Norwegian aluminium producer Norsk Hydro ASA signed a new six-year long-term power purchase agreement (PPA) with renewable power provider Hafslund Eco Vannkraft AS last week.
The PPA will have Hafslund Eco provide Hydro with 1,300 GWh over the life of the contract. Financial terms of the agreement were not made public by either party. This contract enhances the relationship between the two firms, as they already have several agreements totaling 4 TWh through the end of the decade.
Hydro’s power portfolio now consists of 9.4 TWh of in-house power production and another 10 TWh provided by third parties under contract. The firm has inked almost 20 power contracts over the past eight years, and the entirety of them have been for power produced by hydroelectric means or by wind power.
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.