Tomago Aluminium Smelter secures 10-year power purchase agreement with federal and NSW governments and invests $1.1 billion in decarbonisation initiatives

Type: Ppa · Technology: Hybrid · Country: Australia · Capacity: 3 GW · Value: $1.7B · Announced: 2026-08-13

Tomago Aluminium Smelter, a joint venture owned by Rio Tinto, Gove Aluminium Finance, and Norsk Hydro, has entered into a 10-year power purchase agreement with the federal and NSW governments, valued at $1.7 billion. This agreement aims to secure the smelter's future until 2038 by providing 3 GW of renewable energy, sourced from a portfolio of wind farms and solar projects backed by batteries across NSW. As part of the deal, Tomago will invest an additional $1.1 billion into the smelter, including $100 million specifically for decarbonisation initiatives and demand response capabilities. The partnership, which includes the Clean Energy Finance Corporation (CEFC) and Snowy Hydro, is designed to help Tomago decarbonise its operations and aligns with Australia's Future Made in Australia strategy. The investment will drive billions of dollars into new renewable generation and energy storage projects, significantly reducing carbon pollution.

Counterparties

Source article

📈 The Sherpa Signal — one notable infrastructure deal a day.