An Alcoa spokesman said last week that “Alcoa will be seeking to secure an internationally competitive power supply for the Portland smelter when the current contract with AGL expires”. 

“That may involve a combination of sources, including gas and renewable energy, when the current contract with AGL expire,” the spokesman said.

Committee for Portland chairman Jim Cooper said Alcoa’s announcement was “very positive”.

Mr Cooper said the smelter rescue package announced by the federal and state governments last month only secured the smelter’s power supply until June 30, 2021 and it was very sensible for Alcoa to seek a power supply beyond that.

Media reports have said the state government will pay $210 million over four years to support the cost of the power AGL will provide to the smelter.

Mr Cooper said he was pleased Alcoa would seek renewable energy and gas as the sources for its future power because the south-west had good supplies of both.

Alcoa’s bid for more power could also improve energy security, he said. 

Blackouts interstate during a heatwave earlier this month raised doubts about the ability of the national power supply to cope with high demand.

Mr Cooper said more base load power was needed and he hoped political parties would take a science-based approach to the issue.

The federal government has said it would consider providing funds through the Clean Energy Finance Corporation for a gas-fired power station to supply the smelter.