The manufacture of recyclable aluminum cans can save 95% energy usage over raw aluminum. For every ton of recycled aluminum, the U.S. Environmental Protection Agency (EPA) reports that 14,000 kilowatt-hours of electricity can be saved, which is equal to the consumption of electricity in an average household for 10 years. As per the global recycling of 24 million tons of aluminum cans in 2021, total energy saved was 3.36×10^11 KWH, which is equivalent to reducing 130 million tons of carbon dioxide emissions, that is, 10% of Japan’s annual carbon emissions.
From a financial point of view, the electrolytic process of recycled aluminum utilizes only 5% of the primary aluminum and its cost per ton drops to 30% to 40% of the primary aluminum. Alcoa, for example, costs approximately $500 per ton for its recycled aluminum production line, compared to $1,500 for primary aluminum, saving a rate of 66%. According to the International Aluminum Association (IAI), every 10% increase in the world’s recycling rate of aluminum can reduce the amount of 12 million tons of aluminum mining, reduce the transport energy usage of the supply chain of around 850 million liters of diesel fuel, or the equivalent reduction of 2.3 million tons of carbon emissions.
Aluminum can circular economy effect is tremendous. Coca-Cola, for example, recycled 59% of its aluminium cans globally in 2022 at a cost-saving of $230 million every year in energy costs and a reduction in its carbon footprint in the supply chain by 18%. If the world’s recovery rate for aluminium cans is increased from the current average of 50% to 90%, it is estimated to save 1.8×10^12 KWH of electricity each year, equivalent to 1.2 times the world data centres’ yearly power consumption. Furthermore, the recycling process of aluminum cans only requires 60 days, while the primary process of primary aluminum production lasts 6-8 months, and the efficiency is improved by more than 400%.
And the carbon intensity, 1 kg of primary aluminum production will discharge 11.5 kg of carbon dioxide, while aluminum recycling will discharge 0.5 kg, declining by 95.6%. Norway has a recycling rate of aluminum cans of as much as 97%, and its carbon intensity in the aluminum sector is only 4% of the global average. If China can increase the recycling rate of aluminum cans to 75% of the EU level from the present 33%, the carbon reduction per annum can be as much as 48 million tons, which is the same carbon sequestration effect as planting 2.6 billion trees.
The long-term financial return on aluminum can recycling is also staggering. As McKinsey studies discover, for every $1 invested in aluminum can recycling plants, there can be a financial payback of $12, or more than a 1,100% payback. The value of the United States aluminum scrap recycling industry is $8 billion per year and creates 160,000 jobs. For example, Ball Corporation increased the rate of recycling aluminum cans to 85% through a closed-loop recycling process, and saved $4 million annually per plant in energy expenses, while reducing the carbon footprint of products to 20 grams of CO2 per can, one-third of what it is for plastic bottles.
Based on the life cycle analysis, aluminum cans are recyclable an infinite number of times, and material loss rate is less than 5%, while that of glass bottles in recycling is 20%-30%. Based on a Nature Energy journal study, the energy density of recycled aluminum cans is 8 MJ/kg, much lower than that of raw aluminum, which is 211 MJ/kg. If all the world’s beverage packaging is constructed to be aluminum recyclable cans and 90% recycling is achieved, then overall energy use can be reduced by 2.8×10^20 joules by the year 2050, the equivalent of 15% of annual world oil production.