A pile of wooden logs
Statkraft enters into an 8-year industrial power supply agreement with Norske Skog
(Oslo, 6 December 2018) Statkraft and Norske Skog Skogn AS and Norske Skog Saugbrugs AS have entered into new long-term industrial power supply agreements for the period from 1 December 2018 to 31 December 2026. The total delivery will be about 14 TWh, with annual deliveries of approximately 900 GWh 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.
"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, "said Hallvard Granheim, Executive Vice President of Market Operations & IT at Statkraft.
"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, "says Niels Petter Wright, CEO of Norske Skog.
Statkraft is a leading international company in the area of hydropower and Europe's largest renewable energy supplier. The Group produces hydropower, wind power, solar power and gas power and supplies district heating. Statkraft is a global market player in energy trading, and has 3,500 employees in 17 countries.
About Norske Skog Skogn
Norske Skog Skogn has 510,000 tonnes of newsprint in annual production capacity. Norske Skog Skogn employs around 350 people and 40 apprentices. The mill produces newsprint with UK as the largest single market, and is one of the most environmentally friendly and efficient paper mills in Europe.
About Norske Skog Saugbrugs
Norske Skog Saugbrugs in Halden has 460,000 tonnes of magazine paper in annual production capacity. Saugbrugs employs about 450 people and 40 apprentices. Saugbrugs is one of the most energy-efficient paper mills in the world with a renewable energy share of 99.8 per cent. The mill has an export share of 100 per cent with Germany and the USA as the largest markets.