Hydro, a leading aluminium and renewable energy company, is making a major investment in a new wire rod cast house at its aluminium smelter in Karmøy, Norway. Set to begin production in 2028, the facility will supply aluminium critical for Europe’s energy infrastructure.
“This investment will expand the capacity of wire rod to supply our customers with low-carbon solutions needed to develop and expand Europe’s most critical infrastructure. This demonstrates that a productive aluminium industry has good growth opportunities in Norway,” says Eivind Kallevik, President and CEO of Hydro.
With an annual capacity of 110,000 tonnes, the cast house marks Hydro’s largest investment in Norway in a decade. It will produce aluminium wire for power cables, a vital component of Europe’s energy transition. As the EU recognises aluminium as a critical material, Norway remains a key player, accounting for 40 per cent of Europe’s aluminium production.
“Europe’s energy transition is about one thing: more renewable power production, and the power produced must be transported over long distances. Aluminium is crucial for transporting electricity to where it is needed. By expanding the capacity to deliver low-carbon aluminium from Norway to the EU, we help ensure that the infrastructure, the very backbone of the future energy system, supports both Europe’s security and climate policy goals,” Kallevik explains.
Despite a challenging global landscape and softer aluminium demand in 2024, Hydro has seen increased sales of low-carbon aluminium. The material’s lightweight, durability, and recyclability give it a competitive edge in the energy sector. Aluminium conductors offer the same electrical conductivity as copper at half the weight, making them a preferred choice for power transmission.
“We see in our own sales figures an increasing awareness in the market that future renewable energy must be transported with renewable materials. Despite generally weaker demand in 2024, Hydro sold more low-carbon and recycled aluminium last year than in both 2023 and our record year in 2022,” Kallevik adds.
The new cast house will enhance Hydro’s product flexibility in a volatile aluminium market, particularly amid challenges in the automotive and construction sectors. As Europe shifts from imported fossil fuels to domestic renewable energy, the demand for aluminium wire in power infrastructure is expected to surge.
“Europe’s transition from imported fossil energy to domestically produced renewable power opens an exciting market when the infrastructure behind the electrification wave is to be built. Our ambition is for Hydro to play a key role as a stable, reliable supplier of the aluminium solutions Europe needs to succeed,” says Kallevik.
The project is currently pending a final investment decision, expected in Q4 2025. The NOK 1.65 billion (USD 156.42 million) investment is part of Hydro’s annual investment plans, which total approximately NOK 15 billion (USD 1.422 billion).
Hydro’s Karmøy plant is one of Europe’s most extensive primary aluminium facilities, with an annual output of 270,000 tonnes of primary aluminium and 220,000 tonnes of cast house products. The site includes a cutting-edge pilot plant featuring the world’s most energy-efficient aluminium production technology, alongside two existing cast houses producing extrusion ingots and wire rods.
With 550 employees and a legacy dating back to 1967, Hydro Karmøy continues to drive innovation in sustainable aluminium production.
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