AGL says it has no plans to accelerate the closure of Bayswater Power Station even if it does not provide Tomago Aluminium with power beyond the end of this decade.
The Rio Tinto-owned aluminium smelter, which is the country's largest energy user, announced on Wednesday that it was aiming to be primarily powered by renewables following the expiration of its current contract with AGL in 2028.
Smelter chief executive Matt Howell foreshadowed the announcement last year when he told the Newcastle Herald that the smelter was committed to the growth of renewable energy.
"Our long-term goal is to have more renewables in our portfolio and to lower our carbon footprint." he said.
Mr Howell, who has previously voiced doubts about the viability of batteries to supply firming power for energy intensive manufacturing, said the smelter would most likely draw on the Federal Government's proposed gas-fired peaking plant at Kurri Kurri to supplement renewables.
Greenpeace speculated the smelter's switch to renewable energy would accelerate the closure of Bayswater Power Station, which is due to close in 2035.
"It's almost impossible to see how AGL can avoid bringing forward Bayswater's closure," Greenpeace Australia Pacific Senior Campaigner Glenn Walker said.
"AGL's leadership must act decisively and hasten its transition away from coal to protect energy sector jobs, and to ensure the future viability of the company in a world that is shifting at lightning speed to cleaner, cheaper renewables."
But AGL Chief Operating Officer Markus Brokhof said the Tomago's switch would not affect the planned closure date of Bayswater.
"We are committed to the Hunter region and continue to progress our plans to transform our thermal generation sites into low-carbon integrated industrial energy hubs that will support the decarbonisation of Australian industry," he said.
"This includes progress on a grid-scale battery, wind, solar and thermal storage system and a waste to energy facility, while also exploring the feasibility of pumped hydro at Bell's Mountain.
"Our commitment to continuing to play a leadership role in Australia's energy transition directly aligns with Tomago's ambition to decarbonise their operations and we look forward to our ongoing engagement with them on how we can work together to achieve this."
Hunter Jobs Alliance Coordinator Warrick Jordan welcomed Tomago Aluminium's switch to renewable energy.
"Tomago Aluminium should be commended for taking a proactive approach to changes in electricity generation in NSW, and positioning aluminium products from the Hunter to meet growing demands for sustainability that will only increase over coming decades," he said.
Beyond Zero Emissions said the aim of powering Tomago Aluminium with 100 per cent renewable energy was a strong sign for the future of manufacturing in the Hunter.
"This will keep our local industry competitive in the global market and reinforces our vision to establish the Hunter as the first Renewable Energy Industrial Precinct in Australia," BZE Hunter Engagement Lead Sam Mella said.
"Tomago's commitment shows the potential for the Hunter to become the electric motor of the Australian economy and the importance of meeting customer demand for a zero-carbon future.
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