Alcoa Corporation’s joint partnership Alcoa of Australia (Alcoa) said this week that they have signed a new nine-year agreement with AGL Energy Limited (AGL) to supply Victoria’s Portland Aluminium Smelter with about half its necessary power requirements.
The agreement is for a total of 300 megawatts and is scheduled to begin in the summer of 2026, picking up where Alcoa Australia’s existing contracts with AGL come to a close. No further financial terms of the deal were released by Alcoa Australia.
Alcoa Australia President Matt Reed said in a press release that the agreement was a welcome next step in their relationship with AGL.
“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.”
Reed went on to say that this is another step in his company’s quest to find sustainable power sources for 2026 and beyond. Ultimately, the firm hopes to achieve net zero carbon emissions by mid-century.
The Portland aluminium smelter, which has a nameplate capacity of 358 thousand metric tons per year, is currently running at about 75 percent of that total. At present around 40 percent of its current power production is derived from sustainable sources, most of which is generated at the Portland wind farm, which is close by.
The plant adds a substantial amount to the local economy, employing over 760 individuals. Portland aluminium smelter produces around one-fifth of Australia’s total aluminium output, adds A$68 million in direct salaries, and A$179 million in local supply contracts.
Portland aluminium smelter is 55 percent owned by Alcoa of Australia, 22.5 percent by CITIC Nominees Pty Ltd., and 22.5 percent by Marubeni Aluminium Australia Pty Ltd. Meanwhile, Alcoa of Australia is 60 percent owned by Alcoa Corporation and 40 percent owned by Alumina Limited.
