Macquarie's GIG agrees wind power offtake for Norwegian smelters

Green Investment Group Ltd (GIG), owned by Macquarie Group Ltd (ASX:MQG), will be supplying power to the Norwegian smelters of French industrial group Eramet from two wind projects in Norway.

GIG and Eramet Norway have signed two long-term power purchase agreements (PPAs) that are backed by guarantees issued under The Norwegian Export Credit Guarantee Agency’s (GIEK) Power Purchase Guarantee Scheme. The off-take deals and the guarantees, however, depend on GIG taking a final investment decision on the two schemes.

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The two wind projects are currently being developed and are pending regulatory clearance. The power plants will be supplying electricity to Eramet Norway's processing facilities until 2038.

While GIG is already the owner of the Tysvaer wind project in Rogaland, it is in the process of acquiring the second scheme for the Buheii wind farm in Agder. The company has agreed to buy Buheii Vindkraft AS, the owner of the project, from Nordisk Vindkraft AS, with the deal being subject to certain conditions.

Eramet Norway, a manufacturer of manganese alloys for the global steel industry, has an annual electricity demand of more than 2 TWh.