Alcoa has signalled its intention to power part of its energy-intensive operations in Victoria with geothermal power, signing a memorandum of understanding with Greenearth Energy.
Alcoa, which operates the world’s largest integrated bauxite mining, alumina refining and aluminium smelting business, will take up to 12 megawatts of power, contingent on Greenearth proving its resources and technology. If all goes to plan, Alcoa could be using geothermal power by 2014, with the amount supplied subject to commercial negotiations.
The next step is locating a site, which Alcoa has agreed to help do somewhere on its lease, but it would need approval from the Victorian government.
The memorandum is a significant step for the prospects of geothermal power, one of the few renewable resources that can provide base-load energy.
Greenearth managing director Mark Miller said the agreement was an endorsement of the company’s geothermal prospects, given that Alcoa was heavily reliant on security of its energy supply.
”Geothermal energy is being increasingly recognised as having the potential to deliver zero emissions, reliable and, importantly, base-load renewable energy generation,” he said.
Greenearth shares soared as much as 45 per cent but closed 6 per cent, or 0.5¢, higher at 8.4¢.
