A New Zealand-developed climate technology designed to make aluminium smelters more energy-responsive is headed to China under a new partnership between EnPot and Siemens Energy. The agreement was signed in Shanghai this week, aligning with China’s aim to shift 30% of aluminium production to renewable energy by 2027.
Signatories Formalise Bilateral Agreement in Shanghai
The agreement between EnPot and Siemens Energy was signed in Shanghai on Wednesday, with New Zealand Prime Minister Christopher Luxon attending the event. China, which produces more than 55% of the world’s aluminium, has set a goal to power 30% of its aluminium production with renewable energy by 2027.
“This agreement is a great example of a successful collaboration between NZ and China-based companies and a positive step towards decarbonisation,” said Luxon. “It’s great to see NZ climate tech competing on the world stage to make a real difference in this emissions-intensive sector.”
Smelter Innovation Matches Variable Energy Grids
The aluminium industry’s fixed energy demand has long posed a challenge to integrating renewable power. EnPot’s solution enables smelters to ramp energy usage up or down by as much as 30% without disturbing operational stability.
“Aluminium smelters have production constraints that have historically prevented them from moderating production in response to spot electricity prices,” the company said. “Our system enables you to make more metal when there’s an abundance of energy and less metal when you know the wind’s not blowing.”
Chinese Market Faces Pressure and Presents Opportunity
According to EnPot CEO Karyna Young, Chinese smelters are under increasing pressure from the government to reduce emissions. “We spend a huge amount of time over in China. We’ve been working with Siemens for some time now, and we will jointly approach customers with solutions. This is just a formalisation of us holding hands and getting into business,” said Young.
She added that Siemens Energy, which operates across the entire energy value chain from generation to storage, would tailor its contributions to each smelter’s needs.
“Once upon a time, a hydro generation might have one dry year every seven. That is changing, and you might get one dry year every two or three years,” she said. “There are 230 smelters in the world. Every single one of them has a very unique proposition.”
Proven Technology Gains Global Ground
EnPot’s system is already operating successfully at TRIMET Aluminium’s smelter in Essen, Germany, where it has been in commercial use since 2019 following an earlier pilot. The technology was originally developed at the University of Auckland’s Light Metals Research Centre (LMRC) between 2003 and 2007.
“TRIMET have always been pioneers in the aluminium world,” said Young. “The Light Metals Research Centre has very strong affiliations with most smelters around the world.”
Ownership of EnPot includes Auckland UniServices, the university’s commercialisation arm (12.2%), and Invest South (10%), backed by Community Trust South.
Company Plans Expansion and Eyes Global Growth
Young confirmed that EnPot is profitable and working through expansion and finance plans, with global ambitions.
“The question has to be, what is right for the company, what is right for the shareholders? Where are we going to be impactful, and who’s got the biggest appetite to become a flexible energy user to reduce those emissions from an aluminium context?” she said.
EnPot is also exploring the potential for implementation at New Zealand’s Tiwai Point smelter with owner Rio Tinto. “For EnPot technology to be installed in most of the smelters worldwide.”