Business report

Alcoa signs a second energy agreement for a Spanish plant

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Alcoa Corp. recently signed a second power purchase agreement for the future restart of the San Ciprián aluminum smelter in Spain.

“This agreement demonstrates Alcoa’s efforts to find a viable solution for the San Ciprián smelter,” said Álvaro Dorado Baselga, Alcoa Vice President for Global Energy and President of Alcoa in Spain. “While the energy agreements represent significant progress, the success of the smelter will depend on the development of a long-term competitive energy framework in Spain and the approval of the permitting process for these wind farms.”

The agreement is with Endesa, a company in the Spanish electricity sector, to provide power balancing services for smelter load from 2024 to at least 2030, either from base load volumes, via other agreements with third parties or directly from the market. Balancing services deliver electricity to the smelter’s point of consumption.

The deal also includes up to 131 megawatts, or just over 30% of the smelter’s power needs at maximum capacity, from the second half of 2025 through 2033.

Earlier this year, Alcoa signed an agreement with Greenalia for up to 183 megawatts, subject to the wind farm licensing process. This represents about 45% of the energy required to reach the maximum capacity of the foundry.

The agreement with Endesa will complement the agreement with Greenalia.