Alcoa announces wind power purchase agreement to support future restart of San Ciprián smelter in Spain
Alcoa Corporation (NYSE: AA) today announced an additional power
purchase agreement to support the future restart of the San Ciprián
aluminum smelter in Spain.
This latest agreement is with Endesa, a leading company in the
Spanish electricity sector that is a subsidiary of the Enel Group.
The agreement will provide power balancing services for the smelter
load from 2024 to at least 2030.
Balancing services provide electricity to the smelter’s
consumption point, either from baseload volumes from a power
purchase agreement with Endesa, via other third-party agreements,
or from the market directly.
The agreement with Endesa would include up to 131 megawatts
beginning in the second half of 2025 and through 2033, representing
slightly more than 30 percent of the smelter’s energy requirements
at maximum capacity. The final volume and start of the baseload
power deliveries can be adapted as the process to develop windfarms
evolves. The pricing terms are confidential.
“This agreement demonstrates Alcoa’s efforts to find a viable
solution for the San Ciprián smelter,” said Álvaro Dorado Baselga,
Vice President Global Energy in Alcoa and President of Alcoa in
Spain. “While the energy agreements represent important progress,
the success of the smelter will depend on the development of a
long-term competitive power framework in Spain and getting the
permitting process approved for these windfarms.”
The agreement with Endesa will supplement the terms of a
separate agreement reached earlier this year with Greenalia for up
to 183 megawatts. That agreement, which is subject to windfarm
permitting process, would represent approximately 45 percent of the
energy required to meet the smelter’s maximum capacity.
Together, the agreements with Endesa and Greenalia could provide
up to approximately 75 percent of the smelter base load power.
Alcoa is continuing to pursue options for the remaining 25 percent
of the smelter’s electricity requirements.
Due to exorbitant energy prices, Alcoa announced in December
2021 a two-year curtailment of aluminum smelting at the San Ciprián
smelter. During the curtailment, Alcoa is working to secure power
purchase agreements and make improvements to prepare for the future
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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version on businesswire.com: https://www.businesswire.com/news/home/20221006005210/en/
Investor Contact: James Dwyer 412-992-5450
Media Contact: Jim Beck 412-315-2909 Jim.Beck@alcoa.com
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