Norsk Hydro plots to tap new market opportunities from ‘Green Aluminium’

Norsk Hydro has outlined a new roadmap for its operation and business, focusing more on recycling and extrusions in line with the growing demand for low-carbon aluminium. By 2030, the company is determined to scale up its recycling activities in pursuit of decarbonisation and green transition in the aluminium industry. Such was the message by Hydro at its Capital Markets Day 2023.

The Norwegian company expects up to NOK 2 billion growth in greener earnings by 2030, primarily contributed by extrusion and recycling. To capitalise on this opportunity, Hydro plots to lift its extrusion business to NOK 10-12 billion EBITDA and recycling business to NOK 5-8 billion, banking on a potential rise in post-consumer scrap to 850-1,200 thousand tonnes.

President and CEO Hilde Merete Aasheim indicated that Hydro would leave no stone unturned to tap the market opportunities emerging from the green transition. The company is all set to boost biodiversity and waste handling initiatives, expand renewable energy generation, and invest in cutting-edge technologies to improve sustainability performance as well as earnings strategically.

“Hydro is uniquely positioned to pioneer the green aluminium transition. With our cutting-edge material and aluminium competence ranging from bauxite to extruded solutions, combined with our in-house competence in developing and operating renewable energy, and a concrete roadmap to zero, we are ready to change the game for aluminium,” said Aasheim.

Investments in recycling include expanding and upgrading recycling facilities and strengthening the position in scrap sourcing and advanced sorting technologies. Hydro further aims to diversify its cast house products portfolio, in collaboration with customers, to increase the use of recycled materials in new segments.

In addition, Hydro is making significant strides towards carbon reduction goals like fuel switching and boiler electrification at the Alunorte alumina refinery and using bio materials for anode production.

For 2024, the company has set a medium-term capex of up to 15 billion, considering the possibility of continuing inflation and other 2023 carry-over.