Tomago Aluminium supports Federal Government’s threat to build 1000MW gas plant for fuel energy supply

Tomago Aluminium’s chief executive officer Matt Howell has reportedly supported the federal government for its warning to intervene in the National Electricity Market and build a gas plant on a condition of ‘like-for-like’ power when AGL’s Liddell coal-fired power plant shuts.

Mr Howell has also praised the decision of Queensland zinc refinery Sun Metals to powering its entire operations with renewable electricity by 2040, but mentioned that it is not possible for Tomago’s Hunter Valley aluminium smelter to follow the same.

He said, "I spent a bit of time on the zinc industry, and I know for a fact that they can ramp down the current in a zinc furnace, and just leave it there for a few days. But you can't do that with aluminium, you can't do it with a blast furnace.”

He added, "So every metal is different and we need to really understand the industry and then how do we help them transition."

Howell noted Tomago Aluminium’s Hunter Valley smelter, Australia’s largest consumer of power, still needs fossil fuels. So, he insists that the market needs a ‘like-for-like’ power plant after Liddell closes in 2023, even if it involves a drastic market intervention like the federal government building a controversial 1000 megawatt gas-fired power plant.

"Anything that promises to be more reliable, cheaper, cleaner, should be looked at," he said.

Howell also said that in the decades to come there would be fired renewables available, but to survive the interim gas would be the ideal transition fuel.

However, Mr Howell’s urge for ‘like-for-like’ replacement has put him at odds with the Australian Energy Market operator and energy market analysts who insisted the proposed 1000 meagwatt gas fired power plant is overkill and based on outdated model.