Swedish mining and smelting company Boliden has signed an agreement with Norwegian energy group Agder Energi to purchase fossil-free electricity.
As per the terms of the agreement, Agder Energi will supply 1,000GWh a year of fossil-free electricity to Boliden in Sweden and Finland. The agreement covers 15 years of supply and begins in 2022.
The energy supplied by the Norwegian energy to Boliden during the contract period is equivalent to the annual electricity consumption of approximately 50,000 households in the region.
Agder Energi CEO Steffen Syvertsen said: “Our mission is to deliver clean energy to society. This agreement is an example of how Agder Energi, as a renewable group, can work with major industry players to electrify their businesses.
“This way, together with the industry, we can accelerate the green shift.”
Boliden, a metals company which focuses on sustainable development, noted that electricity accounts for 70% of energy consumption at its mines and smelters.
The company said that over the year the proportion of consumption has increased with the replacement of fossil energy types.
Going further, the company anticipates that the proportion of electricity will increase further as fossil fuels continue to be phased out gradually.
The new agreement is expected to support Boliden’s aim to reduce the carbon emission level intensity by 40% by 2030.
Additionally, the agreement is expected to commission further fossil-free electricity production in both Sweden and Finland.
Boliden president and CEO Mikael Staffas said: “Through this agreement, we ensure further competitive and climate-smart electricity supply to several of our units. This is particularly important as the electrification of our processes continues to increase in the coming years.”