Hydro Energi AS, a core part of Norsk Hydro, has reportedly inked a long-term power purchase contract with Fortum, a Nordic energy company. As per the agreement, the latter will supply 0.44 TWh per year of energy to Hydro’s Norwegian aluminium plants, with effect from 2024. It is a 13-year contract and hence will remain valid till 2036.
Over this period, Fortum will supply 5.7 TWh of power to Hydro’s plants in price area NO3. Fortum is known for producing the cleanest energy in Europe, with action plans guided by ambitious environmental targets.
Long-term renewable energy agreements are crucial for Hydro to continue producing low-carbon aluminium. Renewable power is key to produce aluminium in Norway with 75 per cent less carbon footprint than the global average. It will also help Hydro achieve its zero carbon emission goals by 2050 because Fortum produce and deliver clean energy to enable industries to decarbonise their production processes.
This new contract is part of Hydro’s Nordic power portfolio, which has a captive power production capacity of 9.4 TWh per year and a long-term contract portfolio of around 10 TWh.
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