Matt Howell, the CEO of Tomago Aluminium Smelter, told a few home truths on ABC radio Monday.

To paraphrase in my own words:

1. Aluminium Smelters gobble electrons for breakfast. His smelter uses 10% of the entire electricity supply of the most populous state in Australia (NSW).

2. If power goes out without warning for more than three hours, the smelter pot lines freeze, permanently. The company goes to the wall.

3. The largest battery in the world would keep their smelter going for all of 8 minutes. There is a good reason there are no solar or wind powered aluminium smelters anywhere in the world.

4. The government can ‘t let the market solve anything whilst it is simultaneously destroying the free market by propping up the market failures at the same time.

5. Electricity pricing has suddenly got very ugly. Their electricity bill may now be subject to price spikes where it could cost them $4 million just to keep one pot line running during that spike. It is as if suddenly gas stations only sold $400 per Litre petrol. (Which would be $1800/per gallon). What he doesn’t […]