In an insightful conversation with Hanne Simensen, Executive Vice President, Hydro Aluminium Metal, published in AL Circle's latest e-Magazine 'LeaderSpeak 2025'. In a candid discussion, Ms Simensen offered a comprehensive perspective on the evolving aluminium landscape, emphasising the impact of global economic trends, decarbonisation policies, and shifting supply chain dynamics on the industry and Hydro's operations.
Simensen underscored aluminium's growing significance as a critical material in addressing some of the world's most pressing challenges while highlighting Hydro's active role in forging strategic partnerships, particularly in pursuit of achieving net-zero emissions in aluminium production by 2050 or earlier. She also took us through the transformative role of technology, sharing Hydro's strides in integrating green innovations into the electrolysis process and providing valuable insights into how these advancements can help decarbonise the entire aluminium value chain in 2025 and beyond.
Please continue reading an excerpt of the full interview:
AL Circle: What key factors – such as economic trends, decarbonisation policies and supply chain dynamics – are currently influencing the aluminium market and how does this effect Hydro?
Hanne Simensen: First and foremost, aluminium is a critical material key to solving issues that is now high on the agenda in several of our markets. Aluminium from secure supply chains is increasingly important, both for countries total preparedness and success in the green transition. The EU has, as an example, listed aluminium as a critical material.
Right now the market is influenced by the developing trade situation with new tariffs in the U.S. and potential retaliatory measures from other countries. I think it is fair to say that we will be navigating a complex market both in upstream and downstream going forward.
However, Hydro has a strong position, being active in the main value chain and with a solid low-carbon offering. Climate change is driving the industry’s need for decarbonisation, and that is not going away. The long-term target of reducing CO2 emissions and contributing to a circular economy keeps us committed to our ambition: To pioneer the greener aluminium transition.
We will continue to grow our offerings for low-carbon aluminium in the market, through strong partnerships. And we focus on operational excellence. This will allow us to seize opportunities in the emerging market for greener aluminium, driving long-term value for our shareholders, society and employees.
AL Circe: Hydro has set ambitious targets for reducing emissions and advancing low-carbon aluminium. Could you outline the key milestones of Hydro’s decarbonisation roadmap and how initiatives like Hydro REDUXA and Hydro CIRCAL are shaping the industry’s shift toward greener aluminium production?
Hanne Simensen: We stay committed to achieve net-zero emissions in aluminium production by 2050 or earlier. We are currently on track with our goal of reducing our own emissions by 30 percent by 2030 - compared to a 2018 baseline. In 2024, we already delivered on our target to reduce CO2 emissions by 10 percent by 2025. The main driver for this is the Alunorte alumina refinery in Brazil, where we have switched from heavy fuel oil to natural gas and installed new electric boilers for steam production, moving from coal to renewable energy. In total, we are taking out more than a million tonnes of CO2 emissions annually from our operations at Alunorte.
Our decarbonisation roadmap is based on implementation of new technology and stepping up efforts along three main pathways: Phasing out fossil energy sources throughout the value chain, removing direct emissions from production processes, and increased recycling of post-consumer aluminium scrap. The milestones in phasing out fossil energy sources is replacing heavy fuel oil in alumina production, decarbonising casthouses and anode production and smarter shipping. To remove process emissions we are developing an emission free alternative to today’s electrolysis and CCS-solutions, reducing climate footprint of carbon anodes and optimizing operations to cut emissions. And lastly, we are working to introduce more post-consumer scrap.
There is a growing demand for low-carbon and recycled aluminium from many of our key markets, with customers looking to reduce their Scope 3 emissions. We sold more low carbon aluminium last year, than in the record year 2023. Both Hydro CIRCAL and Hydro REDUXA are shaping the market on low carbon aluminium by showing what’s possible. As an example, we recently sold our first volumes of Hydro CIRCAL to the US market and are experiencing increasing interest.
At the same time, customers policy makers and regulators are placing greater focus on security of supply and reliable sourcing. As a leading provider of aluminium in Europe and North America, we are well positioned to meet demand for both low-carbon aluminium and security of supply. It matters how aluminium is produced and increasingly also where it’s produced.
AL Circle: Innovation is at the core of Hydro’s strategy. How is the company investing in next-generation technologies to future-proof aluminium production?
Hanne Simensen: In Hydro, we are piloting several technologies to decarbonise our operations. The electrolysis process used in aluminium production today, discovered back in 1886, inevitably emits CO2 when an electric current is passed through aluminium oxide and carbon to form primary aluminium. Hydro’s proprietary HalZero technology aim to change that.
HalZero is based on converting alumina to aluminium chloride prior to electrolysis. Chlorine and carbon are kept in a closed loop, thus avoiding CO2 emissions and emitting only oxygen instead. In 2023, the project won recognition at the COP28 global climate conference as an energy transition changemaker. If successful, HalZero will be an emission-free smelting technology that fully eliminates CO2 emissions from both electrolysis and anode baking.
In addition, our efforts in developing carbon capture technologies for existing smelters is progressing, with a recent partnership with Rio Tinto announced to join forces to identify and evaluate available technologies for future implementation in the aluminium electrolysis process. In efforts to further decarbonise our casthouse operations, we are looking at different technologies and solutions such as switching from LNG to biomethane, green hydrogen or plasma technology to further reduce our CO2 footprint.
We have also implemented several other energy efficiency measures across our sites, expanding the use of renewable energy solutions, such as solar panels, across Hydro facilities and optimising energy consumption through targeted efficiency improvements in our operations. Every step matters on the path to zero and every improvement counts. We continue to target all parts of our value chain in pursuit of our ambition of reaching net-zero by 2050 or earlier.
To read the interview further, click here.
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