LKAB and Statkraft deepen cooperation for onshore wind power

LKAB and energy company Statkraft have signed a Memorandum of Understanding on future electricity deliveries from the planned wind power project Hästliden in Piteå municipality. The agreement marks a deepening of the collaboration initiated a year ago to explore possibilities for new electricity production in Northern Sweden.

The electricity production is expected to reach 2.2 TWh per year, which corresponds to approximately 20 percent of the current electricity consumption in electricity price area 1 in Sweden.

"We have deepened our cooperation and are now looking at future electricity deliveries to LKAB, including from Statkraft’s project in Piteå. The gradual transition we are planning requires new fossil-free electricity production. Therefore, we rely on Statkraft and other energy companies obtaining permits to carry out projects that can supply electricity on competitive terms," says Stefan Savonen, Vice President Energy at LKAB.

The current permit application for Hästliden has been under review by the government for about a year, following requests from both Statkraft and Piteå Municipality for an evaluation of its feasibility. Statkraft already has a legally binding permit to build wind turbines with a maximum height of 200 meters, planning to erect 105 turbines under that permit. However, due to limitations in the permit duration and the inability to use the latest technology, Statkraft decided to seek a new permit allowing the use of fewer turbines with heights of up to 300 meters.

"This will enable us to utilize the latest technology in turbine selection and reduce the total production costs for Hästliden by up to 25 percent per kilowatt-hour compared to the original plan, resulting in lower electricity prices. Additionally, the environmental impact will be smaller. The plans have strong support from the municipality and local stakeholders, and now it’s about finding solutions for coexistence with defense interests," says Jakob Norström, SVP Country Manager of Sweden at Statkraft.

The area already has over 500 installed wind turbines in operation, including a sub-project approved for total heights of up to 250 meters.

"We hope the government recognizes the many benefits of Hästliden and, given the clear demand for the power the facility can produce, decides to grant permission for the project's implementation. With a positive decision soon, the park could be operational by 2029," Jakob Norström continues.

Statkraft, Europe’s largest producer of renewable energy, and LKAB, which accounts for approximately 80 percent of iron ore production in the EU, have collaborated for many years on electricity supply. For some time, the parties have also been discussing potential solutions linked to wind power production in combination with hydrogen production. The partnership focuses on onshore wind power as the primary energy source and how it could be combined with hydrogen production and energy distribution for electricity and hydrogen. The setup primarily involves Statkraft managing wind power and LKAB handling hydrogen.

Facts About Statkraft and the Hästliden Wind Power Project

• Statkraft's Hästliden project is part of the third and final phase of the Markbygden Wind Power Park in Piteå Municipality and has been under government review for about a year.
• The new permit application allows the project to be executed with 85 turbines instead of 105 (600 MW installed capacity).
• Land use is reduced by approximately 10 percent, and all turbines will be utilized for their full 35-year lifespan, compared to 17 years or less under the existing permit.
• Annual production rises from 1.7 TWh to 2.2 TWh, increasing the park's total expected electricity output over its lifetime from 29 TWh to 64 TWh.
• The electricity produced by the project corresponds to about 20 percent of the current electricity consumption in electricity price area 1 in Sweden.
• Statkraft is wholly owned by the Norwegian government and is Europe's largest supplier of renewable energy and Sweden's fourth-largest electricity producer. The company is a global player in energy trading, with approximately 7,000 employees in over 20 countries.