May 14, 2007

Alcan to join U.S. Climate Action Partnership

Alcan has announced its intention to join the United States Climate Action Partnership (USCAP), a coalition of leading companies and NGOs calling on the U.S. government to enact strong national legislation quickly to achieve significant greenhouse gas (GHG) emission reductions. Alcan president and CEO Dick Evans will also serve on USCAP's executive board.

USCAP urges policymakers to enact a policy framework for mandatory reductions of GHG emissions from major emitting sectors, including large stationary sources and transportation, and energy use in commercial and residential buildings. The cornerstone of this approach would be a cap-and-trade program.

The group calls on the U.S. Congress to provide leadership and establish short- and mid-term emission reduction targets. USCAP also advocates a national program to accelerate technology research, development and deployment, and urges the adoption of approaches to encourage action by other countries, including those in the developing world.

In other activities, Alcan said it is beginning the engineering for the construction of a new high-efficiency turbine at its Shipshaw power generating station in the Saguenay region of Quebec. The new turbine will eventually replace an older, less-efficient unit. The $130-million (U.S.) is part of a $1.8-billion (U.S.) commitment announced last December.

"The new, 225-megawatt (MW) turbine will allow us to use our existing water resources more efficiently and to supply additional backup peaking capacity to Hydro-QuÈbec, as agreed in our December commitment with the provincial government," said Michel Jacques, president and CEO of Alcan's primary metal group.

The first step in the project will be to carry out $13 million (U.S.) worth of technical studies and preliminary engineering required for the construction. Once the first phase is complete, construction should begin in the first quarter of 2009, with the new turbine coming on-line in the first quarter of 2013. Built in 1943, the Shipshaw generating station has an installed capacity of 896 MW.

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