Emirates Global Aluminium Extends Solar-Powered Aluminium Supply Deal with BMW
Emirates Global Aluminium (EGA), the world's largest producer of premium aluminium, has extended its CelestiAL-R supply agreement with the BMW Group for the coming years. CelestiAL-R is notable for being the world’s first aluminium blend made using solar power and recycled metal, aligning with the growing industry demand for sustainable materials.
The BMW Group utilizes EGA's CelestiAL-R in manufacturing high-quality aluminium components for its vehicles. To mark the renewal of this partnership, Oliver Zipse, Chairman of the Board of Management at BMW AG, visited EGA’s facility in Jebel Ali and Dubai Electricity & Water Authority's Mohammed bin Rashid Al Maktoum Solar Park.
The partnership between EGA and BMW began in 2013, with the BMW Group becoming the first customer to source CelestiAL solar aluminium in 2021. Since early 2023, EGA has exclusively supplied the BMW Group with CelestiAL-R. Under the renewed agreement, EGA will continue supplying tens of thousands of tonnes of CelestiAL-R annually, while also focusing on significantly increasing the proportion of recycled metal in future deliveries.
Abdulnasser Bin Kalban, CEO of Emirates Global Aluminium, commented, "The BMW Group demands the highest quality metal produced with solar power, and this continues to drive our innovation at EGA. Over the coming years, we will further increase the proportion of recycled metal in our CelestiAL-R for the BMW Group while meeting their metal quality specifications. I thank the BMW Group for their trust in EGA."
Producing high-quality aluminium from an increasingly diverse scrap mix poses significant technical challenges. To ensure CelestiAL-R meets stringent standards, EGA conducts detailed chemical composition analysis through optical emission spectrometry at every stage of the production process. State-of-the-art metallurgy laboratories at EGA’s Jebel Ali and Al Taweelah sites play a key role in achieving these standards.
EGA pioneered the use of solar power in aluminium production, a major step in reducing the environmental impact of aluminium manufacturing. Notably, electricity generation is responsible for about 60% of the global aluminium industry’s greenhouse gas emissions. By sourcing locally recycled aluminium and constructing the largest aluminium recycling facility in the UAE at Al Taweelah, EGA aims to further reduce the carbon footprint. The new recycling plant will have an annual capacity of 170,000 tonnes of secondary billets, with production expected by 2026.
Demand for sustainable aluminium is poised for significant growth in the coming years, driven by rising preferences for eco-friendly solutions across industries like transportation, infrastructure, and energy. According to AL Circle's report, "The World of Aluminium Extrusions - Industry Forecast to 2030," aluminium extrusions in the building and construction sector accounted for 55% of worldwide usage in 2023. This was followed by the transportation sector at 18%, with the latter expected to grow at a compound annual growth rate (CAGR) of 4.31% through 2030.
In 2023, China dominated the global aluminium extrusions market, representing 66% of total usage, followed by Europe, the rest of Asia Pacific, North America, and the Middle East and Africa. While the global building sector has slowed, sectors like transportation, industrial, and consumer durables remain substantial drivers for aluminium demand. The adoption of electric vehicles (EVs) is also a major factor pushing the market forward, highlighting the crucial role of sustainable aluminium solutions in future transportation developments.
