Tomago smelter goes renewable by 2033

August 13, 2026

Australia’s largest aluminium smelter is set to transition entirely to renewable energy by 2033 under a major government-backed agreement designed to secure the future of one of the country’s most energy-intensive industrial facilities.

Rio Tinto and its partners at the Tomago Aluminium Smelter near Newcastle have reached an agreement with the Australian federal and New South Wales governments that includes up to $2.5 billion in energy support over 10 years.

The arrangement is intended to provide the smelter with access to competitively priced electricity after its existing power contract with AGL expires in December 2028. That contract has historically relied heavily on coal-fired generation.

The agreement was announced at the Tomago facility by Australian Prime Minister Anthony Albanese and New South Wales Premier Chris Minns.

Tomago smelter targets 100% renewable power

Under the plan, Tomago is expected to progressively shift away from coal-generated electricity and operate exclusively on renewable energy by 2033.

The transition could dramatically reduce the facility’s carbon footprint. Rio Tinto estimates that running the smelter on clean electricity will eliminate approximately 7.1 million tonnes of greenhouse gas emissions annually.

That represents roughly 1.5% of Australia’s total annual emissions, making the project potentially one of the country’s most significant individual industrial decarbonisation initiatives.

Jérôme Pécresse, chief executive of Rio Tinto Aluminium and Lithium, said the agreement establishes a route toward long-term, competitive and lower-carbon electricity for the facility.

Nearly 3 GW of renewable and firming capacity

Supporting an aluminium smelter entirely with renewable electricity is a major undertaking because aluminium production requires enormous quantities of continuous power.

Tomago is Australia's biggest individual electricity consumer and accounts for more than 10% of total electricity consumption in New South Wales.

To meet its future requirements, the government-backed arrangement is expected to support nearly 3,000 MW of additional renewable generation and firming capacity across NSW.

The projects could include new wind and solar farms combined with battery storage and other technologies capable of providing reliable electricity when renewable generation falls.

Federal Climate Change and Energy Minister Chris Bowen said some projects already progressing through development could be accelerated by the agreement. Renewable generation will not necessarily be concentrated around the Hunter region, with projects expected to be distributed across New South Wales.

Some potential developments have already secured environmental approvals but have yet to reach final investment decisions.

$1.1 billion investment planned for Tomago

The smelter's owners have also committed to investing approximately $1.1 billion in the Tomago facility over the next 12 years.

Around $100 million of that investment is expected to be directed specifically toward decarbonisation initiatives.

Maintaining competitive electricity costs is particularly important for aluminium producers because electricity represents a substantial portion of smelting expenses. Australian smelters have traditionally depended on long-term electricity contracts to maintain internationally competitive production costs.

The Tomago facility directly employs approximately 1,000 workers and is estimated to support another 5,000 jobs indirectly, making its continued operation economically important for the Hunter region.

Australia moves to protect energy-intensive industries

The Tomago agreement forms part of a broader Australian government effort to retain major industrial facilities while helping them reduce emissions.

Other government commitments include approximately $2 billion in support for Rio Tinto's Boyne aluminium smelter in Queensland and around $2.4 billion associated with maintaining steel production at Whyalla in South Australia.

Government officials argue that supporting facilities such as Tomago can protect regional employment while creating demand for large-scale renewable energy developments.

Minns said losing an industrial operation of Tomago's scale would have significant consequences for the regional economy and employment.

Renewable energy becomes critical for aluminium

The transition also reflects a broader transformation taking place across the global aluminium industry.

Because smelting requires enormous quantities of electricity around the clock, access to affordable low-carbon power is increasingly becoming a competitive advantage.

Countries including Canada, Norway and Iceland have built substantial aluminium industries around abundant hydroelectric or geothermal resources.

Independent MP Nicolette Boele argued that Australia could similarly use its strong solar and wind resources to develop a competitive low-carbon aluminium industry rather than simply responding to electricity shortages.

However, Australia's renewable transition faces challenges. Energy analysts have repeatedly highlighted delays in the construction of new wind farms, transmission infrastructure and other projects required to replace ageing coal-fired generation.

Rising electricity prices have also intensified concerns about the future competitiveness of energy-intensive manufacturing.

Tomago could become a major low-carbon aluminium producer

If the transition proceeds as planned, Tomago could become one of Australia's largest industrial facilities powered entirely by renewable electricity.

Moving such a significant electricity consumer away from coal could also create substantial new demand for renewable generation and energy storage, potentially accelerating clean-energy investment across New South Wales.

With almost 3 GW of renewable and firming capacity expected to be supported by the agreement, the impact could extend well beyond the smelter itself.

For Rio Tinto, the transition provides an opportunity to substantially reduce emissions associated with Australian aluminium production while maintaining domestic manufacturing capacity.

By 2033, the Tomago Aluminium Smelter is expected to demonstrate how large-scale, energy-intensive industries can operate using renewable electricity while remaining part of Australia's industrial economy.