Hydro Tasmania has confirmed it has reached a commercial agreement with LIBERTY Bell Bay to continue to supply electricity for its ferroalloy smelter at George Town over the next decade.
While details of the agreement are commercial-in-confidence, Hydro Tasmania Acting CEO, Erin van Maanen, said the deal was a positive outcome for both LIBERTY Bell Bay and for Tasmanians.
“The ferroalloy smelter has been a significant employer in the state since it commenced operations in 1962 and we’re happy to power LIBERTY Bell Bay’s ongoing operations,” Ms van Maanen said.
“At the same time, as a government business, Hydro Tasmania’s profits are shared with Tasmanians via dividends, so it’s incumbent upon us to strike the best possible commercial deal on their behalf.
“We are very pleased to have reached a mutually beneficial outcome enabling us to continue our long-running relationship with the smelter.”
Liberty Bell Bay Executive General Manager, Paul Venter, said, “As the only ferroalloy smelter in Australia, Liberty Bell Bay plays an important role in the nation’s steel industry.
“We are pleased to continue our long-standing relationship with Hydro Tasmania as part of our ongoing commitment to the Tasmanian community.”
Hydro Tasmania has historically negotiated direct contracts for wholesale energy hedges with Tasmania’s four major industrials, which account for 60 per cent of the state’s energy consumption.
All other commercial and residential-related energy contracting is managed directly with energy retailers in Tasmania.
