Alcoa Corporation has made a significant capital investment of USD 60 million, driven by a new energy contract and a grant of approximately USD 6 million from Empire State Development (ESD). This move is crucial for enhancing the operational efficiency of Alcoa’s Massena Operations located in New York.
Central to this initiative is a new 10-year energy contract with the New York Power Authority (NYPA). This contract, set to take effect on April 1, 2026, will deliver 240 MW of renewable energy at competitive rates. Additionally, the agreement offers an opportunity for extension for two additional five-year periods.
Massena Operations stands out as the world’s longest continuously operating smelter, having commenced aluminum production in 1902. It boasts an impressive annual nameplate capacity of 130,000 tons and employs around 550 workers, including numerous contractors. The facility contributes over USD 66 million in direct salaries, wages, and benefits and engages with 1,800 US suppliers through contracts totaling USD 90 million in 2024.
The planned USD 60 million investment, which will occur through 2028, aims to rebuild and modernize the anode baking furnace. This investment is made feasible by both the new energy contract and the financial support from ESD.
William F. Oplinger, Alcoa’s President and CEO, emphasized the importance of this development, stating, “We are proud to make aluminum in New York and the United States. Long-term, competitively priced energy enables Alcoa to proceed with this important investment that will help us meet the demands of today while planning for tomorrow.” He also highlighted the economic benefits this project will bring to the region and the sustainability of American manufacturing.
- The new energy contract secures reliable and competitively priced energy essential for industrial operations.
- The capital investment will modernize critical infrastructure, improving efficiency and production capabilities.
- Enhanced production capacity can lead to increased job stability and opportunities for contractors and engineers working in the facility.
Source: https://www.aluminium-journal.com/energy-contract-and-investment-propel-alcoas-us-smelter
