Emirates Global Aluminium, the Middle East's biggest aluminium producer has struck a deal with the BMW Group to sell the carmaker aluminium produced using solar power.

EGA will supply 43,000 tonnes of CelestiAL aluminium to BMW Group per year. Using solar aluminium from EGA will reduce BMW Group’s emissions by 222,000 tonnes of CO2 per year, EGA said in a statement. 

EGA has supplied metal to BMW Group since 2013 for use in the German carmaker’s engines and other parts. EGA began production of CelestiAL earlier this month, the first time solar power has been used to produce aluminium commercially worldwide.

BMW Group’s annual supply contract with EGA is worth a three-digit million-euro sum, the statement said. EGA’s CelestiAL metal will cover almost half the annual requirements of Plant Landshut, the BMW Group’s only production facility for light metal casting in Europe.

EGA’s CelestiAL aluminium is made using electricity generated at the Mohammed Bin Rashid Al Maktoum Solar Park, located in the desert outside Dubai and operated by Dubai Electricity and Water Authority.

"Aluminium plays an important role in e-mobility and using sustainably produced aluminium is tremendously important to our company," Dr. Andreas Wendt, BMW AG Board Member for Purchasing and Supplier Network, said.

The Mohamed Bin Rashid Al Maktoum Solar Park has a current installed capacity of some 1,013 MW with capacity to eventually reach 5,000 MW by 2030.

Producing aluminium is energy intensive, and generating electricity accounts for some 60 per cent of the global aluminium industry’s greenhouse gas emissions. The use of solar power significantly reduces the emissions associated with aluminium smelting.

(Writing by Seban Scaria ; editing by Daniel Luiz)

 seban.scaria@refinitiv.com

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