Hydro secures €90m compensation from terminated power deal

Norsk Hydro has agreed to terminate its power purchase agreement with Cloud Snurran AB, securing compensation of up to €90 million for undelivered and future power volumes.

The original deal, signed in 2018, required fixed annual deliveries of 300 GWh from 2020-2030 and 550 GWh from 2031-2049. Cloud Snurran has faced economic challenges and failed to deliver agreed volumes since November 2024.

The wind power company completed a restructuring process under Swedish law in July. Hydro's final compensation depends on the wind park's sale price and an agreed creditor allocation mechanism.

The settlement takes effect in July 2025, subject to conditions.