Battery developer Freyr Battery has secured “clean” energy for its planned lithium-ion gigafactory following a binding Heads of Terms deal with European renewable power producer Statkraft.
The agreement is to ensure a supplyn of energy from Norway’s central grid in Mo i Rana to Freyr’s Customer Qualification Plant (CQP) and combined gigafactory 1 & 2 between 2024-2031.
The deal is expected to be finalised as a long-term supply agreement.
During the seven-year period, Statkraft commits to providing up to 23MW baseload with an accumulated delivery of 1.4TWh over the contract period, as well as the provision of Guarantees of Origin to document the power is sourced from its hydropower assets in Rana.
Rana is 100% Statkraft-owned with a capacity of 500MW and annual generation of an estimated 2,150GWh.
Tove Nilsen Ljungquist, EVP operations of Freyr, said: “Our ambition is to produce clean battery cells, and a key element of our strategy is to power our operations with renewable energy.
“This agreement with Statkraft ensures that our production facilities in Mo i Rana will have a steady, long-term supply of hydropower from local sources – keeping our carbon footprint to a minimum as we speed forward to full operations.”