Statkraft Secures 1.5 TWh Long-Term Power Deal with Elkem for Norwegian Plant
Event summary
- Statkraft and Elkem ASA signed a 7-year power purchase agreement (PPA) for the 2031-2037 period, totaling 1,534 GWh.
- The deal secures electricity supply for Elkem’s Bjølvefossen plant, which employs 150 people and produces 60,000 mt of foundry alloys annually.
- Elkem’s Bjølvefossen plant has a carbon footprint about one-third of the global average.
- The agreement supports Elkem’s 3.5 TWh annual power consumption, strengthening operational predictability.
The big picture
This agreement underscores the growing importance of long-term PPAs in stabilizing industrial operations amid volatile energy markets. It also highlights Norway’s role in supplying low-carbon materials critical for European manufacturing sectors. The deal size (1.5 TWh) reflects the scale of energy needs for high-emission industries transitioning to cleaner production methods.
What we're watching
- Energy Security
- How this deal affects Elkem’s ability to supply strategic materials to European industry amid geopolitical tensions.
- Industrial Decarbonization
- Whether Elkem can maintain its lower carbon footprint as demand for foundry alloys grows.
- Market Volatility
- The pace at which long-term PPAs become standard in securing industrial power supply in Norway.
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