[Greens-Media] Costa aluminium smelter push is economic and environmental stupidity

[John Kaye]

Costa aluminium smelter push is economic and environmental stupidity
 
Media Release: 14 June 2007
 
Increasing the capacity of aluminium smelting in NSW to justify a new
coal-fired power plant will undermine the state’s economy and drive up
greenhouse gas emissions, according to Greens NSW MP John Kaye.
 
Dr Kaye said: “If Treasurer Michael Costa takes us down this path, NSW
energy consumers will be paying for his mistakes for years to come.
There is a real risk that this state will end up subsidising the profits
of some aluminium multinational for decades.
 
“The push for more smelting capacity exposes the Treasurer’s fixation
on building more coal-fired generation capacity in NSW. It is poor
economics and exposes the state to enormous economic risks.
 
 “Aluminium companies cruise the world looking for sucker states who
are silly enough to build excess generating capacity to power their
electricity-hungry smelters.
 
“They are highly mobile and are known to play off one state against
another, looking for the best deal on electricity prices. 
 
“It is a mugs’ game. The Iemma government will get thoroughly done over
by the savvy and experienced aluminium smelter sharks, just as previous
state governments were when they guarantied electricity prices at less
than  generation costs to out-compete rivals like Brazil.
 
“If NSW needs more smelters too justify increasing base-load generating
capacity, then clearly additional  capacity is unnecessary.
 
 “Aluminium is solid electricity. Each tonne takes more than 18 kWh
hours of electricity to smelt, which creates at least 15 tonnes of
climate-damaging carbon dioxide.  Increasing capacity by 400,000 tonnes
will result in 6.2 million tonnes of CO2 per year, which is a 3.9%
increase in the state’s total emissions.
 
“Not only is this environmentally irresponsible but it will inevitably
attract massive carbon costs.  
 
“If the NSW government exempts the aluminium smelter from future carbon
costs as it did for BlueScope steel in Wollongong, it will expose the
state to   massive economic risks.
 
“Anyway you look at it, this proposal makes no sense,” Dr Kaye said.
 
For more information:       John Kaye 0407 195 455
 
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John Kaye
Greens member of the NSW Parliament
phone: (02) 9230 2668
fax: (02) 9230 2586
mobile: 0407 195 455
email: John.Kaye at parliament.nsw.gov.au
 
mail: Parliament House, Macquarie St, Sydney NSW 2000