Green Investment Group enters into power agreements with Eramet Norway

Macquarie’s Green Investment Group (GIG) has entered into two long-term power purchase agreements (PPAs) with Eramet Norway, to provide a stable and long-term power supply to Eramet Norway's Norwegian smelters. The power will come from GIG’s two Norwegian wind farms - Tysvær in Rogaland and Buheii in Agder – which are currently under development. The agreements help support the competitiveness of Eramet Norway’s facilities and further strengthen GIG's role as an important partner for Norwegian industry.

GIG, which already owns Tysvær Wind Farm in Rogaland, has entered into an agreement with Nordisk Vindkraft to buy Buheii Vindkraft AS, the owner of the Buheii Wind Farm. The acquisition of Buheii Vindkraft AS remains subject to certain completion conditions. Both wind farms will supply power to Eramet Norway's processing plants until 2038.

Eramet Norway is a world-leading manufacturer of manganese alloys for the global steel industry and has one of the smallest climate footprints in its industry. With an annual electricity demand of more than 2 TWh per annum, the company relies on long-term and predictable power conditions to ensure stable and efficient operation in its processing plants in Porsgrunn, Sauda and Kvinesdal.

The PPAs are backed by guarantees issued under the Power Purchase Guarantee Scheme administered by The Norwegian Export Credit Guarantee Agency (GIEK). The Scheme aims to ensure that Norwegian industrial companies with high electricity demands can enter into long-term power contracts at a predictable price.

Both the power contracts and GIEK's guarantees are subject to GIG making a final investment decision to build out the projects. GIG is now awaiting final approvals from the Norwegian Water Resources and Energy Directorate (NVE) and the Ministry of Petroleum and Energy (OED) to start the construction of the wind farms.