Norway – Statkraft, Europe’s largest renewable energy producer, has signed a binding Heads of Terms with FREYR Battery.
The Heads of Terms are expected to be finalized as a long-term physical supply agreement with the goal of securing a long-term supply of renewable energy at globally competitive terms for FREYR’s planned battery cell manufacturing project in Mo I Rana, Norway.
The Heads of Terms and related energy services from Statkraft are expected to cover all of FREYR’s currently anticipated electricity needs for the years 2024-2031, as well as ensure physical delivery of energy from Mo I Rana’s central grid to FREYR’s Customer Qualification Plant (“CQP”) and combined Gigafactory 1 & 2. During this time, Statkraft will provide up to 23 MW of baseload power to FREYR, with a total delivery of 1.4 TWh over the contract period, as well as Guarantees of Origin to prove that the power is sourced from Statkraft’s hydropower assets in the region.
Abundant clean energy
The renewable energy for FREYR’s production site will come from Statkraft’s “Rana” hydropower plant, according to the Heads of Terms. With a capacity of 500 MW and an annual generation of approximately 2,150 GWh, Rana is 100% owned by Statkraft. The proximity of Statkraft’s hydropower plant to FREYR’s planned production facilities in Mo I Rana is in line with FREYR’s goal of locating its operations in areas where clean energy is abundant.