Hydro Energi AS has signed a long-term power purchase agreement (PPA) with Statkraft for the delivery of 0.44 TWh per year to Hydro’s Norwegian aluminum plants from 2024 to 2038.
The PPA secures this supply to Hydro’s plants in the NO3 bidding zone in central Norway from Statkraft’s power plants in the price area.
Access to renewable power and modern technology enable Hydro to produce aluminum in Norway with a carbon footprint of about 75% less than the global average, Hydro said.
“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,” says Ola Sæter, head of Hydro’s aluminum plants.
Statkraft is Europe’s largest generator of renewable energy from hydropower, wind power, solar power and gas-fired power. The company also supplies district heating.
“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,” says Executive Vice President Markets Hallvard Granheim.
The contract delivery period is from Jan. 1, 2024, to Dec. 31, 2038.
The power contract will be part of Hydro Energy’s total power portfolio, which consists of its own annual hydropower production of 9.4 TWh and a long-term contract portfolio of around 10 TWh per year.