Hydro Leads the Charge in Aluminium Recycling for a Sustainable Future

(IN BRIEF) Hydro is intensifying its commitment to recycling post-consumer scrap (PCS) to achieve zero-carbon aluminium. Since launching its recycling growth agenda in 2020, the company has recycled over 1.4 million tonnes of PCS, positioning itself as a leader in the sector. New CEO Eivind Kallevik aims to increase annual recycling rates to between 850,000 and 1.2 million tonnes by 2030, building on last year’s production of 443,760 tonnes. Challenges in PCS recycling include alloy identification and metal loss, which Hydro addresses with innovative technologies like HySort and screw extruders. The company has also invested in new recycling facilities, including a state-of-the-art plant in the UK, and anticipates that the demand for low-carbon and recycled aluminium will significantly grow in the coming years.

(PRESS RELEASE) OSLO, 9-Oct-2024 — /EuropaWire/ — Hydro has taken significant strides in its commitment to recycling as a means to achieve zero-carbon aluminium. The company has set an ambitious goal to enhance its recycling of post-consumer scrap (PCS)—aluminium that has previously served as a product. Since initiating its recycling growth agenda in 2020, Hydro has successfully recycled over 1.4 million tonnes of PCS. Notably, aside from aluminium cans, which fall outside Hydro’s operations, no other company matches Hydro’s recycling volume of post-consumer aluminium scrap.

Eivind Kallevik, who assumed the role of President and CEO on May 13, 2024, has outlined Hydro’s strategic vision towards 2030, emphasizing the company’s mission: “Pioneering the green aluminium transition, powered by renewable energy.” This vision positions Hydro to seize long-term opportunities in the burgeoning market for low-carbon and recycled aluminium products and solutions. Integral to this strategy is the company’s aim to significantly ramp up its recycling efforts.

Hydro plans to increase its recycling of post-consumer aluminium scrap to between 850,000 and 1.2 million tonnes annually by 2030. With last year’s production reaching 443,760 tonnes—an impressive 38% increase from the previous year—the company is well on its way to achieving this target. In 2020 alone, Hydro recycled 195,000 tonnes of PCS.

Kallevik emphasizes the importance of these recycling efforts, stating, “Our increases in recycling capacity empower us to produce the essential products needed for the green transition. Utilizing more post-consumer scrap not only reduces our carbon and environmental footprint but also benefits our customers. This forms a crucial part of our decarbonization strategy. It’s the quickest route to achieving zero emissions.”

However, recycling post-consumer aluminium scrap presents distinct challenges. Hydro not only recycles process scrap from its own production and that of other companies but also faces the complexities of processing discarded metals. While process scrap has a carbon footprint linked to its source, the recycling of PCS, which enters a new lifecycle as discarded metal, poses greater hurdles.

Key challenges include accurately identifying the various alloys and properties of the used metal while maintaining its quality throughout the recycling process. This necessitates effective collection and sorting before recycling can occur. Hydro’s proprietary technology, HySort, which specializes in scrap shredding and sorting, has been instrumental in overcoming these challenges, enabling the production of high-quality outputs from post-consumer building and automotive scrap.

Originally developed in Europe, this technology is also utilized by Alusort in the U.S., a joint venture between Hydro and PADNOS, which boasts an annual sorting capacity of 20,000 tonnes of aluminium scrap and is vital for supplying high-quality recycled alloys to key U.S. markets.

Further investment in recycling capabilities includes a cutting-edge scrap sorting facility being established at Hydro’s recycling plant in Wrexham, UK. This facility will be capable of sourcing and sorting over 30,000 tonnes of aluminium scrap each year—enough to supply materials for more than 100,000 electric vehicles. Operations are anticipated to commence by January 2026.

Another significant hurdle in PCS recycling is metal loss, which can occur when pieces are small or thin, leading to the formation of dross. To mitigate this, Hydro has developed a “screw extruder” designed to handle thin gauge scrap, such as chips or shredded materials. The screw compacts these scraps alongside larger metal pieces, minimizing dross generation during the recycling process.

Kallevik acknowledges that achieving Hydro’s 2030 PCS recycling target will necessitate refining processes to integrate process scrap with PCS recycling. The company is actively deploying this technology across its remelting and recycling facilities, potentially increasing PCS capacity by 20% at each site.

The demand for low-carbon and recycled aluminium is projected to surge, outpacing overall market growth in the coming years. Estimates indicate that these products could account for over half of the demand in North America and the European Union by 2030, driven in part by the automotive industry. It is anticipated that the aluminium content per vehicle will rise from 205 kg in 2022 to 256 kg by 2030, as reported by global consulting firm Ducker Carlisle.

Hydro operates around 35 recycling facilities across Europe, North America, and South America, with production managed by the company’s upstream and downstream aluminium divisions.

In November 2023, Kallevik inaugurated Hydro’s aluminium recycling plant in Cassopolis, Michigan, which has a capacity of 120,000 tonnes per year. Of this, one-third will be dedicated to producing Hydro CIRCAL products, made with at least 75% PCS. Earlier this year, renowned industrial designers showcased furniture crafted from Hydro CIRCAL 100R at both Milan Design Week and the London Design Festival. This product represents the world’s first aluminium produced entirely from recycled post-consumer scrap on an industrial scale, boasting a near-zero carbon footprint.

As Hydro expands its recycling capabilities, optimizes its input mix, and enhances alloy development, Kallevik anticipates a continuous increase in both secondary production and the share of PCS across the company’s product portfolio.

Hydro’s journey in PCS recycling has seen notable progress since 2019, with the company recycling a total of over 1.4 million tonnes of post-consumer scrap between 2019 and 2023:

2023: 443,760 tonnes
2022: 321,000 tonnes
2021: 335,000 tonnes
2020: 195,000 tonnes
2019: 175,000 tonnes

Recent expansions in recycling capacity have taken place at 11 of Hydro’s facilities in Europe and the U.S. since October 2022, with more enhancements planned: