Alcan and BC Hydro sign new long-term power purchase agreement

Alcan Inc. and BC Hydro have signed a contract for a new power supply agreement for the delivery of Alcan's surplus power to BC Hydro until the end of 2034. The new long-term power supply agreement will be filed with the British Columbia Utilities Commission (BCUC), and will be publicly disclosed as part of the BCUC approval process.

"This is a significant step toward the modernization of Kitimat Works," said Michel Jacques, President and Chief Executive Officer, Alcan Primary Metal Group. "Alcan is as committed as ever to realizing this project in B.C. We are confident that this new agreement addresses the findings from the BCUC's decision rendered in December 2006 and builds on the key elements of the new energy policy made public by the B.C. Government in February," he added.

The modernization of Alcan's Kitimat smelter will increase Alcan's annual global primary aluminum production by more than four percent and make Kitimat not only one of Alcan's largest wholly-owned smelters, but also one of the three largest in North America. Kitimat's aluminum production capacity will increase by 40 percent and reduce greenhouse gas emissions by half a million tonnes per year. In addition, the Kitimat modernization will place the smelter in the first quartile of the industry cost curve.