Fortum and Vargön Alloys sign a five-year power purchase agreement

FORTUM CORPORATION PRESS RELEASE 17 APRIL 2024
 

Fortum and Swedish ferroalloys producer Vargön Alloys AB have signed a five-year power purchase agreement (PPA) with progressive pricing for delivery of approximately 0.4 TWh of electricity and Guarantees of Origin for nuclear power per annum in Sweden. The contract term starts in December 2024 and runs until the end of 2029. The power is sourced from Fortum’s nuclear portfolio in the SE3 (Stockholm) price area in central Sweden.

Long-term partnerships play a vital role in ensuring predictability in long-term energy procurement and advancing electrification in the clean transition. The nuclear power supply agreement between Fortum and Vargön Alloys represents the commitment by both companies to work towards a more sustainable and environmentally conscious future. “I am excited about the opportunities this agreement with Fortum brings to our company. This partnership reflects our dedication to securing sustainable energy sources for our operations and underscores our commitment to environmental responsibility. We look forward to the positive impact this collaboration will have on our business and the environment”, Managing Director of Vargön Alloys Anders Lehman says.

This PPA contributes to Fortum’s strategic target to have at least a 20% share of its rolling 10-year outright generation volume hedged. The PPA and long-term contracts are included in Fortum’s disclosure of the reported Nordic outright generation hedges.

Fortum Corporation Communications

Further information:
Fortum News Desk, newsdesk@fortum.com, tel. +358 40 198 2843

Fortum

Fortum is a Nordic energy company. Our purpose is to power a world where people, businesses and nature thrive together. We are one of the cleanest energy producers in Europe and our actions are guided by our ambitious environmental targets. We generate and deliver clean energy reliably and help industries to decarbonise their processes and grow. Our core operations in the Nordics comprise of efficient, CO2-free power generation as well as reliable supply of electricity and district heat to private and business customers. For our ~5 000 employees, we commit to be a safe, and inspiring workplace. Fortum's share is listed on Nasdaq Helsinki. fortum.com