Investment in Solar Energy for Decarbonization
Hydro, the Norwegian aluminum producer, is advancing its sustainability efforts by increasing the use of renewable energy at its Alumetal recycling plant in Kety, Poland. As part of its broader decarbonization strategy, the company will install solar panels that will generate 1,000 megawatt hours (MWh) of electricity annually, covering about 15% of the plant’s electricity requirements. The solar panels are expected to begin operation in the second quarter of 2025, marking a key milestone in Hydro’s renewable energy commitment.
The 870,000-euro ($910,232) investment not only includes the installation of solar panels but also upgrades the plant’s energy infrastructure, including its security and electrical energy measurement systems. This aligns with Hydro’s long-term goal to achieve a 30% reduction in carbon emissions by 2030 and reach net-zero emissions in Scopes 1 and 2 by 2050.
Importance of Renewable Energy in Aluminum Recycling
In the aluminum industry, energy plays a crucial role, particularly for companies like Hydro, which focus on recycling aluminum. While recycling aluminum requires significantly less energy—around 5% of the energy needed for primary aluminum production—Hydro believes that every step towards using renewable energy is essential in achieving its net-zero goals. The use of solar energy at Alumetal’s Kety plant will help reduce the plant’s reliance on external power sources, directly supporting Hydro’s carbon reduction targets and enhancing the overall sustainability of the aluminum recycling process.
Hanne Simensen, Executive Vice President of Hydro Aluminum Metal, stated, “Switching to renewable energy is critical to decarbonize our value chain. Every step, no matter how small, matters in getting to net-zero emissions, and this investment is another step in the right direction.”
Local Impact and Increased Energy Efficiency
The 1,000 MWh of renewable electricity generated by the solar panels will not only cover a portion of the Kety plant’s energy needs but also contribute to the local community. When the plant does not require all of the generated electricity, the excess will be fed into the local power grid, benefiting nearby homes and businesses.
Alumetal CEO Agnieszka Drzyżdżyk emphasized that this investment in local, on-site renewable energy will improve the plant’s energy efficiency, enhance circularity in operations, and reduce the carbon footprint of the recycled aluminum products supplied to customers. This initiative will also make the plant more self-sufficient, decreasing reliance on external energy sources and improving the sustainability of the entire recycling process.
Recent Investments to Strengthen Sustainability Efforts
Hydro’s investment in solar energy follows other significant efforts to modernize and expand Alumetal’s operations. The company has committed to a 200 million Norwegian kroner ($17.9 million) investment to modernize the Kety plant, increasing its capacity by approximately 30,000 metric tons. This modernization project is expected to improve safety and operational efficiency, with completion expected in the first half of next year.
In addition to these investments, Hydro’s acquisition of Alumetal in 2023 has strengthened its position in Europe’s aluminum recycling market, particularly in the low-carbon and scrap-based foundry alloy market, which serves key industries such as automotive manufacturing. The company is also working to further enhance the sustainability of its products, having completed an environmental product declaration that documents the reduced environmental footprint of its recycled foundry alloy aluminum products.
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