Production at Australia’s Tomago aluminium smelter has been temporally halted by AGL Energy in order to cut down electricity load as the people of New South Wales have been notified of severe state blackouts across the state.
AGL Energy said that the company would curtail electricity consumption at the Tomago Aluminium Smelter to minimize pressure on the power grid.
On Friday, NSW residents were asked to reduce electricity consumption due to heat wave. This could avoid mass blackouts in the state. The Tomago aluminium smelter in Newcastle accounts for 10 per cent of the state's electricity consumption.
AGL Energy has sent curtailment notice to the aluminium smelter prior to shut down of the plant. An AGL spokeswoman said. "The commercial agreement … exists to give flexibility to AGL to manage its customer load during plant outages."
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"In exchange for this flexibility, the smelter has gained commercial benefits under its supply contract."
The Tomago aluminium smelter is the sole largest consumer of electricity in NSW. The smelter exports to Southeast Asia, Japan and China. The plant is a joint venture owned by Rio Tinto Alcan, Gove Aluminium Finance Ltd and Norsk Hydro.
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