Norsk Hydro: Voluntary termination of power purchase agreement with Cloud Snurran AB
Norsk Hydro (OTC:NHYDY) has reached a settlement agreement for the voluntary termination of its power purchase agreement (PPA) with Cloud Snurran AB, which entitles Hydro to receive up to EUR 90 million in compensation.
The original PPA, signed in 2018, was for 300 GWh annual baseload supply during 2020-2030 and 550 GWh during 2031-2049. Cloud Snurran AB has faced financial difficulties and hasn't delivered power since November 2024. The settlement includes compensation for both non-delivered volumes and future power deliveries, with the final amount depending on realized values from a future sales process.
Hydro maintains a robust power sourcing position for its Norwegian smelters through 2030, with 9.4 TWh annual equity hydropower production and 8.5 TWh yearly contract portfolio. The settlement is expected to be effective in July 2025.
Norsk Hydro (OTC:NHYDY) ha raggiunto un accordo di transazione per la risoluzione volontaria del suo contratto di acquisto di energia (PPA) con Cloud Snurran AB, che garantisce a Hydro un indennizzo fino a 90 milioni di EUR.
Il PPA originale, firmato nel 2018, prevedeva una fornitura baseload annua di 300 GWh nel periodo 2020-2030 e 550 GWh nel periodo 2031-2049. Cloud Snurran AB ha incontrato difficoltà finanziarie e non ha fornito energia dal novembre 2024. L'accordo include un risarcimento sia per i volumi non consegnati sia per le forniture future, con l'importo finale che dipenderà dai valori realizzati in un futuro processo di vendita.
Hydro mantiene una solida posizione di approvvigionamento energetico per i suoi stabilimenti norvegesi fino al 2030, con una produzione annuale di energia idroelettrica di 9,4 TWh di equity e un portafoglio contrattuale annuo di 8,5 TWh. La transazione dovrebbe entrare in vigore a luglio 2025.
Norsk Hydro (OTC:NHYDY) ha alcanzado un acuerdo de conciliación para la terminación voluntaria de su contrato de compra de energía (PPA) con Cloud Snurran AB, lo que le otorga a Hydro una compensación de hasta 90 millones de euros.
El PPA original, firmado en 2018, establecía un suministro anual base de 300 GWh durante 2020-2030 y 550 GWh durante 2031-2049. Cloud Snurran AB ha enfrentado dificultades financieras y no ha entregado energía desde noviembre de 2024. El acuerdo incluye compensación tanto por los volúmenes no entregados como por las futuras entregas de energía, con el monto final dependiendo de los valores realizados en un futuro proceso de venta.
Hydro mantiene una sólida posición de abastecimiento energético para sus fundiciones noruegas hasta 2030, con una producción anual de energía hidroeléctrica de 9,4 TWh de participación propia y un portafolio contractual anual de 8,5 TWh. Se espera que el acuerdo entre en vigor en julio de 2025.
Norsk Hydro (OTC:NHYDY)는 Cloud Snurran AB와의 전력 구매 계약(PPA)을 자발적으로 종료하기 위한 합의에 도달했으며, 이로 인해 Hydro는 9,000만 유로까지의 보상을 받게 되었습니다.
2018년에 체결된 원래의 PPA는 2020년부터 2030년까지 연간 300 GWh 기본 전력 공급과 2031년부터 2049년까지 연간 550 GWh를 규정했습니다. Cloud Snurran AB는 재정적 어려움을 겪어 2024년 11월 이후 전력을 공급하지 못했습니다. 이번 합의에는 미공급 물량과 향후 전력 공급에 대한 보상이 포함되며, 최종 금액은 향후 판매 과정에서 실현된 가치에 따라 결정됩니다.
Hydro는 2030년까지 노르웨이 제련소를 위한 강력한 전력 조달 기반을 유지하고 있으며, 연간 9.4 TWh의 자사 수력 발전 생산과 연간 8.5 TWh의 계약 포트폴리오를 보유하고 있습니다. 이번 합의는 2025년 7월에 발효될 예정입니다.
Norsk Hydro (OTC:NHYDY) a conclu un accord de règlement pour la résiliation volontaire de son contrat d'achat d'électricité (PPA) avec Cloud Snurran AB, ce qui donne droit à Hydro à une compensation pouvant atteindre 90 millions d'euros.
