Alcan Inc. and British Columbia Hydro have signed a contract for a new power supply agreement for the delivery of Alcan’s surplus power to BC Hydro until the end of 2034. According to Alcan, the deal is a significant step toward modernization of the company’s Kitimat smelter, which will increase Alcan’s annual global primary aluminum production by more than 4% and make Kitimat one of the three largest smelters in North America.

Kitimat’s aluminum production capacity will increase by 40% and reduce greenhouse gas emissions by half a million metric tons per year. In addition, the Kitimat modernization will place the smelter in the first quartile of the industry cost curve.