Statkraft and INEOS Inovyn sign new long-term green power agreements

Europe’s largest generator of renewable power, Statkraft and chemical company INEOS Inovyn at Rafnes in Bamble have signed two new long-term power agreements.

The agreements will secure the majority of the power needed for the existing manufacturing activities and also the additional power required for planned investments into electrification and hydrogen production as part of INEOS Inovyn Norway‘s plans to decarbonise its assets in Norway.

INEOS Inovyn, European leader of the Chlor-Vinyl industry operates a world scale integrated site in Norway producing fundamental raw materials for various 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. Long term supply of clean energy is critical for the sustainability of the activity.

The largest agreed power contract covers a capacity of 100 MW, equal to an annual volume of 876 GWh 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 30 MW, adding 263 GWh per year for the period from 2026. The agreement is linked to INEOS Inovyn’s extensive development plan in process electrification and hydrogen production in order to further reduce carbon emission of the asset at Rafnes.

The power agreements are sourced from Statkraft’s renewable hydropower assets in Norway.

“Statkraft is proud to renew its long-standing partnership with INEOS Inovyn, securing their facilities at Rafnes access to renewable hydropower for another long-term period. The agreement emphasizes Statkraft’s important role as a major supplier to Norwegian industry and shows that it is possible to secure long-term power contracts even in today’s market,” says Hallvard Granheim, EVP Markets in Statkraft.

“The fact that we are also contributing to INEOS Inovyn Norway’s planned investments in extensive emission reductions is a value added, perfectly in line with our vision to renew the way the world is powered,” he adds.

“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,” Geir Tuft, CEO of INEOS Inovyn, commented.

“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”, he added.

Selling electricity to power-intensive industries is an important part of Statkraft’s activities. 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 and negotiations for more contracts are ongoing.

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