The Albanese government is pushing forward a multi-billion-dollar rescue plan to prevent the Tomago Aluminium smelter in New South Wales’ Hunter Valley from shutting down when its electricity contract expires in 2028. Taxpayer-owned Snowy Hydro is expected to take the lead in securing the long-term power supply that the smelter needs to keep operating.
Image for representational purpose
Under the proposal, Snowy Hydro would underwrite or directly sign long-term, renewable-heavy power offtake agreements, giving the smelter access to stable, lower-cost and cleaner electricity. The plan follows growing pressure from unions, environment groups and industry bodies urging governments to secure a structural, renewable-based solution for the Hunter Valley’s largest employer and one of Australia’s most strategically important industrial assets.
Tomago’s dominance in Oceania
Tomago’s footprint in the Oceania’s aluminium market is enormous. The smelter’s annual capacity of 590,000 tonnes amounts to roughly 40 per cent of Oceania’s total output. Oceania produced 1.86 million tonnes of primary aluminium in 2024 and in the first ten months of 2025, it produced 1.56 million tonnes — underscoring how much of the region’s aluminium supply hinges on a single operation. If Tomago goes dark, more than a third of the region’s primary aluminium production disappears instantly.
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