Alcoa plans to deploy the technology, which mixes a refinery by-product with CO2, throughout its operations.
The 'Carbon Capture' system developed by Alcoa's global Technology Delivery Group was launched on Sunday by WA Environment Minister David Templeman together with Alcoa Australia MD Wayne Osborn.
Every tonne of alumina produces around two tonnes of bauxite residue. Alcoa's new residue carbonation process mixes this red mud with CO2, which becomes locked in the structure.
The process also reduces the pH level of residue to that found naturally in many alkaline soils, improving its environmental properties to the point it could potentially be reused as road base, building materials or soil improvements.
When operating at full capacity, the Kwinana carbonation plant will treat all the residue produced by the refinery, locking up 70,000 tonnes of CO2 each year. Alcoa said deployment across its Australian operations could potentially save 300,000 tonnes of CO2 each year.
CSIRO preliminary research into the process published in September last year calculated the technology could reduce carbon from the Australian aluminum sector by 15 million tonnes annually.
Alcoa's Osborn said the company recognised that sharing technologies such as Carbon Capture within the aluminium industry is vital to the sector's long-term sustainability.
The technology is just the latest in Alcoa's efforts in addressing greenhouse emissions, which include a focus on energy efficiency, productivity improvements and technological innovation.
"Alcoa's Western Australian refineries produce half the greenhouse emissions - per tonne of alumina - of a refinery in China," he said.
"Along with Carbon Capture, Alcoa's Australian operations have a lot to offer not only the aluminium industry but the broader debate on reducing greenhouse emissions."
The Alcoa Technology Delivery Group plays a key role in improving the sustainability of Alcoa's nine refineries around the world through its focus on cleaner production and maximising productivity.