Alcoa Announces Long-Term Contract for Renewable Power to Support 2024 Restart of San Ciprián Aluminum Smelter
May 19 2022 - 8:30AM
Business Wire
Alcoa Corporation (NYSE: AA)
today 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 long-term power purchase
agreement 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.
“This power contract is a very
important step for the long-term viability of San Ciprián,” said
Álvaro Dorado Baselga, Vice President Global Energy in Alcoa and
President of Alcoa in Spain. “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.”
The agreement is expected to
provide up to 183 megawatts of the smelter’s baseload power
consumption, representing approximately 45 percent of the energy
required to meet the smelter’s maximum capacity of 228,000 metric
tons per year. The contract’s pricing terms are confidential. Alcoa
is continuing to pursue options for the remaining 55 percent of the
smelter’s electricity requirements.
While the smelter is
curtailed, the casthouse and the San Ciprián alumina refinery
continue to operate.
About Alcoa Corporation
Alcoa (NYSE: AA) is a global industry leader in bauxite, alumina
and aluminum products with a vision to reinvent the aluminum
industry for a sustainable future. With a values-based approach
that encompasses integrity, operating excellence, care for people
and courageous leadership, our purpose is to Turn Raw Potential
into Real Progress. Since developing the process that made aluminum
an affordable and vital part of modern life, our talented Alcoans
have developed breakthrough innovations and best practices that
have led to greater efficiency, safety, sustainability and stronger
communities wherever we operate.
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than statements of historical fact, are forward-looking statements.
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forward-looking statements are based on reasonable assumptions, it
can give no assurance that these expectations will be attained, and
it is possible that actual results may differ materially from those
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Investor Contact: James Dwyer 412-992-5450
James.Dwyer@alcoa.com
Media Contact: Jim Beck 412-315-2909 Jim.Beck@alcoa.com
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