Alcoa secures 573 MW wind energy deal with Spanish renewable company for San Ciprian aluminium smelter

The American industrial corporation producing aluminium Alcoa Corp has inked a pre-agreement with Capital Energy, a Spanish renewables company to secure some 573 MW of wind power for its San Ciprian aluminium smelter in the north-western part of Spain.

Capital Energy in the previous week stated, “We had committed to supply 876 GWh per year to the smelter for an initial period of ten years. The power would come from 11 wind farms that Capital Energy is currently developing in the region of Galicia”

It further added, “We had been granted grid access rights for all of the projects, and is now working on securing the permits.”

However, the supply of wind energy to the Galicia-based San Ciprian aluminium smelter is set to commence in 2024.

The fresh pre-agreement emerges following Alcoa inked a corresponding arrangement with renewables group Greenalia SA to secure locally-sourced wind power for the energy-intensive aluminium smelter.

The escalation of power prices in Spain has driven Alcoa to contend the functionalization of the San Ciprian aluminium plant for years and proposed a shutdown and collective dismissal in 2020 after tormenting huge losses.

The company said, “Energy expenses accounted for 60% of the total costs of primary aluminium production in 2021.”

The sixth-largest aluminium producer, Alcoa signed an agreement with the San Ciprian aluminium smelter workers in the previous to axe the activity at the facility for nest two years and resume in January 2024, while during this phase, the company will deliver the employees their full wages, invest in the facility and secure long-term energy purchase agreements.