Alcoa signs contract with energy producer in Spain

Alcoa Corp. recently signed a contract for an undisclosed amount with Greenalia, an independent renewable energy developer and producer, that supports the planned restart of the San Ciprián, Spain, aluminum smelter in January 2024.

“This power contract is a very important step for the long-term viability of San Ciprián,” Álvaro Dorado Baselga, Alcoa vice president of global energy and Alcoa in Spain president, said. “We are working to fulfill our commitments to the workers’ representatives, and the support of government in the development of the necessary energy framework remains vital.”

The long-term power purchase agreement would begin in 2024 and expire at the end of 2033. It is subject to the wind farm permitting processes.

Under the agreement, Greenalia would provide up to 183 megawatts of the smelter’s baseload power consumption.

This represents approximately 45 percent of the energy required to meet the smelter’s maximum capacity of 228,000 metric tons annually, and Alcoa is examining options for the remaining 55 percent.

In response to exorbitant energy prices, Alcoa curtailed aluminum smelting at the site for two years but kept the casthouse and alumina refinery operational.

The announcement was made in December 2021, with a planned restart at the beginning of 2024.