Capral Aluminium has secured up to $3.45 million in funding from the Australian Renewable Energy Agency (ARENA) to support a major upgrade at its Bremer Park extrusion facility in Queensland, advancing the company’s ongoing focus on lower-emissions manufacturing.

The funding will be used to replace a 40-year-old gas-fired log furnace with a fully electric furnace system, introducing new technology designed to improve energy efficiency, reduce emissions and strengthen operational performance.

The project involves the installation of an electrically heated convection furnace, supported by induction heating technology and waste heat reticulation. This new system is expected to lift energy efficiency from approximately 20% to more than 90% while reducing Capral’s Scope 1 emissions.

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Richard Axe, Capral’s National Extrusion Business Manager said the upgrade reflects a clear focus on improving both environmental and operational outcomes.

“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 new furnace is expected to reduce Capral’s Scope 1 emissions by approximately 973 tonnes of CO₂-e per year, equating to around 9% of the company’s total Scope 1 emissions. Alongside emissions reduction, the project will deliver improvements in productivity, maintenance and process control, supporting more consistent manufacturing outcomes.

The Bremer Park installation will also play an important role in shaping future investment decisions across Capral’s national manufacturing network. With a number of furnaces approaching end of life over the coming decade, the learnings from this project will help inform further electrification opportunities.

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Capral Managing Director and CEO Tony Dragicevich said access to ARENA funding is critical in enabling projects of this scale to move forward.

“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 towards lower-carbon solutions.”

The project forms part of ARENA’s National Industrial Transformation Program, which supports initiatives aimed at reducing Scope 1 and 2 emissions across Australian industry. The program focuses on enabling the integration of clean energy technologies into existing operations, helping businesses transition while maintaining productivity.

For Capral, the investment aligns with its broader sustainability objectives, including reducing emissions across its operations and supporting customers with lower-carbon aluminium solutions.

The Bremer Park furnace upgrade is scheduled for delivery within the next 12 months, with commissioning expected early 2027. Once operational, the project will demonstrate how electrification can be applied in high-temperature industrial processes, supporting both emissions reduction and long-term operational performance within Australian manufacturing.

Architecture & Design Team

Capral Aluminium

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