Hydro entered into a strategic partnership with NKT, a power cable provider in Norway, to develop a low-carbon aluminum power cable value chain for the development of Europe’s renewable energy grid. The two companies will collaborate on R&D and product development to explore aluminum wire rod applications that allow for even lower-carbon footprint, while maintaining quality. Projects will be conducted within both primary and recycled aluminum.
“Power cables play a vital role in transmitting and connecting renewable energy, and the power infrastructure segment has a significant potential for increased use of aluminum,” said Eivind Kallevik, executive vice president, Hydro Aluminium Metal. “Our joint roadmap with NKT will pave the way for aluminium and thereby reduce the embedded carbon in Europe’s power grid.”
Low-Carbon Power Cables
Despite the rapid growth of renewable energy, outdated and inadequate power grids could prove to be a significant stumbling block to the green transition. According to the International Energy Agency (IEA), the world needs to add or refurbish a total of over a staggering 80 million kilometers of grids by 2040, the equivalent of the entire existing global grid. To achieve the goal of limiting global warming to 1.8°C, an estimated US$3.1 trillion investment in grid infrastructure is needed before 2030, according to independent research and business intelligence company Rystad Energy.
Aluminum provides high connectivity, flexibility, light weight, and a lower cost than other metals typically used in power cables — making the metal an optimal solution for the development of the renewable energy grid. Building on several successful pilot projects conducted in 2023, NKT will integrate Hydro REDUXA 4.0, a low-carbon primary aluminum (with a footprint of 4.0 kg CO2/kg Al), into into its medium voltage power cable solutions in 2024, followed by some of its high voltage power cables at a later date. These medium voltage cables are playing an increasingly vital role in connecting and transmitting renewable energy. Using low-carbon aluminum aligns with NKT’s sustainability strategy, contributing to the company’s ambitions to decarbonize and offer more sustainable solutions to its customers.
“We are proud to form this strategic partnership with Hydro, a long-term partner. Hydro has a proven track record of delivering low-carbon aluminum and will help us satisfy the growing demand in our industry for solutions with a lower-carbon footprint,” said Will Hendrikx, COO and Deputy CEO at NKT. “Despite working in an energy intensive sector, Hydro is leading its industry towards more sustainable solutions with a strong emphasis on decarbonization, as well as biodiversity and social responsibility. We look forward to our continued collaboration with Hydro in the coming years.”
Optimizing the Value Chain from Mine to Cable
Hydro is able to provide an integrated value chain to deliver low-carbon aluminum products, complete with traceability and transparency at every step — from mine to component. The company is making significant strides towards carbon reduction goals, targeting a 30% reduction in its carbon emissions by 2030, primarily driven by fuel switching and boiler electrification at the Alunorte alumina refinery in Brazil.
As part of Hydro’s roadmap towards 2030, the company will also step up its ambitions within technology development, grow its aluminum recycling capabilities, and invest in renewable power generation. These are all key elements to take Hydro’s aluminum solutions further towards zero, with the aim of developing zero-carbon greener aluminum with net-zero emissions by 2050 or earlier.
As part of the partnership and the aim to reach the lowest possible CO2 levels in the aluminum cable value chain, Hydro and NKT will also collaborate on minimizing emissions associated with warehousing, logistics and transportation. They will also look at opportunities for efficient, closed-loop supply chains with the aim to optimize recycling and use of scrap.
“With this collaboration we continue our strategy of entering into long-term partnerships with sustainability leaders in industries that are crucial for the green transition,” said Kallevik. “NKT and Hydro share a focus on reducing our impacts across the value chain from mine to finished power cables. We look forward to collaborating on all emissions scopes to pioneer completely new ways of working. Together we can change the game.”