Norwegian aluminum and renewable energy company Hydro has decided to support Europe’s energy infrastructure with a NOK 1.65 billion investment in the construction of a new smelting plant at its Karmøy complex. The plant will begin operations in 2028 and will produce low-carbon aluminum wire for use in electrical cables.
Improving Europe’s electrical infrastructure
This investment expands Hydro’s capacity to supply low-carbon solutions, aligning with Europe’s energy transition goals. Although global demand for aluminum has declined in the last year due to economic factors, the company has managed to increase its sales of recycled and low-carbon aluminum.
This investment will expand our wire rod capacity to provide our customers with the low-carbon solutions needed to develop and expand Europe’s most critical infrastructure.
This demonstrates that a productive aluminum industry has good growth opportunities in Norway.
Eivind Kallevik, President and CEO of Hydro.
The new Karmøy smelter will have a production capacity of 110,000 tons per year, and this expansion is expected to strengthen the supply chain, ensuring reliability in a constantly evolving European market.
Hydro is driving the growth of the aluminum industry in Norway and is also making a significant contribution to Europe’s energy sustainability. The company anticipates that low-carbon aluminum will be crucial for building the renewable energy infrastructure that will enable Europe to achieve its climate and energy goals.
The plant adds to the company’s annual investment of approximately 15 billion Norwegian kroner , which, according to official estimates, is expected to begin production in 2028, forming part of a series of projects that ensure the future of aluminum as a key material in the electrification of Europe.
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Source and photo: Hydro
