Statkraft signs long-term power contract with Hydro

(Oslo, June 8 2023) 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 aluminium plants in the period from 2024-2038.


The PPA secures a total supply of 6.6 TWh of renewable power over a 15-year period to Hydro's plants in NO3 from Statkraft's power plants in the price area.

Access to renewable power and modern technology enable Hydro to produce aluminium in Norway with a carbon footprint of about 75 percent less than the global average. Long-term power agreements at competitive prices are crucial for Hydro to continue to lead the way in low-carbon aluminium globally.

"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," says Ola Sæter, Head of Hydro's aluminium plants.

"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," says Executive Vice President Markets, Hallvard Granheim.

The contract delivery period is from January 1, 2024 to December 31, 2038, with delivery in the price area NO3.

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.

About Statkraft

Statkraft is a leading company in hydropower internationally and Europe’s largest generator of renewable energy. The Group produces hydropower, wind power, solar power, gas-fired power and supplies district heating. Statkraft is a global company in energy market operations. Statkraft has 5,300 employees in 21 countries.

About Hydro

Hydro is a leading aluminium and energy company committed to a sustainable future. Our purpose is to create more viable societies by developing natural resources into products and solutions in innovative and efficient ways. Since 1905, Hydro has turned natural resources into valuable products for people and businesses, creating a safe and secure workplace for our 32,000 employees in more than 140 locations and 40 countries.

For further information, please contact:

Lars Magnus Günther

Media Relations, Statkraft AS

Mob: +47 91241636

E-mail: lars.gunther@statkraft.com

Maria Melfald Tveten

Head of Communication & Public Affairs, Hydro Energy

Mob: +47 90 78 38 02

E-mail: maria.tveten@hydro.com