In a significant move to bolster its commitment to sustainable aluminium production, Hydro Energi AS, a subsidiary of the Norwegian aluminium and renewable energy company Hydro, has entered into 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, totaling 4.38 TWh over the contract period.
Image Source: www.hydro.com
This agreement not only ensures a stable and reliable supply of renewable energy for Hydro's aluminium production but also underscores the company's dedication to reducing its carbon footprint. By leveraging Å Energi's clean energy, Hydro's aluminium production in Norway will continue to boast a carbon footprint approximately 75 per cent lower than the global average.
The significance of long-term contracts like this one cannot be overstated, as they provide Hydro with the necessary stability and predictability to drive its ambitious sustainability agenda forward. The company's technology roadmap, which aims to achieve zero emissions by 2050, relies heavily on the availability of renewable power. By securing this contract, Hydro has taken a crucial step towards realising its vision of a carbon-neutral future.
The power supplied by Å Energi will be delivered within the Norwegian electricity price area NO3, which is a key region for Hydro's aluminium production. This agreement will form an integral part of Hydro's Nordic power portfolio, which comprises 9.4 TWh of captive power production per year and a long-term contract portfolio of around 10 TWh.
As several of Hydro's existing long-term power agreements are set to expire at the end of 2030, the company is actively exploring various sourcing options to meet the growing demand for renewable energy. This proactive approach ensures that Hydro remains well-positioned to drive its sustainability ambitions forward, even as the energy landscape continues to evolve.
By partnering with Å Energi, Hydro has demonstrated its commitment to securing the renewable energy necessary to power its low-carbon aluminium production. This long-term contract serves as a powerful example of the company's dedication to sustainability and its determination to lead the way in the transition to a more environmentally friendly aluminium industry.
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