TIPS_2022__South_Africa_s_aluminium_value_chain_and_climate_change_compatibility_

THE FUTURE OF THE SOUTH AFRICAN ALUMINIUM VALUE CHAIN 44 4.1 Scenarios for the future of the aluminium value chain 44 4.1.1 Business as usual 44 4.1.2 Decarbonising the value chain 45 4.1.3 Technology 46 4.1.4 Electricity 47 4.1.5 Primary aluminium 47 4.2 Secondary aluminium and downstream sectors 54 4.3 The future of the South African aluminium value chain – summary 55 5. [...] THE SOUTH AFRICAN ALUMINIUM VALUE CHAIN The aluminium value chain is considered one of the industrial pillars of the South African economy. [...] Electricity from the national grid consists of 20% of the energy mix and is used in the aluminium powder production lines and in non-production activities, such as lights and air conditioning. [...] While the country has started to decarbonise the grid, the decarbonisation process may not be fast enough to ensure the survival of the aluminium value chain. [...] The decarbonisation of the national grid should be part of a long-run solution for the sustainability of not only the aluminium value chain but the entire economy, but does not appear to be a short-term solution to maintain the competitiveness of the smelter.