Smart Solutions For The Global Aluminum Industry Conundrum

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Now that the vehicle electrification movement is here to stay, the business of decarbonization is turning attention to the industries that support EV manufacturers. A case in point is the aluminum industry. In addition to taking advantage of renewable energy resources, the industry is beginning to adopt new software services that can forecast demand with pinpoint accuracy, improving energy efficiency while also supporting grid stability and resiliency.

Low-Carbon Aluminum And The View From The US

The US aluminum industry is characterized by older manufacturing facilities, putting it at a disadvantage compared to more up-to-date operations overseas that are in a better position to meet the demand for low-carbon products. Nevertheless, the Chicago-based firm Century Aluminum Company points out that some of its operations have benefited from the renewable energy transition in the US, such as it exists today. The company notes that its two facilities in Kentucky draw 100% of their electricity from the 15-state, renewables-friendly MISO (Mid-Continent Independent System Operator) grid.

MISO has been a wind energy early adopter, and it has also turned its attention to solar energy in recent years. In September, the Southern Renewable Energy Association noted that almost 13.8 gigawatts of added solar capacity are projected in the MISO grid over the next three years or so.

Under the current state of federal energy policy, though, the surge in renewable energy has slowed and the data center construction boom has further complicated matters. The electric markets news organization RTO Insider is among those noting that MISO has shifted its near-term emphasis to natural gas, though it continues to add renewables.

The View From Iceland

In comparison, Century’s Norðurál subsidiary in Iceland is at an advantage. Century acquired the Norðurál primary aluminum smelter facility in 2004. It is now one of the biggest of its kind in Europe, is known for its Natur-Al^TM low-carbon aluminum product line, which Century bills as having one of the “the lowest CO2 footprints in the world.”

One key advantage is Iceland’s copious store of geothermal energy and hydropower. “The Icelandic electricity grid is entirely run on renewable energy, from hydro and geothermal resources,” notes the organization Green by Iceland.

“This has attracted aluminum smelters which produce aluminum with significantly lower CO2 emissions than if their operations were powered with electrical energy from fossil fuels like coal and natural gas,” Green by Iceland adds.

Gilding The Low-Carbon Aluminum Lily, With Data

Access to 100% renewable energy is a key part of the decarbonization process, but large industrial facilities do not operate in a vacuum. Their need for power has to be balanced with grid reliability protocols and the availability of economical rates.

Norðurál has launched the next phase of its energy transition by entering into an energy management agreement with the Icelandic firm SnerpaPower. The company has developed an SaaS (Software-as-a-Service) industrial decarbonization platform that enables facilities like Norðurál to automate their power schedules for maximum efficiency.

“Through this agreement, SnerpaPower will provide Norðurál with advanced energy management and flexibility services through its proprietary software platform,” SnerpaPower explained in a press statement. “The solutions enable Norðurál to optimize and automate power schedules and orders while fulfilling contractual obligations and supporting the stability of the power grid.”

Beyond Renewable Energy

SnerpaPower’s work for the firm Faxaflóahafnir (Associated Icelandic Ports) provides some additional insights into the impact of advanced energy management tools on industrial-scale facilities that operate within a more diverse energy environment.

As a leading port manager in Reykjavík, Faxaflóahafnir has been grappling with carbon emissions from ships that dock at its facilities. The firm has solved part of the problem by making shore connections available to smaller cruise ships, providing them with an alternative to maritime fuel. The firm is currently addressing the more complex challenge of providing shore connections for larger ships.

“With upcoming large-scale shore power projects and increased ship connectivity, the harbour’s electricity demand is expected to rise significantly,” SnerpaPower noted in June, in a press statement announcing the new agreement.

“This poses challenges for both power distribution and infrastructure operations, making predictability, planning, and efficiency in electricity procurement critical,” the company added.

SnerpaPower’s SaaS provides Faxaflóahafnir with real-time data and automated electricity forecasting with the aim of cutting costs while simplifying operations and improving energy efficiency, in addition to reducing local carbon emissions from ships.

The Data Center Solution

SnerpaPower’s work with the Icelandic data center firm atNorth also illustrates the impact of highly accurate forecasting on system operations.

In its 2024 sustainability report, atNorth described its carbon-reducing actions across its roster of data centers in the Nordics, attracting clients in search of economical, low-carbon platforms. The firm cited one of its clients, Shearwater Geoservices, which reported an 84% cost savings and a 92% reduction in carbon emissions after moving its operations to atNorth.

SnerpaPower can take some of the credit. In a case study posted by the company in January, atNorth’s Operations Director Örn Ingvi Jónsson explained the difference, noting that the software “has simultaneously minimized deviations and improved the accuracy of our electricity purchases.”

“SnerpaPower has significantly streamlined our daily operations and optimized our orders for electricity. Our scheduling and ordering process is now fully automatic and optimized for multiple sites, resulting in significant reduction in imbalance energy and lower costs,” Örn Ingvi Jónsson emphasized.

Next Steps For Sustainable Aluminum In The US

Don’t be surprised to see SnerpaPower show up on the radar of US data center stakeholders, too. In May of this year, the company joined the European organization Net Zero Innovation Hub for Data Centers as a Project HubPartner, joining Google and MicroSoft along with Danfoss, Data4, Schneider Electric, and Vertiv in the decarbonization effort.

As for the US aluminum industry, the decarbonization outlook for Century brightened last year when the company was tapped for a $500 million financial assist from the US Department of Energy, earmarked for the new “Green Aluminum Smelter Project.”

If and when the project bears fruit, the Green Aluminum Smelter will be the first new primary smelter built in the US in 45 years. “Upon completion, the smelter would double the size of the current U.S. primary aluminum industry while avoiding an estimated 75% of emissions from a traditional smelter due to its state-of-the-art, energy-efficient design,” the Energy Department explained on January 15, when it announced the first tranche of $10 million towards the agency’s cost-share total of up to $500 million.

“The high-purity aluminum produced from this facility is suitable for national defense, electric vehicles, semiconductors, building and construction, and clean energy applications,” the Energy Department added.

If all goes according to plan, the $10 million award will launch Phase I of the project, under which Century is expected to announce a proposed location for the new facility and set the wheels in motion for community engagement and environmental reviews.

Or not, as the case may be. Earlier this month, the Energy Department cancelled more than 230 decarbonization-related projects in its pipeline, spread among various offices. The Office of Clean Energy Demonstrations, which approved the Green Aluminum Smelter project, was among those affected.

Photo (cropped): The global aluminum industry is decarbonizing, with the help of renewable energy and new energy management software (Norðurál aluminum plant courtesy of SnerpaPower via email).