(IN BRIEF) Hydro, a global leader in aluminum production, has signed an agreement to purchase land in Torija, Spain, where it plans to build a state-of-the-art aluminum recycling plant. The facility will have an annual capacity of 120,000 tonnes and is expected to create around 65 jobs. The project is a partnership with a subsidiary of the Pulsar Properties Group and is estimated to require an investment of EUR 130-140 million. The plant will enable Hydro to produce low-carbon aluminum and keep more scrap within Europe. The demand for aluminum, particularly low-carbon aluminum, is projected to grow in Hydro’s main markets. Currently, a significant amount of used aluminum scrap leaves Europe annually. The recycling facility in Torija will specialize in producing Hydro CIRCAL, an aluminum product with a CO2 footprint below 4 kg CO2 per kg aluminum. Hydro CIRCAL contains at least 75 percent post-consumer scrap and has a market-leading CO2 footprint of only 2.3 kg CO2e/kg aluminum. This project will complement Hydro’s existing plant in Azuqueca and expand its range of value-added products in the Iberian market. The final investment decision is expected to be made by the end of 2023.
(PRESS RELEASE) OSLO, 9-Jun-2023 — /EuropaWire/ — Norsk Hydro ASA (OTCMKTS: NHYDY), a Norwegian aluminium and renewable energy company committed to a sustainable future, is pleased to announce the signing of an agreement to purchase land in Torija, Spain. This strategic move is aimed at constructing a cutting-edge aluminum recycling plant, further solidifying Hydro’s commitment to sustainability and the circular economy. The facility will boast an impressive annual capacity of 120,000 tonnes and is expected to create approximately 65 direct job opportunities.
In partnership with a subsidiary of the esteemed Pulsar Properties Group, Hydro envisions an investment of approximately EUR 130-140 million for the project. The final investment decision is slated to be made by the end of 2023, contingent on factors such as facility design, market conditions, and macroeconomic developments.
“The European and Iberian market for aluminium continues to grow. This investment will be an important step towards Hydro’s ambition to recycle more post-consumer aluminium, strengthening our position to capture value from growing demand for greener and circular aluminium,” says Eivind Kallevik, Executive Vice President for Hydro Aluminium Metal.
By establishing this state-of-the-art recycling plant, Hydro aims to strengthen its capabilities in producing low-carbon aluminum while simultaneously ensuring that a larger portion of scrap remains within Europe. Aluminum is renowned for its suitability in electric vehicle components, renewable energy installations, and energy-efficient building systems due to its lightweight nature and infinite recyclability without any compromise in quality.
“Since aluminium is infinitely recyclable, keeping post-consumer scrap in the loop is crucial, as recycling requires 95 percent less energy than primary production. Increased recycling of post-consumer scrap is an opportunity for Europe to secure domestic access to aluminium, which is a strategic issue in view of multiple crises facing Europe,” says Kallevik.
Anticipating a demand growth of approximately 3 percent per year in Hydro’s key markets until 2030, the company recognizes the need for low-carbon aluminum to outpace the rest of the market. However, it is disheartening to witness approximately 1 million tonnes of used aluminum scrap leaving Europe annually.
“Thanks to our state-of-the-art technology and competent workforce, we aim to dig deeper into the European scrap pile. This investment will enable us to bring more low value scrap types back to life as value added products for electrical transport solutions, building systems and renewable energy applications that will drive Europe’s green transition,” says Kallevik.
The Torija recycling facility is primed to address this challenge by specializing in the production of Hydro CIRCAL and other recycled low-carbon aluminum, boasting an impressively low CO2 footprint of less than 4 kg CO2 per kg of aluminum. Hydro CIRCAL extrusion ingot, a unique offering from Hydro, contains a minimum of 75 percent post-consumer scrap, certified by renowned third-party auditor DNV GL. This groundbreaking product showcases a market-leading CO2 footprint of a mere 2.3 kg CO2e/kg aluminum.
The Torija project will serve as a valuable complement to Hydro’s existing plant in Azuqueca, which is located in close proximity, and expand the range of Hydro’s value-added products available in the Iberian market. By investing in this state-of-the-art recycling facility, Hydro is poised to set new benchmarks in sustainable aluminum production while contributing to Europe’s ambition of a more self-sufficient and environmentally conscious future.
Head of Communication & Public Affairs, Hydro Aluminium Metal
+47 99 22 66 04
Martine Rambøl Hagen
Head of Investor Relations
SOURCE: Norsk Hydro ASA