Hydro plans to invest EUR 180 million investment to construct a new state-of-the-art aluminum recycling plant in Torija, Spain. The new facility will supply aluminum billet to the transportation automotive, building and construction, renewable energy installations, and consumer durable markets in Europe.
“Worldwide demand for materials like aluminum is growing as we build the infrastructure needed for the green transition,” said Eivind Kallevik, executive vice president for Hydro Aluminium Metal. “To reach our climate goals, we must also change how these materials are produced. Key European industries, including the automotive and building & construction sectors, need access to responsibly produced materials with a low-carbon footprint. Hydro’s new state-of-the-art aluminum recycling plant in Torija will be ideally positioned to help customers reach their sustainability goals by offering low-carbon aluminum with a high share of recycled post-consumer scrap.”
Hydro Torija will will produce 120,000 tonnes of low-carbon recycled aluminum per year and will create approximately 70 new jobs in Torija. The plant will supply high quality, tailor made aluminum alloys for a variety of industries such as electric vehicle components, renewable energy installations, and energy efficient building systems. The extrusion billet produced in Torija will complement the customer offerings from Hydro’s plant in nearby Azuqueca and bring a wider range of Hydro’s value-added products to the European market.
Through the implementation of advanced sorting technology, Hydro is able to create advanced materials with the highest post-consumer recycled content in the market. As a result, Hydro drastically reduces energy use in the production phase, while still offering high quality aluminum with equivalent metallurgical properties that maintains the strong material and corrosion resistance needed in high demanding segments such as automotive.
By applying process technologies developed at the Hydro recycling plants in Clervaux, Luxembourg, and Azuqueca, Spain, Hydro will be able to recycle up to 70,000 tonnes of post-consumer scrap at the new facility in Torija.
The facility will be capable of producing Hydro CIRCAL, which is certified by the third-party company DNV to have a guaranteed minimum of 75% post-consumer scrap and a corresponding CO2 footprint below 1.9 kg CO2/kg Al. The remainder of the aluminum produced will have a certified low-carbon aluminum with a CO2 footprint below 4.0 kg CO2/kg Al.
Investment in the Torija project, which is pending final build decision, is expected in the second half of 2024. Production is expected to commence in 2026.
Keeping More Scrap in Europe
Hydro expects the demand for aluminum in its main markets to grow at around 3% per year through 2030, with low-carbon aluminum demand expected to outpace the rest of the market. Nevertheless around 1 million tonnes of used aluminum scrap currently leaves Europe every year. “Since aluminum is infinitely recyclable, keeping post-consumer scrap in the loop is crucial, as recycling requires 95% less energy than primary production,” noted Kallevik. “Increased recycling of post-consumer scrap is an opportunity for Europe to secure domestic access to aluminum, which is a strategic issue in view of multiple crises facing Europe.”
The construction of the new recycling plant in Spain will help to keep scrap supply within Europe. “Thanks to our state-of-the-art technology and competent workforce, we aim to dig deeper into the European scrap pile,” said Kallevik. “This investment will enable us to bring more low value scrap types back to life as value-added products for electrical transport solutions, building systems, and renewable energy applications that will drive Europe’s green transition.”