Century Aluminum’s Norðurál Grundartangi subsidiary has commenced construction of a low-carbon billet casthouse at its aluminium smelter in Iceland.
The new casthouse will have a capacity of 150,000 tpy of low-carbon billet production and is expected to start production in the first quarter of 2024. The expansion project will also double Grundartangi’s capacity to 120,000 tpy of primary foundry alloys. This incremental billet and primary foundry alloy capacity replaces standard-grade ingot production, raising expected product premiums for Grundartangi products. The USD120m investment is expected to create approx. 90 jobs.
Casthouse for low-carbon Natur-Al billets for the European market
“We are very excited to bring billet production to Grundartangi and, beginning in 2024, to bring low-carbon Natur-Al billet to the European market,” commented president and chief executive Jesse Gary. “Once complete, the new casthouse will enable Grundartangi to produce over 80 % of its production as value-added products, further strengthening this world-class asset. In addition, by utilizing renewable electricity to further process our aluminium into billets in Iceland, we are not only creating a more valuable product, but we are also strengthening the Natur-Al brand and lowering the carbon footprint of aluminium production throughout Europe. We are proud to announce that the project will be fully financed with Icelandic green financing from Arion Bank and powered with green energy from our partners at Landsvirkjun.”
Natur-Al products made by using renewable energy sources
The new Natur-Al billets and foundry products will be produced to meet growing demand from European customers for low-carbon aluminium products. Grundartangi uses Iceland’s 100 % renewable energy resources to create Natur-Al aluminium, which has one of the lowest CO2 footprints in the world. Natur-Al billet and foundry products are expected to have less than a quarter of the CO2 content than the industry average, fulfilling the growing demand from Europe’s most environmentally conscious consumers. Natur-Al products can significantly reduce the carbon footprint of end products which is necessary in the highly competitive markets for consumer goods, vehicles, packaging and construction materials.
Century´s total aluminium production at Grundartangi is around 320,000 tpy.