our business
 
energy security for a strong future
Alcoa is doing its part to find solutions to create a secure energy future for us all.  The need for energy security has been highlighted recently following the gas shortage in Western Australia which has demonstrated the importance of progression in finding new energy sources. 
 
Last month Alcoa formed a joint venture with Latent Petroleum Limited, a partnership which could change the energy supply landscape in WA.  Together we will appraise and develop the Warro Gas Field north of Perth.  The field is located onshore, close to existing gas pipeline infrastructure.  If successful, the project will promote development of other tight gas fields in WA and open a new source of supply.
 
This latest venture builds on Alcoa’s long history of underpinning energy infrastructure in Western Australia and Victoria.  25 years ago, Alcoa and the WA State Government partnered to underwrite a long term contract and the funding of the Dampier to Bunbury Gas Pipeline to enable development of the North West Shelf gas project. These initiatives are delivering stable, low cost energy to industry and communities in Perth and the South West.
 
In 2007, Alcoa entered into an agreement with ARC Energy in which Alcoa pre-paid A$40 million to support ARC Energy’s gas exploration program in the Canning Basin.
 
Alcoa and Alinta have also partnered in WA to build greenhouse-friendly cogeneration plants at Alcoa’s refineries.  Two cogeneration plants are operating at our Pinjarra refinery and supply power to the WA electricity grid.   Two Open Cycle plants commenced operation at the Wagerup refinery in October 2007 to supply reserve capacity to the market and may be converted to cogeneration units to meet future Wagerup steam requirements.
 
In Victoria, we reduce the power we take from the Victorian grid by creating our own energy to supply the Point Henry aluminium smelter in Geelong.  We run a brown coal mine and power station in Anglesea which produces around 40% of the energy that is then used by the Point Henry smelter.
 
Alcoa’s aluminium smelters in Victoria also provided the necessary base load demand to support the development of the Loy Yang power generation complex.  This has directly contributed to Victorian households and industry enjoying low cost reliable power supplies over the past 20 years. 
 
The creation of Portland Aluminium was the catalyst for the construction of a high voltage line from Geelong to Portland and an interstate interconnector between Victoria and South Australia.  Connecting South Australia to the Victorian grid has enabled South Australians to access a more stable and reliable power supply.  
 
Portland Aluminium also supported construction of a pipeline delivering natural gas to Portland and surrounding communities.
 
wagerup 3 expansion
Alcoa of Australia’s investment in Western Australia’s South-West continues with the potential expansion of the Wagerup Refinery, developing long term security for Alcoa employees and the local community.
 
Alcoa Australia Managing Director, Alan Cransberg said the refinery expansion would provide further benefit to the local community through increased employment, contractor opportunities and community development.
 
“The Wagerup 3 project will deliver more than 2000 construction jobs as well as 3000 direct and indirect jobs, including over 250 new permanent Alcoa jobs,” he said.
 
“The Wagerup Refinery contributes around A$18M a year to the local economy and generates export revenue of about A$1 billion into the Australian economy every year.

“The Wagerup expansion would also provide over A$17 million a year in extra State Government revenue and around A$20 billion additional export revenue over the project life.”


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