Rio Tinto, AMG Metals explore low-carbon aluminum plant in India

British-Australian multinational mining firm Rio Tinto and Indian energy transition company AMG Metals and Materials have tied up to conduct a feasibility study to develop a low-carbon aluminum plant in India.

The proposed green aluminum plant will have an annual capacity of 1 million tons (mt) of primary aluminum and over 2 mt of alumina, and will be powered by renewable energy.

AMG was founded by Anil Chalamalasetty and Mahesh Kolli, who are also the co-founders of Greenko Group, a clean energy firm, and AM Green, which produces green chemicals, including green ammonia, hydrogen, olefins, and caustic soda.

The feasibility study will explore the production of 500,000 tons of primary aluminum annually in the first phase, Rio Tinto said in a statement.

As part of the study, AMG will explore renewable energy options with Greenko, while Rio Tinto will look into commercial alumina solutions.

Headquartered in Hyderabad, Greenko is backed by, among other investors, sovereign wealth funds including Singapore’s GIC and Abu Dhabi’s ADIA.

“Partnering with AMG Metals & Materials enables us to assess how we can develop low-cost, responsible aluminum production powered by renewable energy,” Rio Tinto Aluminium chief executive Jérôme Pécresse said.

AMG Metals and Greenko group president Mahesh Kolli said, “Over the last few years, we have been able to deliver a multitude of decarbonization solutions comprising electricity, molecules, chemicals, and fuels.”

The new deal will produce much-needed low-carbon aluminum at scale, propelling decarbonization initiatives in global supply chains across auto, construction, consumer packaging, and other segments, Kolli said.

Greenko has a near-term operational renewable energy capacity of 10 gigawatts (GW) across solar, wind, and hydro and is also building 100 GWh of single-cycle storage capacity across India.

AM Green is developing low-carbon ammonia projects across India to reach 5 mtpa of green ammonia capacity by 2030.

The company’s first plant is being built in Kakinada on the east coast of Andhra Pradesh.

It has a projected capacity of 1 mtpa of green ammonia, and will be one of the world’s largest Renewable Fuels of Non-Biological Origin-compliant green ammonia facilities, the statement added.