Norsk Hydro's 2023 journey: A chronology of excellence and resilience

In the fast-evolving landscape of the aluminium industry, Norsk Hydro, a Norwegian aluminium giant, has been pioneering extraordinary initiatives, solidifying its commitment to sustainability, innovation, and emission reduction.

This case study unfolds the chronological sequence of key events in 2023, showcasing Hydro's strides towards a green and economically robust future.

HalZero: Revolutionising primary aluminium production

Hydro's HalZero technology, a testament to seven years of dedicated development, is set to transform the aluminium industry by producing zero-carbon primary aluminium. With the Norwegian government's backing, a test facility, fueled by a NOK 400 million investment, aims to achieve pilot production by 2030. This eco-friendly approach aligns with Hydro's vision to cut down the industry's 3% share in global CO2 emissions.

Sunndal smelter embraces biomethane

Norsk Hydro further reinforces its commitment to environmental sustainability by transitioning its Sunndal aluminium smelter from fossil fuel to locally sourced biomethane. This bold move, part of Hydro's overarching goal of achieving zero emissions by 2050, exemplifies the company's dedication to reducing its carbon footprint in production.

Revamping Alumetal's aluminium recycling facility

Hydro's strategic investment in Alumetal's recycling facility (Poland) marks a significant step towards modernisation. The infusion of advanced equipment promises amplified growth, enhanced safety protocols, and increased efficiency in recycling processes. The acquisition aligns with Hydro's vision to provide the European market with eco-friendly, scrap-based foundry alloy and green aluminium.

Investing in water treatment at Legacy Bauxite Residue Facility

Hydro's €3 million investment in a new water treatment plant at the legacy bauxite residue facility in Schwandorf, Germany, highlights the company's commitment to environmental stewardship. Adhering to the Global Industry Standard on Tailings Management (GISTM), Hydro takes significant steps to improve the safety, sustainability, and management of its mining tailings sites.

Boosting aluminium recycling in Wrexham

Norsk Hydro's £35 million investment in its Wrexham plant demonstrates a commitment to boosting aluminium recycling capacity. This expansion not only aligns with Hydro's dedication to sustainability but also contributes to local economies, creating 30 new jobs. The move aims to process more scrap aluminium domestically, reducing the need for exports.

Third state-of-the-art aluminium recycling facility in the US

Hydro's launch of a cutting-edge facility in Cassopolis, Michigan, signifies a pivotal moment in the company's strategy to double its production of recycled products. The $150 million plant, producing Hydro CIRCAL from post-consumer aluminium scrap, emphasises Hydro's commitment to supplying sustainable materials to non-automotive and, eventually, automotive sectors.

Challenges in wind farm PPA leading to reorganisation

Norsk Hydro faces challenges with a wind farm PPA, resulting in the owner initiating a company reorganisation process. This underscores the complexities of ensuring a consistent and reliable renewable energy supply, highlighting the interconnected nature of Hydro's operations and its commitment to renewable energy sourcing.

Strategic anode sourcing agreement with Sanvira Tech

Norsk Hydro's significant agreement with Sanvira Tech for a consistent supply of carbon anodes from Oman underlines Hydro's strategic approach to securing essential resources for its Norwegian smelters. This move ensures a reliable supply chain, which is critical for maintaining the quality and efficiency of aluminium production.

First Movers Coalition membership for a green aluminium future

Hydro's entry into the First Movers Coalition signals its commitment to lead the charge towards a 'green aluminium' future. By pledging to procure a minimum of 10% near-zero emissions primary aluminium annually, Hydro positions itself  among FMC's green supplier database. 

Joint venture with Padnos for advanced recycling

Hydro's partnership with Padnos to form Alusort, utilising Hydro's proprietary aluminium sorting technology, underscores its commitment to innovation in recycling. This joint venture aims to capture additional value from upstream sorting activities, producing high-quality recycled alloys for key aluminium end markets.

Strategic transaction with Glencore and focus on low-carbon aluminium

Norsk Hydro's successful completion of a $1.11 billion transaction with Glencore highlights its strategic shift in alumina production. The partnership focuses on reducing carbon emissions from Alunorte, aligning with Hydro's commitment to strengthening its position in low-carbon aluminium production.

Collaboration with Volvo Group for net-zero emissions

Hydro's strategic partnership with Volvo Group, under the First Movers Coalition, exemplifies its commitment to supporting others in achieving net-zero emissions. The collaboration focuses on supplying low-carbon aluminium, contributing to Volvo Group's ambitious target of net-zero vehicles by 2040.

Recognition at COP28 for the HalZero Project

Hydro's recognition as an energy transition changemaker at COP28 for its HalZero project emphasises the company's commitment to green aluminium. The project aims to revolutionise aluminium smelting by emitting oxygen instead of CO2, showcasing Hydro's dedication to innovation for a sustainable future.

Financial performance and vision

Despite a 43.88% YoY drop in adjusted EBITDA for 2023, Norsk Hydro remains committed to its vision of transitioning towards green aluminium. The challenging market conditions are navigated with resilience, focusing on reducing the carbon footprint and seizing the value-creation potential in the growing market for greener aluminium.

Norsk Hydro's journey in 2023 is a testament to its unwavering commitment to sustainability, innovation, and green aluminium production. The company's strategic investments, partnerships, and groundbreaking technologies position it as a leader in the global aluminium industry. As we look ahead to Hydro's vision in 2024, the company stands poised to further redefine the landscape of green aluminium, contributing to a more sustainable and environmentally conscious future. If you wish to learn more about the entire aluminium industry in great detail, go ahead and book AL Circle’s special report, Global Aluminium Industry Outlook 2024.