Norsk Hydro

Well positioned in declining markets, low-carbon aluminium gaining ground - Seite 2

A key pillar within the Hydro 2025 strategy to strengthen the position in low-carbon aluminium is recycling. Hydro has an ambition to more than double the use of post-consumer scrap by 2025 compared to the 2020 baseline, which is scrap that has gone a full lifecycle and comes with zero emissions. On June 30, Hydro completed its tender offer for the Polish recycler Alumetal S.A with more than 97 percent of the shares. The acquisition strengthens Hydro’s recycling position in Europe, and widens its product offering in the low-carbon and scrap based foundry alloy market. It contributes with 150,000 tonnes of annual post-consumer scrap towards the 2025 target of using 670,000 tonnes post-consumer scrap annually. Alumetal delivered a 12-month rolling EBITDA of NOK 700 million as of the first quarter of 2023. The share purchase was settled on July 7.

Additional progress was made to deliver on Hydro’s recycling strategy. Hydro signed an agreement to purchase land in Torija, Spain, with the aim of constructing a state-of-the-art aluminium recycling plant, producing 120,000 tonnes annually. The facility will further strengthen Hydro’s capabilities to produce low-carbon aluminium and ensure more scrap is kept in Europe. Also, the recycling facilities in Navarra and Sjunnen are ramping up recycling capacity with 20,000 tonnes each, and the first metal was delivered from HyForge Rackwitz. These are all important steps in increasing Hydro’s recycling capacity by 1 million tonnes by 2027, where roughly half is expected to come from post-consumer scrap.

Hydro is gaining further ground on low-carbon aluminium, and achievements have been made across the value chain to meet the increasing demand for greener products. Hydro partnered with Saint-Gobain Glass to recycle and decarbonize building facades by integrating the low-carbon solutions offered by both companies. The partnership includes investments in urban mining, a method that recycles end-of-life aluminium and glass. Another example is Hydro will contribute with its low-carbon aluminium CIRCAL 100R to produce the cleanest dirt bike ever, together with Cake and Vattenfall.  Hydro has also signed a letter of intent with the UK based bicycle company, Brompton, to deliver low-carbon aluminium to reduce footprint and weight for their iconic folding bicycles.