Statkraft AS and Eramet Norway AS have signed a letter of intent regarding energy recovery from excess gas at the smelting plant in Sauda.
Statkraft AS and Eramet Norway AS have signed a letter of intent regarding energy recovery from excess gas at the smelting plant in Sauda. The project will capture energy which today goes straight into the air, and will provide more than 100 GWh of new electricity per year.
"The letter of intent between Statkraft and Eramet Norway gives us the opportunity to together with our industry partner implement environmentally friendly and energy saving measures which will result in more efficient energy consumption. Initiatives for energy efficiency in cooperation with the industry are a new and prioritized target area for which Statkraft has great expectations. This type of cooperation is important and perfectly aligned with our strategy as a producer of environmentally sound energy," says Statkraft's Executive Vice President Siri Hatlen.
The project shall contribute to safeguarding the energy from the Sauda smelting plant by burning the CO gas, which today is flared, in a steam-producing boiler. The steam will in turn run a turbine that produces more than 100 GWh of electricity per year, equivalent to the annual consumption of 5000 households. The initiative also has a good effect on the environment by reducing NOx emissions.
"In addition to the cooperation on long-term power supply to our smelting plants, we are now also starting an industrial cooperation with Statkraft to ensure environmentally sound and energy efficient solutions. With Statkraft's expertise in energy production, we will work together to find good answers to our future energy challenges," says Odd Husmo, managing director of Eramet Norway.
Investments in the project will be approx. NOK 250 million, and the project will receive support from Enova in the amount of approx. NOK 35 million. According to the plan, the installation will be ready for use at the end of 2010.
In 2006, Statkraft and Eramet entered into a long-term, commercial power supply contract for the period 2011 to 2020 for the company's smelting plants in Sauda and Porsgrunn.