Norsk Hydro ASA, an aluminum and energy company based in Oslo, Norway, is investing in Europe’s energy transition. The company plans to build a new wire rod casthouse at its smelter in Karmøy, Norway. The facility will supply aluminum for critical energy infrastructure across Europe, especially in renewable power. This 1.65 billion Norwegian kroner investment (around $15.7 million) is Hydro’s largest in Norway in ten years. Production is expected to begin in 2028.
Strengthening Europe’s Energy Infrastructure with Low-Carbon Aluminum
The new casthouse will have a capacity of 110,000 metric tons annually. It will focus on producing aluminum wire for power cables that will transport electricity over long distances. Hydro’s CEO, Eivind Kallevik, explained that this investment expands Hydro’s capacity to provide low-carbon aluminum. This is essential for Europe’s energy transition and infrastructure development.
Aluminum is key to transmitting renewable energy over long distances. Kallevik noted that this casthouse helps Hydro stay flexible in a changing aluminum market, especially given challenges in the automotive and building sectors. This investment also aligns with Europe’s climate and security goals, ensuring a reliable, sustainable aluminum supply.
Aluminum’s Role in Europe’s Energy Transition
As Europe shifts from fossil fuels to renewable energy, demand for efficient materials is rising. Aluminum is ideal because it is lightweight, durable, and recyclable. Hydro has seen growing sales of low-carbon aluminum. The company also notes that aluminum is gaining market awareness for use in energy infrastructure. For example, an aluminum conductor with the same conductivity as copper weighs 50% less, making it perfect for long-distance power transmission.
Despite a general decline in industrial activity and lower aluminum demand in 2024, Hydro sold more low-carbon aluminum than in previous years. This growth indicates strong future demand for sustainable aluminum in Europe’s energy sector. Hydro plans to play a key role in supplying the aluminum needed for the electrification wave.
The Path Forward: Hydro’s Investment in Europe’s Future
Hydro’s new wire rod casthouse will meet the growing demand for low-carbon materials in Europe’s energy transition. The project will provide essential aluminum for power cables, which are vital for Europe’s renewable energy grid. Set for completion in early 2028, this investment highlights Hydro’s leadership in the aluminum industry and its role in Europe’s sustainable energy future.
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