Century Aluminum Chooses Oklahoma for New Smelter Over Kentucky amid Energy Challenges
Century Aluminum has decided to invest in a $4 billion aluminum smelter project in Oklahoma, abandoning plans for a new facility in Kentucky. The decision follows prolonged discussions and significant lobbying by Kentucky officials, including a $500 million grant from the Department of Energy aimed at supporting low-carbon aluminum production. Kentucky's challenges include competition for energy with data centers and slow development of renewable energy, which hindered its ability to attract the investment despite high local unemployment rates.
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Century Aluminum will invest in a $4 billion smelter project in Oklahoma instead of Kentucky, where it initially planned to build the first new U.S. aluminum smelter in nearly 50 years. The decision follows over two years of negotiations and a $500 million federal grant aimed at supporting low-carbon projects.
Kentucky's failure to provide affordable, reliable energy and its slow renewable energy development were cited as key barriers. The existing Hawesville smelter will be sold and redeveloped into a data center, leaving Century with only its Sebree smelter in Kentucky. The move highlights ongoing challenges in the state's industrial sector and energy policies.
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