The parties have signed a land lease agreement for the development of wind power. The agreement covers an area of more than 7,000 hectares in price area SE1.
The site, named Karhuvaara, is in the southern part of the Pajala municipality, and is noted for favorable wind conditions and few conflicting interests. Hydro Rein plans to conduct further investigations for a project that could include up to 50 wind turbines.
"The interest in this area from wind power developers has been substantial. We chose to sign with Hydro Rein because they presented concrete and realistic plans for the project," says Rolf Hjärtberg, Chair of the Pajala Allmänning board.
Karhuvaara is an important addition to Hydro Rein's rapidly expanding portfolio in the Nordics. In Sweden, Hydro Rein is involved in the development of over 30 wind power projects in various stages. With this latest addition, Hydro Rein now has developments underway in all Swedish price areas.
Substantial investments are being made in northern Sweden in the production of among others, green steel, batteries and fossil free fertilizers. As a result, the demand for renewable energy in the region is expected to rise sharply over the coming years.
"Success in project development starts with local presence and engagement. Our dialogue is already underway with Sami reindeer herders, local politicians and green transition industries in northern Sweden," says Lisa Haukaas, Head of Sweden at Hydro Rein.
The Pajala, Junosuando and Tärendö common forest was established in the 1880s when the state distributed land equivalent to one fourth of the private holdings.
The common forest is owned by approximately 2,000 co-owners distributed across about 1,000 agricultural properties in the Pajala municipality.
The common forest covers 67,000 hectares, of which approximately 42,000 are productive forest land. Pajala Allmänning is managed by a board with five members.
Hydro Rein is a leading provider of renewable energy solutions for industry. Created in 2021 as part of the sustainability strategy of Hydro, an integrated aluminium and energy company, Hydro Rein’s strategy is focused on the industrial need to decarbonize, where tailormade solutions are needed to overcome the obstacles of the energy transition.
Hydro Rein has a diversified portfolio with more than 60 renewable energy and energy efficiency projects under development in key markets in the Nordic countries and Brazil. After three years of growth in renewable energy, Hydro Rein has a gross capacity of 8.4 GW in its portfolio and long-term contracts signed for a production of 5.3 TWh per year.
Published: June 4, 2024
