Norsk Hydro Secures Long-Term Power Agreement for Aluminum Plants
Aluminum | 2026-04-30 05:50:37
The agreement highlights the strategic importance of securing long-term power in an increasingly volatile energy market, particularly for electricity-intensive industries such as aluminium production.
By Paul Ploumis
SEATTLE (Scrap Monster): Norsk Hydro has secured a long-term electricity supply agreement with Statkraft to power its aluminium plants in Norway through 2038, reinforcing energy security and cost stability for its operations.
The contract, set to commence in 2029, covers a total volume of 12.3 terawatt hours (TWh), with 8.8 TWh allocated to the NO2 price area and 3.5 TWh to NO3, reflecting regional electricity pricing differences. Under the terms, Statkraft will supply 0.9 TWh annually in 2029 and 2030, increasing to 1.3 TWh per year from 2031 to 2038.
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The agreement highlights the strategic importance of securing long-term power in an increasingly volatile energy market, particularly for electricity-intensive industries such as aluminium production. CEO Eivind Kallevik emphasized that the deal strengthens the competitiveness of Hydro’s Norwegian operations and supports the delivery of low-carbon aluminium solutions.
Hydro already produces aluminium using predominantly renewable energy, reducing emissions by around 75% compared to global averages and aligning with its ambition to achieve net-zero emissions by 2050. Statkraft CEO Birgitte Vartdal noted that the agreement builds on a long-standing partnership while supporting industrial sustainability.
In parallel, Hydro continues to expand its renewable energy portfolio and modernize existing assets to ensure long-term supply resilience.
POLL
What is the biggest benefit of this deal?
Frequently Asked Questions
- What is the significance of the agreement?
It secures long-term electricity supply, reducing cost volatility and strengthening operational stability for Norsk Hydro.
- How much power does the contract cover?
A total of 12.3 TWh from 2029 to 2038, with increasing annual supply over time.
- Why is this important for aluminium production?
Aluminium smelting is highly energy-intensive, making stable and affordable electricity crucial for competitiveness.
