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Elkem's Norwegian smelting plant is one of Statkraft's largest customers, and the two companies are in frequent contact to manage existing contracts and develop new opportunities.

Forward-looking

Alexander Strøm Arnesen

"Statkraft is one of the more creative and forward-looking companies in terms of customer development," says Alexander Strøm Arnesen, who is responsible for power purchases in Elkem.

The Elkem industrial group is one of the world's leading manufacturers of metals and materials such as silicon, ferrosilicon and foundry alloys, and Statkraft is Elkem's key power supplier.

"The power is used in our smelting plant in Norway," says Alexander Strøm Arnesen, who is responsible for power purchases in Elkem.

"Our main product is silicon of various grades, and the production process is energy-intensive. Statkraft has an important social role to play in power-intensive industries by offering long-term contracts that ensure predictability for us in our future operations," he emphasises.

Creative apporach

The customer relationship stretches over many decades. Representatives from Elkem and Statkraft meet regularly to discuss new contracts and opportunities.

At Elkem Rana AS in Mo i Rana, the partnership includes more than supplying power. As well as delivering power, Statkraft has balancing responsibility and manages the total power consumption of the business. Moreover, Statkraft offers hedging and fixed-price contracts and facilitates Elkem's participation in various flexibility markets for electricity.

"We have a good and open dialogue with Statkraft," says Strøm Arnesen. "We talk to many actors in the power industry, and Statkraft is one of the more creative and forward-looking companies in terms of customer development. For the last three to five years, we have clearly seen Statkraft transform from being solely a power supplier to being much more. There has been more focus on the customer and on offering services beyond the power itself."

Close relationship

In the autumn of 2017 alone, Statkraft signed two new agreements with Elkem. Anders S. Conradi, senior contract manager in Risk Management and Hedging, Nordic Energy in Statkraft, emphasises the good dialogue between the companies.

"The good and close relationship with Elkem has been built over a long period," he says. "We regularly meet to discuss additional power requirements, hedging needs and other services that Statkraft can offer."

Every autumn Statkraft invites its industrial customers to a seminar where various power-related topics are presented. Elkem's Strøm Arnesen appreciates this initiative. "It's interesting and useful because we meet many people and get updated on what's happening in the industry, including areas such as market prices and regulatory conditions, and the latest developments in Statkraft's service concepts," he says.

Until 2020, Statkraft will supply approximately 2 TWh of power annually to Elkem's plants in Norway. From 2021 to 2027, the deliveries will be somewhat smaller, but still significant.

Text: Sissel Fantoft
Photo: Elkem
The article has also been published in Statkraft's magazine People & Power no. 2/2017.

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