Australia finalises A$2.5bn support to keep Tomago aluminium smelter running through 2030s

Australia's federal and New South Wales governments announced on Aug 13 a A$2.5 billion (about US$1.76 billion) ten-year support package to secure power for Tomago Aluminium, the country's largest aluminium smelter, beyond its current electricity contract.

The Australian federal government and the New South Wales government announced on Aug 13 a A$2.5 billion (about US$1.76 billion) ten-year support package for Tomago Aluminium, Australia's largest aluminium smelter. The assistance is designed to keep the facility operating after its existing electricity supply contract expires at the end of 2028.

Tomago Aluminium will sign a ten-year power purchase agreement running to 2038 and will source 100% renewable electricity from 2033. The smelter requires about 950 MW of continuous power, equal to roughly 12% of New South Wales' electricity demand, making it the state's largest single electricity user. Federal industry minister Tim Ayres said the related power arrangements would support around 3 GW of new generation supply.

The smelter is owned by Rio Tinto (51.55%), Gove Aluminium Finance (36.05%) and Norway's Hydro (12.4%). The package underpins long-term Australian aluminium output while shifting a major industrial load onto renewable power, a development closely watched by global aluminium market participants.