Eolus Vind has signed a power purchase agreement (PPA) with Alcoa to sell 330MW of clean energy from the Øyfjellet wind farm in Norway for a period of 15 years.
The wind farm which is yet to be constructed, is expected to generate around 1.2 TWh annually and Alcoa, the American industrial company will use the electricity to power its production plant in nearby Mosjøen with locally produced electricity.
Eolus CEO Per Witalisson said: “Øyfjellet is a prime location for wind power and we are very happy to be able to construct the 330 MW wind farm and offer it to investors with this PPA signed with Alcoa.
“This agreement yet again shows Eolus ability to develop wind projects and provide the market with interesting investment opportunities.”
With a long-term PPA, Eolus is ensured that it will be able to start the construction of the wind farm this year. The company will also enable to provide its investors with an investment opportunity in the Nordic market, with a guaranteed long term PPA.
With commissioning scheduled in 2021, the wind farm will qualify for electricity certificates within the common Norwegian and Swedish system, Eolus stated.
As part of the agreement, Eolus has also signed a power purchase guarantee with the Norwegian Export Credit Guarantee Agency (GIEK) for an amount of €256m.
Eolus chief operating officer Marcus Landelin said: “We are very pleased with the fact that Alcoa has chosen to partner with Eolus and sign a PPA that will provide their production plant in Mosjøen with locally produced electricity.
“In addition to Alcoa providing jobs in Mosjøen the wind farm will give the local community new business opportunities and jobs for many years.
In January, Eolus has signed an agreement with E.ON to secure grid connection for two of its under-construction Swedish wind farms Kråktorpet and Nylandsbergen totalling 232MW. These two wind farms will be commissioned next year. Vestas will supply turbines for the two wind farms.