The renewable resource of hydroelectric power has been a core activity in Hydro since the company started up in 1905. It is accompanying us on our journey into the future, on which we have now been joined by solar energy – the new 21st century growth area.
Power and metal – two sides of the same coin
Energy accounts for roughly a third of the cost of production of aluminium. At a time of rapidly rising demand for the light metal, energy costs – more than any other factor – determine where in the world a new metal plant can be built.
Though the market for aluminium is global, energy is traded at different prices in regional markets. The price of power is influenced by many factors, such as precipitation, temperature and trends in prices for gas, oil and CO2.
Hydro is Norway’s second largest producer of hydroelectric power, which we use to supply our metal plants. We have a good power balance with long-term market contracts complementing our own production.
Hydro’s energy expertise...
- comprises both production and energy trading
- is vital to us in our role as the biggest aluminium producer in Europe
- is crucial as we assess the likelihood of constancy in the regulations governing new projects