Operating responsibly, in alignment with the surrounding communities, respecting the environment, and innovating to produce increasingly greener aluminum. With this commitment, Hydro, a global leader in aluminum and renewable energy, is making one of the largest investments in the sector in Brazil. Since 2022, more than BRL 8.8 billion has been announced for innovative solutions in decarbonization, reforestation, circular economy, and the production and consumption of renewable energy, among other areas.

“The company has a global goal of reducing CO2 emissions by 30% by 2030 and achieving carbon neutrality by 2050. In this context, our operations in Brazil play a strategic role,” highlights Anderson Baranov, CEO of Norsk Hydro Brasil.

Carlos Neves, Vice President of Bauxite and Alumina Operations at Hydro, emphasizes the importance of the company's climate and environmental actions. “Hydro’s goal is to produce increasingly greener aluminum. Therefore, we work on different fronts to increase our efficiency sustainably. We are changing our energy matrix, adopting new techniques to further boost the reforestation of our areas, and supporting research on biodiversity in the Amazon. And we won’t stop there, as we are committed to the planet and future generations,” he explains.

Investments in Renewables and Decarbonization

With an integrated strategy, Hydro is investing BRL 7.5 billion in renewable energy generation through solar and wind farms, with some of its main consumer customers being its bauxite, alumina, and aluminum plants in Pará.

Hydro REIN, the company's arm focused on renewable energy generation, has three projects underway in the country: Boa Sorte (solar), Ventos de São Zacarias (wind), and Mendubim (solar).

Albras, a joint venture between Hydro and NAAC - Nippon Amazon Aluminum Co., Ltd., the largest producer of primary aluminum in Brazil, located in Barcarena, Pará, also invests in renewable energy and diversifies its energy matrix in line with its decarbonization strategy and production of green aluminum, reinforcing its commitment to sustainability and contributing to building a fair society.

The Boa Sorte solar complex will supply 12% of Albras' total consumption with clean energy over the next 20 years. The project, located in Paracatu, Minas Gerais, has a total installed capacity of 438 MWp and will generate around 100 MW on average, or 920 GWh annually, equivalent to supplying more than 394 thousand homes. This marks a significant milestone in Albras' commitment to the green transition.

In addition to the partnership to generate clean energy with the Boa Sorte plant, Albras is also investing in the Vista Alegre solar complex, located in Janaúba, Minas Gerais. With an installed capacity of 902 MWp, equivalent to 768 MWac, it will produce 200 MW on average, or 2 TWh annually, avoiding the emission of 2.4 million tons of CO2 over the 20-year operation of the plant, with generation corresponding to the energy supply for more than 3 million people.

The Mendubim project, carried out in partnership with Scatec and Equinor ASA, began operations in March with a solar capacity of 531 megawatts (MW). The companies signed a 20-year PPA with the Hydro Alunorte refinery, which will consume approximately 60% of the energy produced.

Lastly, Ventos de São Zacarias is a 456 MW wind energy project. Located in the states of Piauí and Pernambuco, the project will be constructed in one of the largest wind farm clusters in Latin America and will supply energy to Hydro Paragominas and Hydro Alunorte.

Alunorte is already one of the most energy-efficient refineries in the world, ranking among the top 25% in low emissions. The change in Alunorte's energy matrix plays a crucial role in achieving Hydro's decarbonization goals. Therefore, the fuel oil used at the refinery, located in the municipality of Barcarena, Pará, is being replaced by natural gas. With an investment of BRL 1.3 billion, the goal is to achieve 100% conversion by the end of this year.

Hydro has also invested BRL 42 million in the installation of a new electric boiler in 2022, the largest available in the world. This was the first, with two more scheduled to begin operation this year. Combining the natural gas projects and electric boilers in full operation, along with other energy efficiency initiatives, is expected to reduce CO₂ emissions by 35%, which is about 1.4 million tons of carbon emissions compared to the 2017 baseline.

Additionally, the refinery is investing to completely eliminate coal from its operations by 2030. Among the new energy sources being studied is biomass from açaí seeds, whose pulp is widely consumed in Pará. With an investment of BRL 500,000 only in research, the project results from a partnership with the Mechanical Engineering Faculty of the Federal University of Pará (UFPA). The current phase involves the technical-economic feasibility study of using açaí seeds as fuel for the Hydro Alunorte boilers.

Albras produces aluminum with one of the lowest CO₂ rates in the world. By using renewable electrical energy and maintaining stable production processes, its low-carbon aluminum series has maximum emissions of 4.0 kg of CO₂e per kg of aluminum produced, significantly lower than the global average set by the International Aluminium Institute (12.9 tCO₂e/t Aluminum).

