The Warrick operations of US aluminium giant Alcoa near Yankeetown, Indiana, is expected to save about $3 million from lower interest rates on a major pollution control project as a result of action taken this week by the Indiana Finance Authority. The IFA awarded a "volume cap" designation to the company, a move that enables Alcoa to obtain tax-exempt financing for an approximately $400 million upgrade at the Warrick County smelter and mill.

Alcoa's Warrick coal-fired power plant generates electricity and steam for the nearby Warrick Operations along the Ohio River about 10 miles east of Evansville, Indiana. Alcoa is installing scrubbers on all four units of the power plant to reduce pollution and making other upgrades as well.

Royce Haws, primary metals location manager at Warrick Operations, said the project is vital to the plant's future. The plant improvements are expected to result in drastic cuts in air emissions and will eliminate 6 to 8 million gallons of wastewater daily.

The IFA was formed in 2005 to administer the state's Volume Cap program. "Volume cap" refers to the amount of tax-free financing available for certain projects in a given year. The program is designed to reduce the cost of new projects for eligible businesses. Warrick Operations, with more than 2,000 employees, is one of the largest employers in southwestern Indiana.