Alcoa Corporation announced a power purchase agreement with Endesa to support the restart of the San Ciprian aluminum smelter in Spain.
Endesa, a subsidiary of the Enel Group, is a leading company in the Spanish electricity sector. The deal will provide power balancing services for the smelter load from 2024 to at least 2030.
Balancing services provide electricity to the smelter’s consumption point, either from baseload volumes from a power purchase agreement with Endesa, via other third-party agreements, or from the market directly.
The agreement with Endesa would include up to 131 megawatts beginning in the second half of 2025 and through 2033, representing slightly more than 30 percent of the smelter’s energy requirements at maximum capacity.
The agreement with Endesa will supplement the terms of a separate agreement reached earlier this year with Greenalia for up to 183 megawatts. That agreement would represent approximately 45 percent of the energy required to meet the smelter’s maximum capacity.
Together, the agreements with Endesa and Greenalia could provide up to approximately 75 percent of the smelter base load power. Alcoa will pursue options for the remaining 25 percent of the smelter’s electricity requirements.
Alcoa announced in December 2021 a two-year curtailment of aluminum smelting at the San Ciprian smelter due to exorbitant energy prices.