Constellium joins aluminium producers exploring hydrogen power to decarbonize operations

Aluminium producer and recycler Constellium announced on Tuesday March 12 that the company is moving to test hydrogen utilization at an industrial scale as a power source in its casthouses

Constellium said the move follows “successful laboratory-scale trials” at its main research and development (R&D) center C-TEC in France, where the company “was able to demonstrate that transitioning from natural gas to hydrogen has no adverse effects on energy efficiency, oxidation rate or product quality.”

Recycling and casting represent nearly 50% of Constellium’s direct greenhouse gas (GHG) emissions, and the move to hydrogen utilization in its casthouses will mark a significant step in its commitment to decarbonize its operations, according to the company.

Constellium aims to reduce its emissions intensity by 30% in 2030 compared with 2021 levels.

“Green hydrogen is a promising lever to help the transition to carbon-neutral production,” Ludovic Piquier, Constellium’s senior vice president of Manufacturing Excellence and chief technical officer, said in a press release.

Constellium’s goal is to ensure that it is ready for the adoption of green hydrogen “when it becomes more accessible and cost-effective for industrial applications,” Piquier added.

To prepare for the industrial testing phase, C-TEC has equipped one of its furnaces with a burner capable of operating with oxygen and both natural gas and/or hydrogen; first results are expected by the third quarter of 2024, the company said.

Exploring hydrogen as an energy source

Constellium joins other aluminium producers exploring the utilization of hydrogen as a power source for their operations.

In November 2021, the UAE-headquartered Emirates Global Aluminium (EGA) announced it was entering into a memorandum of understanding with GE Gas Power to “explore the use of hydrogen and hydrogen-blended fuels in EGA’s gas turbine fleet” to decarbonize the aluminium producer’s GHG footprint.

And in September 2022, EGA signed an agreement with UAE’s Ministry of Energy and Infrastructure to join the UAE Hydrogen Leadership Initiative.

In the same month, Aluminium Bahrain (Alba) started construction on its Power Station 5 (PS5) Block 4 Project that combines a cycle power plant with hydrogen-ready J-series gas turbine technology.

Alba expects construction to be completed in the fourth quarter of 2024.

Norway-based Hydro announced in June 2023 that it tested green hydrogen as a fuel for aluminium recycling at its extrusions plant in Navarra, Spain.

Also in June 2023, US-based Novelis announced that the company’s Latchford recycling plant in the UK would test the use of hydrogen on one of its recycling furnaces.

The share of low-carbon aluminium was less than 1% of the global aluminium market in 2022, but demand has been growing, according to the World Economic Forum (WEF) report released last November.

Market participants in Europe has been willing to pay a premium for low-carbon units, with Fastmarkets’ aluminium low-carbon differential P1020A, Europe last assessed at $10-25 per tonne on March 1.

Launched in November, Fastmarkets’ aluminium low-carbon differential P1020A, US Midwest continues to be zero, trading on par with high-carbon units.

To understand the complex market conditions influencing price volatility, download our monthly base metals price forecast, including the latest aluminium price forecasts today. Get a free sample.

What to read next
Fastmarkets erroneously published the twice-monthly assessments for MB-AL-0339 Aluminium primary foundry alloy silicon 7 ingot premium, ddp Germany and MB-AL-0340 Aluminium primary foundry alloy silicon 7 ingot premium, ddp Eastern Europe on December 19 and January 2 because of a procedural error.
Major trading houses Mercuria and Glencore secured copper concentrate offtake agreements totaling at least $450 million in prepayment financing in late December, with Mercuria signing for 195,000 wet metric tonnes from Bulgaria’s Ellatzite mine on December 30 and Orion Minerals providing an update on December 31 on its $200-250 million Glencore financing and offtake deal for South Africa’s Prieska project.
The global antimony market is expected to remain adequately supplied in 2026, shaped by increasing supply in Southeast Asia, relatively stable demand and heightened political oversight of critical minerals, sector participants have told Fastmarkets.
Fastmarkets is inviting feedback from the industry on its pricing methodology and product specifications for non-ferrous materials and industrial minerals, as part of its announced annual methodology review process.
Fastmarkets is clarifying the holiday pricing calendar for its twice-weekly Shanghai copper EQ cathode premium assessment.
Following an informal consultation with the market, and a review of typical data sets that are collected over the recent months, Fastmarkets now proposes to increase the frequency of MB-BX-0016 Bauxite, cif China, $/dmt price to weekly basis and extend the timing of the price to reflect cargoes for arrival within 90 days, as well as moving the publish time to Friday from Wednesday.