Energy Management
Overview
Alcoa is energy intensive. We are in the business of making alumina and aluminium - and these processes require a significant amount of energy. In Western Australia we operate on gas, which is a clean transitional fuel, and in Victoria we operate on electricity generated from brown coal, as is the power suppled to most industries and domestic users in that State. Because we are energy intensive, and because we all must play a role in being part of the solution to climate change, we are constantly investigating the most energy efficient, greenhouse friendly ways of doing business.
Energy is a top priority and a challenge for Alcoa for three main reasons. First, without a secure supply we simply cannot operate. Second, we need a competitively priced supply of energy to keep our costs at a level in which we can continue to operate in a global marketplace. And third, because we are so reliant on energy, environmental considerations are of paramount importance.
Energy security is possibly the most vital issue confronting our entire country. Energy is the lifeblood of Australia’s mining and manufacturing economy which together accounts for 80 per cent of Australia’s exports. At the same time, energy security is pivotal to the big issues of climate change, Australia’s capacity to meet the greenhouse challenge and the economic turmoil – which is why Alcoa believes we need a National Energy Security Strategy for the future. Read more.
Alcoa’s future growth is reliant on energy security – a challenge not unique to our business. The need for domestic energy security was highlighted in 2008 following a gas shortage in Western Australia, which demonstrated the importance of progression in finding new energy sources. At Alcoa, we believe we have a role to play in helping to discover new energy sources and we continue to invest in this area. Read more.
Once the Carbon Pollution Reduction Scheme (CPRS) is operating, power station operators will experience significantly increased costs associated with permits for their carbon emissions that they ‘pass through’ to power purchasers. For Alcoa, a large user of purchased electricity from a brown-coal source, this ‘cost pass through’ represents a significant additional cost that could prematurely close Australian facilities. Read more about the Electricity Allocation Factor.
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Video
Critical: Gas security for Western Australia
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Energy Security for WA
Alcoa's Managing Director Alan Cransberg has called for a greater focus on energy security and gas availability for WA’s domestic market
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Speech by Alan Cransberg
Securing Domestic Gas Supply in a Competitive Market
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