PowerPointPrsentation

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Pumped Storage New Hydro Columbia Gorge
Aluminum Energy Park Douglas C. MacCourt Ater
Wynne LLP
Affiliated Tribes of Northwest Indians Tribal
Energy Conference Energy Fair March 16-18,
2008 Portland, Oregon
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Region Columbia River Klickitat County
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Columbia River Region in Transition

• Key trade link to Asia
• Regional transportation hub
• Changing economies, changing uses, changing views

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Industry at the Crossroads
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Columbia Gorge Aluminum

• NSC Smelter LLC, dba Columbia Gorge Aluminum
  (CGA) owns an idle aluminum smelter in
  Goldendale, WA (located 120 miles east of
  Portland, OR)
• Plant is situated alongside the John Jay Dam on
  the Columbia River with rail, highway, river
  access
• Following acquisition through bankruptcy,
  significant investment to upgrade plant
  facilities undertaken to restart plant

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Site Features

• Smelter site over 600 acres developed industrial
  land for plant, power and water systems
• 7,000 acres of undeveloped land adjacent to the
  Columbia River
• Approximately 1,000 acres is a low land bench
  situated along-side the Columbia River at an
  elevation of approximately 600 ft msl.
• Approximately 6,000 acres at the top of downward
  sloping escarpment at an elevation of 2,500 ft
  msl.

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Industrial Setting Power, Access, Space
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Smelting Operations

• At full operation
• 168,000 metric tons per year primary aluminum
• Over 700 full and part time employees
• Daily power consumption 328 Mw

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Global Aluminum US Falls, World Grows

• Primary cause of decline in US production is cost
  of power.
• Up to 40 of cost to produce aluminum from
  bauxite ore is energy
• Other factors technology, labor, regulatory

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Redevelopment Clean Energy

• Land above smelter leased to wind farm that will
  operate 29 turbines between 2008 and 2009, part
  of a much larger wind development adjacent to CGA
  lands in Klickitat County
• Offers for reuse of smelter site for solar and
  wind energy component manufacture
• Pumped storage opportunity using land between
  wind turbine sites and adjacent to smelter

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Proximity to Energy Infrastructure
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Excellent Wind Energy Potential
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Wind Projects Underway
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Potential Upper Lower Reservoir Sites
Initial estimates are for a 1050MW plant
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View with Plant Site Proximity
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Potential Upper Reservoir Location
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First Steps to Redevelopment Recycle

• A massive recycling project
• Each pot produces
• 45 tons of steel
• 7 tons of aluminum
• 2.5 tons of recyclable electrolyte (bath)
  material
• Waste
• 80 tons of spent pot liner

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Steel
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Aluminum
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Pot Line Recycling Key to Reuse

• Removal of pots and lines from buildings will
  create usable manufacturing space in existing
  structures
• Sales of scrap will fund waste disposal costs
  (over 4 million in disposal costs alone)
• Scrap sales will also help fund feasibility
  studies for pumped storage project and
  preparation of buildings for reuse

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Regulatory Issues

• Good coordination between Washington Department
  of Ecology (DOE) and US EPA Region 10
• Bob King and Paul Skillingstad of DOE
• Waste programs coordinating so timing of
  generation of waste and timing of recycling
  efforts match
• Good models from other aluminum smelter reuse
  projects in Washington

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Project Coordination

• Other site cleanup and management issues continue
  without impact to, or from, recycling project
• Coordination with Klickitat County, Klickitat
  Public Utility District, Bonneville Power
  Administration for energy development
• Klickitat County Economic Development and PUD key
  to growth of clean energy industry at site and
  throughout region

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Conclusion

• State and federal agency coordination key for
  regulatory issues
• Building on existing relationships between
  environmental management at plant and DOE
  Industrial Program
• Recycling effort key to funding reuse efforts
• Staging project essential for maximum economic
  value and control over project operations on the
  ground
• Local agency and community relations key to new
  uses and clean energy opportunities

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A New Life for Old Industry