AGL agrees new supply contract at Portland aluminium smelter
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The news: AGL Energy has finalised a new agreement to supply additional electricity for the Portland aluminium smelter in Portland, Victoria.
The numbers: AGL will supply an additional 287 megawatts (MW) of the electricity requirement of the Portland Smelter Joint Venture Participants' aluminium smelter until 30 June, 2025. This is in addition to AGL's existing 300 MW supply agreement with the joint venture, which is majority owned by US aluminium giant Alcoa.
The agreement takes effect from 1 July, 2026, and allows for an option to replace up to 30% of the contracted volume with a renewable power purchase agreement with AGL.
The context: AGL said the contract represents a "mutually beneficial outcome on commercial terms".
Similar to AGL's existing contract with Alcoa, it said, the agreement provides AGL with demand side management in relation to the short-term reduction of smelter consumption at times of peak demand.
The source: ASX announcement
