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Worldwide - 2006
Alcoa's Hydropower Strategy Goes with the Flow

Alcoa's recognition as a 2005 Outstanding Stewardship of America's Rivers award recipient by the National Hydropower Association and the 2005 certification of Alcoa's Tapoco hydroelectric facility in the U.S. as an environmentally responsible, low-impact hydropower project underscore Alcoa's commitment to increase its use of this form of renewable energy and demonstrate sustainability and environmental responsibility.

In 2005, 37.1% of the total energy used by Alcoa worldwide came from hydropower. That is predicted to increase through upgrade projects at existing facilities and new hydropower facilities coming online.

"Alcoa is very concerned about the environment, and we want to use technology that has the lowest impact but at the same time guarantees a long-term supply of low-cost and predictable power for our smelters," said Marc Pereira, Alcoa's vice president of energy. "When you look at coal, gas, and even nuclear, hydropower is the best option."

Alcoa currently owns or is a partner in five hydroelectric dams in Brazil (three are in development), one in Canada, one in Suriname, and eight in the United States. Alcoa's Wenatchee Works and Intalco Works in Washington, Massena Operations in New York, and Baie Comeau, Deschambault, and Becancour smelters in Canada are major purchasers of hydroelectricity. Alcoa's smelter in Iceland will be the primary customer of a hydroelectric dam under construction there, and hydropower opportunities are also being explored in China and will be part of a future portfolio of smelter assets.

"The average lifespan of a smelter is around 30 to 40 years, but with proper maintenance, it can operate forever," said Pereira. "This is very similar to the operating lifespan of a hydropower plant. And although a hydropower facility takes longer to build and has higher construction costs compared to a coal or gas power plant, its operating costs are much lower. Once constructed, the impact on the environment is minimal because you don't have any emissions. It's our preferred energy source."

So why doesn't all of Alcoa's energy come from hydropower? The answer is location. Unlike coal or gas plants that can be built virtually anywhere and at any size, there are a limited number of sites conducive to hydropower available in the world. Not only do a river's water flow and the surrounding topography affect the feasibility of building a hydropower plant, they also influence what size a plant can be.

"A hydropower plant is fed by rain or snow melt, and that's not consistent every year," said Pereira. "You may not be able to build at a site because of low water flow, or you may have to build a much bigger hydropower plant to accommodate the wide swings in water volume. In wet years, the excess power can be sold to the market."

While hydropower facilities that are operational have minimal impact on the environment, the construction of one does present challenges.

Building the dam requires the land behind it to be flooded and the water flow to be altered, and this impacts the people, flora, and fauna that occupy that land. Following both its values and international standards for hydropower and dam projects, Alcoa undertakes extensive social and environmental studies and engages with the affected communities to ensure the impact is minimal, affected residents are offered a fair relocation package, and endangered plant and animal species are protected through relocation or replacement.

"Typically, communities like a hydropower project because of the jobs and development it brings," said Pereira. "In some cases, the project may even help transportation. And we are willing to work with the groups that oppose hydropower to ensure all the environmental issues are treated properly."

He adds, "We would like to increase the amount of our energy generated by hydropower, but there are a lot of issues to overcome in putting a hydropower deal together. We are currently developing hydropower as a long-term solution for our existing smelters in Brazil, and we will continue to explore other opportunities throughout the world to secure more of this long-term, low-cost, and environmentally responsible source of power."

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Alcoa's Global Hydroelectric Facilities

Alcoa currently owns or is a partner in five hydroelectric dams in Brazil, one in Canada, one in Suriname, and eight in the United States.

Brazil
  • Barra Grande
  • Machadinho
  • Estreito (in development)
  • Pai-Quere (in development)
  • Serra do Facão (in development)

Canada
  • McCormick, Quebec

Suriname
  • Afobaka

United States
  • Tapoco Hydroelectric Project Dams
    • Calderwood, Tennessee
    • Cheoah, North Carolina
    • Chilhowee, Tennessee
    • Santeetlah, North Carolina
  • Yadkin Hydroelectric Project Dams
    • Falls, North Carolina
    • High Rock, North Carolina
    • Narrows, North Carolina
    • Tuckertown, North Carolina


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