Norsk Hydro signs 15-year agreement with Statkraft

Norsk Hydro signs 15-year agreement with Statkraft

Norsk Hydro ASA, a Norwegian aluminium producer, has signed a power purchase agreement (PPA) with Statkraft through its affiliate, Hydro Energi AS. The PPA entails the delivery of 0.44 TWh of renewable power annually to Hydro’s aluminium plants in northeast Norway until 2038.

This agreement will provide Hydro with a total of 6.6 TWh of renewable power over the next 15 years, commencing on January 1 of the following year. The specific pricing details of the contract were not disclosed. This move highlights Norsk Hydro’s commitment to sourcing renewable energy and supports its sustainability objectives by reducing its environmental impact and promoting the use of clean energy sources in its operations.

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.

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