Alcoa Cuts Aluminum Output by 120,000-Mtpy
Market electricity rates force cutback at Texas smelter
Market electricity rates force cutback at Texas smelter
Alcoa will temporarily idle about 120,000 metric tons/year of primary aluminum production at its Rockdale, TX, smelter, it announced. The aluminum producer explained that three of the six potlines at that operation will be taken out of service immediately, due to disruptions in the electricity supply there.
“There have been ongoing supply issues at the dedicated power generating unit adjacent to our plant, which has forced us to go into the open market to secure power,” stated John Thuestad, president of Alcoa’s U.S. Primary Metals division. “Unfortunately local energy costs have escalated significantly over the past few weeks to an unsustainable level, and we have no choice but to idle production that is reliant on uncompetitive power.”
The Sandow Unit 4 generating station is operated by Luminant, a Texas utility Alcoa blamed for the problem. “Luminant’s inability to consistently operate the Sandow Unit 4 for our Rockdale operations over the last few months, has resulted in uncompetitive power and forced us to make this decision,” Thuestad said. We’ll look to work with Luminant to see if we can secure competitive power to ease the impact on our local community and try to get back to normal production.”
Aluminum smelters are significant consumers of electricity, which is used to convert alumina (ore) to primary metal using a continuous current.
Alcoa explained that local market rates for electricity have ranged from $2,000-$4,000/MWh during peak hours.
The company said that output at the remaining three potlines will continue using power supplied under a long-term contract.
“There have been ongoing supply issues at the dedicated power generating unit adjacent to our plant, which has forced us to go into the open market to secure power,” stated John Thuestad, president of Alcoa’s U.S. Primary Metals division. “Unfortunately local energy costs have escalated significantly over the past few weeks to an unsustainable level, and we have no choice but to idle production that is reliant on uncompetitive power.”
The Sandow Unit 4 generating station is operated by Luminant, a Texas utility Alcoa blamed for the problem. “Luminant’s inability to consistently operate the Sandow Unit 4 for our Rockdale operations over the last few months, has resulted in uncompetitive power and forced us to make this decision,” Thuestad said. We’ll look to work with Luminant to see if we can secure competitive power to ease the impact on our local community and try to get back to normal production.”
Aluminum smelters are significant consumers of electricity, which is used to convert alumina (ore) to primary metal using a continuous current.
Alcoa explained that local market rates for electricity have ranged from $2,000-$4,000/MWh during peak hours.
The company said that output at the remaining three potlines will continue using power supplied under a long-term contract.
