Alcoa and NYPA's 14-Year Agreement Safeguards Employment and Advances Sustainable Energy at Upstate Facility
- Alcoa Corp. signed a 14-year hydropower deal with NYPA to secure 240 MW for its Massena plant, ensuring stable energy costs through 2036. - The agreement includes $30M in 10-year investments to retain 500 jobs and $60M for facility upgrades via state grants and tax credits. - NYPA's low-cost power program supports industrial competitiveness while aligning with sustainability goals through renewable energy integration. - Alcoa's CEO emphasized the strategic value of long-term energy pricing for modernizat
Alcoa Corp. (NYSE: AA) has entered into a notable 14-year electricity supply contract with the New York Power Authority (NYPA) for its Massena smelter, representing a major advancement in the company’s modernization plans and commitment to preserving employment in upstate New York. Announced on October 22, the agreement secures a 240-megawatt (MW) allotment of affordable hydropower via NYPA’s Preservation Power initiative, guaranteeing predictable energy expenses for Alcoa’s plant until March 31, 2036, with the possibility of two additional five-year renewals, as reported by
This contract is linked to Alcoa’s promise to invest $30 million in capital over the next decade,
“This contract guarantees that Alcoa will remain a key employer in Massena and continue to benefit New York’s families and communities,” Hochul stated. The new deal builds upon a 2019 arrangement that also provided 240 MW of discounted hydropower in return for maintaining 450 jobs. The latest agreement extends this collaboration, with Alcoa also indicating a potential $145 million in capital spending over two decades if market conditions are favorable, the article reported.
NYPA President and CEO Justin Driscoll highlighted the deal’s significance for the North Country’s economy, pointing out that Alcoa has played an essential role in the region for more than 120 years. The power allocation will sustain Alcoa’s operations using a mix of St. Lawrence-FDR hydropower and other renewable sources, supporting the company’s sustainability objectives, the article stated.
Alcoa CEO William Oplinger stressed the strategic importance of the contract, explaining that “having access to long-term, competitively priced energy allows Alcoa to move forward with this vital investment, meeting current needs while preparing for the future.” The company’s emphasis on energy efficiency and facility upgrades mirrors broader trends in the aluminum sector, where producers are working to cut costs and minimize environmental impacts, the article said.
This agreement also highlights New York’s strategy to draw and keep industrial investments. NYPA’s Preservation Power initiative, which offers low-cost power to energy-intensive manufacturers, has played a crucial role in supporting firms like Alcoa. The program’s effectiveness depends on balancing economic growth with environmental responsibility, a challenge that state leaders say this agreement addresses by prioritizing renewable energy, according to the article.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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