Two front-runners in reopening the Intalco facility offer jobs, cleaner operation
Interest in the curtailed Intalco Works aluminum smelter near Ferndale has heated up and it appears two different ideas are emerging as front-runners to bring back hundreds of living-wage jobs.
Speaking at a Port of Bellingham Commissioner meeting on Tuesday, Oct. 19, Don Goldberg, the port’s director of economic development, updated commissioners on negotiations that are apparently underway to potentially buy the property from Alcoa.
Goldberg, who stressed that negotiations are in the early stages, said at least two different possibilities are being considered. One would be to bring back aluminum production to the facility, while the other is an American-Canadian venture that would create a steel mill that focuses on using recycled material. For the second project, Goldberg said a micro steel mill format could lead to around 600 jobs; an upgraded investment could mean more than 1,000 jobs.
Goldberg brought this up at the end of the meeting, following questions from commissioner Ken Bell asking for an update. During the discussion, Goldberg mentioned the sale could come in a variety of ways, including a direct sale to the company. Other possibilities could involve other entities like Whatcom County or the port buying the property and leasing it.
“I’m thrilled with the idea to modernize that plant again,” Bell said in a telephone interview, adding that there will probably need to be a large investment to upgrade the equipment.
Whatcom County has also been approached with the idea of getting that property going again, and County Executive Satpal Sidhu said they are excited about the idea of helping.
“If there is a way to open Intalco and bring back (those) jobs, we would be very interested,” Sidhu said in a phone interview.
The smelter, which opened in 1966, was curtailed in the summer of 2020 due to declining market conditions.
Alcoa did not respond to a request for comment.
Market conditions good for metals
The idea of bringing back the smelter comes at a time when demand — and prices — for the aluminum and other metals are high. The price for a metric ton on the London Metal Exchange was around $1,600 when Intalco was curtailed in July 2020. On Tuesday, Oct. 19, the price was at around $3,200 a metric ton.
Bell said going with an aluminum smelter could mean a quicker turnaround involving restarting much of the current equipment and then upgrading to make it more efficient. However, a facility that repurposes recycled metal such as steel would also be a natural option for that site.
The idea of a “green” steel mill could be an intriguing one for a community that has looked to balance bringing in living-wage jobs while wanting companies that have environmentally friendly practices. Goldberg said he doesn’t have specific details on the steel mill plan, but is under the impression the company involved in the project has a goal of creating the most environmentally friendly recycled steel in the world, which could include using electric furnaces.
Goldberg noted that currently most U.S. scrap steel is shipped to Asia to be recycled; having a plant in the U.S. would cut down on shipping, significantly reducing the industry’s carbon footprint.
Sidhu said restarting the facility as an aluminum smelter is also an interesting idea; it’s his understanding that the company proposing that plan also has plans to make it more environmentally friendly, including using upgraded technology to reduce emissions and improve efficiency.
“This is great news for Whatcom County and we want to be a team player in this,” Sidhu said.
This story was originally published October 19, 2021 at 6:01 PM.
