One thing for sure is LYP wont have any problem obtaining finance for a Coldry plant... There will be immense pressure to clean brown coal up from now on. If Alcoa can use 50% of LYP's electricity - maybe there will be pressure on them to contribute to a Coldry plant? __________________________________
Remember Kos saying this (pre LYP deal):
"But Mr Galtos said there was also an opportunity for the power station which enters into the partnership to purchase the pellets at a significantly discounted rate to burn in their own plant.
He said this would be a ``big win'' for the power station and would support its long-term viability.
``If they replace just 10 per cent of their volume with Coldry pellets they would decrease CO2 emissions by five per cent,'' Mr Galtos said.
``Should they decide they want to use the product, I am ready and willing to give them the best deal.''
He said the plant would use hot water from the chosen power station's cooling towers and then return it to them at a cooler temperature.
Water extracted from the brown coal in the coldry plant will also be sold, possibly to local power stations and local industry."
"The new contracts are a lifeline for the aluminium smelters and the Loy Yang A power station, Victoria's biggest and most efficient generator, albeit based on greenhouse unfriendly brown coal...
But under the new contracts, Loy Yang A also gets to live on while the smelters, if anything, could expand, given the provision in the contracts for options that could increase their take from Loy Yang A to more than half of its capacity."
"Loy Yang Power chief executive, Ian Nethercote says the deal provides certainty for both companies and their workers.
"This is a vote of confidence in Loy Yang and the way that we operate, by perhaps one of Australia's largest electricity consumers in the business," he said.
"I think that's a real feather in our cap to be able to have that joint venture with Alcoa...
Mark Wakeham from Environment Victoria says Alcoa should be moving away from coal-fired power.
"We also have a lot of wind power in western Victoria. So by hitching its future to a brown coal power station, Alcoa is going to raise a lot of questions."
"Ian Nethercote, chief executive of Loy Yang also expressed that their side of the party is exceptionally pleased with the agreements since they support two of Loy Yang's key business objectives- to build a sustainable future in a carbon-constrained world as well as delivering an efficient and profitable business."
