OSLO, NORWAY--(Marketwire - Oct 29, 2012) - Sør-Norge Aluminium (Søral) primary
aluminium plant in Norway has signed
electricity contracts with Agder Energi, Lyse, Statkraft and Hydro for the
term annual supply of up to 2.6 terawatt hours (TWh) of electricity in Norway
over an eight-year period, starting in 2013.
"We are pleased that Søral has been able to secure power supply, paving
for continued operations at the plant. We have worked hard to achieve this,
we are happy that all pieces came together in the end," says CEO Per
Sævartveit at Søral.
The combined contracts, together with necessary clarifications concerning
implementation on CO(2) compensation, will secure the basis for continued
commercial operations at the Søral aluminium plant at Husnes, owned by
Alcan and Hydro. The plant's current power supply contract expires in December
"This is a milestone for Søral and for Hydro as part owner, and very
for our Norwegian aluminium operations," says Hydro President and CEO Svein
Richard Brandtzæg. "It shows that Norwegian industry and power producers
can find solutions that ensure that Norway keeps its position as a location
aluminium production with clean, renewable power. In our view, this is good
Hydro, for Norway as an industrial nation and for the global climate."
Søral curtailed one of two potlines following the financial crisis in
is currently producing around 90 000 tonnes aluminium per year. The plant's
production capacity with both potlines in operation is around 185 000 tonnes
year. At full production the plant employs around 340 people. Currently, 250
working at the plant.
The renewed power sourcing will not lead to an immediate increase in
"With renewed power sourcing, we will continue production with one potline
the owners and Board of Directors decides otherwise," says Sævartveit at
"The power contracts allow for an increased production at a later stage,
market conditions improve. In the meantime, we will continue our efforts to
further reduce our cost base and improve efficiency," he says.
Søral is owned by Rio Tinto Alcan (50.0%), Hydro (49.9%) and others
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Source: Norsk Hydro via Thomson Reuters ONE