Alcoa of Australia Limited (AAI) and Loy Yang Power today announced new base-load electricity contracts to power Alcoa’s smelter at Point Henry, Geelong, and the Portland aluminium smelter to 2036. The contracts take effect in 2014 for the Point Henry (Geelong) smelter and in 2016 for the Portland facility.
Alcoa of Australia’s Managing Director Alan Cransberg and Loy Yang Power’s Chief Executive Ian Nethercote agreed today’s announcement is a landmark for the future of both companies as well as for the Victorian and Australian economies. “Energy security in the form of long-term, base-load agreements is vital to aluminium smelters and the jobs they provide worldwide,” said Mr Cransberg.
“The contracts we signed today provide a platform for Alcoa’s current and future investment in regional Victoria.” The contracts are for approximately 820MW of load and, with future expansion options, could represent more than half of Loy Yang Power’s generation output. “Loy Yang Power and Alcoa both operate vital national economic assets and this contract will ensure that we continue to help power Australia’s ongoing economic growth,” said Mr Nethercote. “We are particularly pleased with the agreements as they support two of our key business objectives – to deliver an efficient and profitable business as well as building a sustainable future in a carbon constrained world,” he added. As part of the new contracts, the parties have signed a carbon reduction agreement, which provides the opportunity to work together on a joint approach to reducing greenhouse gas emissions.
Tags: AAI, Alcoa, Alumininum, Electricity, Loy Yang Power, New contract
