Australia and New South Wales have committed A$2.5 billion to secure cheaper, more stable power for Tomago Aluminium, allowing the Rio Tinto-linked smelter to keep operating after its current electricity contract expires on Dec. 31, 2028. The package supports 3 gigawatts of new generation capacity and a 10-year power purchase agreement through 2038, while Tomago will invest at least A$1.1 billion from 2026 to 2038, including A$100 million for decarbonisation. Power is due to shift to 100% renewable sources from 2033, a change expected to cut 7.1 million tonnes a year from the plant's Scope 1 and Scope 2 emissions, and the smelter will continue providing demand response to help grid reliability. Tomago, an independently operated joint venture majority-owned by Rio Tinto, produces up to 590,000 tonnes of aluminium a year, about 40% of Australia's output, and is the largest electricity user in New South Wales. The agreement follows Rio Tinto's October 2025 warning that commercially viable post-2028 power was essential to avoid closure and comes after a similar March 2026 deal for the Boyne smelter.