AGL Signs New Supply Contract at Portland Aluminium Smelter

AGL Energy Limited (AGL) has finalized a new agreement to supply an additional 287 MW of electricity to the Portland Smelter Joint Venture Participants (Alcoa) in Portland, Victoria, until June 30, 2035. This new contract complements AGL’s existing 300 MW supply agreement and will take effect from July 1, 2026. The arrangement includes an option for Alcoa to replace up to 30% of the contracted electricity volume with a renewable Power Purchase Agreement with AGL. This structure is designed to be mutually beneficial and is based on favorable commercial terms.

Similar to AGL’s previous contract with Alcoa, this agreement allows AGL to implement demand-side management strategies, which facilitate the short-term reduction of smelter consumption during peak demand periods. This capability helps ensure that AGL can efficiently manage its supply commitments while supporting Alcoa's operations.

Additionally, the agreement underscores AGL's commitment to providing reliable energy while promoting sustainable practices in the aluminium sector. The contract is a strategic move for both AGL and Alcoa, reinforcing their partnership and ensuring a stable energy supply for the Portland smelter.

Overall, the new supply agreement not only strengthens AGL’s relationship with Alcoa but also aligns with its broader sustainability goals, reflecting a commitment to integrating renewable energy sources into its portfolio. As the demand for aluminium continues to grow, this agreement positions both companies favorably for future developments in the industry.

AGL believes that energy enhances life and is dedicated to powering the everyday experiences of Australians in how they live, move, and work. With over 185 years of proud Australian heritage, AGL serves approximately 4.5 million customers across energy, telecommunications, and Netflix services. The company is focused on providing simple, fair, and accessible essential services as customers transition towards decarbonization and electrification in their lifestyles.

AGL operates the largest private electricity generation portfolio in Australia within the National Electricity Market. This diverse portfolio includes coal and gas-fired generation, as well as renewable energy sources such as wind, hydro, and solar. AGL also utilizes batteries and other firming technologies along with storage assets to support its operations.

AGL is evolving from its legacy as one of Australia’s leading private investors in renewable energy to take the lead in transitioning to a lower-emissions, affordable, and smart energy future, in line with the objectives outlined in its Climate Transition Action Plan. The company remains committed to innovating in energy and other essential services to enhance the quality of life for Australians. By focusing on sustainable practices and technologies, AGL aims to empower communities and foster a cleaner environment. Through these efforts, AGL seeks to contribute positively to the world, ensuring that future generations can thrive in a sustainable and healthy planet.