Hydro Secures 8-Year Renewable Energy Deal to Power Low-Carbon Aluminium Production

Hydro Secures 8-Year Renewable Energy Deal to Power Low-Carbon Aluminium Production

(IN BRIEF) Hydro Energi AS has signed 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 supports Hydro’s efforts to produce low-carbon aluminium, which already has a carbon footprint 75% lower than the global average. Renewable power is key to Hydro’s goal of achieving zero emissions by 2050, and the agreement enhances their Nordic power portfolio.

(PRESS RELEASE) OSLO, 16-Oct-2024 — /EuropaWire/ — Hydro Energi AS has entered into a long-term power purchase agreement (PPA) with Skellefteå Kraft AB to supply a total of 2 TWh of renewable energy to Hydro’s Norwegian aluminium plants from 2025 to 2032. The agreement is part of Hydro’s ongoing efforts to secure sustainable energy for its aluminium smelters, contributing to the company’s goal of producing low-carbon aluminium.

The PPA will source renewable power from Skellefteå Kraft’s SE2 portfolio, ensuring that Hydro’s Norwegian operations continue to benefit from cleaner energy. Renewable electricity is crucial for Hydro’s efforts to reduce its carbon footprint and achieve its goal of zero emissions by 2050. The aluminium produced in Norway already has a carbon footprint that is approximately 75% lower than the global average, a result of Hydro’s commitment to sustainable energy sourcing.

This agreement will bolster Hydro’s Nordic power portfolio, which currently includes 9.4 TWh of captive power production and around 10 TWh secured through long-term contracts. With some of these contracts set to expire by the end of 2030, Hydro is actively seeking new renewable energy sourcing options to ensure it meets future power demands for its operations.

About Skellefteå Kraft

Skellefteå Kraft enables the electrification of society and future infrastructure solutions through innovation, research, and investments in renewable energy.

Skellefteå Kraft is one of Sweden’s largest producers with production of wind and hydropower, heat, and bioenergy.

About Hydro

Hydro is a leading aluminium and energy company committed to a sustainable future. Hydro’s purpose is to create more viable societies by developing natural resources into products and solutions in innovative and efficient ways. Since 1905, Hydro has turned natural resources into valuable products for people and businesses, creating a safe and secure workplace for its 33,000 employees in more than 140 locations and 40 countries.

Media Contact:

Anders Vindegg
Head of Media Relations, Group Communication
anders.vindegg@hydro.com
+47 93864271

SOURCE: Norsk Hydro ASA