Norsk Hydro, one of the world’s largest aluminium companies and a renewable energy provider, is upping its efforts to support Europe’s power grid with lower-carbon aluminium.
The company recently announced plans to invest NOK 1.65 billion (€140 million) in a new 110,000 tonne wire rod casthouse at its Karmøy smelter, which is set to begin production in 2028.
It has followed this up with the signing of a long-term wire rod offtake agreement with the European cable producer NKT for a total committed volume of 274,000 tonnes of Hydro REDUXA, its brand of lower-carbon, sustainably produced aluminium.
The contract with NKT is worth around €1 billion, the company said, depending on the quantity and future metal prices, and includes scope for additional volumes from 2026 to 2033.
Renewable energy infrastructure
According to the company, ‘aluminium’s high conductivity, flexibility, light weight and cost-efficiency make it key to building the renewable energy infrastructure of the future’, noting that some 80 million kilometres of power lines will need to be developed or upgraded by 2040 to meet global demand.
“Our investment in a new wire rod casthouse at Karmøy, backed by a €1 billion offtake agreement with NKT, demonstrates that demand for greener materials is real and commercially viable,” commented Eivind Kallevik, president and CEO of Hydro.
First-quarter results
The company made the NKT announcement as it reported adjusted EBITDA of NOK 9,516 million for the first quarter of 2025, up from NOK 5,411 million in the same period last year.
While this improvement was driven by higher alumina and aluminium prices and positive currency effects, it was partly offset by increased raw material costs, lower extrusion volumes and margins, lower alumina sales, and higher fixed costs, the company said.
“Hydro delivered a strong result in the first quarter, mainly driven by higher alumina and all-in aluminium prices, combined with positive currency effects,” Kallevik noted. “In a more unpredictable world, our integrated business model and strong cost position make Hydro more resilient and better positioned to deliver long-term value.” Read more here.
