May 11, 2009 (U.S. Equity News) --

With world governments and the industry under more pressure than ever before to go green and reduce the use of emission generating fossil fuels, it may seem strange to think of the situation benefitting the aluminum industry. After all, the electrometallurgical production of aluminum from ore involves prodigious amounts of energy in the form of electricity, some of which is generated from fossil fuels. Although there has been progress over the past century to reduce the electricity used in aluminum processing, there are currently no viable alternatives to the current electricity guzzling process.

But that's just part of the story. First of all, the aluminum industry is extremely important to the United States. The U.S. is the 4th largest producer of ore-based aluminum, generating about $40 billion annually in products and exports. According to the Aluminum Association, "Aluminum is one of the few products and industries left in America that truly impacts every community in the country, either through physical plants and facilities, recycling, heavy industry, or consumption of consumer goods."

Aluminum is considered an indispensable metal due to its low density and corrosion resistance. It is used almost everywhere. In fact, the U.S. is the world's largest consumer of aluminum. And even though the economic downturn has cut into revenue for some, including Alcoa (NYSE: AA), there are still bright spots. Kaiser Aluminum (NASDAQ: KALU) recently reported record quarterly shipments of aerospace and defense products, exceeding the record shipments for fourth quarter 2008.

The key to this remarkable metal's success is its unique links to the greening process that is sweeping the country and much of the industrialized world. Part of this is, of course, is its high strength-to-weight ratio. When someone wants to build an airplane or space vehicle, many of the components are naturally going to be aluminum. It saves fuel and reduces pollution. But you don't have to fly to benefit from less weight. Every ounce that can be shaved from a car or truck's weight also results in less fuel used to move it.

But there's more. The government's stimulus package is expected to give over $6 billion to the building of aluminum transmission lines for the national electric grid. That's because, when it comes to electrical transmission, aluminum is far more efficient and economical than copper. The idea is to expand the nation's transmission system to allow renewable sources of clean green energy, such as solar and wind, to be connected to the grid. A recent study indicated that allowing wind power to supply 20% of the electrical needs of just the Eastern U.S. would save consumers $12 billion every year.