MASSENA, N.Y. — Alcoa Corp. (NYSE: AA) and the New York Power Authority (NYPA) have signed a new power-supply contract for Alcoa’s Massena smelting-plant operations in St. Lawrence County.
The contract includes a commitment of $30 million in capital investments and supports 500 jobs at Alcoa’s Massena Plant for the next 10 years, the office of Gov. Kathy Hochul announced on Wednesday.
Alcoa — an aluminum producer and one of the North Country’s largest employers — is based in Pittsburgh, Pennsylvania.
(Sponsored)
Why ESG and Sustainability Reporting Matters for Your Business
As the landscape of financial reporting has evolved, the concept of environmental, social and governance (ESG) and sustainability has grown exponentially. In 2011, only 5% of S&P 500 companies reported
Keeping Your Firm Secure on the Road to Digitization
By Dan Hernborg Sales Engineer With the looming threat of a potential recession and economic downturn, many professional service firms are looking to reduce costs and increase efficiency in preparation.
In addition to the contract, Alcoa is investing nearly $60 million through 2028 to rebuild and modernize a portion of the plant.
This investment is made possible by the new energy contract as well as a $5.2 million capital grant and $1 million in Excelsior Jobs Program tax credits from Empire State Development (ESD). This improvement will “enable process stability and operational efficiency,” Hochul’s office said.
Wednesday’s announcement of a signed contract by Alcoa and NYPA follows approval of the final contract terms by the Power Authority’s board of trustees and Gov. Hochul.
“By securing good paying jobs and fostering investment, this agreement ensures Alcoa will continue to be a major presence in Massena while supporting New York families and communities,” the governor said in the announcement. “The aluminum manufacturing industry has played a significant role in the nation’s economic development, and New York’s Alcoa facility has been at the forefront, driving economic growth and opportunity in the North Country.”
The contract includes a 240-megawatt (MW) allocation of low-cost power through its Preservation Power program to Alcoa for its Massena plant. This power allocation will support Alcoa’s operations through March 31, 2036, with options for two additional five-year extensions, contingent on maintaining a minimum of 500 full-time equivalent jobs and increased capital investments.
Alcoa has also agreed to invest a minimum of $30 million in the plant’s operation over a period of 10 years. If market conditions permit, Alcoa may extend the contract an additional 10 years, which would foster capital investments totaling $145 million over a 20-year period.
“We are proud to make aluminum in New York and the United States. Long-term, competitively priced energy enables Alcoa to proceed with this important investment that will help us meet the demands of today while planning for tomorrow,” William Oplinger, president and CEO of Alcoa, said in a separate announcement on the company’s website. “We are extremely pleased to have worked with NYPA and ESD to achieve this outcome for our Massena Operations, which will bring economic benefits to the region and sustain American manufacturing.”
