Statkraft May Supply Renewable Energy to Plants of FREYR Battery in Norway

Europe’s largest renewable energy player – Statkraft – has signed a binding ‘Heads of Terms’ with FREYR Battery with an aim of converting it into a long-term physical supply agreement, with the ambition to secure a long-term supply of renewable power for FREYR’s planned battery cell production project in Mo i Rana city of Norway.

According to Statkraft, the Heads of Terms and related energy services from Statkraft is projected to cover all of FREYR’s currently anticipated electricity needs for the period of 2024-2031. It will also ensure physical delivery of energy from the central grid to FREYR’s Customer Qualification Plant and its Gigafactories.

The official statement by Statkraft says that during this period, the company commits in the agreement to provide up to 23 MW base-load with an accumulated delivery of 1.4 TWh to FREYR facilities. The renewable power is sourced from the hydropower assets of Statkraft in the region.

The concerned hydropower plant of Statkraft is called ‘Rana’ which is 100 percent Statkraft-owned with a capacity of 500 MW and annual generation of approximately 2,150 GWh. The proximity of Statkraft’s hydropower plant to FREYR’s planned production facilities in Mo i Rana is consistent with FREYR’s ambition to establish its operations in areas with an ample, local supply of clean energy.

Tove Nilsen Ljungquist, EVP Operations of FREYR, said, “Our ambition is to produce clean battery cells, and a key element of our strategy is to power our operations with renewable energy. This agreement with Statkraft ensures that our production facilities in Mo i Rana will have a steady, long-term supply of hydropower from local sources – keeping our carbon footprint to a minimum as we speed forward to full operations.”

“Statkraft contributes to the green shift by providing renewable power to existing customers and new industrial entrants around the world. We are happy to support the establishment of FREYR’s battery cell facility in Northern Norway, enabling green jobs and use of local resources. Together with flexible hydropower, batteries are essential for a net zero future,” said Hallvard Granheim, EVP Market & IT in Statkraft.