One agreement covers a capacity of 100MW, replacing an existing power contract set to expire in May (2023), while the second agreement covers up to 30MW from 2026, intended to support INEOS’ plans to electrify and set up hydrogen production at its chemicals plant in Rafnes in Bamble, Norway.

H2 View understands, both agreements are sourced from Statkraft’s renewable hydropower assets in Norway.

INEOS Inovyn’s Rafnes site produces Chrol-Vinylm a fundamental raw material for various industry sectors such as automotive, building and construction, paints and adhesives, food, healthcare and medical, personal care, pulp and paper, textiles, and water treatment.

According to Geir Tuft, CEO of INEOS Inovyn, as well as allowing the company to continue supply its customers, the new agreements will allow it to pursue its plans to decarbonise its operations.

“These long-term green energy supply agreements allow us to continue to competitively supply our customers in Europe and elsewhere in the world,” Tuft said. “They also allow us to pursue our ambitious asset development plans which we have put in place to reach our 2030 CO2 reduction targets and to continue the decarbonisation of our operations to deliver Net Zero emissions by 2050.”

In December (2022), INEOS Inovyn announced it would use a hydrogen-powered truck for its PVC transportation in Q1 this year (2023).

Read more: INEOS Inovyn uses green hydrogen truck in ‘European first’

Hallvard Granheim, Executive Vice-President Markets at Statkraft, commented, “The agreement emphasizes Statkraft’s important role as a major supplier to Norwegian industry and shows that it is possible to secure long-term power contracts even in today’s market.”

Last month (January 2023), Statkrat announced it would collaborate with Norwegian electrolyser manufacturer Nel to create a strong value chain for green hydrogen production in Norway.

Read more: Nel, Statkraft to collaborate on Norwegian green hydrogen value chain