Biden Administration Allocates Funds for Green Aluminum Projects
In its final days, the Biden administration has allocated funding to advance green aluminum initiatives, releasing an initial tranche of up to $500 million to Century Aluminum Co. for the construction of the nation's first green aluminum smelter and $17.4 million to Norsk Hydro ASA for a technology upgrade at an aluminum recycling plant in Kentucky.
Century Aluminum’s green aluminum smelter project will be the first new primary aluminum smelter built in the United States in 45 years, according to the Department of Energy (DOE). The smelter, projected to emit 75% fewer emissions than traditional facilities, will have an annual production capacity of 600,000 metric tons of primary aluminum, effectively doubling U.S. primary aluminum production capacity.
Century began discussions with the DOE about the project in March 2024. As part of the latest announcement on January 15, the DOE awarded the company $10 million to begin phase-one activities. This initial phase, expected to last 10 months, will involve selecting a site, conducting initial engineering studies, and completing other development activities. The total funding for the project could reach $500 million. Chicago-based Century has not yet commented on the announcement.
The initiative has been hailed as a landmark step in reducing the carbon footprint of the U.S. aluminum industry. Annie Sartor, aluminum campaign director at environmental group Industrious Labs, called the DOE's support for Century’s project a “major milestone for sustainability in the U.S. aluminum sector.” Sartor emphasized that the green smelter is a vital step toward establishing a domestic supply of low-carbon primary aluminum.
Meanwhile, Norsk Hydro’s Henderson, Kentucky, plant will receive $17.4 million in Inflation Reduction Act tax credits for its HyForge project, which involves expanding its aluminum recycling facility. The expansion will add a 28,000 metric tons per year casting line to the plant, which already produces 90,000 metric tons annually, largely from recycled scrap. The project, aimed at serving the U.S. automotive market, is expected to be completed by 2026.
Duncan Pitchford, president of Hydro’s U.S. aluminum operations, said the federal support would positively impact the project’s timeline. “The estimated completion date is positively influenced by this award,” he told S&P Global Commodity Insights.
