OSLO (dpa-AFX) - Norsk Hydro ASA (NHY) Friday said it has agreed to a voluntary termination of the power purchase agreement (PPA) with Cloud Snurran AB against a compensation of up to 90 million euros.
Hydro Energy AS, a unit of Norsk Hydro, had signed a long-term PPA with Cloud Snurran in 2018 for an annual baseload supply of 300 GWh during the period 2020-2030 and 550 GWh during 2031-2049. Due to financial challenges, Cloud Snurun has not been able to deliver volumes according to the PPA since November 2024.
On July 17, 2024, Svea Court of Appeal had granted Cloud Snurran's application for reorganization. The reorganization process has now been concluded and, as part of the final settlement, Hydro agreed to voluntarily terminate the PPA in compensation of up to 90 million euros, which includes compensation for non-delivered volumes and future power deliveries.
The settlement is expected to be effective during July 2025.
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