AGL to supply extra capacity for Portland smelter

Portland Aluminium smelter in Victoria

AGL Energy has finalised a new additional electricity supply agreement with Portland Aluminium joint venture following its plans to restart 35,000 metric tons per year of curtailed potlines at its Portland aluminium smelter in Victoria.

The additional contract is for a volume of 72MW for four years, beginning in July 2022 until 2026 and represents a mutually beneficial commercial outcome.

The project is expected to create approximately 30 permanent roles at the smelter and about 50 temporary construction positions. The smelter currently has a workforce of about 680, consisting of both direct employees and contractors.

AGL chief operating officer Markus Brokhof said AGL was pleased to support Alcoa with this additional supply, which will allow the smelter to operate at 95 per cent of its capacity, and is proof of the company’s longstanding relationship with Alcoa.

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“We welcome Alcoa’s decision to restart these pots which will allow AGL to continue playing a role in supporting the smelter’s operations,” Brokhof said.

“The Portland smelter is one of AGL’s largest wholesale customers in Victoria and provides critical stability to the state’s energy network.

“This restart will continue to support the communities in which the Portland smelter operates, as well as providing essential jobs and security to Victoria’s electricity supply.”

This agreement will supplement the five-year energy agreements with AGL, Alinta Energy and Origin that commenced on August 1, 2021.