The new contract, which will kick on when the aluminium producer’s existing power contract expires in December 2012, is for an eight-year period and will pave the way for continued operations at the plant, says Soral’s CEO, Per Øyvind Sævartveit.

Søral is currently producing 90kt/yr of aluminium per annum, having curtailed one of its two potlines because of the financial crisis in 2009. With both potlines in operation the plant’s capacity is 185kt/yr.

Svein Richard Brandtzæg, Hydro’s president and CEO, described the new power deal as a milestone for Søral. "It shows that Norwegian industry and power producers jointly can find solutions that ensure that Norway keeps its position as a location for aluminium production with clean, renewable power. In our view, this is good for Hydro, for Norway as an industrial nation and for the global climate."

"This is a milestone for Søral and for Hydro as part owner, and very important for our Norwegian aluminium operations," says Hydro President and CEO Svein Richard Brandtzæg. "It shows that Norwegian industry and power producers jointly can find solutions that ensure that Norway keeps its position as a location for aluminium production with clean, renewable power. In our view, this is good for Hydro, for Norway as an industrial nation and for the global climate."