Statkraft has signed a long-term power purchase agreement (PPA) with Hydro Energi for the delivery of electricity to Hydro’s Norwegian aluminium plants from 2024-2038.
The PPA secures a total supply of 6.6 terawatt-hours of renewable power over a 15-year period to Hydro’s plants in NO3 from Statkraft’s power plants in the price area.
Access to renewable power and modern technology enable Hydro to produce aluminium in Norway with a carbon footprint of about 75% less than the global average.
“We have a great need for power in the future and several of our existing agreements will expire from 2030,” said Hydro aluminium plant head Ola Saeter.
“This agreement is an important step in sourcing parts of Hydro’s power demand and enables further development of our aluminium plants in Norway, including investment in carbon capture storage (CCS) and new technology,” Saeter added.
“We still have a great need though for more power for our plants. It is important that more renewable energy is developed to secure this.”
Statkraft executive vice president markets Hallvard Granheim added: “In Statkraft, we are very pleased to expand our cooperation with Hydro and deliver more renewable power to its industrial activities in north-west Norway.
“As the country’s largest power producer, one of our main tasks is to secure renewable power for Norwegian industry – today and in the future.”
The contract delivery period is from 1 January 2024 to 31 December 2038, with delivery in the price area NO3.
The power contract will be part of Hydro Energy’s total power portfolio, which consists of its own annual hydropower production of 9.4TWh and a long-term contract portfolio of around 10TWh per year.