Aluminium Dunkerque commits significant investment to expedite decarbonization efforts

Aluminium Dunkerque, the largest aluminium smelter in Europe located in North France, is taking significant strides towards decarbonisation. As the European Union's foremost producer of primary aluminium, the company has embarked on the first phase of its ambitious decarbonisation initiative, named "LocAL", resulting to mean low-carbon aluminium. This comprehensive program aims to accelerate the reduction of carbon emissions over three phases, scheduled to be completed by 2050. To kickstart this green journey, the company has already allocated a substantial initial investment of €12.5 million, with a focus on increasing the utilization of recycled aluminium.

In response to the energy crisis that hit the European aluminium industry hard, Aluminium Dunkerque took measures to mitigate the impact of soaring energy costs by implementing a 22 per cent reduction in its production during Q4 2022. To further assist the company in coping with the challenges posed by rising energy prices, the French government stepped in and extended financial aid ranging from €40-50 million. This aid was provided through a support fund launched in July of the previous year, specifically aimed at helping businesses face difficulties in managing their energy expenses amidst high inflation. The objective was to aid Aluminium Dunkerque in navigating through the winter season while handling its energy-related financial burdens.

American Industrial Partners Capital Fund VII, L.P. ("AIP") acquired Aluminium Dunkerque through a wholly owned subsidiary. Founded in 1991, Aluminium Dunkerque is the largest primary aluminium smelter in Europe, specializing in manufacturing aluminium slabs and ingots used in the transport, automotive, aerospace, packaging, building and construction industries.

Europe's leading primary aluminium producer has shifted its focus towards decarbonization, following the smelter attainted full production capacity in January 2023. However, now recognizing the immense demand for aluminium in the low-carbon transition, especially in the automotive industry, the company is now dedicated to reducing its carbon footprint.

The roadmap for LoCAL is characterized by its ambitious and challenging objectives. The primary goal is to achieve a substantial 50 per cent reduction in emissions before 2050, which will be accomplished by adopting innovative technologies such as inert anodes and carbon capture. However, this undertaking necessitates significant long-term investments. One critical aspect is securing a stable energy supply for Aluminium Dunkerque, while strategic partnerships with other manufacturers will also be crucial to the initiative's success. To facilitate progress, seeking support from public authorities is also an essential part of the plan. Overall, the LoCAL roadmap represents a forward-looking and determined effort to address environmental concerns and drive sustainable practices in the aluminium industry.