Aluminium manufacturer wins funds to replace 40 year-old gas furnace with fully electric system

Australia’s largest extruder and distributor of aluminium products, Capral Aluminium, has secured up to $3.45 million from the Australian Renewable Energy Agency (Arena) to replace a 40 year-old gas-fired furnace with a fully electric furnace system.

The gas-fired aluminium log furnace is located at Capral’s Bremer Park extrusion facility in Queensland, which recently celebrated its 20^th anniversary and is the largest aluminium extrusion plant in the Southern Hemisphere.

Bremer Park has also begun transforming into a hub for sustainable aluminium extrusion, with Capral successfully trialling several processes designed to incorporate recycled content in its products and demonstrate the viability of closed-loop recycling.

The new funding from Arena makes up half the $6.91 million needed to replace the 40 year-old gas-fired furnace with a fully electric furnace system, which Capral hopes will improve energy efficiency, reduce emissions, and strengthen its operational performance.

A new electrically heated convection furnace will be installed, supported by induction heating technology and waste heat reticulation, and will increase energy efficiency from approximately 20 per cent to over 90 per cent.

The electric upgrade is expected to reduce Capral’s Scope 1 emissions by around 973 tonnes of CO2-equivalent a year, which is around 9 per cent of the company’s total Scope 1 emissions.

“This project is about improving how we operate at a fundamental level,” said Richard Axe, Capral’s national extrusion business manager.

“Moving from gas to an electric system allows us to reduce emissions, lower fuel costs and improve reliability and output at the same time.”

Capral Aluminium currently expects to begin the upgrade over the next 12 months and commission the new electric furnace system in early 2027.

The upgrade at Bremer Park will also inform further investment decisions for Capral, which has a number of furnaces across its operations that are nearing end-of-life over the coming decade. The information gathered from this first upgrade will therefore further inform future electrification opportunities.

Financial backing from Arena has been critical for Capral’s decision to upgrade to a fully electric furnace system.

“Support from Arena helps make projects like this possible,” said Tony Dragicevich, Capral managing director and CEO.

“It allows us to invest in new technology, reduce emissions and continue to strengthen our manufacturing capability here in Australia.

“This is about making practical changes within our operations that deliver real outcomes, while ensuring we remain competitive as the market continues to shift toward lower-carbon solutions.”

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