Elkem and Statkraft have signed a 10-year power agreement that secures additional competitive access to electricity from hydropower for Elkem’s plant in Bremanger.
Elkem is a provider of silicones, silicon products and carbon solutions by combining natural raw materials, renewable energy and human ingenuity. Most of Elkem’s Norwegian production plants are located in the middle and north of the country, where prices remain lower than in the south. Norway’s electricity generation is more than 90% based on renewable hydropower.
Elkem already has several long-term power contracts in Norway, securing more than 80% of its electricity supply in the country at competitive rates, according to a release. The new contract covers a capacity of 20 to 40 MW and secures additional predictability for a total of 3 TWh in the period 2024 to 2033, supporting continued long-term operations and enabling new investments at the plant.
“Access to competitive long-term agreements for power is critical for the competitiveness of existing and new investments in Norwegian industry, which is based on the country’s unique hydropower resources,” said Elkem’s Chief Executive officer Helge Aasen. “They also support continued investments in our Norwegian plants, including efforts to deliver on our climate roadmap towards net zero by 2050. This new agreement with Statkraft enables us to continue supplying critical materials for the green transition to our customers in Europe and elsewhere in the world.”
Statkraft’s Executive Vice President Markets Hallvard Granheim said, “Supplying electricity to power-intensive industries in Norway is a main task for Statkraft, and we’re happy to extend our long-standing relationship with Elkem by securing this additional long-term power agreement for Elkem Bremanger. This agreement with Elkem is the second large power agreement we have done with large industrials in Norway so far this year, and we expect more agreements to be signed at competitive terms in the coming months.”
Statkraft is Europe’s largest generator of renewable energy from hydropower, wind power, solar power and gas-fired power. The company also supplies district heating.
