Gas supply to Dutch horticulture industry

May 31, 2002, 01:00 CEST

Hydro Energy, ENECO and AgroEnergy have entered into a gas agreement to supply gas to the Dutch horticulture industry. The deal entails supplying nearly one billion cubic meters of natural gas to some 560 greenhouses in The Netherlands. Deliveries started January 1, 2002 and have an initial duration of one year.

The supply agreement is based on each party's core competence, creating the most competitive arrangement for the end-consumer. As the third-largest energy distribution company in the Netherlands, ENECO represents the link between a broad network of end-consumers and Hydro Energy's organization, more tailored to large end-consumers and the wholesale segment.

AgroEnergy is a joint venture between Rabobank and the Dutch agricultural organization LTO Nederland (Land-en tuinbouw Organisatie), offering greenhouses joint energy purchases. In its first year of existence, AgroEnergy already represents some 25 percent of the horticultural segment in respect of energy purchases.

Hydro Energy is the commercial arm of the oil and energy business area of the Norwegian industrial company Norsk Hydro. Hydro's two other core areas are aluminium and plant nutrition. After having built a market position in the large industrial segment in recent years, Hydro Energy has further strengthened its position in the Dutch gas market with its supplies to greenhouses.

This gas sales agreement makes Norsk Hydro an all-round partner for the Dutch horticulture industry, and is complimentary to its already well-established position as supplier of specialty fertilizers through HydroAgri's Substrafeed program and supply of liquid carbon dioxide through its subsidiary Hydro Gas and Chemicals B.V.