Statkraft is to supply 0.44 terawatt-hours (TWh) per year to Hydro Energi AS’ aluminium plants in Norway from 2024 to 2038 under a recently signed long-term power purchase agreement (PPA).
The PPA secures a total supply of 6.6 TWh of renewable energy, ensuring a sustainable power source for Hydro's plants in NO3. By sourcing power from Statkraft's power plants Hydro can access renewable energy and employ modern technology to produce aluminum in Norway with a carbon footprint that is approximately 75% lower than the global average.
Ola Sæter, Head of Hydro's aluminum plants, emphasized the significance of this agreement in meeting Hydro's future power requirements. "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 aluminum 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," Sæter explained.
Hallvard Granheim, Executive Vice President Markets at Statkraft, added: “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.”
The power contract, effective from January 1, 2024, until December 31, 2038, will operate within the NO3 price area. It will be integrated into Hydro Energy's overall power portfolio, which comprises its own annual hydropower production of 9.4 TWh and a long-term contract portfolio amounting to approximately 10 TWh per year.
Image: Arvid Moss, Executive Vice President Hydro Energy, and Hallvard Granheim, Executive Vice President Markets, Statkraft (right) signed the PPA at Statkraft AS’ main office in Oslo.