Hydro Energi AS and Statkraft have signed two long-term power purchase agreements (PPA) for the total delivery of 0.9 TWh per year in 2029 and 2030, and 1.3 TWh per year in the period from 2031 to 2038.

The PPAs secure a total supply of 12.3 TWh of power over a 10 year period to Hydro's primary aluminium production plants in Norway, of which 8.8 TWh will be delivered in the NO2 price area and 3.5 TWh in NO3.

“This agreement underlines how power and industrial development are closely linked in Norway. Together with Statkraft we are strengthening the long-term competitiveness of our aluminium operations. Aluminium is critical across the economy and access to power at competitive prices is essential to deliver future low-carbon solutions for our customers,” says Hydro President and CEO, Eivind Kallevik.

Based on renewable energy, Hydro can produce aluminium in Norway with a carbon footprint about 75 percent less than the global average. Renewable energy is key for Hydro to succeed with its technology roadmap towards zero emissions by 2050.

“As Norway’s largest power producer, a main task for us is to secure electricity for Norwegian industry. We are very happy that we have been able to meet the needs of Hydro on competitive terms, prolonging our long standing partnership with these two new long-term contracts,” says Statkraft President and CEO, Birgitte Vartdal.

In addition to long-term contracts with counterparts like Statkraft, Hydro is actively developing new renewable power projects as well as upgrading assets in its own captive renewable energy portfolio.

KeyFacts Energy Industry Directory: Hydro