En+ Group IPJSC, the world’s largest producer of low-carbon aluminum and independent hydropower, announced that its subsidiary UC RUSAL has proposed a spin out of its high carbon assets and to change its name to AL+.
UC RUSAL will essentially split its metal segment into two companies: carbon-free AL+ and high-carbon NewCo.
UC RUSAL, which will retain the majority of production assets and will be focused on reaching its full potential as a sustainable business, developing inert anode technology in pursuit of carbon free aluminium production; and a newly created entity, consisting of UC RUSAL’s higher carbon assets, including alumina refineries located in Russia (Achinsk, Pikalevo, Bogoslovsk and Ural) and smelters in Bratsk, Irkutsk, Novokuznetsk, Volgograd and Kandalaksha, which will undertake a long-term modernization program.
“This announcement is another major step in our journey to lead the global aluminum industry into the low carbon economy,” Executive Chairman Lord Barker said. “AL+ will be a market leader in green aluminum production as measured by carbon footprint and other environmental credentials. However, this demerger additionally secures the future of important assets in Russia that also have a future in a low carbon world, but which require a fundamentally different approach to technology and a different investment path to our major international businesses.”
AL+ will focus on net zero priorities, further building its low-carbon brand ALLOW and developing a new net-zero brand based on its ground-breaking inert anode technology. Meanwhile, NewCo can concentrate on driving down pollution, delivering a long-term modernization plan to reduce GHG emissions and future proofing its assets with pioneering technologies such as carbon capture, financed through independent access to capital.