Colombian firm Neo Aluminio has signed a licensing agreement with Emirates Global Aluminum (EGA) for the latter’s aluminum smelting technology and equipment.
Neo plans to use the technology for its Green Aluminium Transformation Complex for Colombia (Galtco) project, which aims to produce environmentally sustainable aluminum value-added products (VAPs).
Under this project, the company plans to produce 540,000mt of primary aluminum per year, of which 370,000mt will be VAPs. Neo has partnered with EGA since the latter is an established smelter with patented technology and equipment. Neo plans to use the UAE-based company’s hydropower model to lower carbon emissions as well.
Galtco is expected to switch Colombia’s aluminum trading position from an importer to an exporter. According to Neo, the country currently spends $400mn per year on aluminum imports. The project is also expected to create 3,200 new jobs and 10,800 indirect jobs. Neo plans on producing its first round of ingots in 2023.