Eolus windpower company signs 15-year PPA with Alcoa in Norway

8 March 2018 (Last Updated March 8th, 2018 11:38)

Swedish windpower company Eolus Vind has signed a power purchase agreement (PPA) with the Norwegian aluminium producer Alcoa Norway (Alcoa).

Swedish windpower company Eolus Vind has signed a power purchase agreement (PPA) with the Norwegian aluminium producer Alcoa Norway (Alcoa).

Under the 15-year PPA, Alcoa has agreed to purchase all power generated at the 330MW windfarm Øyfjellet located in Norway.

Stated to be commissioned in 2021, the new Øyfjellet windfarm is expected to produce 1.2TWh of power per year.

Alcoa will use the energy to power its production plant located in the Mosjøen region.

Eolus CEO Per Witalisson said: “Øyfjellet is a prime location for windpower and we are very happy to be able to construct the 330 MW windfarm and offer it to investors with this PPA signed with Alcoa.

“In addition to Alcoa providing jobs in Mosjøen, the windfarm will give the local community new business opportunities and jobs for many years.”

“This agreement yet again shows Eolus’ ability to develop wind projects and provide the market with interesting investment opportunities.”

Eolus intends to begin the construction of the windfarm this year, and also offer an opportunity for the investors to invest in the Nordic market.

Upon commission of the windfarm, Eolus will be eligible for electricity certificates within the common Norwegian and Swedish system.

Eolus COO Marcus Landelin said: “We are very pleased with the fact that Alcoa has chosen to partner with Eolus and sign a PPA that will provide their production plant in Mosjøen with locally produced electricity.

“In addition to Alcoa providing jobs in Mosjøen, the windfarm will give the local community new business opportunities and jobs for many years.”

Eolus has also signed a power purchase guarantee with the Norwegian Export Credit Guarantee Agency (GIEK) for the guarantee amount of €256m.

Founded in 1990, Eolus has been developing windpower projects in the Nordic region and operates approximately 350MW on behalf of customers.