Carbon Neutrality in Aluminum Industry

Aluminum-Industry-related Companies

90% of CO2 emissions in the course of aluminum smelting (rolling, extruding, forging, and casting) takes place when producing virgin aluminum. Therefore, aluminum smelting operators address to use renewable energy for vast amount of electricity needed for virgin metal production. Although Japan does not produce virgin aluminum and relies on imports, utilization of green aluminum has gradually been started particularly in automotive and construction industries enthusiastic in Scope3 efforts for GHG emission reduction.

However, some domestic companies are reluctant to use green aluminum because of some point out its low production efficiency when connecting metal sources, let alone increasing raw material cost.

In addition, horizontal recycling efforts have been implemented vigorously in recent years as a method of decarbonization through resource circulation. Currently in most cases, horizontal recycling uses the metal waste from the smelting processes, but there have been some cases of building a horizontal recycling system to use used aluminum products. Although there still are many challenges for stable procurement of aluminum scraps to be collected, the efforts in railway vehicles, solar cells, resin sash, etc., are in progress, which attracts attention for their developments.

This report covers domestic companies interviewed on carbon neutrality efforts to contribute to the domestic aluminum industry, aluminum recycling technologies, trends of green aluminum and renewed aluminum ingots, and directions for future business development. It also gives analysis on the environment surrounding the carbon neutrality in aluminum industry as well as the future perspectives.

I   Trend and Perspectives of Carbon Neutrality in Aluminum Industry

• A "new view" of the material industry brought about by resource circulation
• Starting point of carbon neutrality is grasping of Scope 3 emission volume beyond the reach of control
• Overlooking the shrinking casting demand, there is a sign of full-scale cyclic reuse of expansive materials to expansive materials.
• Due to concerns over virgin metals that dependent on vague global affairs, some alloy users show avoidance of Russian originals
• From role model of recycling to a leader of resource circulation
• In order to be a material that continues being chosen by users, efforts addressed by the whole supply chains are needed.
• Apple uses 100% recycled materials in iPhone, and started mentioning PCF for each product in the report.
• For green aluminum procurement, it is necessary to build a "stronger than buyer" relationship with suppliers

II    Trend of Aluminum Industry

For Japan, that has no virgin metals, "Resource circulation" is the top-priority challenge to achieve carbon neutrality.

1. Carbon Neutrality Policy at Japan Aluminum Association
2. Trend of Aluminum Rolling Industry
3. Overseas Trend

III    Carbon Neutrality Strategies at Aluminum Manufacturers

1. Renewable-Energy-Utilized Decarbonization
2. Recycling of Aluminum
3. Procurement of Green Aluminum

IV      Trend of Aluminum Users

1. Manufacturers of Aluminum Cans and of Beverages
2. Construction Industry
3. Automobiles
4. Shinkansen (Bullet Train) car

V    Perspectives and Strategies at Aluminum-Industry-related Companies

• UACJ Corporation
• Nippon Light Metal Company, Ltd.
• Toyo Aluminium K.K.
• Harita Metal Co.,Ltd.
• YKK AP Inc.
• FUJI SASH CO.,LTD.
• Takenaka Corporation
• Kawasaki Heavy Industries, Ltd.
• MITSUBISHI ELECTRIC Corporation
• Suntory Holdings Limited
• Kirin Holdings Company, Limited
• Japan Aluminum Can Recycling Association