Aluminium|Energy|Power|Projects|Renewable Energy|Renewable-Energy|Services|System
Aluminium|Energy|Power|Projects|Renewable Energy|Renewable-Energy|Services|System

Alcoa secures electricity for Portland smelter

18th August 2023

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia


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PERTH ( – Aluminium major Alcoa has secured a nine-year power supply agreement with AGL Energy for its Portland smelter, in Victoria.

The agreement covers 300 MW of power supply, effective from July 2026 when the existing contract with AGL ends.

This volume represents approximately 50% of the energy required to meet the facility’s nameplate capacity of 358 000 t/y of aluminium. The smelter is currently producing about 75% of that volume.

Alcoa Australia president Matt Reed said the agreement was welcome news for the smelter’s workforce of more than 760 employees and contractors.

“On behalf of the Portland Aluminium joint venture partners, we are pleased to continue our longstanding relationship with AGL with this agreement that provides a strong platform for the long-term future of the smelter, which is central to the social and economic fabric of the region,” Reed said.

As well as producing around 20% of Australia’s aluminium, the smelter makes a significant contribution to the Victorian economy, with more than A$68-million indirect salaries, wages and benefits, and A$179-million in local supply contracts paid in 2022. As a cornerstone of energy demand in Victoria, the smelter also continues to provide important market services and helps provide stability to the electricity network as more renewables enter the system.

Currently, about 40% of the smelter’s consumed electricity is derived from renewable sources including electricity from the nearby Portland wind farm. Reed said Alcoa was pursuing options for the smelter’s remaining electricity requirements from mid-2026, with a strong focus on renewable energy, aligned with the company’s ambition to achieve net zero carbon emissions by 2050.

“South-Western Victoria has been identified as a renewable energy zone with several emerging projects that could potentially provide green power to the smelter and the wider region,” Reed said.

Edited by Creamer Media Reporter


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