Alcoa Seeks European Funds for Galician Factories Amidst Closure Threats
Alcoa, the American aluminum giant, is seeking European funding for its two factories in San Cibrao, Galicia. The company has applied for the PERTE decarbonization program, a Spanish government initiative offering a budget of 1,000 million euros, split between soft loans and subsidies.
The applications cover both the aluminum factory, which recently reactivated two electrolysis tanks after a two-year blackout, and the adjacent alumina plant. The details of the specific PERTE lines and projects Alcoa is targeting remain undisclosed. However, these subsidies are aimed at investments focused on emissions reduction, energy efficiency, electrification of processes, and incorporation of hydrogen, among others.
This move aligns with the Spanish government's request for Alcoa to outline its financial needs to evaluate potential state resources to support the viability of the San Cibrao complex. The requirements for accessing PERTE funds include reducing a minimum of 3,000 tons of CO2 equivalent per year or cutting emissions by at least 30%.
Alcoa's recent crisis has been fueled by uncertainties about the future of the San Cibrao complex. The company's president, William Oplinger, has indicated that the continuation of electrolysis, a major electricity consumer at the aluminum plant, is unfeasible under current conditions. He also mentioned the potential closure of the alumina refinery, which has been struggling with profitability due to increased gas prices.
These statements have raised concerns within the Galician Government and the Spanish central Executive about Alcoa's long-term intentions in the region. The Ministry of Industry has urged Alcoa to clarify its financial requirements to facilitate governmental support.
Despite the government's willingness to intervene, there is apprehension that any direct intervention, such as through SEPI (Sociedad Estatal de Participaciones Industriales), might inadvertently accelerate Alcoa's exit from the region. As a result, the focus remains on ensuring the fulfillment of the agreement reached with the workers and on the mobilization of committed investments.
As Alcoa navigates these challenges, its decision to participate in the PERTE decarbonization program represents a strategic effort to secure funding and potentially pivot towards more sustainable and efficient operations. This development is critical for the future of the San Cibrao complex and the broader implications for the aluminum industry in the region.
