Norsk Hydro

Changing the aluminium game - Strengthening position in challenging markets - Seite 3

Achieving a recycling EBITDA of NOK 5-8 billion by 2030 means building, expanding and upgrading recycling facilities. The greenfield recycler Hydro Cassopolis in Michigan, U.S. was officially opened on November 16, aiming to supply aluminium and in particular Hydro CIRCAL, to the automotive and the U.S. market. Further, the investment into another greenfield recycler in Torija, Spain was approved, with an estimated investment of EUR 180 million. The final building decision is expected in the second half of 2024. The two recyclers will in total contribute with an additional 240,000 tonnes annual recycling capacity, including 110,000 tonnes post-consumer scrap capacity (PCS).

By the end of 2023, Hydro has 560 kt post-consumer scrap consumption capacity, achieving the 2025 target of 520-670 kt. As part of this achievement, the recently announced joint venture with Padnos enables more upcycling of 20,000 tonnes annual PCS, by industrializing Hydro’s proprietary sorting technology, HySort, bringing this advanced aluminium sorting technology to the U.S. By 2030, Hydro targets an annual PCS capacity between 850-1,200 kt, pending capital availability.  

An enabler to produce more low-carbon aluminium is access to renewable power, and several projects to deliver on this agenda have been initiated in recent months. In Energy, Hydro and Lyse have applied for a license for five new hydropower plants in Røldal-Suldal to add an additional gross 800 GWh annual power production and 650 MW output. Hydro Rein is signing a cooperation agreement with Årdal Energi to develop renewable projects in Årdal. The parties will collaborate to identify energy solutions contributing to new green industry in Årdal, as well as strengthen existing industry.

In November, Hydro was notified about a company reorganization of Markbygden Ett AB, where Hydro Energi AS has a long-term power purchase agreement (PPA) since 2017 for an annual baseload of 1.65 TWh. During the fourth quarter, the external power sourcing volumes in Energy were affected by non-delivered volumes of 0.5 TWh, and a non-delivery of 1.3 TWh in total for 2023. Hydro continues to seek compensation for the non-delivered volumes.

During the fourth quarter, Hydro has made several steps towards carbon reduction goals. Targeting a 30 percent reduction in carbon emissions by 2030, is primarily driven by fuel switching and boiler electrification at the Alunorte alumina refinery, allowing Alunorte to supply one of the lowest-carbon smelter grade Alumina available. The floating storage and regasification unit (FSRU) with natural gas to replace heavy fuel oil at Alunorte is just days away from the arriving at the harbor in Barcarena. Despite Hydro’s lower ownership share in Alunorte, reducing the impact of these efforts in Hydro’s numbers, Hydro is committed to maintain a 30 percent reduction target by 2030, effectively stretching its ambitions, as announced at the Capital Markets Day in November.