Hydro Tasmania’s Long-Term Energy Agreement with LIBERTY Bell Bay
In a significant development for both Tasmania’s industrial sector and the local economy, Hydro Tasmania has confirmed that it has reached a commercial agreement with LIBERTY Bell Bay to continue supplying electricity to the ferroalloy smelter in George Town for the next decade. This agreement ensures the smelter’s uninterrupted operations, which have been a key part of Tasmania’s industrial landscape since it began production in 1962.
The Ferroalloy Smelter’s Importance to Tasmania
The LIBERTY Bell Bay ferroalloy smelter is Australia’s only ferroalloy producer, playing a pivotal role in the steel industry by providing critical materials used in manufacturing. The smelter is responsible for producing high-grade ferroalloys, which are essential for the production of stainless steel and other specialized steel products used in industries ranging from construction to automotive.
The smelter has been a significant employer in Tasmania, offering many jobs in the local community and driving economic growth in the region. As one of the state's largest energy consumers, the smelter’s continued operations are crucial not just for the steel industry but for maintaining Tasmania’s industrial relevance within the broader Australian economy.
A Win-Win Partnership
While the specific terms of the new deal remain confidential, Hydro Tasmania’s Acting CEO, Erin van Maanen, emphasized that the agreement represents a positive outcome for both parties involved. She highlighted that this deal not only supports LIBERTY Bell Bay but also benefits the people of Tasmania, as Hydro Tasmania is a government-owned business that returns profits to the state’s citizens through dividends.
“Our role as a government business means that the profits from this partnership will be shared with all Tasmanians, so it is essential for us to secure the best commercial deal for them,” said Ms. van Maanen. This approach reflects Hydro Tasmania’s commitment to achieving the best outcomes both for the state and for its industrial clients.
A Continued Partnership with National Impact
Paul Venter, Executive General Manager at LIBERTY Bell Bay, expressed his satisfaction with the ongoing partnership. He noted that the ferroalloy smelter is not only a cornerstone of Tasmania’s economy but also plays an integral part in Australia’s steel industry.
“As the only ferroalloy smelter in Australia, LIBERTY Bell Bay plays a vital role in supplying the nation’s steel industry. We are pleased to continue our long-standing relationship with Hydro Tasmania as part of our commitment to the Tasmanian community,” said Venter.
By securing a reliable and long-term electricity supply, LIBERTY Bell Bay can ensure the continuity of its operations, which are key to both Tasmania's and Australia’s broader industrial and economic framework.
Hydro Tasmania’s Role in Tasmania’s Energy Landscape
Historically, Hydro Tasmania has been a major player in providing energy to Tasmania’s industrial sector, negotiating direct contracts for wholesale energy hedges with the state’s four largest industrial consumers. These four industries alone account for approximately 60% of Tasmania’s total energy consumption.
In contrast to the residential and commercial energy sectors, which are primarily managed by energy retailers in Tasmania, the industrial energy market has been dominated by direct contracts, ensuring stable and reliable energy prices for key producers like LIBERTY Bell Bay. This approach also supports the state’s wider economic development, as energy plays a crucial role in the cost-effectiveness and sustainability of industrial operations.
