Electricity is one of the key inputs for an aluminium smelter, requiring around 13,000 to 17,000 kWh for one tonne (1000 kg) of production. So, the more electric supply, the better it is for any primary aluminium producer; and if it is a hydro or green energy supply, then the best it is for sustainability goals. Aluminerie Alouette Inc., a large aluminium smelter located in Sept-Îles, Quebec, Canada, partially owned by AMAG Austria Metall AG, has reportedly secured a long-term power contract from the state-owned Hydro-Québec, charting the path to greener production amp up.
The news surfaced after the Alouette and Hydro-Québec signed a Memorandum of Understanding, agreeing on supplying 1,035 MW of electricity from January 1, 2030, to December 31, 2045. In addition, 50 MW, divided into two tranches of 25 MW each, will be provided for further organic growth.
The agreement spells out the term of the electricity supply, but not the purchasing price, as it will largely depend on the aluminium price and the Midwest premiums. Nonetheless, the contract guarantees Alouette a competitive price offering to support the smelter to drive its sustainable and profitable development, much in line with the environment, energy efficiency, and automation goals.
Claudia Trampitsch, Chief Financial Officer of AMAG and responsible for the aluminium smelter business as a member of the Alouette Owners' Committee, said: "Our strategic investment in the Alouette smelter is an integral part of the AMAG Group's business model. On the one hand, it secures the supply of primary aluminium for the AMAG Ranshofen site, and on the other, it strengthens the profitability of the AMAG Group. The agreement on key framework conditions for the new electricity contract lays the foundation for the profitable further development of our globally leading aluminium smelter over the next 20 years."
It’s important to note that the electricity supply agreement between Aluminerie Alouette and Hydro-Québec does not signal the beginning of a new partnership—rather, it reinforces a long-standing relationship. The smelter has long relied on clean hydroelectric power from Hydro-Québec, a major contributor to its remarkably low carbon footprint.With an annual production capacity exceeding 550,000 tonnes, Alouette stands as the largest primary aluminium smelter in the Americas. However, the renewed power deal typically prompts the question: is the smelter positioning itself for a future production ramp-up?
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