Fortum to sell electricity to Norwegian Hydro Energi AS

The Finnish majority state-owned energy company Fortum and the Norwegian aluminum and renewable energy company Hydro Energi AS have signed a 13-year fixed price Power Purchase Agreement (PPA) for the delivery of 0.44 TWh of electricity per annum in Sweden, said Fortum in a press release on Thursday.

The power is sourced from Fortum’s electricity portfolio in the SE2 (Sundsvall) price area in central Sweden during the contract period from 2024 to 2036.

“Fortum's strategic priorities are to deliver reliable, clean energy and drive decarbonisation in industries in the Nordics. Our power generation portfolio offers an optimal clean energy mix and we work together with our industrial customers to find solutions to lower their carbon footprint. This agreement is therefore an important step in this direction and aligns seamlessly with Hydro’s objectives to further strengthen its position in low-carbon aluminum, while pursuing its own energy targets,” said Simon-Erik Ollus, Executive Vice President of Corporate Customers and Markets of Fortum.

The PPA and long-term contracts (LTCs) are included in Fortum’s disclosure of the reported Nordic outright generation hedges.

Fortum reports its hedging ratios and prices of its outright power on a quarterly basis.