Alcoa San Cibrao Achieves Full Electrolysis Resumption with State Support and Decarbonisation Funding
The 19th monitoring session for Alcoa San Cibrao in Lugo confirmed that the multinational is meeting its commitments under the recent memorandum of understanding. This agreement was signed last year with the regional government of Galicia and TrentoEQT Alcoas partner in the project.
Alcoa has announced that it has reactivated all 512 electrolysis cells at the plant, marking a return to full production capacity after four years of partial operation due to high energy costs and economic challenges. The plants recovery signifies a major step towards stabilising operations and ensuring long term viability.
The project to fully restart the installation involved a joint venture with TrentoEQT, in which Alcoa holds a 75% stake, and an investment of 100 million euros. Furthermore, the company received 40 million euros from the European Unions decarbonisation fund (Perte de Descarbonisation). The Ministry of Industry highlighted that additional funding, including backing from the Investment Support Fund for industrial projects, has been allocated for constructing a new furnace.
This financial support is part of a broader strategy to promote decarbonisation, improve energy competitiveness, and secure the future of Galicias unique industrial complex, which produces alumina and primary aluminium. The initiative aims to revitalise the sector, reduce carbon emissions, and sustain local employment.
Regional authorities have focused on securing reliable energy supplies for the plant, with the regional government urging the Ministry of Ecological Transition to expedite permits for the access and connection of wind farms currently under approval. These permits are crucial to ensure stable energy delivery, with existing environmental impact declarations set to expire in four years, even with a two year extension.
Meanwhile, Alcoa continues to emphasise the importance of a stable and competitive electricity price to prevent further losses. The company is awaiting approval to release 15 million dollars from a guarantee fund associated with reactivation costs, which was finalised last April.
Overall, Alcoas efforts, supported by public funding and strategic energy projects, are aligned with Spains industrial decarbonisation and energy transition objectives. The initiative aims to sustain a key industrial cluster that combines aluminium production with renewable energy sources, ensuring competitiveness and environmental sustainability for the future