Statkraft and FREYR Battery Sign Agreement, Securing Long-Term Supply of Renewable Energy

The Heads of Terms is expected to be finalized as a long-term physical supply agreement, with the ambition to secure a long-term supply of renewable power under globally competitive terms for FREYR’s planned battery cell production project in Mo i Rana, Norway.

The Heads of Terms and related energy services from Statkraft is projected to cover all of FREYR’s currently anticipated electricity needs for the period of 2024-2031 and to ensure physical delivery of energy from the central grid in Mo i Rana to FREYR’s Customer Qualification Plant (“CQP”) and combined Gigafactory 1 & 2. During this period, Statkraft commits to providing up to 23 MW baseload with an accumulated delivery of 1.4 TWh over the contract period to FREYR, as well as the provision of Guarantees of Origin to document that the power is sourced from Statkraft’s hydropower assets in the region.

“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,” said Tove Nilsen Ljungquist, EVP Operations of FREYR.

“Statkraft contributes to the green shift by providing renewable power to existing customers and new industrial entrants around the world. We are happy to support the establishment of FREYR’s battery cell facility in Northern Norway, enabling green jobs and use of local resources. Together with flexible hydropower, batteries are essential for a net zero future,” says EVP Market & IT in Statkraft, Hallvard Granheim.

Under the Heads of Terms, the renewable energy for FREYR’s production site will be sourced from Statkraft’s hydropower plant “Rana”. Rana is 100 percent Statkraft-owned with a capacity of 500 MW and annual generation of approximately 2,150 GWh. The proximity of Statkraft’s hydropower plant to FREYR’s planned production facilities in Mo i Rana is consistent with FREYR’s ambition to establish its operations in areas with an ample, local supply of clean energy.