How does an extruder buying primary aluminium from an Odisha smelter calculate its CBAM figure?

Question

Senseible · Accepted Answer

Count the billet or ingot you buy as a precursor: tonnes consumed times the smelter's direct embedded emissions per tonne. Add your own direct emissions from billet heating, homogenising and ageing furnaces, then divide by tonnes of extrusions produced. Press electricity is not counted for aluminium goods. Get the smelter's verified specific direct embedded emissions for the billet or ingot, by year. Multiply by tonnes of metal consumed, including scrap generated in your plant that you sell on. Add CO2 from gas, LPG or furnace oil burnt in your furnaces. Divide by tonnes of extrusions made in the same year. Scrap carried no embedded emissions under the transitional CBAM rules; check the definitive-period act. Melting and refining it still produces direct emissions that count. A billet with a high scrap share can show a much lower figure than primary metal, so keep scrap purchase records that tie quantities to the casting run. Your EU buyer compares your figure with the EU default value for your CN code and India, which carries a mark-up from 2026. A smelter that will not share verified data pushes your figure towards the default.

How does an extruder buying primary aluminium from an Odisha smelter calculate its CBAM figure?

Steps

Remelted scrap

What the buyer will compare

Worked example: 500 t of extrusions in a year (illustrative inputs)

What Senseible does here