Elkem becomes one of Statkraft’s largest industrial customers

28.06.2010 08.00 | pressrelease

Agreement signing

The agreement was signed on Sunday. From left Vice President in Norske Skog, Halvard Granheim, Vice President for Public Affairs at Elkem, Johan Chr.…

(Oslo, 28 June 2010) Norske Skog today announced the resale of 1.5 TWh of energy annually from 2011 to 2020 to Elkem. The agreement will make Elkem one of Statkraft’s largest industrial customers, and Statkraft will continue to deliver 2 TWh annually to Norske Skog.

”Elkem is one of Norway’s largest and oldest industrial companies. Statkraft is very pleased to establish a long-term customer relationship with Elkem under this resale agreement. The contract volume is significant and the agreement provides Elkem with predictable energy prices for its smelteries for the coming decade,” says Statkraft Executive Vice President Asbjørn Grundt.

”We have for some time now worked to secure our long-term energy needs. We are very pleased to have reached an agreement with Norske Skog to take over part of their contract with Statkraft. This agreement strengthens the competiveness of the Norwegian smelteries,” says Elkem CEO Helge Aasen.

The agreement will make Elkem one of Statkraft’s largest industrial energy customers, with annual volumes of approx. 1.5 TWh until 2020. Norske Skog and Statkraft will continue their cooperation with an annual volume of 2 TWh, reduced from the previous 3.5 TWh.

“The power intensive industry has always been Statkraft’s most important customers, and will continue to be so going forward. In 2010, the old energy contracts set by the government will expire for most companies. These agreements have gradually been replaced by commercial energy agreements, under which Elkem is now a new long-term energy customer until the end of 2020,” says Nils Selvik, Key Account Manager for industrial customers.

“Statkraft has, since 1998, signed long-term commercial contracts for more than 200 TWh with the Norwegian and Nordic power intensive industry – until 2031. We have also developed closer ties with large industrial clients through our concept Energy Service, under which 26 factories with a total annual energy consumption of approx. 16 TWh have become Statkraft customers. Statkraft is in charge of the balance for these customers, and offers short-term hedging when the customers have a need for this. 2010 has been a particularly busy year; we have phased in 11 new factories into Energy Service during the six first months alone,” Selvik says.

Statkraft is Europe's largest renewable energy company. The group develops and generates hydropower, wind power, gas power, solar power and district heating, and is a major player on the European power exchanges. Statkraft also develops osmotic power and other innovative energy solutions. In 2009 Statkraft posted gross operating revenues of EUR 2.9 billion. The group employs 3,400 staff in more than 20 countries.