Geelong jobs secured but…Greenies slam deal for Alcoa

A plan to continue powering Alcoa’s aluminum smelters with brown coal until 2036 has outraged environmentalists despite securing hundreds of jobs in the Geelong region.
Environment Victoria’s Mark Wakeham labelled the long-term electricity contract between Loy Yang Power and the aluminum giant “unacceptable”.
He believed the controversial smelter should have investigated renewable energy and gas-fired generation to power its two plants at Point Henry, in Geelong, and Portland.
“In a time of climate change it’s insane to power aluminum smelters with brown coal,” Mr Wakeham said.
“Victoria is one of the very few places in the world where aluminium smelting is powered by brown coal, with most other producers using hydro power.
“Locking this behaviour in until 2036 defies belief – if power stations like Loy Yang are still operating in 2036, it will be all over for the climate.”
Friends of the Earth’s Cam Walker slammed the new contract, which was set to expire in 2014.
“As the largest single consumer of brown-coal-fired electricity in the state, Alcoa knows it is at extreme risk of losing its social license to operate unless it acts now to dramatically reduce its greenhouse emissions,” Mr Walker said.
“Instead, it has turned its back on the energy sources of the 21st Century, opting for the dirty energy path of the 19th Century.
“It will be judged harshly by the community for this failure of vision.”
Mr Walker urged the State Government to “step in and guarantee there will be no further compensation or subsidies for Alcoa or Loy Yang as a result of this deal”.
Alcoa and unions representing its workers in Geelong have welcomed the agreements.
Alcoa of Australia managing director Alan Cransberg said he was “pleased with the agreements as they support two of our key business objectives: to deliver an efficient and profitable business as well as building a sustainable future in a carbon constrained world”.
“Energy security in the form of long-term, base-load agreements is vital to aluminum smelters and the jobs they provide worldwide,” he said.
The agreement follows a series of job cuts at Alcoa in Geelong over recent years.
In December the company announced it would slash about 90 jobs in the city.
Premier John Brumby said the power supply arrangements would help secure remaining Alcoa jobs.