Macquarie Group Ltd.'s Green Investment Group entered into two long-term power purchase agreements to supply electricity to Eramet SA's Norwegian smelters until 2038 from its Tysvaer and Buheii onshore wind farms, which are currently under development in Norway.
Meanwhile, GIG entered into an agreement with NV Nordisk Vindkraft AB to buy Buheii Vindkraft AS, which owns the Buheii wind farm.
The supply agreements will help support the competitiveness of Eramet Norway A/S's facilities with predictably priced power, while further strengthening GIG's role as an important partner for the Norwegian industry, according to a Jan. 16 release.
"With our ambitions to be in the forefront of industrial development in Norway, we need access to renewable energy. The agreement with GIG is therefore an important contribution to our power portfolio," Eramet Norway CEO Bjørn Kolbjørnsen said.
The power purchase agreements are backed by the Norwegian Export Credit Guarantee Agency, but both the contracts as well as the guarantees are subject to GIG making a final investment decision to build the projects.
GIG is awaiting final approvals from the Norwegian Water Resources and Energy Directorate and the Ministry of Petroleum and Energy to start construction of the wind farms.