Norsk Hydro: Hydro signs new long-term wind power contract for Norwegian aluminium portfolio

Norwegian aluminium company Norsk Hydro ASA's wholly-owned subsidiary Hydro Energi AS has signed a long-term wind power contract for 29 years with Green Investment Group. The contract is believed to be the world's longest corporate wind power contract.

The agreement, which encompass building of a new wind farm near Sundsvall and Østersund in Sweden (SE2), secures annual baseload supply of 0.3 TWh for the period 2021 to 2031 and 0.55 TWh for the period from 2031 to 2050.

The contract will contribute to supplying power to Hydro's aluminium plants in Norway.

"With this contract, we have over the last 2.5 years secured wind power contracts of approximately 4.5 terawatt hours annually from 2021 and onwards, complementing our captive and contract-based hydropower supplies," says Executive Vice President for Energy in Hydro, Arvid Moss.

World-wide, around 70% of Hydro's primary aluminium production is based on renewable energy, while the corresponding figure for the Norwegian portfolio is 100%.

"Using renewable energy in our aluminium production is a core strategy of Hydro, and the main reason for Hydro's carbon footprint being among the lowest in the global aluminium industry," says Moss. 

Green Investment Group is part of Macquarie Group Limited. The wind park will have an installed capacity of 235 MW and is planned to produce around 0.8 TWh annually when in full operation.

"This transaction extends the excellent relationship we have with Hydro, helping them achieve their ambition of establishing a supply of sustainable and secure green energy, long into the future," says Mark Dooley, Global Head of Green Energy for Macquarie Capital and the Green Investment Group.

Investor contact

Stian Hasle

+47 97736022

Stian.Hasle@hydro.com

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Øyvind Breivik

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Oyvind.Breivik@hydro.com