Hundreds of jobs will be saved at an aluminium smelter in Victoria thanks to a $76 million government deal to secure its electricity supply.
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Prime Minister Scott Morrison confirmed the underwriting commitment, with the public money to be spent over four years.
Under the deal, AGL, Alinta and Origin will supply power for the Alcoa smelter so it can remain open for at least another five years.
"We're very committed to ensuring Australia has a future in heavy industry, making things here in Australia," Mr Morrison said in Portland on Friday.
Alcoa's arrangement with the government is built on the understanding the smelter provides stability to the electricity market, because it uses a lot of power.
The smelter can reduce how much power it uses during times when the electricity grid is under stress, such as at the height of summer when scores of air conditioners are keeping households cool.
More than 30 per cent of the smelter's electricity is from renewable sources, which is expected to increase as the state works towards its 50 per cent renewables target.
The smelter is Portland's biggest employer with about 600 workers and contractors.
Victorian Treasurer Tim Pallas said the state would work with the company to sign all the final paperwork.
"We look forward to continuing to work with Alcoa and the Commonwealth in finalising the agreement and securing this valuable asset for the Great South Coast region and all of Victoria."
Alcoa Australia president Michael Gollschewski has thanked employees and contractors for hanging in.
"After a year characterised by uncertainty we are delighted to have clarity on the smelter's power supply," he said.
The Australian Manufacturing Workers Union is furious the government has stumped up money to support the smelter while employees from a local wind turbine manufacturer have been let go.
Ai Group chief Innes Willox says the five years of breathing space cannot be wasted.
He has urged the government to plan properly for the impending closure of old coal generators to ensure power prices don't surge from their current renewables-led lows.
"Upgrading and expanding industry to become low, zero, or negative-emissions needs ambitious and investment-grade policy," he said.
"If we don't solve these problems, government rescues will not be able to hold back the tide of closures."
It comes as members of Labor's senior team, including shadow treasurer Jim Chalmers, industry spokesman Ed Husic and energy spokesman Chris Bowen, attended BlueScope Steel in the Illawarra to speak with workers.
"Labor knows securing jobs in a time of technological change is a long journey, not a single step," the group said in a joint statement.
"But we won't get there without a plan that starts with listening to workers, employers and scientists."
Meanwhile, environment groups are cheering after supermarket giant Coles, one of Australia's biggest energy users, announced it would use 100 per cent renewable electricity by 2025.
Australian Associated Press
