Norsk Hydro: Hydro invests NOK 1.65 billion to supply Europe's electric infrastructure with low-carbon aluminium

Core Viewpoint - Hydro is investing in a new wire rod casthouse at its aluminium smelter in Karmøy, Norway, to supply low-carbon aluminium for critical energy infrastructure in Europe, with production expected to start in 2028 [1][2][3]. Investment Details - The new casthouse will have a capacity of 110,000 tonnes per year and is Hydro's largest investment in Norway in the last ten years, with completion scheduled for the first quarter of 2028 [2][8]. - The investment is part of Hydro's annual investment plans, amounting to approximately NOK 15 billion [8]. Market Context - Norway currently produces 40 percent of the aluminium in Europe, and aluminium is classified as a critical material by the EU [2]. - The demand for low-carbon aluminium is increasing, driven by the energy transition and the need for renewable energy transportation [4][5]. Competitive Advantage - Aluminium offers advantages such as weight, durability, and recyclability, making it a preferred material for energy infrastructure; for instance, an aluminium conductor weighs about 50 percent less than a copper conductor while maintaining the same electrical conductivity [4]. Future Outlook - The new casthouse will enhance product flexibility in a volatile aluminium market, particularly benefiting the automotive and building systems sectors [6]. - Hydro aims to be a stable and reliable supplier of aluminium solutions essential for Europe's energy transition and infrastructure development [7].