Norwegian aluminium producer Norsk Hydro ASA announced last week that its affiliate Hydro Energi AS has signed a power purchase agreement (PPA) with Statkraft to deliver 0.44 TWh each year to Hydro’s aluminium plants in northeast Norway through 2038.
The agreement of last week will provide Hydro with 6.6 TWh of power obtained from renewable resources for the next 15 years. The contract commences on January 1 of next year and runs through the end of 2038. The delivery area is NO3, which is centered on Trondheim. Hydro did not disclose the contract’s price terms.
Ola Sæter, Head of Hydro’s aluminium plants, said in a press release that the contract fills an important need for the firm.
“Hydro has a great need for power in the future and several of our existing agreements will expire from 2030. 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. 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.”
Due to its access to sustainable power, Hydro is able to produce aluminium in Norway by releasing up to 75 percent less carbon than the industry standard.
Executive Vice President Markets Hallvard Granheim said his firm is delighted to do more business with Hydro.
“In Statkraft, we are very pleased to expand our cooperation with Hydro and deliver more renewable power to Hydro’s industrial activities in Northwestern Norway. As Norway’s largest power producer, one of our main tasks is to secure renewable power for Norwegian industry – today and in the future.”
Hydro Energy’s total power portfolio, which is split between 9.4 TWh of in-house power production and 10 TWh of contracts with third-party suppliers.
