Hydro and Hafslund Kraft AS have signed a new long-term power purchase agreement (PPA).
The contract secures an annual supply of 350 GWh over a five-year period between 2036-2040. The power from Hafslund will be delivered in Norwegian electricity price area NO3.
This marks the eighth PPA entered by Hafslund and Hydro since 2020, totalling up to 10 TWh of contracted volumes.
“This agreement is an important step in securing parts of Hydro’s power demand and enables further development of our aluminium plants in Norway, including investments in new technology,” said Kari Thørud, Executive Vice President of Hydro Energy.
“We are very pleased to have Hafslund as a partner, helping Norwegian industry continue to lead the way in low-carbon products and solutions.”
Based on renewable energy, Hydro can produce aluminium in Norway with a carbon footprint about 75% less than the global average.
Renewable energy is key for Hydro to succeed with its technology roadmap towards zero emissions by 2050.
Hydro is actively pursuing a range of available sourcing options to meet the demand for renewable power going forward.
In addition to long-term contracts with counterparts like Hafslund, Hydro is actively developing new renewable power projects as well as upgrading assets in its own captive renewable energy portfolio.
