The curtailment of the Magnitude 7 Aluminum Smelter in Marston, Missouri in January 2024 marks a critical decision point for Associated Electric Cooperative Inc (AECI) for the future of New Madrid Power Plant, the coal plant that powers the smelter. Because the New Madrid Power Plant is costly, emissions-intensive, and is associated with adverse human health impacts, AECI should explore all potential sources of renewable energy to power the plant. Not only will clean power make the Magnitude 7 smelter more economically viable, but there are also significant incentive programs that AECI could take advantage of to make a transition even cheaper.

This policy memo composes the second half of extended research conducted on behalf of Renew Missouri in Fall 2024 by the Stanford University graduate practicum, “The Renewable Energy Transition in Rural America,” under the direction of Professors Lisa Patel (Stanford Medical School) and Deborah Sivas (Stanford Law School). (See Part 1 focused on health impact, linked here.) The full research project assesses the economic feasibility of transitioning the Magnitude 7 smelter to clean power by detailing the relevant incentives programs available through the Inflation Reduction Act of 2024, including which funding streams could stack together. It concludes that AECI should pursue local solar by stacking the Investment Tax Credit with funding from the Loan Programs Office. With the transition in federal administrations in January 2025, the future of these economic incentives is uncertain. However, dissolving tax credits and other IRA programs would require proactive legislation, which may take time and face political hurdles. Therefore, now is the time for AECI to develop a plan for transitioning the New Madrid plant’s power from coal to renewables, making use of current tax credits and funding mechanisms.