Alcoa signs 10-year energy deal, invests $60 million in NY smelter

Published 22/10/2025, 13:34
Alcoa signs 10-year energy deal, invests $60 million in NY smelter

NEW YORK - Alcoa Corporation (NYSE:AA), the $9.6 billion aluminum producer currently rated GREAT by InvestingPro’s Financial Health Score, announced a new 10-year energy contract with New York Power Authority (NYPA) and plans to invest approximately $60 million in its Massena Operations facility in New York.

The energy agreement, which takes effect April 1, 2026, provides the aluminum smelter with 240 megawatts of renewable energy at competitive prices. The contract includes options for two additional five-year extensions.

Alcoa’s capital investment will fund the rebuilding and modernization of the facility’s anode baking furnace through 2028. The project is supported by a grant of approximately $6 million from Empire State Development (ESD).

"Long-term, competitively priced energy enables Alcoa to proceed with this important investment that will help us meet the demands of today while planning for tomorrow," said Alcoa President and CEO William F. Oplinger in a press release statement.

The Massena Operations facility, which began production in 1902, is described as the world’s longest continuously operating aluminum smelter. With an annual nameplate capacity of 130,000 metric tons, it employs approximately 550 workers including contractors.

According to the company, the facility contributes more than $66 million in direct salaries, wages and benefits annually, and spends $90 million with 1,800 U.S. suppliers in 2024.

Massena Operations is one of only four remaining aluminum smelters in the United States. The investment comes as domestic aluminum production has faced challenges from lower-cost international competition and energy price concerns. Despite industry headwinds, Alcoa’s stock has shown remarkable strength with a nearly 49% gain over the past six months. For deeper insights into Alcoa’s valuation and growth prospects, access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.

In other recent news, Alcoa Corporation reported a revenue decrease of 10% for the second quarter of 2025, amounting to $3 billion. The company’s net income was $164 million, or $0.62 per share, with adjusted net income at $103 million, or $0.39 per share. Despite generating positive free cash flow and maintaining a strong return on equity, the decline in revenue has raised investor concerns. Additionally, the United States and Australian governments have announced their support for Alcoa’s development of a gallium production facility at its Wagerup alumina refinery in Western Australia. This initiative follows a Joint Development Agreement signed in August 2025 with Japan Australia Gallium Associates Pty Ltd, a joint venture involving the Japanese Government and Sojitz Corporation. These recent developments highlight significant activities within Alcoa, with implications for future production capabilities and financial performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.