The Tiwai Point Aluminium Smelter has Reached a Long-term Power Supply Deal which will Keep it Open for Another 20 Years
After years of anticipation, the agreement is a sigh of relief for many, marking the end of uncertainty surrounding the smelter's viability. This happens while the world's aluminium prices soar to a two-year high.
Meridian Energy's CEO, Neal Barclay, hailed the deal as an "excellent result" following extensive negotiations. He emphasized its significance for New Zealand's sustainable future, highlighting the potential to leverage the country's renewable energy advantage to create low carbon products, high-value jobs, and bolster export revenues.
The agreement not only secures a sustainable future for NZAS but also demonstrates a collaborative effort to address industry challenges. NZAS's commitment to adopting a more flexible approach towards operations reflects a shared commitment to sustainability and economic resilience.
Under the new contract, provisions are in place for the smelter to adjust power usage during peak demand, effectively serving as the country's largest storage battery. This initiative aligns with broader efforts to reduce carbon emissions and enhance energy efficiency across New Zealand.
The deal's significance extends beyond economic stability, with Southland Mayor Rob Scott emphasizing its positive impact on regional employment and stability. With over 2500 jobs at stake, the agreement offers much-needed reassurance to the local community.
NZAS CEO, Chris Blenkiron, expressed optimism about the smelter's role in New Zealand's energy sector, highlighting its potential to contribute to carbon reduction efforts. By offering a substantial portion of its supply during peak demand periods, the smelter aims to support a cleaner energy transition, reducing the country's reliance on coal-generated power.
The collaborative spirit behind this agreement is evident, with Rio Tinto Aluminium CEO Jérôme Pécresse emphasizing the collective effort of all parties involved. The deal not only secures the future of NZAS but also underscores New Zealand's commitment to sustainable industry practices.
As world aluminium prices soar to a two-year high, this agreement positions NZAS for continued success in producing high-purity, low-carbon aluminium essential for the global energy transition.
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