Government races to save Tomago Aluminium from a 2028 shutdown — will negotiations with Snowy Hydro come to the rescue?
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.
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.
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