Hydro has agreed to a settlement for the long-term power purchase agreement
(PPA) with Cloud Snurran AB. In the settlement, Hydro is entitled to
compensation of up to EUR 90 million for its voluntary termination of the PPA.
Hydro Energi AS signed a long-term PPA with Cloud Snurran AB in 2018 for an
annual baseload supply of 300 GWh in the period 2020-2030, and 550 GWh in the
period 2031-2049. Cloud Snurran AB has experienced financial challenges for the
last few years and has as a result not delivered volumes to Hydro in accordance
with the PPA since November 2024.
On July 17, 2024, the Svea Court of Appeal approved Cloud Snurran AB's
application for reorganization under the Swedish Restructuring Act, overturning
an earlier decision by the Stockholm District Court. The reorganization process
has now been terminated, and as part of a final settlement, Hydro has agreed to
a voluntary termination of the PPA against a compensation of up to EUR 90
million, which includes compensation for non-delivered volumes and future power
deliveries. Hydro's ultimate compensation will depend on the realized values
from a future sales process and an agreed value sharing mechanism.
The sourcing situation at Hydro's Norwegian smelters remains robust through
2030, based on an average annual equity hydropower production of 9.4 TWh and a
contract portfolio of around 8.5 TWh per year. As several existing long-term
power agreements will begin to expire at the end of 2030, Hydro is actively
pursuing a range of available sourcing options to meet the demand for cost-
competitive renewable power to its operations.
Subject to fulfillment of certain closing requirements, the settlement is
expected to become effective during July 2025.
Investor contact:
Mathias Gautier
+47 94861597
mathias.gautier@hydro.com
Media contact:
Anders Vindegg
+47 93864271
anders.vindegg@hydro.com