Elkem ASA and Statkraft signed a new power purchase agreement to ensure competitive and stable power supply to the Bjølvefossen plant in Norway.
The PPA will have a duration of seven years, covering the period 2031-2037 and encompassing a total volume of 1,534 GWh. The electricity will support the continuity of industrial activity, local value creation, and low-emission production at the facility.
Power Supply for Bjølvefossen
The Bjølvefossen plant employs approximately 150 people and is one of the world’s largest suppliers of foundry alloys, with an annual capacity of 60,000 tons.
Its products are primarily marketed in the European Union and Asia, and are used in sectors such as automotive, construction, renewable energy, and defense.
According to Elkem, Bjølvefossen’s production generates a carbon footprint close to one-third of the global average, reinforcing its role within industrial chains seeking materials with lower environmental impact.
Competitive Energy for Industry
The agreement with Statkraft strengthens Bjølvefossen’s competitiveness by providing greater predictability in power supply, an essential factor for energy-intensive industrial facilities.
Inge Grubben-Strømnes, Senior Vice President of Foundry Alloys at Elkem, noted that access to competitive and stable energy is fundamental to maintaining industrial production and employment in Norway.
The executive also emphasized that this supply will enable continued delivery of strategic materials to European industry and contribute to the security of the European Union in a complex geopolitical context.
Reinforcement of Operational Predictability
Hallvard Granheim, Executive Vice President of Markets at Statkraft, stated that the company is pleased to sign a new agreement with a significant Norwegian industrial company.
According to the executive, this type of energy agreement helps sustain local jobs and value creation in times marked by uncertainty and volatility in the markets.
For Statkraft, supplying energy-intensive industries is part of its role as a key player in the Norwegian energy system.
Elkem Supports Energy Coverage
Elkem maintains a solid portfolio of supply agreements in Norway, allowing it to cover a significant portion of its annual consumption, estimated at 3.5 TWh, under competitive conditions.
The new PPA improves the company’s operational and investment planning, especially at a plant linked to strategic materials for European and Asian industries.
Energy and Industry Connected
The agreement between Elkem and Statkraft reflects the direct relationship between access to stable energy, industrial permanence, and production with a lower carbon footprint.
For Norway, this type of supply enables the maintenance of manufacturing activity supported by its energy system and reinforces strategic value chains.
For Elkem, it represents an operational stability tool at a plant essential for global foundry alloy production.
Source and photo: https://www.statkraft.com/
