Boliden to back Norwegian smelting ops with power from Statkraft

Swedish mining and smelting company Boliden AB (STO:BOL) has signed a contract to procure 1.6 TWh of power annually from Norwegian renewable energy producer Statkraft AS to support the enhanced electricity requirements of its smelter in Odda, Norway.

Statkraft said on Thursday that the power supplies will be carried out for 15 years as part of a new, extended deal for “competitive power.” It will support the operations of Boliden’s Odda site, which is currently being upgraded and will lift its smelting capacity from 200,000 tonnes to 350,000 tonnes.

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Statkraft did not specify the source of electricity it will use to cover its commitment under the deal. In Norway, the Oslo-based company operates 12,910 MW of hydroelectric and 796 MW of wind power plants, it says on its website.

The Odda smelter will increase its power demand by 700 GWh per year once its expansion is completed in 2024.

“The power agreement forms the basis for producing the world's most climate-efficient zinc in Odda,” said Mats Gustavsson, energy director at Boliden. Back in 2019, the Swedish group agreed to buy 415 GWh of wind power to supply some of its operations in Sweden and Finland under a long-term power purchase agreement (PPA) with an unnamed wind power developer.