Alcoa operates two smelters in Massena with a combined output of 255,000 metric tons per year (mtpy). The aluminum firm said that modernization of the facility was necessary to the long-term viability of operations, given the nature of its technology.
Under terms of the agreement, the New York Power Authority (NYPA) will provide power to the operations in Massena for a term of 30 years following the expiration of Alcoa’s power contract in 2013. The agreement has an option to extend an additional 10 years, contingent on aluminum prices and power availability.
In turn, following completion of feasibility and engineering studies to finalize exact costs, Alcoa will invest approximately $600 million to modernize its operations. It is claimed that the modernization project would increase the combined capacity in Massena to 274,000 mtpy and reduce emissions by more than 70% at the East plant.
