Norsk Hydro: Reorganization plan for Markbygden Ett AB approved in Umeå District Court
Norsk Hydro has reached a settlement regarding its power purchase agreement (PPA) with Markbygden Ett AB as part of the latter's reorganization plan. Hydro is entitled to compensation of up to EUR 248 million for voluntarily terminating the PPA, which was signed in 2017 for 1.65 TWh annual baseload supply during 2021-2039. The wind park ceased power deliveries in February 2023 due to significantly lower-than-expected production levels, resulting in 2.5 TWh of non-delivered power. The compensation is subject to the park's future sale and depends on sale proceeds. Despite this, Hydro's Norwegian smelters maintain robust sourcing through 2030 with 9.4 TWh hydropower production and 10 TWh yearly contracts.
Norsk Hydro ha raggiunto un accordo riguardante il suo contratto di acquisto di energia (PPA) con Markbygden Ett AB come parte del piano di riorganizzazione di quest'ultima. Hydro ha diritto a un risarcimento fino a 248 milioni di EUR per aver rescisso volontariamente il PPA, firmato nel 2017 per una fornitura annuale di base di 1,65 TWh durante il periodo 2021-2039. Il parco eolico ha interrotto le consegne di energia a febbraio 2023 a causa di livelli di produzione significativamente inferiori rispetto alle aspettative, risultando in 2,5 TWh di energia non consegnata. Il risarcimento è soggetto alla futura vendita del parco e dipende dai proventi di vendita. Nonostante ciò, le fonderie norvegesi di Hydro continuano a garantire un approvvigionamento solido fino al 2030 con 9,4 TWh di produzione idroelettrica e contratti annuali per 10 TWh.
Norsk Hydro ha alcanzado un acuerdo respecto a su contrato de compra de energía (PPA) con Markbygden Ett AB como parte del plan de reorganización de esta última. Hydro tiene derecho a una compensación de hasta 248 millones de EUR por rescindir voluntariamente el PPA, que fue firmado en 2017 para un suministro base anual de 1,65 TWh durante el periodo 2021-2039. El parque eólico cesó las entregas de energía en febrero de 2023 debido a niveles de producción significativamente inferiores a lo esperado, lo que resultó en 2,5 TWh de energía no entregada. La compensación está sujeta a la futura venta del parque y depende de los ingresos de la venta. A pesar de esto, las fundiciones noruegas de Hydro mantienen un abastecimiento robusto hasta 2030 con 9,4 TWh de producción hidroeléctrica y contratos anuales de 10 TWh.
Norsk Hydro는 Markbygden Ett AB와의 전력 구매 계약(PPA)에 대한 합의를 도달했으며, 이는 후자의 재조직 계획의 일환입니다. Hydro는 자발적으로 PPA를 종료함에 따라 최대 2억 4800만 유로의 보상을 받을 자격이 있으며, 이 계약은 2017년에 2021-2039년 기간 동안 연간 1.65 TWh의 기저 전력 공급을 위해 체결되었습니다. 풍력 발전소는 2023년 2월에 예상보다 현저히 낮은 생산 수준으로 인해 전력 공급을 중단했으며, 이는 2.5 TWh의 미배송 전력으로 이어졌습니다. 보상은 공원의 향후 판매에 따라 달라지며, 판매 수익에 의존합니다. 그럼에도 불구하고 Hydro의 노르웨이 제련소는 2030년까지 9.4 TWh의 수력 발전 생산과 10 TWh의 연간 계약을 통해 강력한 조달을 유지하고 있습니다.
Norsk Hydro a atteint un règlement concernant son contrat d'achat d'énergie (PPA) avec Markbygden Ett AB dans le cadre du plan de réorganisation de ce dernier. Hydro a droit à une indemnisation d'un montant pouvant atteindre 248 millions EUR pour avoir résilié volontairement le PPA, qui a été signé en 2017 pour un approvisionnement de base annuel de 1,65 TWh durant la période 2021-2039. Le parc éolien a interrompu les livraisons d'énergie en février 2023 en raison de niveaux de production considérablement inférieurs aux attentes, entraînant 2,5 TWh d'énergie non livrée. L'indemnisation est soumise à la vente future du parc et dépend des recettes de vente. Néanmoins, les fonderies norvégiennes de Hydro maintiennent un approvisionnement robuste jusqu'en 2030 avec une production d'hydroélectricité de 9,4 TWh et des contrats annuels de 10 TWh.
Norsk Hydro hat eine Einigung über seinen Stromabnahmevertrag (PPA) mit Markbygden Ett AB im Rahmen des Reorganisationsplans des Letzteren erzielt. Hydro hat Anspruch auf eine Entschädigung von bis zu 248 Millionen EUR für die freiwillige Kündigung des PPA, das 2017 für eine jährliche Grundlastversorgung von 1,65 TWh über den Zeitraum 2021-2039 unterzeichnet wurde. Der Windpark stellte im Februar 2023 aufgrund von erheblich niedrigeren als erwarteten Produktionsniveaus die Stromlieferungen ein, was zu 2,5 TWh nicht gelieferter Energie führte. Die Entschädigung hängt vom künftigen Verkauf des Parks ab und ist von den Verkaufserlösen abhängig. Trotz dieser Umstände halten Hydro's norwegische Schmelzen bis 2030 eine robuste Beschaffung durch 9,4 TWh Wasserkraftproduktion und 10 TWh Jahresverträge aufrecht.
- Potential compensation of up to EUR 248 million from settlement
- Maintained robust power sourcing through 2030 with 19.4 TWh combined annual capacity
- Strategic flexibility to pursue alternative renewable power sources
- Loss of 1.65 TWh annual power supply from terminated PPA
- 2.5 TWh of non-delivered power since February 2023
- Compensation payment dependent on uncertain future sale of the park
As part of the reorganization plan of Markbygden Ett AB, also supported by Hydro, Hydro has agreed to a settlement for the long-term power purchase agreement (PPA) with the company. In the settlement, Hydro is entitled to a compensation of up to EUR 248 million for its voluntary termination of the PPA.
Hydro Energi AS signed a long-term PPA with Markbygden Ett AB in 2017 for an annual baseload supply of 1.65 TWh in the period 2021-2039. The contract was a key enabler for financing and developing the onshore wind park Markbygden, located west of Piteå, in northern Sweden. The park’s annual production was estimated to be 2.2 TWh.
Due to significantly lower-than-expected production levels, Markbygden Ett AB has experienced financial challenges for several years. The wind park ceased power deliveries to Hydro on February 6, 2023 and entered into a company reorganization process in November 2023. As of third quarter 2024, non-delivered power since February 2023 amounts to 2.5 TWh.
According to the approved plan, Hydro is entitled to a total compensation of up to EUR 248 million as a settlement of the ongoing dispute relating to the company's non-performance under the PPA, and as compensation to Hydro for the voluntary cancellation of the PPA. Any compensation to Hydro is subject to a future sale of the park, with the ultimate compensation received depending on the sale proceeds and an agreed value sharing mechanism. Hydro will continue to work constructively with the company towards improved operations and a future sale of the park.
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 long-term contract portfolio of around 10 TWh per year. Hydro is actively pursuing available alternatives for renewable power sourcing, including onshore wind, to meet the need for cost-competitive power for its industrial operations.
Subject to fulfillment of certain closing requirements, the plan is expected to become effective during November 2024.
Investor contact:
Elitsa Boyadzhieva
+47 91775472
elitsa.boyadzhieva@hydro.com
Media contact:
Anders Vindegg
+47 93864271
anders.vindegg@hydro.com
FAQ
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