Norsk Hydro Renewable Power Agreement Supports Low-Carbon Aluminum Production

Norsk Hydro ASA has entered into a long-term power purchase agreement with Eviny Fornybar to reinforce its low-carbon aluminum production strategy for the European market. The agreement ensures a stable supply of renewable electricity over the coming decade, helping the company strengthen its access to clean energy while supporting future manufacturing requirements. This long-term arrangement aligns with Hydro's broader sustainability objectives and reinforces its commitment to producing aluminum with significantly lower carbon emissions.

Long-Term Renewable Power Supply for Årdal Smelter

Under the agreement, Hydro will receive 0.5 TWh of renewable electricity annually, amounting to 5 TWh over the contract period from 2031 through 2040. The electricity will be supplied within the Norway electricity price area NO5 and will support operations at Hydro's primary aluminum smelter in Årdal. The facility manufactures sheet ingot and foundry alloys for customers across the European market, making reliable renewable electricity an important part of its long-term production planning.

Renewable Energy Supports Lower Carbon Footprint

Hydro states that the use of renewable energy enables aluminum produced in Norway to achieve a carbon footprint that is approximately 75% lower than the global average. Access to long-term renewable electricity is considered an important element in maintaining this environmental advantage while supporting the company's ongoing production activities and sustainability commitments.

Hydro Advances Its Long-Term Climate Strategy

The new power purchase agreement also supports Hydro's strategy of securing reliable long-term renewable electricity supplies for its industrial operations. By strengthening access to clean power, the company continues progressing toward its objective of achieving zero emissions by 2050 while maintaining the production of low-carbon aluminum for European customers.

Frequently Asked Questions

What is the purpose of Norsk Hydro's new renewable power agreement?
The long-term agreement secures renewable electricity for Hydro's Årdal aluminum smelter between 2031 and 2040, ensuring a dependable clean energy supply for aluminum production. The contract provides 0.5 TWh of renewable electricity each year, totaling 5 TWh over its duration. This supports the company's production of low-carbon aluminum for the European market while strengthening its renewable energy strategy and contributing to its long-term goal of reaching zero emissions by 2050.