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September 27, 2004
Alcoa Plans To Sell Power Generating Rights in Rockdale
ROCKDALE, Texas--(BUSINESS WIRE)--Sept. 27, 2004--Alcoa (NYSE:AA) today announced it has informed the U.S. Department of Justice, the Environmental Protection Agency, the State of Texas, and citizens groups that it plans to select the option that would result in the replacement of three lignite-fired power generating units in Rockdale, Texas with environmentally-friendly modern, low emission Circulating Fluidized Bed (CFB) power generating units under Alcoa's previously announced (April 2003) Clean Air Act agreement. Under the agreement sulfur dioxide (SO2) and nitrogen oxide (NOx) emissions will be reduced by 95% and 90% respectively.
Alcoa is currently negotiating with parties who would purchase Alcoa's permits, lease land, and utilize certain Alcoa facilities, and then build, own and operate a CFB facility. Alcoa would supply fuel to the new CFB facility.
Following shut down of the last of Alcoa's three units in August 2007, the smelter in Rockdale will continue to operate and will receive its power for approximately 210,000 metric tons per year (mtpy) of the facility's current 264,000 mtpy capacity, from the existing fourth power generating unit on-site owned by TXU. Alcoa also is negotiating with parties to explore securing power for the remaining 54,000 mtpy of production.
Alcoa is the world's leading producer and manager of primary aluminum, fabricated aluminum and alumina facilities, and is active 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, Alcoa also markets consumer brands including Reynolds Wrap(R) foils and plastic wraps, Alcoa(R) wheels, and Baco(R) household wraps. Among its other businesses are vinyl siding, closures, fastening systems, precision castings, and electrical distribution systems for cars and trucks. The company has 120,000 employees in 42 countries and has been a member of the Dow Jones Industrial Average for 45 years and the Dow Jones Sustainability Indexes since 2001. More information can be found at www.alcoa.com