Norsk Hydro: Voluntary termination of power purchase agreement with Cloud Snurran AB

Group 1 - Hydro has agreed to a settlement for the long-term power purchase agreement (PPA) with Cloud Snurran AB, allowing for compensation of up to EUR 90 million for the voluntary termination of the PPA [1][2] - The PPA was originally signed in 2018, with Hydro entitled to an annual baseload supply of 300 GWh from 2020 to 2030, and 550 GWh from 2031 to 2049 [1] - Cloud Snurran AB has faced financial difficulties, resulting in non-delivery of volumes to Hydro since November 2024 [1][2] Group 2 - The Svea Court of Appeal approved Cloud Snurran AB's reorganization application under the Swedish Restructuring Act, which overturned a previous decision by the Stockholm District Court [2] - The reorganization process has been terminated, and Hydro's compensation will depend on future sales processes and an agreed value sharing mechanism [2] Group 3 - Hydro's Norwegian smelters have a robust sourcing situation through 2030, with an average annual equity hydropower production of 9.4 TWh and a contract portfolio of around 8.5 TWh per year [3] - The company is actively pursuing various sourcing options to meet the demand for cost-competitive renewable power as existing long-term power agreements will expire at the end of 2030 [3] Group 4 - The settlement is expected to become effective in July 2025, subject to the fulfillment of certain closing requirements [4]