Statkraft will supply 876 GWh annual to Hydro through a PPA intended to support its aluminum production in Norway.
Statkraft and Hydro Energi signed a long-term electricity supply contract that includes the delivery of 876 GWh annually between 2031 and 2040 the power purchase agreement, known as a PPA, will ensure approximately 8.8 TWh of electricity throughout its validity.
The energy will be supplied in the electricity price zone NO5 of Norway where Hydro maintains operations related to its aluminum production. With this contract, both companies expand a supply relationship that already included other agreements during 2026.
The PPA guarantees 876 GWh of electricity each year
Specifically, the new contract aims to provide greater predictability to Hydro’s energy supply over the next decade. For an industry with high electricity consumption like aluminum, having a long-term supply reduces exposure to market fluctuations.
According to Statkraft this is the third long-term power purchase agreement reached with Hydro during 2026. The company believes that these contracts allow it to offer stable and competitive electricity to the aluminum producer’s Norwegian plants.
For its part, Hydro believes that having access to energy at predictable and competitive prices is vital to maintaining its aluminum production in Norway and supplying its European customers with products that have a lower carbon footprint.
Hydro and Statkraft extend their energy agreements
Furthermore, the new PPA is in addition to two contracts that the companies signed in April 2026, those agreements cover a joint supply of 0.9 TWh annually during 2029 and 2030 and others 1.3 TWh per year between 2031 and 2038.
In this way, Hydro is securing some of its future needs through various long-term contracts, this strategy aims to bring stability to an industrial process where the cost and availability of electricity are critical factors.
For Statkraft, these agreements also allow for more predictable income, long-term electricity contracts distribute some of the risk between producer and consumer and offer greater certainty about supply conditions.
Renewable energy for aluminum production in Norway
Likewise, the renewable electricity it plays an important role within Hydro’s industrial strategy, the company maintains that it can produce aluminum in Norway with a carbon footprint approximately 75% lower than the world average thanks to the use of renewable energy.
This energy availability also supports the modernization plans for its facilities and its technology roadmap to reduce emissions associated with aluminum production.
Hydro maintains several alternatives to cover its future electricity demand, in addition to its contracts with suppliers such as Statkraft, develops new renewable energy projects and modernizes assets in its own portfolio.
Statkraft, for its part, maintains a broad presence in the European energy sector and operates in hydroelectric, wind, solar, and other power generation. The company has approximately 6,200 employees in 20 countries.
With the new contract, the companies strengthen an energy relationship focused on guaranteeing long-term electricity for Norwegian industry and providing greater predictability to aluminum production over the next decade.
Source: Statkraft
Photo: Hydro
