(Montel) Norwegian aluminium group Norsk Hydro will sell excess power in the market from its Husnes and Karmoy aluminium smelters after deciding to curb output due to weak demand, it said on Wednesday.
The company decided on Tuesday to temporarily reduce aluminium production at both plants in southwestern Norway in response to soaring energy costs and a weak global aluminium market.
This will cut power consumption by 1.75 TWh over a year.
Since the smelters receive electricity on long-term deals at far lower costs than current market levels, the company will use this as an opportunity to sell excess power in the market, spokesman Halvor Molland told Montel.
Spot prices in southern Norway have averaged EUR 358.37/MWh this month, 10 times above normal levels.
In August, Norsk Hydro announced the closure of its primary aluminium plant Slovalco (2.4 TWh/year) in Slovakia due to high electricity prices.
Molland would not rule out further production cuts due to reduced demand for aluminium.
Norsk Hydro’s rival Alcoa has also curbed output at its aluminium plant in Lista, southern Norway.
