The US Department of Energy (DOE) Office of Clean Energy Demonstrations has chosen Century Aluminum to enter negotiations for up to $500m in funding for a new aluminium smelter.

This funding will be provided under the Bipartisan Infrastructure Law and Inflation Reduction Act, as part of the Industrial Demonstrations Program.

The Green Aluminum Smelter Project by Century is among 33 projects across more than 20 states to receive funding.

These initiatives are designed to showcase commercial-scale decarbonisation solutions, propelling industries towards net-zero emissions.

The funding aims to strengthen local economies, create and sustain high-quality jobs and significantly reduce greenhouse gas emissions.

Century’s project is poised to establish the first new US primary aluminium smelter in 45 years, potentially doubling the current size of the US primary aluminium industry.

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This represents a significant capital investment in the sector and is expected to enhance domestic supply chains for materials essential to the green energy transition.

The proposed smelter will be situated within the Ohio/Mississippi River Basins, and is expected to create more than 1,000 full-time jobs affiliated with the United Steelworkers and more than 5,500 construction jobs.

Century has plans to partner with job training organisations and local technical colleges to hire as well as train local community members for employment at the new facility.

Century Aluminum CEO Jesse Gary said: “We are extremely proud that the DOE has selected Century’s Green Aluminum Smelter Project to receive such significant support, and we are excited to continue moving this transformational project forward.

“The project embodies a great many goals and aspirations shared by all our stakeholders, including providing a tremendous win for the domestic, primary aluminium industry and the broader US economy, strengthening domestic supply chains of critical materials, protecting our national security interests and building a more sustainable future for generations to come.”