CMC and Statkraft developed together a customized product suited for the needs of energy-intensive industry
Statkraft and Commercial Metal Company Poland (CMC) have become strategic partners, commencing with the signing of a long-term financial power purchase agreement. The agreement fixes the price for 20 percent of CMC Poland’s power consumption, starting in 2021. CMC Poland, a wholly owned subsidiary of the global steel market leader Commercial Metals Company, is one of the largest electricity consumers in Poland. Statkraft is wholly owned by the Norwegian state and Europe’s largest generator of renewable energy.
CMC and Statkraft developed together a customized product suited for the needs of energy-intensive industry. The financially settled PPA will co-exist with the physical supply contract, while providing a fixed price to CMC. Statkraft is able to provide this contract on the back of its Polish renewable PPA portfolio. While owning its own global assets, Statkraft provides bankable PPA offtake agreements to renewable generators both in Poland and across the EU.
“As a market integrator, Statkraft enables the development of renewable projects and simultaneously ensuring long term price stability to customers such as CMC. This transaction shows CMC’s leadership in the energy-intensive industry, which I expect will be followed by others” said Koen Dejonghe, Business Development Manager at Statkraft.
“Partnerships like these make it possible to support the growth of the industry. It also demonstrates our engagement and support to new technologies of energy generation in Poland” said Jerzy Kozicz, President of the Management Board of CMC Poland Sp. z o.o.
Source: Company Press Release