Le PPA initial, signé en 2018, portait sur une fourniture annuelle de base de 300 GWh entre 2020 et 2030 et de 550 GWh entre 2031 et 2049. Cloud Snurran AB a rencontré des difficultés financières et n'a pas fourni d'électricité depuis novembre 2024. Le règlement inclut une compensation pour les volumes non livrés ainsi que pour les livraisons futures, le montant final dépendant des valeurs réalisées lors d'un futur processus de vente.
Hydro conserve une position solide d'approvisionnement en électricité pour ses fonderies norvégiennes jusqu'en 2030, avec une production annuelle d'hydroélectricité en propre de 9,4 TWh et un portefeuille contractuel annuel de 8,5 TWh. Le règlement devrait prendre effet en juillet 2025.
Norsk Hydro (OTC:NHYDY) hat eine Vergleichsvereinbarung zur freiwilligen Beendigung seines Stromabnahmevertrags (PPA) mit Cloud Snurran AB erzielt, die Hydro eine Entschädigung von bis zu 90 Millionen Euro zusichert.
Der ursprüngliche PPA, der 2018 unterzeichnet wurde, sah eine jährliche Grundlastversorgung von 300 GWh für 2020-2030 und 550 GWh für 2031-2049 vor. Cloud Snurran AB hatte finanzielle Schwierigkeiten und liefert seit November 2024 keinen Strom mehr. Die Einigung umfasst eine Entschädigung für nicht gelieferte Mengen sowie für zukünftige Stromlieferungen, wobei der endgültige Betrag von den erzielten Werten eines zukünftigen Verkaufsprozesses abhängt.
Hydro sichert seine Stromversorgung für die norwegischen Schmelzen bis 2030 weiterhin robust mit einer jährlichen Eigenproduktion von 9,4 TWh Wasserkraft und einem jährlichen Vertragsportfolio von 8,5 TWh. Die Vereinbarung soll im Juli 2025 wirksam werden.
- Compensation of up to EUR 90 million from the PPA termination
- Resolution of non-performing power contract with defaulting supplier
- Robust power sourcing position maintained through 2030 with 17.9 TWh combined annual capacity
- Loss of long-term power supply agreement extending to 2049
- Need to secure new power sourcing options after 2030 when existing agreements expire
- Final compensation amount is uncertain and depends on future sales process
Hydro has agreed to a settlement for the long-term power purchase agreement (PPA) with Cloud Snurran AB. In the settlement, Hydro is entitled to compensation of up to EUR 90 million for its voluntary termination of the PPA.
Hydro Energi AS signed a long-term PPA with Cloud Snurran AB in 2018 for an annual baseload supply of 300 GWh in the period 2020-2030, and 550 GWh in the period 2031-2049. Cloud Snurran AB has experienced financial challenges for the last few years and has as a result not delivered volumes to Hydro in accordance with the PPA since November 2024.
On July 17, 2024, the Svea Court of Appeal approved Cloud Snurran AB’s application for reorganization under the Swedish Restructuring Act, overturning an earlier decision by the Stockholm District Court. The reorganization process has now been terminated, and as part of a final settlement, Hydro has agreed to a voluntary termination of the PPA against a compensation of up to EUR 90 million, which includes compensation for non-delivered volumes and future power deliveries. Hydro’s ultimate compensation will depend on the realized values from a future sales process and an agreed value sharing mechanism.
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 contract portfolio of around 8.5 TWh per year. As several existing long-term power agreements will begin to expire at the end of 2030, Hydro is actively pursuing a range of available sourcing options to meet the demand for cost-competitive renewable power to its operations.
Subject to fulfillment of certain closing requirements, the settlement is expected to become effective during July 2025.
Investor contact:
Mathias Gautier
+47 94861597
mathias.gautier@hydro.com
Media contact:
Anders Vindegg
+47 93864271
anders.vindegg@hydro.com
FAQ
How much compensation will NHYDY receive for terminating the Cloud Snurran power agreement?
What was the original power supply volume in NHYDY's agreement with Cloud Snurran?
How much power capacity does NHYDY have for its Norwegian smelters through 2030?
When did Cloud Snurran stop delivering power to NHYDY under the agreement?
When will the NHYDY-Cloud Snurran settlement become effective?
