Alcoa announced on March 4 that it has reached an agreement with the government of Quebec on a new, renewable energy contract to supply all three of the Company’s aluminum smelters in the province – Baie Comeau, Becancour (ABI), and Deschambault through the year 2040 and enabling Alcoa to invest $1.2 billion to upgrade and expand Baie Comeau production to 548,000 metric tons per year (mtpy).
Initial engineering studies for the upgrade and expansion activity at Baie Comeau will begin in early 2008, with the vast majority of the investment planned for the final stages of the project. It is expected that conversion and upgrade of the smelting technologies at the plant to a more environmentally friendly one, as well as the expansion of output at Baie Comeau by 110,000 mtpy, will be completed by 2015. The upgrade will eliminate PAHs emissions from the Soderberg pots and reduce greenhouse gas (GHG) emissions at the plant by 40 percent.
“This is a great day for
During the upgrade and expansion phase of the project, an estimated $540 million of added economic value will be created in
Prior to this agreement, Alcoa’s three smelters in
Under terms of the agreement, which is conditional on Alcoa upgrading and expanding production in Baie Comeau, power contracts to supply all three Quebec smelters – as well as the energy needed to support the expansion – will be extended through the year 2040 at the regulated industrial “L” rate. Alcoa will also receive financial support from the government in the form of a loan guarantee.
In addition to the power agreement for all three smelters and the additional power for Baie Comeau, both the government of
“Thanks to the efforts of Premier Charest, the Premier’s entire team, HydroQuebec, our communities, and many others who helped, we have taken great steps to secure the future for the communities of Baie Comeau, ABI and Deschambault,” said Bernt Reitan, Alcoa executive vice president and Group president – Global Primary Products. “In addition to beginning work on the upgrade and expansion of Baie Comeau immediately, we will also now accelerate our discussions to see if we can secure enough competitively-priced, long-term power to enable us to invest and expand Deschambault as well. In fact, we would like to more than double the output there to 570,000 metric tons per year.”
About Alcoa
Alcoa is the world leader in the production and management of primary aluminum, fabricated aluminum and alumina combined, through its active and growing participation in all major aspects of the industry. Alcoa serves the aerospace, automotive, packaging, building and construction, commercial transportation and industrial markets, bringing design, engineering, production and other capabilities of Alcoa's businesses to customers. In addition to aluminum products and components including flat-rolled products, hard alloy extrusions, and forgings, Alcoa also markets Alcoa® wheels, fastening systems, precision and investment castings, and building systems. The Company has 97,000 employees in 34 countries and has been named one of the top most sustainable corporations in the world at the World Economic Forum in
