Pittsburgh aluminium pioneer Alcoa Corporation announced this week that it has purchased an additional quantity of wind power from a Spanish utility company that will aid in the 2024 restart of the San Ciprián aluminium smelter.
Alcoa’s new agreement is with Spanish electricity firm Endesa, which is a subsidiary of the Enel Group. The agreement will have Alcoa purchasing wind power from the company from 2024 through at least the end of the decade.
The agreement is in the form of a “power balancing” accord, which means Endesa will provide electricity to the San Ciprián aluminium smelter’s consumption point. The power will be derived from either baseload volumes from a power purchase agreement with Endesa, by third parties, or from the open market. Ultimately the agreement will provide up to 131 megawatts, which is just over 30 percent of the aluminium smelter’s electricity requirements at peak output.
Álvaro Dorado Baselga, Vice President Global Energy in Alcoa and President of Alcoa in Spain, said in a press release that Alcoa is still committed to the San Ciprián aluminium smelter.
“This agreement demonstrates Alcoa’s efforts to find a viable solution for the San Ciprián smelter. 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 windfarms.”
An earlier agreement with Greenalia will provide the San Cipriánaluminium smelter with up to 183 megawatts, or 45 percent of the plant’s electricity demands at peak production capacity. Alcoa says it continues to negotiate to fill the remaining 25 percent of the plant’s power demands.
Alcoa shuttered San Ciprián aluminium smelter late last year due to high energy prices in the area.