In 2023, Albras obtained the Gold Seal for the sixth consecutive year in the Brazilian greenhouse gas emissions monitoring program "GHG Protocol," validated by an accredited third-party audit. This certification demonstrates the robustness and transparency of our emissions inventory, highlighting compliance with international standards. This initiative strengthens the company's commitment to producing low-carbon aluminum and fosters collaboration with stakeholders to promote innovation and sector decarbonization.

Furthermore, Albras achieved a significant milestone by renewing the Aluminium Stewardship Initiative (ASI) certification for Performance and Chain of Custody standards. This achievement reinforces its commitment to responsible and sustainable aluminum production. An external audit conducted in January 2024 verified that the company meets 97 requirements under the Performance Standard, covering Environmental, Social, and Governance (ESG) criteria, and 101 requirements for the Chain of Custody, related to the general management systems companies need to effectively implement the standard.

Albras also holds an international certification affirming that its products are manufactured at a facility with zero residue sent to landfills. The certification, related to the Zero Residue to Landfill Program, was granted to Albras in March 2023 and renewed in 2024, making the company a reference in solid residue management in Pará and other industry companies.

Electric Vehicle Fleet

As part of its decarbonization strategy, Hydro is increasingly aligning with the electric transportation trend. Both Hydro Paragominas and Hydro Alunorte have acquired 10 electric cars each to replace fossil-fuel vehicles. This change corresponds to a reduction of about 239,000 tons of CO2 per year, equivalent to planting 3,320 trees in five years. Hydro Paragominas has also acquired two SANY SKT90E trucks, which are 100% electric. Compared to the 8x4 model used, each electric vehicle represents a reduction of approximately 190 tons of CO2 per year.

Another distinctive feature of Hydro Paragominas is the transport of extracted minerals. The company operates the world's only bauxite slurry pipeline. More efficient and sustainable, this transportation method does not emit greenhouse gases and is safer, eliminating the risk of accidents.

Commitment to the Environment: Circular Economy and Area Recovery, Preservation, and Biodiversity Research

Investing in sustainable technologies for its operations is part of Hydro's business strategy. With an investment of about BRL 30 million, the “Tailing Dry Backfill” methodology was pioneered in the country at the Paragominas bauxite mine. With this technology, inert bauxite mining tailings are returned to already mined areas, eliminating the need for new permanent storage areas. Besides environmental benefits, the method provides greater operational safety.

Innovation to Boost Amazon Reforestation

Hydro Paragominas is also the first bauxite miner in Brazil to innovate in scaling environmental rehabilitation using drones in the Brazilian Amazon. For this initiative, the company partnered with the Franco-Brazilian startup Morfo.

With an investment of over BRL 2.7 million, the initiative includes soil diagnostics with satellite images and drone use, soil sample analyses in laboratories, identification of native species with the best success rates for the region's soil, and seed dispersal with nutrient capsules. A single drone can disperse 180 capsules and seeds of multiple species per minute.

Since 2009, Hydro Paragominas has reforested more than 3,000 hectares. In 2023 alone, about 328 hectares were rehabilitated in the mine region. These actions contribute to Hydro's goal of a 1:1 rehabilitation ratio, meaning for each hectare mined, another is reforested within two years after mining. The company also aims to ensure no net biodiversity loss in new projects.

Biodiversity Focus in the Brazilian Amazon

Hydro's bauxite mine in Paragominas serves as a laboratory for technical and scientific analyses aimed at improving forest recovery techniques for mined areas. The site hosts studies by researchers from the BRC - Biodiversity Research Consortium (Brazil-Norway), comprising UFPA, the Rural University of Amazonia (UFRA), the Emílio Goeldi Museum of Pará, the University of Oslo (UiO), and Hydro. In 2023, the initiative marked its 10th anniversary, and the agreement was renewed for another five years.

Through this initiative, Hydro invests in research to strengthen strategies for conserving Amazonian fauna and flora and provides data to improve forest recovery processes in its operational areas. Since its inception, 26 projects have been approved, engaging around 220 researchers from various academic levels and specialists in different biological groups.

Hydro Extrusion

Three kilometers from the Hydro Extrusion plant in Tubarão, the company maintains an Environmental Park spanning 39 hectares, with environmental preservation areas, springs, an ecological trail, and a reservoir. It comprises 85% native forest and 176 different botanical species. Hydro's objective with the park is the conservation of natural areas and the preservation of biodiversity.  

Originally published on June 5, 2024.