Hydro and Skellefteå Kraft inks 2 TWh renewable energy deal for its Norwegian aluminium smelters

Hydro Energi AS has entered into a long-term power purchase agreement (PPA) with Skellefteå Kraft AB to supply 2 TWh of renewable energy to Hydro's Norwegian aluminium plants from 2025 to 2032. This agreement ensures Hydro will receive 2 TWh from Skellefteå Kraft's SE2 portfolio over the next eight years, supporting the company's aluminium smelters in Norway.

Long-term PPAs are essential for Hydro to maintain its leadership in low-carbon aluminium production globally. Renewable energy is critical to producing aluminium in Norway, reducing the carbon footprint by approximately 75 per cent compared to the global average. It also plays a key role in advancing Hydro's technology roadmap toward achieving zero emissions by 2050.

This power contract will be integrated into Hydro's Nordic power portfolio, which includes 9.4 TWh of captive power production annually and a long-term contract portfolio of around 10 TWh. With some of these long-term agreements set to expire at the end of 2030, Hydro is actively exploring new renewable energy sourcing options to support its future operations.

Skellefteå Kraft drives the electrification of society and future infrastructure development through innovation, research, and investments in renewable energy. As one of Sweden’s largest energy producers, the company generates power from wind, hydropower, heat, and bioenergy.