Finnish majority state-owned energy company Fortum and Swedish ferroalloys producer Vargön Alloys AB have signed a five-year power purchase agreement (PPA) with progressive pricing for delivery of approximately 0.4 TWh of electricity and Guarantees of Origin for nuclear power per annum in Sweden.
The contract term will starts in December 2024 and runs until the end of 2029, said Fortum in a press release onm Wednesday.
The power is sourced from Fortum’s nuclear portfolio in the SE3 (Stockholm) price area in central Sweden.
Long-term partnerships play a vital role in ensuring predictability in long-term energy procurement and advancing electrification in the clean transition.
The nuclear power supply agreement between Fortum and Vargön Alloys represents the commitment by both companies to work towards a more sustainable and environmentally conscious future.
“This partnership reflects our dedication to securing sustainable energy sources for our operations and underscores our commitment to environmental responsibility. We look forward to the positive impact this collaboration will have on our business and the environment”, Managing Director of Vargön Alloys Anders Lehman said.
This PPA contributes to Fortum’s strategic target to have at least a 20% share of its rolling 10-year outright generation volume hedged.
The PPA and long-term contracts are included in Fortum’s disclosure of the reported Nordic outright generation hedges.
Source: www.dailyfinland.fi
Does this power purchase agreement include any provisions for renewable energy sources or is it solely nuclear power based?
This power purchase agreement primarily focuses on nuclear power sourced from Fortum’s nuclear portfolio in central Sweden. While renewable energy sources are not explicitly mentioned in the article, the commitment to environmental responsibility indicates a broader sustainability approach. It’s important to recognize the role of nuclear power in the transition to cleaner energy and the long-term benefits it can bring to both companies involved.
“This partnership between Fortum and Vargön Alloys is a significant step towards sustainability and environmental responsibility. I believe such collaborations are crucial in driving the clean energy transition forward, and I look forward to seeing the positive impact it will have on both businesses and the environment.”
As a supporter of sustainable energy practices, I believe this partnership between Fortum and Vargön Alloys is a significant step towards a greener future. It is encouraging to see companies prioritizing environmental responsibility in their operations. Let’s hope this collaboration sets a positive example for others to follow.
As a sustainable energy advocate, I applaud this partnership between Fortum and Vargön Alloys. It’s great to see companies committing to environmentally conscious energy procurement and working towards a more sustainable future.
I believe this partnership signifies a significant step towards sustainability and environmental consciousness in the energy sector. It’s encouraging to see companies like Fortum and Vargön Alloys taking proactive measures to secure clean energy sources for their operations. This collaboration sets a positive example for others in the industry to follow. Looking forward to witnessing the positive impact on both business and the environment.
As a renewable energy advocate, I’m thrilled to see Fortum and Vargön Alloys coming together to secure sustainable power sources. This partnership sets a great example for other companies to follow in promoting environmental responsibility. Kudos to both teams for their commitment to a cleaner future!
Is this power purchase agreement aimed at reducing carbon emissions and promoting sustainability in the energy sector?
Yes, this power purchase agreement signifies a strong commitment to reducing carbon emissions and promoting sustainability in the energy sector. By sourcing electricity from Fortum’s nuclear portfolio, both companies are taking a significant step towards a more environmentally conscious future. It’s great to see initiatives like these driving positive change in the industry!
This partnership demonstrates Fortum and Vargön Alloys’ joint commitment to sustainability and the environment. I believe long-term collaborations like this are crucial for securing clean energy sources and driving the shift towards a more eco-friendly future.
Does this 5-year energy pact between Fortum and Vargön Alloys include any provisions for renewable energy sources, or is it primarily nuclear power-based?
Hey Emily_Smith, to answer your question, this specific energy pact between Fortum and Vargön Alloys is mainly focused on nuclear power sources. Their agreement outlines the delivery of electricity sourced from Fortum’s nuclear portfolio in central Sweden, emphasizing a commitment to sustainable energy supply. While renewable energy provisions are not explicitly mentioned in this context, the collaboration aims to contribute to a more environmentally conscious future. Hope this clarifies things for you!