Rio Tinto $RIO (+2,18 %) and AMG Metals Materials (AMG M&M), an energy transition solutions provider, have signed a Memorandum of Understanding to jointly explore the feasibility of developing an integrated low-carbon aluminum project powered by renewable energy in India. AMG M&M is promoted by the two founders of Greenko and AM Green.
Together, the parties will explore the potential development of a primary aluminum smelter with a capacity of up to 1 million tonnes per annum (Mtpa) and alumina production of 2 Mtpa, both powered by renewable wind and solar energy supported by pumped hydro storage. The development includes a study to evaluate a potential primary aluminum smelter with a capacity of 500,000 tonnes per annum in a favorable location in India.
Rio Tinto Aluminum CEO Jérôme Pécresse said: "This study is an important step in our ambition to grow our global low-carbon aluminum footprint while exploring new project approaches and opportunities in emerging markets. The partnership with AMG Metals Materials allows us to explore how we can develop cost-effective and responsible aluminum production based on renewable energy. With its rapid economic growth and strategic location, India is a compelling location for this potential project and is in line with our long-term vision of a more diverse and resilient global aluminum business.
As part of the study, AMG M&M will explore a firm renewable energy solution with Greenko, while Rio Tinto will explore a commercial solution for alumina. The study will also evaluate smelting technology options to determine the most cost-effective solution for the project.
Mahesh Kolli, Group President of AMG Metals Materials and Greenko, said: "Over the last few years we have been able to deliver a variety of decarbonization solutions that include power, molecules, chemicals and fuels. We are delighted to now extend this to the materials sector. This MoU could deliver much-needed low-carbon metals at scale to drive decarbonization initiatives in global supply chains in the automotive, construction, packaging and many other industries."