Hydro Energi expands its power portfolio via 660 GWh renewable energy PPA with NTE

Hydro Energi AS has entered into a long-term power purchase agreement (PPA) with NTE, securing a total delivery of 660 GWh of electricity from 2027 to 2029. This agreement will contribute to Hydro Energi's overall power portfolio, which includes 9.4 TWh of annual captive power production and a long-term contract portfolio of approximately 10 TWh.

Image Source: Hydro website

The contract is set to run from January 1, 2027, to December 31, 2029, with deliveries in the NO3 price area. As a key player in the Nordic power market, Hydro Energi is responsible for sourcing renewable electricity to support Hydro's aluminium production.

Access to renewable energy is crucial for producing low-carbon aluminium in Norway, resulting in a carbon footprint around 75 per cent lower than the global average. This aligns with Hydro's commitment to sustainable aluminium production and long-term climate goals.

NTE is a leading energy company dedicated to renewable energy production and distribution. With a strong presence in Trøndelag and Northern Norway, the company generates around 4.8 TWh of renewable energy each year. Beyond production, NTE actively develops and manages energy infrastructure while providing products and services that drive the transition from fossil fuels to sustainable energy solutions.

A power purchase agreement (PPA) is a long-term contract between a buyer and a seller for the purchase of electricity, commonly from renewable sources. PPAs provide customers with stable, often lower-cost electricity without upfront expenses. This agreement guarantees a stable and reliable supply of renewable energy for Hydro’s aluminium production, reinforcing the company’s commitment to lowering its carbon footprint.

Long-term contracts like this are vital, offering Hydro the stability and predictability needed to advance its ambitious sustainability goal of zero emissions by 2050, depends on consistent access to renewable power. Securing this contract marks a significant milestone in Hydro’s pursuit of a carbon-neutral future. Hydro Energi AS, a leading Norwegian company dedicated to renewable energy production, primarily through an extensive network of hydropower plants, has previously signed some other significant PPA's-

• Hydro Energi AS had signed a long-term power purchase agreement (PPA) with Å Energi. The 10-year contract, which commences in 2025 and runs through 2034, guarantees the delivery of 438 GWh of electricity annually to Hydro's Norwegian aluminium plants, totalling 4.38 TWh over the contract period.
• The second PPA, which the leading Norwegian renewable energy company signed, was signed by Swiss energy provider Alpiq. Under this agreement, Hydro would receive 0.54 TWh of renewable energy between 2025 and 2033.
• Hydro Energi AS has signed a long-term power purchase agreement (PPA) with Skellefteå Kraft AB to deliver 2 TWh of renewable energy to Hydro's Norwegian aluminium plants from 2025 to 2032. The eight-year agreement secures energy from Skellefteå Kraft's SE2 portfolio.
• Norwegian aluminium and renewable energy leader Norsk Hydro, through its clean energy division Hydro Energi AS, entered into a long-term power purchase agreement (PPA) with Statkraft. Under the agreement, Statkraft will deliver 1.28 TWh of renewable energy from May 2024 to 2027.