Statkraft, Alcoa Sign 4.8 TWh Power Deal for Norway Smelter

Statkraft and Alcoa signed power agreements covering roughly 4.8 TWh of electricity from 2028 through 2031, securing supply for the aluminium smelter at Lista in Southern Norway.

The deal comes after Alcoa's Line 2 at Lista restarted 31,000 metric tonnes per annum of capacity, bringing the plant to its nameplate 95,000 tonnes. Tor Arne Berg, Operations Manager at Alcoa Lista, said restarting operations was an important milestone and that stable power is essential for the next step.

Statkraft's Hallvard Granheim, Executive Vice President Markets, said the agreements support continued activity and value creation in Southwest Norway (NO2). He noted that Alcoa is the latest of several large industrial companies to sign long-term power contracts with Statkraft this year, adding that the demand confirms the power market is functioning well.

The agreements are part of Alcoa's long-term work to secure stable power prices on commercial terms for its Norwegian operations. Alcoa runs smelters at Lista and Mosjøen, both wholly owned, and employs 1,001 people in Norway. Statkraft is Europe's largest generator of renewable energy, with about 6,200 employees across 20 countries.

For power-intensive aluminium production, the contract locks in a cost component that can swing plant economics. The 4.8 TWh covers a meaningful share of Lista's consumption through 2031, reducing exposure to spot-price volatility in the NO2 region. Alcoa's Alpha Score sits at 71/100, labelled Moderate, in the Basic Materials sector. Southern Company, by contrast, scores 45/100, Mixed, in Utilities.

Elkem's recent 1,534 GWh PPA securing Bjølvefossen power cost through 2037 shows a similar pattern among Norwegian industrial users: locking long-term supply contracts to stabilise input costs. Gujarat Energy's plan for up to 30% growth in gas trading by 2031 points in the same direction for energy-intensive sectors.

Statkraft did not disclose the price terms of the Alcoa agreement.