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OPPOSE ALCOA'S EXPANSION!!
About Alcoa
Alcoa is a huge energy user, consuming around 20% of the State’s electricity, and it receives a tax-payer funded discount of around $150 million each year on its electricity bill. Alcoa has two aluminum smelters in Victoria – one older plant at Point Henry in Geelong and another larger operation in Portland. Neither smelter operates at world’s best practice. In fact, it has been estimated that the Portland smelter currently emits 5 times more greenhouse pollution than the aluminum industry world average.
Alcoa is interested in expanding both its Point Henry and Portland smelters – it's believed that they want three new pot-lines. If Alcoa was to install three new pot-lines, Victoria’s capacity to generate electricity would have to grow so much that at least one new power station would have to be built. If this power station is generated by brown coal, the State’s greenhouse pollution will also significantly increase.
Although Alcoa’s Victorian smelters have until this point been powered by coal, climate change dictates that this is not the smart way forward. With less than half the greenhouse pollution levels of conventional coal, gas is considered by many environment groups as a key ‘transitional’ fuel to help us move away from coal and towards clean energy sources. In addition some market analysts say that a new gas-fired power station could produce electricity for about the same cost, or cheaper, than a new brown coal-fired power station.
Origin Energy has announced its intention to build a gas-fired power station outside of Mortlake – in south-west Victoria, halfway between Point Henry and Portland. The company has stated the power station’s capacity could be up to 1,000MW – enough to power Alcoa’s additional needs. Origin has also commented that although it is proceeding with obtaining planning permits, it will not commence building the plant until is has customer(s) or a carbon trading scheme is in place.
Climate Change and the Bracks Government
In 2005 the Bracks Government extended the life of Hazelwood power station – one of, if not the, most greenhouse polluting power stations in the world. Despite window-dressing on the announcement, this was an appalling decision in the context of climate change.
The Bracks Government must not condemn Victoria to another abysmal climate change.
Climate change is one of the most pressing issues facing the planet. All countries share the responsibility for reducing their greenhouse pollution. It is largely being caused by the way we generate our electricity, our inefficient use of this electricity, and how we transport goods and people. Brown coal is the dominant source of electricity in Victoria, and it is also the most greenhouse polluting way to generate electricity. The use of brown coal helps make Victoria one of the most polluting energy systems in the world. Climate change will impact on Victorians’ quality of life, health, employment, security, economy, and our wallets. This was emphasized by the recent Australian Business Roundtable on Climate Change, which announced its support, based on economic modeling, for action on climate change sooner rather then later.
Our Position on Alcoa's Expansion
Any expansion of Alcoa’s operations must not increase Victoria’s net greenhouse pollution levels. To ensure the expansion of Alcoa’s operations does not derail Victoria’s transition to a clean energy mix, the Victorian Government must commit to:
- Opposing Alcoa’s expansion being powered by coal.
- Publicly announcing Alcoa will not receive any protection from future climate change policies (e.g. an emissions trading scheme).
- Ensuring Alcoa’s Portland and Point Henry smelters operate to world’s best practice by building energy efficiency requirements into the approval process.
To further offset emission increases from Alcoa’s expansion, the Government needs to commit to a climate change strategy that:
- Sets targets for reducing greenhouse pollution levels – a legislated 20% reduction by 2020 and at least 60% reduction by 2050.
- Legislates a renewable energy target of at least 20% by 2020.
- In the absence of Commonwealth action, implements a state-based emission trading scheme.
Read this report:
Towards Victoria's Clean Energy Future
Key contact person – VIC
Tricia Phelan, Director
Climate Change Campaign
Environment Victoria
03 9341 8112
tricia.phelan@envict.org.au
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