Swedish power group Vattenfall and Norwegian industrial group Elkem have signed a long-term electricity supply agreement.

The deal covers the period from 2020 to 2026 and will see Vattenfall supply 260 GWh each year to Oslo-headquartered Elkem, which makes silicon – a highly electricity-intensive process.

Elkem chief financial officer Morten Viga said the deal with Vattenfall “ensures competitive prices and predictability for us”.

He added: “Sustainability is central to our business strategy and we aim to constantly reduce fossil carbon dioxide emissions. We therefore welcome the cooperation with Vattenfall, one of the Nordic region’s largest producers of electricity from fossil-free energy sources.”

Vattenfall spokesman Bjørn Bruvik said the company was “very pleased to start a long-term cooperation with Elkem and demonstrate our ability to continue the long-term partnership with the Norwegian base industry”.

Last month, Vattenfall and fellow Nordic energy firms Fortum and Statkraft called on the EU to update its long-term climate targets and aim for a carbon-neutral economy before 2050. 

In a joint Nordic initiative, Vattenfall chief executive Magnus Hall and his two counterparts met with EU Energy Commissioner Miguel Arias Cañete to express their commitment to further decarbonize the European economy.

“We believe that ambitious long-term climate targets can be reached in an affordable manner by using market instruments and sector coupling,” they stated in a declaration.