Hydro Statkraft Power Purchase Agreement Secures Renewable Energy

Hydro Secures Long-Term Renewable Power Supply

Norsk Hydro ASA (Hydro) announced that Hydro Energi has signed a long-term Norsk Hydro ASA power purchase agreement with Statkraft to secure a stable and competitive electricity supply for Hydro’s aluminum production in Norway. The Hydro Statkraft Power Purchase Agreement is designed to support the company’s ongoing production of low-carbon aluminum while providing greater long-term certainty over electricity availability and costs. The agreement forms part of Hydro’s broader roadmap toward zero-emission aluminum production by 2050 and strengthens its access to renewable electricity for operations in Norway.

Agreement Supports Lower-Carbon Aluminum Production

The agreement supports Hydro’s efforts to produce aluminum with a substantially lower carbon footprint than the global industry average. Based on renewable energy, Hydro can produce aluminum in Norway with a carbon footprint about 75% lower than the global average. Securing additional renewable electricity through a long-term contract provides Hydro with a stable energy source that can support its production strategy while advancing its decarbonization objectives. The arrangement also reinforces the role of renewable power in Hydro’s pathway toward zero-emission aluminum production by 2050, linking long-term electricity procurement with the company’s broader environmental and industrial goals.

876 GWh Annual Supply From 2031

Under the agreement, Hydro will receive an annual supply of 876 GWh from 2031 through 2040, with approximately 8.8 TWh supplied across the full contract period. The electricity will be delivered in Norwegian electricity price area NO5, providing Hydro with a defined long-term source of power for its aluminum production activities. The duration and scale of the agreement are intended to strengthen the predictability of Hydro’s electricity supply over the coming decade. By securing renewable power through a long-term PPA, the company can align electricity procurement with its production requirements and continued efforts to reduce the carbon intensity of aluminum manufactured in Norway.

Third Long-Term PPA Between Hydro and Statkraft in 2026

The agreement represents the third long-term PPA signed between Hydro and Statkraft in 2026. In April 2026, the companies signed agreements covering 0.9 TWh annually for 2029–2030 and another 1.3 TWh annually for 2031–2038. Together, these agreements demonstrate an expanding long-term power relationship between the two companies and provide Hydro with additional visibility over future electricity supplies. The latest contract extends that cooperation through 2040, further supporting Hydro’s renewable-energy strategy and its objective of maintaining lower-carbon aluminum production while progressing toward its longer-term ambition of zero-emission aluminum production by 2050.

Frequently Asked Questions

What does the new Hydro and Statkraft power agreement provide?
The agreement provides Hydro with a long-term renewable electricity supply for aluminum production in Norway from 2031 through 2040. Hydro will receive 876 GWh annually, totaling approximately 8.8 TWh over the contract period. The power will be delivered in electricity price area NO5 and is intended to provide a stable and competitive energy supply. The agreement supports Hydro’s low-carbon aluminum production strategy and contributes to its roadmap toward zero-emission aluminum production by 2050. It is also the third long-term PPA between Hydro and Statkraft signed during 2026.