Primary Aluminium News - General

Plans to power the Portland Aluminium Smelter with 100% renewable energy get $1.5 million funding from ARENA

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Spinifex Offshore Wind Farm has received $1.5 million in financing from the Australian Renewable Energy Agency (ARENA) to supply the Portland Aluminium Smelter with up to 100 per cent renewable energy from a 1,000 MW wind farm off the southwest coast of Victoria.

Plans to power the Portland Aluminium Smelter with 100% renewable energy gets $1.5 million funding from ARENA

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A wind resource evaluation will be done by Spinifex, an Alinta Energy subsidiary, and early-stage development operations leading to the building of the wind farm will be accelerated. The Portland Aluminium Smelter's existing substation would be used to link the offshore wind farm to the National Electricity Market (NEM), which would enable the smelter to run on renewable energy and reduce its carbon footprint.

The smelter can produce over 358,000 tonnes of aluminium annually, more than 20 per cent of the country's total production. It also accounts for 10 per cent of Victoria's total electricity consumption. The wind farm intends to show how fluctuating renewable energy supply may be directly integrated with a significant, ongoing industrial load.

Plans to power the Portland Aluminium Smelter with 100% renewable energy gets $1.5 million funding from ARENA

According to ARENA CEO Darren Miller, the initiative supported the switch to low emissions metals by becoming the first to directly combine variable renewable energy with an aluminium smelter. Additionally, it would end the long-running debate surrounding the power now generated by the Victorian government-subsidized brown coal fields in Victoria.

“Metals production, especially aluminium, represents one of Australia’s most energy intensive industries. We have a real need to help reduce emissions from smelters, which require a steady and sizeable supply of electricity to operate. Offshore wind could be a potential part of the solution space to this problem. Further, the early stage wind resource assessment of the Spinifex project will provide the industry with valuable insights regarding commercial, technical and regulatory aspects of offshore wind developments in Australia,” added Darren Miller.

Phase 1 of Spinifex's projected development pathway for the wind farm, this $3.47 million initiative attempts to increase knowledge of its economic potential. As part of the project, land-based Light Detection and Ranging (LiDAR) equipment will be purchased and deployed to verify the wind resources at the potential Portland location. The Offshore Electricity Infrastructure Act of 2021 calls for necessary planning and environmental studies, and Spinifex will conduct stakeholder and community outreach activities and start scoping efforts.

According to ARENA CEO Darren Miller, this project would be the organization's first investment in a plan that would directly link variable renewable energy with an aluminium smelter, advancing the switch to low-emission metals.

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“Spinifex has terrific potential because the region has strong wind and the project has a ready-made grid connection point, a potential customer, a port, and suitable topography. Given the offshore wind industry is in its infancy, the support from ARENA will be critical to reaching the next stage,” said Jeff Dimery, MD & CEO of Alinta Energy, expressing gratitude for ARENA's assistance and emphasizing the project's special potential.

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