Tomago Aluminium secures $2.5 billion in government energy investment

The Australian Federal Government and the New South Wales Government have committed $2.5 billion to secure the long-term operation of the Tomago Aluminium smelter beyond 2028. This joint investment aims to protect approximately 1,000 direct jobs and an estimated 5,000 indirect jobs within the Hunter region.

As part of the agreement, Tomago Aluminium will invest at least $1.1 billion into its operations, including $100 million dedicated to decarbonisation and a demand-response program to provide flexibility services to the NSW electricity grid. The deal includes a 10-year power purchase agreement extending to 2038, with the facility transitioning to electricity sourced entirely from renewable generation by 2033.

The initiative is expected to underpin nearly 3 gigawatts of new renewable generation and firming capacity. Rio Tinto aluminium and lithium chief executive Jérôme Pécresse noted that the agreement provides certainty for the smelter, its customers, and the Australian manufacturing sector.