After announcing last year it would ramp up its potlines at Tiwai, New Zealand Aluminium Smelter (NZAS) chief executive Chris Blenkiron announced yesterday it would delay the plans until August 31.
This was to ensure Meridian Energy had access to 50MW of electricity this winter, he said.
"While it is always a difficult decision to reduce aluminium production, it makes sense to pause the ramp-up now and have 50MW available to Meridian this winter.
"When we signed the 20-year electricity agreements in 2024, one of our goals was to work as partners in the energy system as we move ahead."
He said NZAS had been progressively restarting affected production following the 205MW demand reduction the smelter initiated to help New Zealand through the energy squeeze last winter.
The complexity of the ramp-down and ramp-up process meant full production was not scheduled to be restored until April.
"The aluminium process requires constant energy, and while most of our global competitors are still powered by fossil fuels to solve this challenge, in New Zealand we continue to find better ways to work in partnership with our largely renewable grid.
"This winter will again test our operational capability, but we’re the best in the world at this and we’re up for the challenge," Mr Blenkiron said.
An NZAS external affairs director said yesterday the decision would not affect staff at the smelter.
He also said this had no bearing on the plans of reopening its fourth potline, which has been closed since 2020 in response to the Covid-19 pandemic.
"[This has] nothing to do with the fourth potline, which, as discussed, is under longer-term consideration," the external affairs director said.
Last year, the company announced it was starting to increase production as the hydro lakes filled, after it had come to an agreement with its power suppliers to reduce consumption by more than 200MW.
Since then, it has started to ramp up, which would result in the potline being fully operational by April — but now this would be delayed until at least September.
