Portland Aluminium Smelter gets nine-year electricity deal with AGL

Alcoa of Australia, the majority owner of Victoria’s Portland Aluminium Smelter, has announced a nine-year agreement with AGL, effective July 2026 and covering half of the power required for the site to run at capacity.

According to the announcement on Friday morning, the agreement covers 300 megawatts of power, with Alcoa “pursuing options for the smelter’s remaining electricity requirements… with a strong focus on renewable energy.”

The smelter is currently running at 75 per cent of capacity, with 100 per cent representing 358,000 tonnes of aluminium per year.

Alcoa of Australia President Matt Reed said, “this agreement… provides a strong platform for the long-term future of the smelter, which is central to the social and economic fabric of the Region.”

Alcoa of Australia – which is a JV of Alcoa Corporation (60 per cent) and Alumina Limited (40 per cent) – said that 40 per cent of electricity currently consumed by the smelter is from renewable sources, including the nearby Portland wind farm. Alcoa has a net zero by 2050 goal.

“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,” added Reed.

An Australian Renewable Energy Agency-backed study was announced in October last year concerning the potential for a proposed 1,000 MW Spinifex Offshore Wind Farm to power the smelter.

The Portland smelter represents 20 per cent of Australia’s aluminium output, and consumes about 10 per cent of Victoria’s electricity.

Portland Aluminium is 55 per cent owned by Alcoa of Australia, with the remainder owned by CITIC Nominees (22.5 per cent), and Marubeni Aluminium Australia (22.5 per cent).

Picture: credit ARENA

Further reading

Wind farm could power Portland aluminum smelter

Now energy prices threaten Tomago smelter

Government acts to open up offshore wind power production