Norwegian government grants Hydro NOK 141m for HalZero test facility

Norwegian government grants Hydro NOK 141m for HalZero test facility

(IN BRIEF) Hydro, a Norwegian aluminium company, is investing in a test facility to develop its HalZero production technology for zero-carbon primary aluminium production. The Norwegian government has granted NOK 141 million for the construction of the facility, which is expected to cost approximately NOK 400 million. HalZero emits only oxygen, instead of carbon dioxide, during the production process, and could revolutionize the aluminium industry with a more sustainable and environmentally friendly production method. Zero-carbon aluminium is ideal for use in electric cars, building facades, and solar panels. The development of HalZero is part of Hydro’s technology roadmap to reduce emissions associated with aluminium production.

(PRESS RELEASE) OSLO, 2-Mar-2023 — /EuropaWire/ — Norsk Hydro (OTCMKTS: NHYDY), a Norwegian company that produces aluminium and renewable energy, is pleased to announce a new development stage for its HalZero production technology, aimed at delivering pilot production of zero-carbon primary aluminium by 2030. The company will invest in a state-of-the-art test facility supported by the Norwegian government, with a grant of NOK 141 million from state enterprise Enova. The total investment is expected to be approximately NOK 400 million.

HalZero is a cutting-edge process for the production of primary aluminium, emitting only oxygen instead of carbon dioxide. If Hydro succeeds in this development, it could revolutionize the aluminium industry by offering a more sustainable and environmentally friendly production method.

“The development of HalZero is our most groundbreaking technology initiative ever. This could be the first industrial production of primary aluminum without greenhouse gas emissions in the world. The plan is ambitious, and there is considerable risk. Therefore, we depend on the authorities to join us on the road to make a major investment,” says Eivind Kallevik, Executive Vice President for Hydro Aluminium Metal.

The importance of decarbonizing industrial sectors cannot be overstated in the fight against global greenhouse gas emissions. Hydro has been working on the early phase development of HalZero technology at its Technology Center in Porsgrunn, Norway, for seven years. This new phase of development represents a significant step towards realizing the company’s technology roadmap to reduce the emissions associated with aluminium production.

Zero-carbon aluminium has unique properties that are essential in the green shift. The metal is light, weather-resistant, and perfect for use in electric cars, building facades, and solar panels.

“The technology that Hydro is developing here can contribute to significant emission reductions for the aluminium industry both in Norway and in other countries. Enova supports companies that take a lead in decarbonizing industry, and we believe that HalZero can contribute strongly to reducing emissions from the aluminium industry,” says Kristian Nakstad, CEO in Enova.

In addition to HalZero, Hydro is also developing carbon capture and storage for its existing aluminium smelters, increasing the use of renewable electricity, and testing green hydrogen in the value chain. This multi-faceted approach underscores Hydro’s commitment to a more sustainable future for the aluminium industry.

“We know that demand for aluminium will increase, and aluminium without CO2 emissions will mean a lot for the climate goals. Today, the aluminium industry accounts for 2 percent of the world’s CO2 emissions. We are aware of our responsibility and we want to take the lead in developing zero-emission technology for aluminium production,” says Kallevik.

Hydro’s investment in HalZero and the test facility supported by the Norwegian government demonstrate the company’s commitment to driving innovation in the industry while reducing its environmental impact.

“The aluminium industry needs optionality to increase our chances of reaching net zero by 2050. Working on several decarbonization routes in parallel increases our chances of success and the speed at which we will be able to reach our ambitious climate targets,” says Kallevik.

Facts about the HalZero project

  • HalZero is a new production process for primary aluminum that emits oxygen instead of carbon dioxide (CO2)
  • In the HalZero process, alumina is chlorinated and becomes aluminum chloride in a process that also produces carbon dioxide. Instead of releasing the CO2 to the atmosphere, it is sent back into the process and reused in the chemical reaction in a closed loop. This makes the electrolysis process completely greenhouse gas emission free.
  • The HalZero process differs significantly from the current production of primary aluminum and is being developed for use in new production facilities.

Media contacts:

Kristin Karlstad
Head of Communication & Public Affairs, Hydro Aluminium Metal
+47 99 22 66 04

Line Haugetraa
Head of Investor Relations
+47 41406376

SOURCE: Norsk Hydro ASA


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