Norsk Hydro

Changing the aluminium game - Strengthening position in challenging markets - Seite 4

The two technology paths to zero, HalZero for new capacity and carbon capture for existing smelters, are progressing according to plan toward industrial scale by 2030. The construction of a new HalZero test facility in Porsgrunn, Norway was officially approved during the fourth quarter. At the 2023 Climate Change Conference in Dubai on December 5, Hydro received recognition for the HalZero technology from the COP28 UAE Presidency as an Energy Transition Changemaker for pioneering the green aluminium transition.

To further strengthen the commitment to decarbonization targets and the green aluminium transition, Hydro joined forces with the world’s leading global companies through the First Movers Coalition (FMC) in December. Hydro will take the FMC Aluminium sector commitment via its Extrusions business, committing to at least 10 percent (by volume) of all primary aluminium procured externally annually, being near-zero emissions by 2030. Hydro has also, as one of only two suppliers in the aluminium industry, qualified as an FMC supplier with Hydro REDUXA 3.0.

At COP28, Hydro also announced a strategic partnership with Volvo Group to enable the global transport manufacturer to reach its 2040 target of delivering net-zero vehicles. As partners in the FMC, the two companies further pledged to support each other’s journeys towards zero-emission value chains.

Delivering low-carbon products creates value for Hydro’s customers and enables premium pricing with bottom line effects for the company.  As part of the roadmap towards 2030, Hydro will continue to develop its product offering both within primary and recycled aluminium, and drive down product footprint. As of January 2024, Hydro can deliver Hydro CIRCAL recycled aluminium with a documented carbon footprint of 1.9 kg of CO2e per kg aluminium, down from previous 2.3 kg of CO2e per kg, through advances in sourcing, sorting and traceability of post-consumer aluminium scrap.

Based on the greener premiums Hydro is receiving today and the capacity available in 2030, there is a potential for NOK 2 billion in greener premium earnings uplift as Hydro further develops and offers industry leading products. This potential will depend on a range of factors and how the market develops, but with a current starting point and roadmap towards zero, Hydro is dedicated to creating value for customers, creating value for Hydro, all while driving down CO2 emissions in a responsible way.