Alcoa Signs Contract for Renewable Power to Support Restart of Aluminum Smelter

Alcoa Corporation has announced the signing of a contract for renewable energy to support the planned restart in 2024 of aluminum smelting at the San Ciprián smelter in Spain. The official statement of Alcoa has said that the long-term power purchase agreement (PPA) is with Greenalia, an independent renewable energy developer and producer. Subject to windfarm permitting processes, the agreement would commence in 2024 and extend to the end of 2033.

Due to exorbitant energy prices, Alcoa announced in December of 2021 a two-year curtailment of aluminum smelting at the site. During the curtailment, Alcoa is working to secure power purchase agreements and make improvements to prepare the smelter for the planned restart to begin in January of 2024.

Alvaro Dorado Baselga, Vice President Global Energy in Alcoa and President of Alcoa in Spain, said on the new development, “This power contract is a very important step for the long-term viability of San Ciprian. We are working to fulfill our commitments to the workers’ representatives, and the support of government in the development of the necessary energy framework remains vital.”

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According to Alvaro, the agreement is expected to provide up to 183 megawatts (MW) of the smelter’s base-load power consumption, representing approximately 45 per cent of the energy required to meet the smelter’s maximum capacity of 228,000 metric tons per year.

The agreement has not disclosed the contract’s pricing and it remains confidential. Alcoa says that it’s continuing to pursue options for the remaining 55 percent of the smelter’s electricity requirements. While the smelter is curtailed, the cast house and the San Ciprián alumina refinery continue to operate.

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Alcoa is an international player in bauxite, alumina and aluminum products with a vision to reinvent the aluminum industry for a sustainable future. Since developing the process that made aluminum an affordable and vital part of modern life, Alcoa claims that talented workers of the company have developed breakthrough innovations and best practices that have led to greater efficiency, safety, sustainability and stronger communities wherever Alcoa operate.