Hydro invests in green transitions and Norwegian aluminium smelters

Investing in Norwegian aluminium smelters will enable Hydro to take the lead in climate-efficient aluminium solutions through continued industrial development and green transition initiatives. This will extend the lifespan of the aluminium smelters and will convert the products to low-carbon aluminium for a growing market.

Ola Sæter, the Head of Primary Production at Hydro, said, "We are upgrading the plants, investing in the development of the plants, and implementing new technology such as recycling, carbon capture and green hydrogen to become the world's first supplier of zero-carbon aluminium. We recently agreed with Mercedes Benz for technology collaboration and to supply our aluminium products to support their investment in making lighter, more climate-friendly electric cars."

In 2021, Hydro announced new climate ambitions to become carbon neutral by 2050, with a partial goal of having several industrial-scale technologies ready by 2030. The company has launched several projects to develop new technology to reduce emissions from aluminium production. Hydro has initiated approximately NOK 3 billion in projects at Norwegian aluminium plants over the last two years. The investments will help to reduce greenhouse gas emissions, putting the country on track to become carbon-neutral by 2050.

The technology for enhanced post-consumer aluminium recycling will help to reduce emissions today more quickly. In 2022, Hydro produced aluminium goods with a carbon impact that was almost zero in addition to being 100% recyclable for clients. Green hydrogen introduced in place of natural gas could result in manufacturing with zero carbon emissions.

With good results, Hydro Høyanger has tested using more post-consumer aluminium in its primary production. They are currently constructing a special facility that will accept more post-consumer aluminium directly into primary aluminium casthouse production, reducing the climate footprint of Norwegian aluminium even further.

Carbon capture technology tailored to aluminium production will be able to reduce direct emissions at existing aluminium smelters. Simultaneously, Hydro is developing an entirely new manufacturing method to eliminate emissions from the electrolysis process.

The new HalZero process replaces the current Hall-Heroult process, patented in 1886 and has been gradually improved and used for nearly 140 years.

Sæter said, "We believe that Norway, with its political system, large natural resources and highly competent workforce, gives us a good starting point for developing tomorrow's materials and industrial processes."

Along with investment initiatives, Hydro is strengthening its workforce's capabilities. Hydro Husnes and Hydro Karmy are undertaking a complete skill upgrade during reduced demand for certain aluminium products.

This entails training in new job duties, a management development programme, an industrial vocational school, training in the reduction of CO2 emissions, training on various vehicle types, and training in the prevention of CO2 emissions.

Sæter said, "We have a lot of activity at all our Norwegian aluminium plants, and there is an exciting development of new aluminium products. It increases our flexibility to deal with challenging markets and increased demands for quality and a low-carbon footprint from customers."

"Although the current aluminium market is challenging and we are entering 2023 with high inventories, we are confident that the long-term development of the aluminium market will be positive. The world needs more aluminium, especially low-carbon aluminium, which we can produce. Demand for low-carbon aluminium is increasing by 20 per cent annually, compared to a three per cent annual growth for aluminium overall. Norway, therefore, has the best conditions for us to continue to be the most important aluminium supplier in Europe. The competition is fierce, and we must continue to develop the Norwegian primary aluminium plants."

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