Pittsburgh-based Alcoa, a global producer of bauxite, alumina, and aluminum products, recently announced it will curtail one-third of production capacity at its Lista smelter in Norway.
The move will mitigate the site’s high energy costs. Energy pricing at the facility have increased to more than $600 per megawatt hour.
Alcoa expects the situation will improve during the fourth quarter of the year. This is because of an agreement with power utility Statkraft that will provide more predictable energy costs throughout the remainder of 2022 and into 2023.
The smelter’s three potlines have an annual nameplate capacity of 94,000 metric tons. Curtailment of one potline has already begun and will be completed within 14 days. This is approximately 31,000 metric tons.
Employees will be on site to complete an orderly shutdown of the potline and to be ready in the event of a restart.
Of Alcoa’s global smelting portfolio, approximately 30 percent has either fixed price or self-generated pricing, approximately 65 percent is currently powered by long-term energy contracts linked to the LME aluminum pricing, and the remainder is exposed to short-term markets. The Lista smelter is in the last category.
Alcoa aims to reinvent the aluminum industry for a sustainable future.