Axpo Nordic and Norway-based Hydro Energi have entered a ten-year contract to supply 2.63 terawatt hours (TWh) of electricity to Hydro.

The long-term agreement, set from 2026 to 2035, will see Axpo delivering electricity to Hydro in the Swedish price area SE2, bolstering Hydro's renewable energy portfolio.

Axpo Nordic senior originator Mats Larsson stated: “We have been working with Hydro Energi for more than 15 years and are pleased to support this important deal.

“We will continue to leverage our sizeable energy portfolio and decade-long expertise in the region to deliver innovative and bespoke energy products and services to our clients.”

The contract will be integrated into Hydro's Nordic power portfolio, which includes captive power production of 9.4TWh annually and a long-term contract portfolio of around 10TWh.

As existing agreements expire by 2030, Hydro is actively exploring renewable power sourcing options for its operations.

Long-term contracts are vital for Hydro, an aluminium and renewable energy company, to maintain its leadership in low-carbon aluminium production and align with its roadmap towards zero emissions by 2050.

Renewable energy is crucial for aluminium production in Norway, reducing its carbon footprint by 75% compared to the global average.

Axpo Nordic has also recently signed a power purchase agreement (PPA) with Stegra to supply electricity to its integrated green hydrogen, green iron and green steel production plant in Boden, Sweden.

From 2027, Axpo Nordic will supply 2.25TWh of electricity over three years to Stegra's facility. The facility aims to produce significant amounts of green hydrogen, green iron and green steel.

Axpo Nordic, a subsidiary of the Axpo Group, a prominent international energy company based in Switzerland, operates in the Nordic and Baltic energy markets. The subsidiary specialises in electricity trading, renewable energy solutions and a range of energy-related services.