Sweden-headed state-owned power utility major Vattenfall has announced that it has signed an electricity supply agreement of approximately 1 TWh annually with leading Finnish steel manufacturer Ovako, enabling "improved transparency and electricity cost control" for Ovako.
According to a statement, Vattenfall will supply all Ovako’s production facilities in the Nordic region with electricity, the three largest being Hofors and Smedjebacken in Sweden and Imatra in eastern Finland.
Annually Ovako recycles approximately 800 000 tonnes of scrap metal and says that it is committed to sustainability with their steel production based on recycled scrap, making them one of largest steel scrap recyclers in the Nordics.
Ovako is extremely active in sustainability and we work continuously to improve in this area. Energy plays an important role in our production process as it powers much of the manufacturing of our steel using recycled steel scrap. For Ovako, it’s important to have both a reliable supply and a sustainable profile for our electricity, as well as to maintain transparency and control costs, said Paola Zetterberg-Eriksson, Head of Group Purchasing, Ovako.
Vattenfall says that it is committed to reducing its climate impact across the entire value chain and offering climate-smart solutions, with a special focus on supporting customers and society by lowering their emissions and to reach their climate targets.
We have a clear strategy for efficient communications with our customers, who know that we take responsibility and deliver what we promise. Ovako is a large and important customer, and this collaboration demonstrates that sustainability and our expertise is vital for achieving profitability, said Branislav Slavic, Head of Business Sales, Vattenfall.
