On Monday, March 17, Norwegian aluminium and renewable energy company Norsk Hydro held a groundbreaking ceremony for its cutting-edge recycling plant in Torija, Spain. The EUR 180 million project is a key part of Hydro's circular economy strategy, focused on using more post-consumer scrap. It also aligns with Hydro's goal of expanding its low-carbon aluminium offerings in Europe.
Image source: Hydro
Through this new plant, Hydro aims to maximise the recycling of aluminium scrap, keeping it within Europe rather than allowing it to be exported. Hanne Simensen, Executive Vice President of Hydro Aluminium Metal, has rightly explained that aluminium scrap is energy in solid form. Therefore, it makes sense to utilise this resource domestically, particularly when European countries are struggling with limited access to affordable energy.
In her words, "Aluminium scrap is energy in solid form. We simply cannot afford to export such a valuable and strategic resource with European industrial competitiveness now severely affected by the lack of affordable energy. The new plant will strengthen our recycling capacity in the European market, and save both energy and emissions."
The Torija plant will have an annual production capacity of 120,000 tonnes of extrusion ingots made from post-consumer aluminium scrap. The facility will recycle up to 70,000 tonnes of scrap leveraging advanced sorting technology and production processes. When it becomes operational in 2026 with an estimated 65 new employees, it will increase Hydro's total low-carbon, recycled aluminium production capacity to 200,000 tonnes, combined with its nearby Azuqueca plant. The products from Hydro's Torija plant will serve key Iberian industries, including transport and automotive, building and construction, and energy sectors.
The extrusion ingots produced at the Torija plant will have the highest share of post-consumer recycled content in the market, with a CO2 footprint below 4 kg CO2 per kg.
Simensen said, "Torija will be a flagship plant with full automotive capabilities, ideally located to serve Iberian and other European customers. Equally important, the plant will have ample access to locally sourced scrap. This will provide significant value for our customers, create jobs and contribute to the circular economy. It's good for Castilla-La Mancha, it's good for Spain and it's good for Europe."
She also stated, "Our investment in the Torija plant signals our strong commitment to circularity in the aluminium value chain. However, for more projects like this to thrive, we need clear policy frameworks that provide long-term certainty and give incentives to invest. We need to close the CBAM scrap loophole, and in addition we need trade policy measures to reduce the export of aluminium scrap. I believe aligning policies and regulatory measures with the need for more circularity is crucial for boosting Europe's industrial competitiveness."
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