Hydro to invest $230 million in Alunorte alumina refinery for transition to natural gas

The leading industrial conglomerate committed to a sustainable future, Norsk Hydro stated that the company will invest R$ 1.3 billion ($230 million) at its Alunorte alumina refinery in Brazil to supersede heavy fuel oil with natural gas.

On 13^th December 2021, the company said in a statement: “Work on the project at the plant in northern Pará state will start in the first quarter of 2022 and is expected to be in operation in 2023.”

Hydro further added: “The fuel switch will reduce the refinery’s annual CO2 emissions by 700,000t.”

John Thuestad, the Executive Vice President of Hydro Bauxite & Alumina said: “We are committed to invest in developing the world’s largest alumina refinery and to reduce the greenhouse gas emissions. The fuel switch is a milestone in our sustainability strategy.”

According to the global aluminium giant, Alunorte’s transition project from heavy fuel oil to natural gas is a crucial step for Hydro’s climate strategy and global commitment to diminish greenhouse gas emissions by 30% by 2030. However, the alumina refinery has a production capacity of 5.8 million tonnes per year.

The investors of the group are increasingly demanding the company to initiate measures towards the reduction of greenhouse gas emissions.

The statement released by the company also reveals that New Fortress Energy (NFE) signed a 15-year gas supply agreement with Norsk Hydro’s Brazilian subsidiary for the Alunorte conversion.

The agreement undertakes, NFE has accorded to supply Hydro with 29.5TBTUs (trillion British thermal units) of natural gas annually (equivalent to approximately 1mn gallons of LNG per day) to the refinery from the New York-based company’s Barcarena LNG receiving and regasification terminal located in Pará.

New Fortress Energy (NFE) said: “When completed in 2022, the terminal is expected to be the sole point of LNG imports in the state and northern Brazil.”