Agder Energi will deliver a total electricity of 1,000GWh per year to Boliden's operations in Sweden and Finland from 2022
Norwegian energy company, Agder Energi has signed fossil-free electricity supplies agreement with Swedish mining and smelting company, Boliden.
Under the 15 years contract, Agder Energi will deliver a total electricity of 1,000GWh per year to Boliden’s operations in Sweden and Finland from 2022.
At present, electricity represents 70% of the energy consumed at mines and smelters of Boliden, and the proportion has increased over the years as fossil energy types have been replaced.
According to Boliden, the agreement will allow it to commission further fossil-free electricity production in Finland and Sweden.
Boliden aims to reduce CO2 emissions per unit of metal produced, by 40% by 2030
Boliden president and CEO Mikael Staffas said: “Through this agreement, we ensure further competitive and climate-smart electricity supply to several of our units.
“This is particularly important as the electrification of our processes continues to increase in the coming years.”
The mining and smelting company aims to reduce the carbon dioxide emissions per unit of metal produced, by 40% by 2030.
With approximately 6,000 employees, the firm focuses on exploration, mining, smelting and metal recycling.
Earlier this year, the Nordic Investment Bank (NIB) agreed to provide NOK600m ($65.6m) funding to Agder Energi to increase hydropower efficiency in Norway.
The bank has signed a 10-year loan with Norwegian energy company to renew hydropower facilities and install an additional turbine at an existing hydro power plant in Agder, Norway.
The project consists of a new dam, a hydro tunnel and an additional turbine at the Skjerka power station.