Australia weighs $470 mln subsidy-backed power deal to keep Tomago smelter operational

Australia is negotiating a complex support package to keep the Tomago Aluminum smelter active. The push could lock taxpayers for up to a decade into annual subsidies of a minimum of USD 300 million. Owing to rising energy costs and a lack of affordable long-term renewable power, Australia's largest aluminium smelter, the Tomago facility, faces potential closure by 2028.

Under the proposed deal, the federal government-owned Snowy Hydro would supply electricity to the smelter. In this structure, Snowy Hydro is likely to acquire renewable energy through long-term contracts at market rates and relay it to Tomago at a lower price, as the government covers the difference. Identified by Prime