Australia's largest aluminium smelter plans to fast-track its decarbonization drive

Tomago Aluminium, the largest aluminium smelter in Australia and New South Wales' biggest energy consumer, will speed up its decarbonisation drive and work with renewable energy producers to boost Hunter's clean energy transition.

Developing opportunities for renewable power generation and energy storage projects in the region and beyond will be one of the company's priorities by 2029. The initiative will also significantly boost the construction and development of the A$100 billion Hunter Renewable Energy Zone.

For the purpose of supporting its net-zero ambition and decarbonisation strategy, the company will solicit expressions of interest in developing, investing in, or procuring long-term traceable renewable energy or firm power generation projects.

David Fallu, the Chairman of Tomago Aluminium, said, “The Company would lead in the state's clean energy transition. Tomago Aluminium is NSW's largest energy user and as such plays a pivotal role in shaping future renewable energy investment in the state.”

"This is a significant opportunity to collaborate and drive investment in competitive firmed renewable energy sources. We are committed to transitioning the business to a low carbon future, and this is a key step towards reaching that very important goal."

Tomago Aluminium is an unincorporated joint venture of Rio Tinto, Gove Aluminium Finance, and Norsk Hydro that operates independently. Approximately A$11.9 billion in revenue is generated annually by aluminium exports in Australia.

In New South Wales, Tomago Aluminium, Australia's only aluminium smelter is the largest and most efficient of Australia's four operational aluminium smelters. Indirectly and directly, the smelter supports more than 6000 jobs. Every year, it generates almost $500 million in disposable income and $465 million in incremental government revenue, part of which is captured by NSW.

Tomago requires 950 megawatts or 12 per cent of NSW's grid capacity to operate uninterruptedly. Moreover, its 950 megawatts of 'interruptible' load can take the entire national energy market offline in minutes.

The Chairman added, "Tomago Aluminium is well placed to collaborate with industry to lower the risk profile of delivering significant commercially viable renewable energy projects in addition to supporting network stability through the energy transition."

According to the Australian Industry Energy Transitions Initiative report, Tomago Aluminium must invest A$8 billion in transmission storage infrastructure to switch to clean energy.

Aiming to achieve net-zero emissions in supply chains by 2050, the initiative brings together key industry and finance companies. To decarbonize Tomago Aluminium, A$3.9 billion in capital investment will be required, as well as A$4 billion for battery storage.

AGL's Hunter Energy Park earmarked for the Liddell power station site, the 700 megawatt Waratah Battery, and a similar 700-megawatt battery dedicated for Eraring Power Station are likely to play an essential role in helping heavy industry transition to clean energy.