Electricity producer Statkraft and chemical company INEOS Inovyn have signed two new long-term power agreements for electricity from Statkraft’s hydropower assets in Norway.
INEOS Inovyn, a chlor-vinyl company, operates a site in Norway producing raw materials for industry sectors as diverse as automotive, building and construction, paints and adhesives, food, healthcare and medical, personal care, pulp and paper, textiles, and water treatment.
The agreements will secure the majority of the power needed for existing manufacturing activities and the additional power required for planned investments into electrification and hydrogen production as part of INEOS Inovyn Norway’s plans to decarbonize its assets in Norway, according to a release.
The largest agreed power contract covers a capacity of 100MW, equal to an annual volume of 876GWh of documented renewable energy. The new long-term agreement replaces the existing power contract, which expires in May 2023.
The second long-term power agreement covers up to 30MW, adding 263GWh per year for the period from 2026. The agreement is linked to INEOS Inovyn’s development plan in process electrification and hydrogen production to further reduce carbon emission of the asset at Rafnes in Vestfold and Telemark County.
“These long-term green energy supply agreements allow us to continue to competitively supply our customers in Europe and elsewhere in the world. They also allow us to pursue our ambitious asset development plans which we have put in place to reach our 2030 CO2 reduction targets and to continue the decarbonization of our operations to deliver net zero emissions by 2050,” said Geir Tuft, chief executive officer of INEOS Inovyn. “Statkraft’s support is critical for us to carry out this ambition as early movers in Norway and hence achieve our climate goals benefiting the full value chain for our customers.”
Statkraft is Europe’s largest generator of renewable energy. The group produces hydropower, wind power, solar power, gas-fired power and supplies district heating. Selling electricity to power-intensive industries is an important part of Statkraft’s activities, the company said. In 2023, Statkraft will deliver around 10 TWh on such contracts. In 2022, the company signed eight new contracts with a total volume of 25 TWh over the contract period.
