The Government of Québec and Alcoa announced today that they have entered into a new agreement for the supply of electricity by Hydro-Québec to Alcoa’s Bécancour, Deschambault and Baie-Comeau facilities.
The agreement secures power supply to the Bécancour and Deschambault smelters until 2030 and to the Baie-Comeau plant until 2036. In consideration for an undertaking by Alcoa to maintain a certain employment level and to invest a minimum of $250 million over the next five years (including $150 million dedicated to modernizing the Baie-Comeau facility), the agreement essentially provides for an improved electricity tariff for Alcoa’s plants reflecting the current conditions of the aluminum market.
Both Alcoa and the Government of Québec claim that the agreement secures approximately 3,000 jobs in the province. Alcoa has also agreed to support the Government’s electric transportation strategy by considering the Baie-Comeau facility as a potential source of aluminum for emerging technology applications, including aluminum-air batteries.