Century Aluminum’s Green Aluminum Smelter project is one of 33 initiatives chosen to receive funding from the Industrial Demonstrations Program (IDP), aimed at helping energy-intensive industries decarbonize. The IDP will distribute up to $6 billion in grants to support commercial-scale decarbonization efforts.
Century Aluminum, based in Chicago, plans to construct the first new primary aluminum smelter in the U.S. in 45 years. This project, once completed, would effectively double the size of the existing U.S. primary aluminum industry. The company has expressed pride in being selected by the U.S. Department of Energy (DOE) for such substantial support and is eager to advance this transformative endeavor.
The new smelter, expected to be built within the Ohio/Mississippi River Basins, is seen as a game-changer for U.S. aluminum production. It promises significant benefits for the domestic primary aluminum industry and the broader U.S. economy. The project aims to strengthen supply chains for critical materials, enhance national security, and contribute to a more sustainable future.
Currently, there are only four primary aluminum smelters operating in the U.S., located in New York, Indiana, South Carolina, and Kentucky. Century Aluminum has faced challenges with its operations due to high energy costs, leading to the idling of its Hawesville smelter in Kentucky and curtailment of operations at its Mt. Holly smelter in South Carolina. However, a renewed contract with the South Carolina Public Service Authority in October 2023 has allowed Century to maintain current operations.
The clean industry advocacy group, Industrious Labs, underscores the importance of aluminum in the clean energy transition, noting its critical role in manufacturing solar panels, electric vehicles, batteries, and more. However, the aluminum industry in the U.S. has been struggling due to high energy costs, particularly those tied to coal power plants.
The DOE’s IDP, announced in March 2023, is focused on decarbonizing the highest-emitting and most challenging industries, including aluminum, iron and steel, cement, chemicals, and more. The program’s goal is to fund projects where decarbonization technologies can have the most significant impact.
Out of 411 concept papers reviewed by the DOE, 17 were from the aluminum industry, requesting $2.6 billion in federal funds and proposing $2.8 billion in non-federal cost sharing. The selection of Century Aluminum’s project marks a significant step towards establishing a domestic supply of low-carbon aluminum, powered by clean electricity, which could help revitalize the U.S. aluminum industry.
