Alcoa Australia has signed a nine-year agreement with AGL Energy Limited to support future operations at Portland Aluminium Smelter in Victoria.
The agreement includes 300 megawatts of power supply and goes into effect on 1 July 2026, when the current contracts with AGL expire. This volume accounts for approximately 50% of the energy needed to satisfy the facility’s nominal capacity of 358,000 tonnes of aluminium annually. The Portland Aluminium Smelter is now generating around 75% of that output.
“On behalf of the Portland Aluminium joint venture partners, we are pleased to continue our longstanding relationship with AGL with this agreement that provides a strong platform for the long-term future of the smelter, which is central to the social and economic fabric of the region,” Alcoa Australia President Matt Reed said.
In addition to generating around 20% of Australia’s aluminium, the smelter contributes significantly to the Victorian economy, with more than $68 million in direct salaries, wages, and benefits, and $179 million in local supply contracts paid in 2022.
According to Alcoa, the smelter also continues to provide key market services and contributes to the stability of the power networks as additional renewables join the system.
Currently, around 40% of the smelter’s used electricity comes from renewable sources, including the adjacent Portland wind farm.
Reed stated that Alcoa was looking at solutions for the Portland Aluminium Smelter’s remaining electricity needs through mid-2026, with a significant emphasis on renewable energy, in line with the company’s goal of achieving net zero carbon emissions by 2050.
“South-Western Victoria has been identified as a renewable energy zone with several emerging projects that could potentially provide green power to the smelter and the wider region,” Mr Reed added.
