beyond the immediate benefits of technological developments, this alliance is important. Rio Tinto and Hydro can set a precedence for cross-industry collaboration toward fighting climate change by combining their R&D efforts. Their move is in tune with the transitioning aluminium sector's efforts toward increased sustainability, involving investments in renewable energy sources, improved energy efficiency, and a circular economy model.

Further, companies have also demonstrated their commitment to sustainability by past investments in low-carbon aluminum production. In fact, Rio Tinto just announced a $1.1 billion investment in a low-carbon aluminum smelter in Quebec, while Hydro continues to grow its portfolio of environmentally friendly aluminum solutions. This is the direction in which ESG considerations are becoming increasingly important in the aluminum industry and in which leading companies are willing to invest in long-term solutions.

The outcome of this research and the pilot projects will be watched keenly by all stakeholders across the industry and beyond. The implications of such scalable carbon capture technologies on the aluminium sector and other heavy industries struggling with similar decarbonisation challenges will be very significant. On a more fundamental level, this collaboration points out the significance of partnerships in solving climate change - a challenge that requires collective action and innovation.

With the investment in carbon capture solutions and under the strength of combined expertise, Rio Tinto and Hydro are at the forefront of industrial decarbonization. Their focus on creating fit-for-purpose technologies fosters immediate reductions in emissions while fostering future collaborations in the fight against climate change.