Capral Aluminium has announced it has secured up to $3.45 million in funding from the Australian Renewable Energy Agency (ARENA) to support a manufacturing upgrade at its Bremer Park extrusion facility in Queensland, aimed at reducing emissions and improving operational efficiency.
According to Capral, the funding will be used to replace a 40-year-old gas-fired log furnace with a fully electric furnace system, incorporating electrically heated convection technology, induction heating and waste heat reticulation.
In a LinkedInn post, the company said the upgrade is expected to increase energy efficiency from around 20 per cent to more than 90 per cent, while reducing Scope 1 emissions.
Capral’s National Extrusion Business Manager Richard Axe said the project reflects a focus on improving both environmental and operational performance.
“This project is about improving how we operate at a fundamental level,” Axe said. “Moving from gas to an electric system allows us to reduce emissions, lower fuel costs and improve reliability and output at the same time.”
The company stated the new furnace is expected to cut Scope 1 emissions by approximately 973 tonnes of CO2-e annually, equivalent to about 9 per cent of Capral’s total Scope 1 emissions.
It added that the project is also expected to deliver gains in productivity, maintenance and process control, contributing to more consistent manufacturing outcomes.
Capral Managing Director and CEO Tony Dragicevich said support from ARENA was important in enabling the project to proceed.
“Support from ARENA helps make projects like this possible,” Dragicevich said. “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,” he said.
The project forms part of ARENA’s National Industrial Transformation Program, which aims to support the reduction of Scope 1 and 2 emissions across Australian industry through the integration of clean energy technologies.
Capral said the Bremer Park installation will also inform future investment decisions across its national manufacturing network, with several furnaces expected to reach end of life over the next decade. The company indicated that insights from the project may help guide further electrification opportunities.
The furnace upgrade is scheduled for delivery within the next 12 months, with commissioning expected in early 2027.
Capral said the project is intended to demonstrate the role electrification can play in high-temperature industrial processes, supporting emissions reduction while maintaining manufacturing performance.
