Vattenfall and the Norwegian industrial group Elkem have signed a long-term power purchase agreement (PPA) for period between 2020 and 2026.
Image: Vattenfall to sell power to Elkem under long-term PPA. Photo: Courtesy of tiverylucky at FreeDigitalPhotos.net
The deal is the first major supply agreement with Elkem and includes supply of 260GWh yearly or a total of approximately 1.8TWh.
Vattenfall Norway sales Bjørn Bruvik said: “Vattenfall is very pleased to start a long-term cooperation with Elkem and demonstrate our ability to continue the long-term partnership with the Norwegian base industry.”
Elkem’s operations are highly electricity intensive, especially the use of electric ovens for production of silicon, ferrous silicon and foundry products.
Elkem chief financial officer Morten Viga said: “We are very pleased with the agreement, which ensures competitive prices and predictability for us. For Elkem, sustainability is central to our business strategy and we aim to constantly reduce fossil carbon dioxide emissions. We therefore welcome the cooperation with Vattenfall, one of the Nordic region’s largest producers of electricity from fossil-free energy sources.”
Source: Company Press Release