Hydro signs 15-year deal with Statkraft for renewable power supply to its Norwegian aluminium plants

Hydro Energi AS has entered into a long-term agreement with Statkraft, Europe’s largest renewable energy generator, to secure 0.44 TWh of power per year for its Norwegian aluminium plants from 2024 to 2038. The deal ensures a total supply of 6.6 TWh of renewable energy to Hydro’s plants over 15 years.

Aluminium production using renewable power and modern technology at Hydro produces 75 per cent less carbon footprint than the global average. Long-term power agreements at competitive prices will help Hydro lead the way to low-carbon aluminium globally.

Ola Sæter, Head of Hydro's aluminium plants, 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 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.”

Hallvard Granheim, Executive Vice President Markets, said: "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 purchase contract is valid from January 1, 2024, to December 31, 2038.