Australia’s Tomago Aluminium smelter in New South Wales (NSW) will receive A$2.5 billion in government funding to secure its long-term operation and support its transition to renewable electricity. The package is jointly funded by the Australian federal and NSW governments.
Tomago Aluminium will invest at least A$1.1 billion in the facility through 2038, including A$100 million for decarbonisation initiatives and a demand-response programme designed to support the NSW electricity grid. The investment will also target reliability, asset-life extension and operational performance.
The agreement is expected to unlock almost 3 GW of new renewable and firming capacity. Tomago will enter a 10-year power purchase agreement, beginning after its existing electricity contract expires on 31 December 2028. Electricity supplied to the smelter is scheduled to come from 100% renewable sources by 2033.
The smelter is one of Australia’s largest industrial electricity users, accounting for more than 10% of NSW’s electricity consumption, while supporting approximately 1,000 direct jobs. The agreement is intended to safeguard aluminium production in the Hunter region while accelerating the facility’s transition away from coal-fired electricity. 
Source: theguardian.com with additional information added by Glass Balkan
