Elkem signs long-term power agreement with Hafslund

Norwegian silicon producer Elkem and Norway’s second-largest power producer Hafslund have entered into a long-term power agreement for the period 2028 to 2035. The annual contract volume is approximately 400 GWh, with delivery in the NO3 price area.

The new contract supports long-term operations at Elkem’s Thamshavn plant and enables investments at the production facility, which is located in Mid-Norway.

The plant, with its 150 employees, holds a key role in the local community. It is the third-largest export company in the Trøndelag county. In Thamshavn,

Elkem converts power into the production of silicon and high-quality microsilica, which are critical raw materials used in health and personal care, solar cells, electric vehicles, electronics, and construction.

More than 90% of Norway’s power production is based on renewable hydropower.

“With access to renewable hydropower and competitive, long-term power agreements, Norwegian industry has the best premise for producing world-leading silicon with a low carbon footprint,” said Elkem’s CFO Morten Viga. “Such agreements enable new investments in our Norwegian plants and allow us to continue delivering critical materials to existing and new green value chains globally, as Elkem has done since the early 1900s.”

“Hafslund wants to be a long-term partner for Norwegian industry and facilitate market-relevant power contracts. This agreement with Elkem fits perfectly with our commitment to offer long-term power contracts and PPAs to industry,” says Håvard Hvarnes, Director of Power Markets at Hafslund Kraft.