Hydro plans to build a state-of-the-art aluminum recycling plant in Torija, Spain. The company signed an agreement with a subsidiary of the Pulsar Properties Group to purchase land in the area, where it will invest €130–140 million in the construction of the plant, depending on the final design, market conditions, and macroeconomic developments.
“The European and Iberian market for aluminum continues to grow,” said Eivind Kallevik, executive vice president for Hydro Aluminium Metal. “This investment will be an important step towards Hydro’s ambition to recycle more post-consumer aluminum, strengthening our position to capture value from growing demand for greener and circular aluminum.”
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. Aluminum is well suited for electric vehicle components, renewable energy installations, and energy efficient building systems, while also being valued for its unique properties, such as light weight and infinite recyclability without loss in quality.
Despite these benefits, around 1 million tonnes of used aluminum scrap 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 new recycling plant in Spain will produce 120,000 tonnes of annual capacity and will have around 65 direct employees. It will help to strengthen Hydro’s capabilities to produce low-carbon aluminum and ensure more scrap is kept in Europe.
The facility will also enable the company to increase production of Hydro CIRCAL and other low-carbon aluminum products. Unique to Hydro, Hydro CIRCAL extrusion ingot contains at least 75% post-consumer scrap certified by third party auditor DNV GL and has a market leading CO2 footprint of only 2.3 kg CO2e/kg aluminum. The Torija project will complement the offering from Hydro’s nearby plant in Azuqueca and will bring a wider range of the company’s value added products to the Iberian market.
“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.”