Alcoa’s Portland aluminium smelter signs new deal with AGL Energy for additional 287 MW of power

Alcoa of Australia Limited has entered into a long-term power agreement with AGL Energy for additional electricity supply for its Portland aluminium smelter in Portland, Victoria.

As per the contract signed, AGL Energy Limited, Australia’s leading energy company with electricity, gas, solar, and renewable power services, will supply an additional 287 megawatts (MW) of electricity to Portland smelter until June 30, 2035.

AGL also agreed to supply 300 megawatts of electricity to Alcoa’s Portland smelter under the renewed agreement in August 2023. Both the agreements are slated to come into effect on July 1, 2026, providing total 587 megawatts of power to the smelter, which is also owned by CITIC and Marubeni Aluminium Australia.

Established in 1986, Portland aluminium smelter is a joint venture between Alcoa of Australia (55 per cent), CITIC (22.5 per cent), and Marubeni Aluminium Australia (22.5 per cent). The daily operation of the smelter is managed by Alcoa.

Under the new agreement, AGL Energy also offers the smelter to replace up to 30 per cent of the contracted volume with renewable energy.

Like the existing contract, the new one also allows AGL to conduct demand-side management in relation to the short-term reduction of power consumption when commercial demand is at its peak.