Hydro secures 6.6 TWh green power for aluminium plants in Norway

Arvid Moss, Executive Vice President Hydro Energy, and Hallvard Granheim, Executive Vice President Markets, Statkraft (right) signed a PPA in Oslo. Image by Statkraft

Norwegian power company Statkraft has signed a 15-year deal to supply 6.6 TWh of renewable power to Hydro Energi AS for its aluminium plants in Norway.

Under the long-term power purchase agreement (PPA), Statkraft will deliver 0.44 TWh per year from its power plants to Hydro in the period from the beginning of 2024 to the end of 2038, Statkraft said on Thursday.

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Hydro Energi is one of the major power producers in Norway and a manufacturer of hydro engines, turbine components, and control systems for electro-mechanical power plants. The contracted electricity will be used to power its aluminium plants in the home market.

The offtake deal with Statkraft adds to Hydro's total power portfolio, which consists of its own hydropower production of 9.4 TWh annually and a long-term contract portfolio of around 10 TWh per year.

"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," said Ola Sæter who heads Hydro's aluminium plants.