Norsk Hydro Inks Long-Term Energy Contract with Swedish Wind-Energy Firm
08 November 2017 by Staff
Norway’s aluminium firm Norsk Hydro A.S.A. announced yesterday that a subsidiary signed a long-term power contract with a Swedish wind-power company for electricity to fuel the firm’s aluminium operations.
Hydro Energi AS’s agreement is with Sweden’s Markbygden Ett AB and will have the latter providing an annual baseload supply to Hydro Energi of 1.65 TWh. Though no financial terms were disclosed, Hydro indicated that the contract’s term will begin at the expiration of their agreement with contract with Norwegian state utility Statkraft in 2020 and run through to the end of 2039.
Markbygden Ett AB is expanding its wind-power portfolio with the construction of a colossal wind farm in northern Sweden. The company, which is owned by GE Energy Financial Services and Macquarie Group Limited’s Green Investment Group Limited, is planning to construct 1,101 wind turbines at the park, which will ultimately yield a power output of 10 TWh per annum when fully operational.
Norsk Hydro, which was founded in 1905, financed by the Swedish Wallenberg family and French banks, began its life named Norsk hydro-elektrisk Kvælstofaktieselskab (literally, “Norwegian hydro-electric nitrogen limited”) by Sam Eyde. The Norwegian government owns approximately 40% of the company at the present time. Norsk Hydro is one of the largest aluminium companies in the world, with plants in Rjukan, Raufoss, Vennesla, Karmøy, Høyanger, Årdal, Sunndalsøra, and Holmestrand. Norsk also has several plants abroad, including in Germany and Brazil.