The total delivery will be about 14TWh, with annual deliveries of approximately 900GWh to each mill.

The contracts will contribute to the supply of power to Norske Skog’s paper mills in Skogn and Halden, and will replace previous contracts between Statkraft and Norske Skog.

Statkraft market operations & it executive vice president Hallvard Granheim said: “We are pleased to extend our comprehensive and long-term cooperation with Norske Skog. Norske Skog has been through a period with demanding challenges and group restructuring.

“Statkraft has been the main supplier of power to Norske Skog for many years, and it is a pleasure that we contribute to predictable and competitive power supply agreements.”

Norske Skog CEO Niels Petter Wright said: “The new contracts improve the competitiveness of our two major plants in Norway, and will at the same time be a contribution to ensuring important jobs in the processing of Norwegian raw materials. In a paper market with steadily falling demand, only mills with the lowest cost position and the most efficient operation will survive.

“Therefore, we are also dependent on improving the Norwegian political framework conditions and ensuring favourable purchasing terms from other suppliers to Norske Skog.”

Source: Company Press Release