Hydro Energi AS has taken another step to secure long-term access to renewable electricity in Norway, signing a new power purchase agreement (PPA) with Hafslund Kraft AS that will run from 2036 to 2040. The agreement will cover a total of 1.75 TWh over five years and Hafslund will supply 350 GWh of electricity each year across this period.
Image source: Hydro
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The power from Hafslund will be delivered in Norwegian electricity price area NO3.
“This agreement is an important step in securing parts of Hydro’s power demand and enables further development of our aluminium plants in Norway, including investments in new technology. We are very pleased to have Hafslund as a partner, helping Norwegian industry continue to lead the way in low-carbon products and solutions,” says Kari Thørud, Executive Vice President of Hydro Energy.
It is not the first time the two companies have partnered. Since 2020, Hydro and Hafslund have signed eight PPAs between them, bringing contracted volumes to as much as 10 TWh. The latest agreement pushes that relationship further into the future, at a time when access to, renewable power is becoming harder to secure.
Also read: Hydro signs 10-year renewable power deal with Hafslund
For Hydro, electricity is not just another input cost, it helps many industries. Alumina smelting relies on electrolysis, and power consumption typically runs at around 13–15 MWh per tonne. Securing long-term supply therefore plays a direct role in keeping costs stable and operations viable over time.
Hydro’s Norwegian aluminium is produced using renewable energy, mainly hydropower, giving it a carbon footprint around 75 petr cent lower than the global average. That advantage has become increasingly important as customers, regulators and investors focus more closely on emissions.
Renewable power also sits at the heart of Hydro’s longer-term ambitions. The company has set out a technology roadmap aimed at reaching zero emissions by 2050, and access to clean electricity is seen as a prerequisite for making that transition work.
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