Norsk Hydro ASA is a fully integrated Norwegian aluminium and renewable energy company. It is one of the largest aluminium companies worldwide and a significant player in the global metals and materials sector. The company’s operations span the entire value chain, from extracting raw materials to producing finished products and recycling.
Eivind Kallevik appointed President and CEO of Norsk Hydro ASA
The name “Hydro” comes from hydropower, which was the foundation of the company’s inception and remains central to its identity of producing “aluminium for a sustainable future.”
Key Business Areas
Hydro is structured into several distinct business areas:
- Hydro Bauxite & Alumina:
- Bauxite Mining: Extracts bauxite ore, the primary raw material for aluminium, from mines in Brazil.
- Alumina Refining: Refines bauxite into alumina (aluminium oxide) at refineries, primarily in Brazil.
- Hydro Aluminium Metal:
- Primary Metal Production: Produces primary aluminium using energy-intensive electrolysis in smelters, mainly located in Norway, Canada, and Qatar. A key advantage is its access to and use of renewable hydropower for most of its production, resulting in some of the world’s lowest carbon footprint aluminium.
- Products: Sells primary aluminium in the form of extrusion ingots, sheet ingots, and foundry alloys.
- Hydro Metal Markets:
- Manages the company’s metal sourcing, sales, and trading activities. This includes physical trading, risk management, and recycling of aluminium scrap.
- Hydro Extrusions:
- This is the world’s largest business area for aluminium extrusion. It transforms aluminium into customized profiles and components for a vast range of industries, including:
- Automotive & Transportation
- Building & Construction
- Energy (e.g., solar panel frames)
- Marine
- It has a global network of extrusion presses and fabrication facilities.
- This is the world’s largest business area for aluminium extrusion. It transforms aluminium into customized profiles and components for a vast range of industries, including:
- Hydro Energy:
- Manages Hydro’s extensive power production assets, primarily hydropower plants in Norway and Sweden.
- This division secures a competitive and renewable energy supply for Hydro’s own smelters and sells surplus power to the Nordic power market.
Key Facts and Figures (as of late 2023/early 2024)
- Founded: December 2, 1905, by Sam Eyde, with support from Swedish engineer Knut Tillberg and the Wallenberg family, using a novel technology developed by Kristian Birkeland.
- Headquarters: Oslo, Norway
- Stock Ticker:
NHYon the Oslo Stock Exchange (Oslo Børs) - Employees: Approximately 30,000+ in over 40 countries.
- Production Capacity:
- Alumina: ~6.5 million tonnes per year
- Primary Aluminium: ~2.0 million tonnes per year
- Recycled Aluminium: ~1.5 million tonnes per year
- Power Production: ~10 TWh of renewable hydropower annually.
History in Brief
- 1905: Founded to produce artificial fertilizer by fixing nitrogen from the air using hydroelectric power (the “Birkeland-Eyde process”).
- 1920s-1950s: Diversified into other areas, including plastics and magnesium. Became a major producer of fertilizers.
- 1963: Entered the oil and gas industry through the discovery of the Balder field.
- 1969: Started its first primary aluminium production in Karmøy, Norway.
- 2007: Merged its oil and gas assets with Statoil (now Equinor) to focus on aluminium and energy.
- 2011: Acquired the Brazilian aluminium company Vale Aluminium (Valesul), strengthening its bauxite and alumina position.
- 2019-2020: Faced a major cyberattack and the COVID-19 pandemic, demonstrating resilience and operational strength.
- 2021-Present: Announced a strategic shift to grow in low-carbon aluminium and recycling, including the launch of Hydro CIRCAL and Hydro REDUXA brands.
Strategy & Sustainability Focus
Hydro’s current strategy is centered on “Hydro 2025 and Beyond,” with a strong emphasis on sustainability and decarbonization:
- Low-Carbon Aluminium: Offering branded products like:
- Hydro REDUXA: Primary aluminium with a footprint below 4.0 kg CO2e per kg Al.
- Hydro CIRCAL: Aluminium made with a minimum of 75% post-consumer scrap, offering a footprint as low as 2.0 kg CO2e per kg Al.
- Growth in Recycling: Investing heavily in recycling facilities to capitalize on the circular economy, as recycling aluminium uses only 5% of the energy required for primary production.
- Partnerships & Innovation: Collaborating with customers in the automotive and packaging industries to develop new, sustainable aluminium solutions.
- Green Transition: Exploring new technologies like carbon capture for its alumina refinery and developing a “green aluminium” smelter concept.
Why Norsk Hydro is Significant
- Industrial Pillar of Norway: It is one of Norway’s oldest and largest industrial companies, playing a crucial role in its economic history.
- Global Leader: A top-tier global player in the aluminium industry with a fully integrated model.
- Sustainability Pioneer: A leader in producing low-carbon, energy-efficient aluminium, which is critical for industries like electric vehicles and renewable energy infrastructure.
- Energy-Intensive Expertise: Its deep expertise in managing large-scale, energy-intensive industrial production is a key competitive advantage.
For the most current financial and operational data, it is always best to refer to their official Investor Relations page on the hydro.com website.