Alcoa signs second energy agreement for Spanish plant

Alcoa Corp. recently signed a second power purchase agreement for the future restart of the San Ciprián aluminum smelter in Spain.

“This agreement demonstrates Alcoa’s efforts to find a viable solution for the San Ciprián smelter,” Álvaro Dorado Baselga, Alcoa vice president of global energy and Alcoa in Spain president, said. “While the energy agreements represent important progress, the success of the smelter will depend on the development of a long-term competitive power framework in Spain and getting the permitting process approved for these wind farms.”

The agreement is with Endesa, a company in the Spanish electricity sector, to provide power balancing services for the smelter load from 2024 to at least 2030 either from baseload volumes, via other third-party agreements, or directly from the market. Balancing services provide electricity to the smelter’s consumption point.

The agreement also includes up to 131 megawatts, slightly more than 30 percent of the smelter’s energy requirements at maximum capacity, from the second half of 2025 through 2033.

Earlier this year, Alcoa signed an agreement with Greenalia for up to 183 megawatts, subject to the wind farm permitting process. This represents approximately 45 percent of the energy required to meet the smelter’s maximum capacity.

The agreement with Endesa will supplement the Greenalia agreement.