Lista Smelter in Norway to Partially Curtail to Offset Energy Costs
August 30 2022 - 8:30AM
Business Wire
Alcoa (NYSE: AA) announced today that it will curtail one third
of its production capacity at its Lista smelter in Norway to
mitigate high energy costs for the site.
The Lista smelter has three potlines with an annual nameplate
capacity of 94,000 metric tons per year. The curtailment of one
potline, or approximately 31,000 metric tons, will begin
immediately and is expected to be complete within 14 days. The
employees will remain to complete an orderly shutdown of the one
potline and to be ready in the event of a restart.
The site is currently exposed to spot energy pricing, which has
increased to above $600 per megawatt hour. In the fourth quarter of
2022, the energy situation for the site is expected to improve due
to a favorable agreement with power utility Statkraft that will
provide more predictable energy costs throughout the remainder of
the year and into 2023.
Globally, approximately 65 percent of Alcoa’s global smelting
portfolio is currently powered by long-term energy contracts linked
to the LME aluminum pricing; approximately 30 percent has either
fixed price or self-generated pricing, and the remaining percentage
is exposed to short-term markets, which primarily covers
consumption at the Lista smelter.
About Alcoa Corp.
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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similar meaning. All statements by Alcoa Corporation that reflect
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changes in circumstances that are difficult to predict. Although
Alcoa Corporation believes that the expectations reflected in any
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
indicated by these forward-looking statements due to a variety of
risks and uncertainties. Additional information concerning factors
that could cause actual results to differ materially from those
projected in the forward-looking statements is contained in Alcoa
Corporation’s filings with the Securities and Exchange Commission.
Alcoa Corporation disclaims any obligation to update publicly any
forward-looking statements, whether in response to new information,
future events or otherwise, except as required by applicable
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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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