Hydro locks in renewable power supply through 2040 with Statkraft to drive low-carbon aluminium growth in Norway

Hydro Energi and Statkraft have signed a long-term power purchase agreement (PPA) securing an annual electricity supply of 876 GWh from 2031 to 2040. The agreement will provide Hydro with around 8.8 TWh of power during the contract period, with deliveries planned in Norway’s electricity price area NO5.

The agreement will support Hydro’s aluminium operations in Norway by providing access to renewable electricity at competitive terms. Reliable power supply remains essential for aluminium producers, as electricity accounts for a major share of aluminium production costs and plays a key role in reducing emissions from smelting operations.

“Long-term and predictable power at competitive prices is vital for Hydro’s aluminium production in Norway and enables us to continue delivering low-carbon aluminium and solutions to our customers in Europe,” said Kari Ekelund Thørud, Executive Vice President of Hydro Energy.

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Hydro stated that renewable energy allows it to produce aluminium in Norway with a carbon footprint around 75 per cent lower than the global average. The company is also using renewable power as part of its technology roadmap towards achieving zero emissions from aluminium production by 2050.

The latest agreement follows two other long-term PPAs signed between Hydro and Statkraft in April 2026. These contracts cover electricity deliveries of 0.9 TWh per year in 2029 and 2030, followed by 1.3 TWh per year between 2031 and 2038.

“This is the third long-term power purchase agreement that Statkraft has entered with Hydro this year. These agreements provide stable and competitive power to Hydro’s aluminium plants in Norway over the next decade,” said Hallvard Granheim, Executive Vice President Markets at Statkraft.

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