AMAG AUSTRIA METALL AG: TREND-SETTING ELECTRICITY CONTRACT FOR ALOUETTE SMELTER IN PREPARATION
- Agreement on framework conditions for new long-term electricity contract between Alouette smelter, Québec government and state-owned electricity provider Hydro-Québec
- New electricity contract to enable the purchase of a total of 1,085 MW from 01 January 2030 to the end of 2045 at competitive prices
- Essential basis for profitable further development of the largest aluminium smelter in North and South America
- Existing electricity contract expires as planned at the end of 2029
The shareholders of the Canadian aluminium smelter "Aluminerie Alouette Inc." (Alouette), in which AMAG Austria Metall AG (AMAG) holds a 20% stake, the government of the Canadian province of Québec and the state-owned electricity provider Hydro-Québec have today agreed on key framework conditions for a new long-term electricity contract. A Memorandum of Understanding (MoU) has been signed, on the basis of which the contract is now being finalised.
The new electricity contract is intended to enable the purchase of 1,035 MW from 01 January 2030 to 31 December 2045. In addition, 50 MW, divided into two tranches of 25 MW each, will be made available for further organic growth.
The electricity price depends on the aluminium price and the Midwest premiums (risk-sharing contract), as regulated in the current electricity contract. The conditions set out in the Memorandum of Understanding thus guarantee Alouette's long-term energy supply at competitive prices.
Claudia Trampitsch, Chief Financial Officer of AMAG and responsible for the aluminium smelter business as a member of the Alouette Owners' Committee: "Our strategic investment in the Alouette smelter is an integral part of the AMAG Group's business model. On the one hand, it secures the supply of primary aluminium for the AMAG Ranshofen site, and on the other, it strengthens the profitability of the AMAG Group. The agreement on key framework conditions for the new electricity contract lays the foundation for the profitable further development of our globally leading aluminium smelter over the next 20 years.”
By concluding a new electricity contract, Alouette is committing to investments that will support the sustainable and profitable development of the company over the coming years. They are fully in line with the aluminium smelter’s strategic corporate goals and relate primarily to technological progress as well as the environment, energy efficiency and automation.
With a total annual capacity of over 620,000 tonnes of primary aluminium, Alouette is the largest aluminium smelter in the Americas. Production takes place through the efficient use of electrical energy from hydroelectric power with an extremely low CO2 footprint. The aluminium smelter is located in Sept-Îles in the Canadian province of Québec and has around 950 employees.
