GALTCO: Colombia’s green aluminium project to lead charge in sustainable industrialisation

Colombia's dedication to sustainability reflects years of consistent actions and policies that extend beyond high-profile initiatives in areas like renewable energy and greenhouse gas emissions. The city is emerging as a promising leader in aluminium production within Latin America, drawing inspiration from global benchmarks like the United Arab Emirates, France, Canada, and Norway.

Image Source: GALTCO

Green Aluminum Production Complex in Colombia

With its highly decarbonised energy matrix powered predominantly by renewable energy and abundant natural resources, Colombia is ushering in a new era of sustainable industrialisation through the GALTCO Colombia project— the Green Aluminum Production Complex in Colombia (GALTCO). The GALTCO Colombia Project entails the formulation, development, construction, and commissioning of a primary aluminium smelter with an annual production capacity of 300,000 metric tonnes.

The smelter will be established in Tolu, a town situated in Colombia's Gulf of Morrosquillo region, which the Colombian government has designated as a strategic economic development hub. The project is backed by the National Government as well as the regional administrations of Sucre and Córdoba, the two departments that encompass the Gulf of Morrosquillo.

GALTCO is a world-class, next-generation Green Aluminum Production and Industrial Complex in Colombia. It aims to empower generations of Colombians to innovate, design, and deliver limitless aluminium applications to the world. Guided by core principles of social responsibility, environmental stewardship, and sustainable development, GALTCO embodies a commitment to eco-friendly practices and environmental integrity.

About the initiative

The initiative seeks to establish a cutting-edge facility for producing high-purity primary aluminium, serving both export and domestic markets. By minimising dependence on imported raw materials, the project opens avenues for the growth of new processing industries and enhances Colombia's standing in the global aluminium sector.

"At a time when the global energy transition demands sustainable materials, GALTCO reinforces Colombia's commitment to the production of low-carbon aluminium. This project will not only mark a milestone in the national industry, but will also consolidate the country as a key player in the circular economy and sustainable industrial innovation," said Andrés Rojas, Country Manager of GALTCO Colombia.

GALTCO estimates a total investment of over $3 billion for the project, encompassing port infrastructure, solar power generation, and power transmission lines. Of this investment, 30 to 35 per cent will be directed toward local contracts, injecting approximately $1 billion into Colombian businesses. The company projects initial aluminium exports to surpass $1 billion annually, marking a substantial step toward economic diversification.

"With this project, the country is betting on innovative solutions that combine sustainability and competitiveness, following successful models implemented in countries such as the United Arab Emirates, Norway and Canada," Rojas added.

Strategic location for the industrial developement

Tolu is a small town on the Caribbean coast of Colombia. The town boasts a fully operational port and seamless integration with the National Electric Interconnected System (SIN), making it an ideal site for the GALTCO project. This location will drive industrial development and promote the transfer of technology and knowledge, enhance public services, and create opportunities for skilled employment.

This strategic location is further enhanced by its high solar radiation, excellent national and international logistical connectivity, and expanding port activities. Additionally, Tolú (Coveñas) is home to a facility operated by ECOPETROL, Colombia's national oil and gas company, as well as significant natural gas reservoirs.

"At ProColombia we reaffirm our commitment to supporting initiatives with foreign direct investment such as GALTCO, which demonstrate how collaboration between companies, government and communities can create opportunities for territorial development, promoting economic, social and environmental progress, with a sustainable vision in Colombia, the country of beauty," stated Carmen Caballero, president of ProColombia.

Situated at the intersection of three major cities—Montería, Cartagena, and Sincelejo—Tolú will emerge as a focal point for technology transfer, knowledge sharing, enhancement of public services, and the creation of skilled jobs.

Colombia’s renewable energy matrix

The electrical energy powering GALTCO Colombia will be a combination of electricity sourced from the National Interconnected System (SIN) and a dedicated Photovoltaic Solar Farm, which will be built specifically to supply energy to GALTCO Colombia through a direct connection.

Colombia’s energy matrix, which is approximately 80 per cent reliant on renewable sources, positions GALTCO Colombia to produce aluminium with carbon emissions significantly below the global average. The estimated carbon footprint of production is expected to be around 5 tonnes of CO2 per ton of aluminium. The energy for this initiative will be provided by Electricité de France (EDF), a French state-owned company.

Throughout 2023 and 2024, EDF, GALTCO, and the Colombian government worked together to establish a regulatory framework conducive to electro-intensive industries, including the production of hydrogen and green aluminium. These industries are seen as pivotal for driving the country’s reindustrialization, aligning with government policies aimed at strengthening Colombia’s status as a goods-exporting nation in the medium term, while also creating new qualified jobs.

GALTCO will supply aluminium to the American market, leveraging the free trade agreements signed between the two countries in 2011. Colombia has a total of 18 free trade agreements, including those with the USA, Mexico, and the EU. On January 29th, GALTCO and the Governor of Sucre will sign a Memorandum of Understanding (MoU) to initiate a feasibility study and all necessary support studies for the Low-Carbon Aluminium Project and Complex in the Tolú area.