Tax Credit Boosts HyForge Project at Henderson Aluminum Plant

Norway-based Hydro has secured $17.4 million in funding through a tax credit under the U.S. Department of Energy‘s Inflation Reduction Act. The grant supports Hydro’s aluminum recycling plant in Henderson, Kentucky, as part of the Section 48C Qualifying Advanced Energy Project tax credit program. The award followed a highly competitive process that saw more than 800 potential projects vying for funding across the U.S.

The funds will help Hydro expand its automotive-focused production through the HyForge project at the Henderson plant. Announced in May 2024, the HyForge line aims to increase production capacity by 28,000 metric tons, reaching a total of 118,000 metric tons annually. The project will also create over 30 jobs in the region. This expansion, backed by incentives from the Kentucky Economic Development Finance Authority, is set to enhance Hydro’s aluminum recycling capabilities, enabling it to meet growing demand for low-carbon materials in the U.S. automotive sector.

HyForge Technology Reduces Emissions and Costs for Automakers

The HyForge project utilizes advanced technology that allows the production of high-quality aluminum components with a lower carbon footprint. The technology has already been implemented in Hydro’s plants in Norway and Germany. It enables the production of aluminum cast forge stock with a smaller diameter and superior surface quality compared to traditional billets. This innovation eliminates additional processing steps, such as extrusion and homogenization, which are typically required in automotive forging.

Hydro claims that the HyForge production process delivers products with a carbon footprint more than 30% lower than conventional products in the U.S. market. The streamlined production process also offers cost-competitive solutions for automakers focused on reducing vehicle weight and improving energy efficiency. With its ability to produce high-quality components directly from smaller aluminum billets, the HyForge technology is well-positioned to support the automotive industry’s push for sustainability.

The project will become operational after a two-year construction period, further strengthening Hydro’s role in supplying U.S. automotive manufacturers with low-carbon, domestically produced aluminum components. This aligns with Hydro’s commitment to advancing recycling initiatives and supporting the U.S. supply chain with high-quality materials.

Conclusion

Hydro’s HyForge project represents a significant step forward in aluminum recycling technology, providing both environmental and economic benefits. By reducing emissions and manufacturing costs, Hydro is helping to drive the automotive sector toward a more sustainable future. The financial support from the Inflation Reduction Act underscores the U.S. government’s commitment to promoting clean energy and low-carbon technologies.