Chinese Aluminium industry needs to close down inefficient coal power plants to meet climate goals: Climate think tank Ember

The independent climate and energy think tank focused on accelerating the global electricity transition, Ember said that the Chinese aluminium industry needs to pull down dedicated power capacity equivalent to more than Germany's entire coal fleet over the next decade to put China on track to meet its carbon neutral goals.

China produces for more than half of global aluminium, churning out 37 million tonnes in 2020. President Xi Jinping has vowed China will achieve peak emissions by 2030 and carbon neutrality before 2060.

Ember, in a report said: “China's record aluminium output last year emitted more CO2 than some entire countries, including Indonesia and Brazil.”

Muyi Yang, the author of the report said: “China will need to shut around 47 gigawatts of inefficient, subcritical coal power capacity dedicated for aluminium over the next 10 years or so if it wants to be carbon-neutral by mid-century, the report's author.”

According to Yang: “Germany's total coal power capacity is 42 GW. Chinese aluminium makers have long relied on off-grid captive power plants for the energy-intensive smelting process, with self-generating units accounting for around 65% of the electricity they use.”

“But they are being pushed by the government to use cleaner electricity sources and join China's long-awaited emissions trading scheme in a low-carbon aluminium drive.”

In the recent years there have seen a significant migration of aluminium capacity to southwest of China, the Yunnan province, which has abundant hydropower resources.

“But more action is still required. The magnitude of the challenge is massive, added said Yang, a senior electricity policy analyst at Ember

He said: “Smelters should use cleaner electricity if available but can also look to improve production efficiency and do better aluminium recycling. China should encourage more efficient use of aluminium across its economy.”

“Over 45% of China's inefficient captive coal capacity is in the smelting heartland of Shandong province with more than a third of it, or 17 GW, belonging to top private-sector producer China Hongqiao Group”, said  Ember.