While specifics of the arrangement remain under wraps, it’s anticipated that the NSW government might offer backing and financial assurance for new projects focused on renewable energy generation, storage, and transmission.

“The core idea behind this is a long-term power purchase agreement that ensures Tomago remains competitive on a global stage by securing energy at the right cost,” he explained.

Since its inception in 1983, the plant has been responsible for producing over a third of Australia’s aluminium, with an annual output capacity of up to 590,000 tonnes.

Electricity constitutes a significant portion of the operating expenses at Tomago, accounting for 40% of the costs. Source: AAP / Michael Gorton

Electricity makes up 40 per cent of operating costs at Tomago. Source: AAP / Michael Gorton

The Australian Workers’ Union (AWU) welcomed the announcement