Climate Change and Energy Minister Chris Bowen has said that energy prices are a “huge issue” for embattled aluminium smelter Tomago — whose majority owner Rio Tinto blamed prices and a slow renewable energy for a potential closure of the plant — while mooting increased renewables as a solution to the issue.
“We fully acknowledge energy prices are a huge issue – 40 per cent of the cost of the operation – they’ve made clear, and to quote them, there’s uncertainty about when renewable projects will be available of the scale we need,” Bowen told Radio National this morning.
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“They’re not saying they need less renewables. They’re saying they need more renewables. We agree with that. There’s a choice before the parliament, the Australian people on these things: one side says more renewables, the other side says less. Tomago, is saying we need more. We agree, but that doesn’t solve the immediate challenge,” he said.
Tomago is Australia’s biggest aluminium smelter, but word came this week that closure was imminent unless a multi-year rescue package could be secured. The plant employs over 1000 workers.
Bowen said the country needed more renewable projects, celebrating last month being the first in history where more energy in the grid came from renewables than coal.
“We are making really good progress, but we do have more to do. You know, as I’ve said, it is not inevitable or easy or straightforward, but we are making good progress, and I’m determined get that progress going,” Bowen said.