Rio Tinto is set to install carbon free aluminium smelting cells at its Arvida smelter in Canada using the first technology licence from its ELYSIS joint venture with Alcoa.

The ELYSIS technology eliminates all direct greenhouse gases from the traditional smelting process, producing oxygen instead.

Rio Tinto will design, engineer, and build a demonstration plant at Arvida equipped with ten pots operating at 100 kiloamperes, allowing the use of the current alumina supply and casting facilities.

The plant will be owned by a new joint venture in which Rio Tinto and the Québec Government will invest a total $US285 million ($426.8 million).

The pilot operation is set to be a critical step in Rio Tinto’s journey towards full scale industrialisation of the ELYSIS technology.

The plant will have the capacity to produce up to 2500 tonnes of commercial quality aluminium per year without direct greenhouse gas emissions, with first production targeted by 2027.

“This investment will further strengthen Rio Tinto’s industry-leading position in low-carbon, responsible aluminium in North America with our hydro-powered smelters and our recycling capacity,” Rio Tinto aluminium chief executive Jérôme Pécresse said.

“Becoming the first to deploy the ELYSIS carbon-free smelting technology is the next step in our strategy to decarbonise and grow our Canadian aluminium operations.

“In addition to delivering even lower-carbon primary aluminium for our customers, this investment will allow Rio Tinto to build its expertise on installing and operating this new technology, while the ELYSIS joint venture continues its research and development work to scale it up to its full potential.”

Alcoa will have the option to purchase up to 40 per cent of the aluminium produced over the first four years at the Arvida demonstration plant through an offtake agreement.

“We are proud to progress the technology initially developed at our technical centre to its next phase within the ELYSIS partnership,” Alcoa chief executive officer  William F. Oplinger said.

“Aluminium plays a critical role in the world’s energy transition and decarbonization efforts; with the ELYSIS technology, the smelting of this important metal can also be done without direct carbon emissions.”