Hydro Tasmania strikes deal to continue powering one of world’s greenest smelters

Hydro Tasmania has inked a new 10-year electricity supply deal with the Liberty Bell Bay manganese smelter at George Town in the state’s north-east, where the majority renewables power mix makes it one of the greenest ferroalloy producers in the world.

One of the largest manufacturing operations in Tasmania, and one of the largest ferroalloy producers globally, the GFG Alliance-owned Liberty Bell Bay smelter has four submerged electric arc furnaces and a sinter plant, the latter of which produces a material used in blast furnaces to make steel.

The specifics of the deal remain commercial-in-confidence, but Hydro Tasmania acting CEO Erin van Maanen says it is “incumbent upon” the publicly owned utility to strike a mutually beneficial agreement. 

“The ferroalloy smelter has been a significant employer in the state since it commenced operations in 1962,” said van Maanen. 

“At the same time, as a government business, Hydro Tasmania’s profits are shared with Tasmanians via dividends, so it’s incumbent upon us to strike the best possible commercial deal on their behalf. 

“We are very pleased to have reached a mutually beneficial outcome enabling us to continue our long-running relationship with the smelter.” 

The Liberty Bell Bay smelter was originally owned and operated by Tasmanian Electro Metallurgical Company (TEMCO), before being acquired by GFG Alliance, a group of global businesses owned by Indian-born British businessman Sanjeev Gupta and his family.

“As the only ferroalloy smelter in Australia, Liberty Bell Bay plays an important role in the nation’s steel industry,” said Paul Venter, Liberty Bell Bay executive general manager.  

“We are pleased to continue our long-standing relationship with Hydro Tasmania as part of our ongoing commitment to the Tasmanian community.”