Aluminium Of Greece Inks Power, Offtake Agreements

Aluminium Of Greece Inks Power, Offtake Agreements

Greek metals conglomerate Mytilineos S.A. has inked agreements for both power provision and offtake for its subsidiary Aluminium of Greece according to a company officer.

Mytilineos president and CEO Evangelos Mytilineos said on a conference call that it now has a power agreement with PPC that runs until 2023. Upon the contract’s expiration, Aluminium of Greece plans to generate its own power via a new 826MW gas unit.

“We are divesting from PPC, something we were afraid to do for years. We will green aluminum [production] and we will have cheaper energy.”

In addition to the gas unit, the firm plans construction of a 1.48 GW photovoltaic energy plant this summer.

Mytilineos also announced an offtake agreement with Glencore plc. The ten-year agreement is worth US$1.5 billion and has a fixed purchase price for alumina and aluminium through the first four years of the contract.

Aluminium of Greece was founded by Pechiney and partnership of other firms in 1960. The plant it operates has a nameplate capacity of 800 thousand metric tons per annum of alumina and 165 thousand metric tons per annum of primary aluminium. Mytilineos purchased the complex in 2005. In addition to alumina and aluminium, the plant processes 1,400 thousand metric tons of bauxite ore from domestic sources and 200 thousand metric tons per annum of imported aluminium.