Macquarie’s Green Investment Group (GIG) is to supply electricity to metallurgy company Erament Norway from two Norwegian wind farms under long-term power purchase agreements (PPAs).
Two PPAs have been agreed to deliver electricity from the Tysvaer and Buheii projects in Rogaland and Agder, respectively, to Eramet Norway’s Norwegian smelters.
Eramet Norway is a manufacturer of manganese alloys for the global steel industry.
It has an annual electricity demand of more than 2 terrawatt-hours and relies on long-term and predictable power supplies to ensure stable and efficient operation in its processing plants in Porsgrunn, Sauda and Kvinesdal.
The PPAs are backed by guarantees issued under the Power Purchase Guarantee Scheme administered by the Norwegian Export Credit Guarantee Agency (GIEK).
The scheme aims to ensure that Norwegian industrial companies with high electricity demands can enter into long-term power contracts at a predictable price.
Both the power contracts and GIEK’s guarantees are subject to GIG making a final investment decision to build the projects.
GIG is now awaiting final approvals from the Norwegian Water Resources and Energy Directorate and the Ministry of Petroleum and Energy to start construction of the wind farms.
GIG already owns Tysvaer and has entered into an agreement with Nordisk Vindkraft to buy Buheii Vindkraft, which owns Buheii.
The acquisition of Buheii Vindkraft remains subject to certain completion conditions.
Both wind farms will supply power to Eramet Norway’s processing plants until 2038.
GIG Europe head Edward Northam said: “We are pleased our Norwegian wind farms will be able to deliver a predictable power supply to Eramet Norway, and we look forward to strengthening our role as an important partner for Norwegian industry.”
Eramet Norway chief executive Bjorn Kolbjornsen said: “With our ambitions to be in the forefront of industrial development in Norway, we need access to renewable energy.
“The agreement with GIG is therefore an important contribution to our power portfolio.”