SEATTLE (Scrap Monster): Alcoa Corporation announced that it has signed a contract towards supply of renewable energy, which will further boost the planned restart of San Ciprian aluminum smelter in Spain.
The company press release said that it has entered into a long-term power purchase agreement with Greenalia, an independent renewable energy developer and producer. The agreement is expected to commence in 2024, subject to windfarm permitting processes and will extend for a period of ten years until the end of 2033.
It will provide up to 183 megawatts of baseload power consumption, which represents nearly 45% of the energy requirement to meet the smelter’s maximum capacity. The pricing terms of the contract were not disclosed. Meantime, Alcoa is still pursuing options to secure remaining 55% of power requirement for the smelter.
The high energy prices had forced Alcoa to curtail aluminum smelting operations at the smelter by end-2021. Since then, the company has been pursuing to secure favourable power purchase agreement that could enable restart of the operations at the smelter. Meantime, the operations of the casthouse and the aluminum refinery have not been affected due to the curtailment.
Álvaro Dorado Baselga, President of Alcoa Spain operations noted that the power contract is a very important step for the long-term viability of San Ciprián smelter.