Hydro, one of the world's major aluminium producers, is targeting a nearly zero carbon footprint for some of its aluminium by 2030. The plan involves implementing technologies such as renewable energy and carbon capture storage (CCS), according to the CEO of the Norwegian company.
Aluminium, crucial for the energy transition and recently listed as a critical raw material by the European Union, plays a key role in reducing the weight of electric vehicles to enhance driving range. However, the smelting process for aluminium is highly energy-intensive, making it carbon-intensive.
In China, where coal is a primary power source, the production of one metric ton of aluminium can result in emitting up to 20 tons of carbon. In Europe, this figure is less than seven tons. Notably, Hydro's Norwegian operations, with a history dating back 118 years, emit less than four tons of carbon per ton of primary aluminium.
Hydro's ambitious goal to reduce CO2 emissions to half a ton per ton for some primary aluminium by 2030 builds on initiatives launched in 2020. Hydro CEO Hilde Merete Aasheim emphasized the challenge of aligning the growing demand for aluminium with sustainability requirements, stating, “The green transition is driving aluminium demand, but it's a dilemma because in order to be sustainable in the long term, aluminium has to be produced with the lowest carbon footprint.”
The company's strategy involves advancing its CCS technology, transitioning from fuel oil to gas in Brazil from the beginning of next year, and increasing the use of renewable energy in the country. Hydro's Brazilian operations include the Paragominas bauxite mine and the Alunorte alumina refinery. Alumina is a vital feedstock for aluminium, widely utilized in construction and packaging.
Hydro's energy unit, Hydro Rein, in collaboration with joint venture partners, will supply electricity to its Brazilian operations. With projects in Brazil and Sweden, Hydro Rein aims to eventually provide 6.9 gigawatts of electricity. The joint venture with Macquarie Asset Management is set to inject $332 million into Hydro Rein, expected to take effect by June 30 next year.
Furthermore, Hydro plans to boost investment in recycled or secondary aluminium, a process that consumes 95% less energy compared to primary aluminium production.
