New power delivery contract with Søral

26 Nov, 2012

Sør-Norge Aluminium Søral has signed power delivery contracts with Statkraft, Agder Energi, Lyse, and Hydro for long-term, annual supply of up to 2.6 TWh until 2020, starting in 2013.

Together with the necessary clarifications concerning implementation of CO2 compensation, the combined contracts will ensure a basis for continued commercial operation of the Søral aluminium plant at Husnes. The plant is owned by Rio Tinto Alcan and Hydro.

“Statkraft is pleased to be one of several suppliers who will provide Søral with sufficiently predictable power prices, thereby ensuring the continuation of operations. These transactions show with all clarity that there is a well-functioning market for long-term contracts in the Nordic countries,” says Asbjørn Grundt, Executive Vice President, Market Operations and IT.

Søral halted operations at one of the two production lines after the financial crisis in 2009, and currently produces around 90,000 tonnes of aluminum per year. The plant's production capacity with both production lines in operation is around 185,000 tonnes per year. At full production, the plant employs about 340 people. At present, around 250 people work at Søral.

Søral is owned by Rio Tinto Alcan (50.0%), Hydro (49.9%) and others (0.1%).