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Hydrogen will play a key role in the global transition to carbon neutrality. Clean hydrogen produced from renewable sources enables industry, long-distance transport and other ‘hard-to-abate’ sectors to move away from fossil fuels.

Hydrogen. (Photo: iStock)

Hydro sees a substantial potential for industrial hydrogen consumption which will help reduce CO2 emissions. By offering clean hydrogen, which does not emit CO2 when used, we can help industrial companies succeed in their energy transition.

We are establishing a separate hydrogen company to take a leading role as a developer and operator in the hydrogen sector, switching from gas to hydrogen at several of our own sites as well as developing and serving the external market.

Our new hydrogen business will leverage Hydro’s large global footprint of industrial assets and Hydro’s world leading position in sourcing renewable power. We have a large hydrogen potential in industrial heating in our portfolio, equaling approximately 4GW of hydrogen production long term. Switching from gas to hydrogen in Hydro’s downstream and primary aluminium sites alone would cut 1 million tonnes of CO2 emissions. This would also enable us to offer our customers aluminium with an even lower CO2 footprint, and contribute to our target of reducing Hydro’s CO2 emissions by 30% by 2030. The best potential seems to be to switch from gas to hydrogen at some of our aluminum plants in Norway and Europe.

We believe the global efforts to decarbonize, attractive political support schemes and lower technology costs make this the right time to move into clean hydrogen.

Establishing a separate hydrogen company will give the organization speed and flexibility around financing, resources, partnerships and projects. Hydro wants to be a long term, active industrial owner in the hydrogen sector.

“Hydro has developed and built industries that matter for 115 years. With our large internal demand for hydrogen, our renewable power expertise and ability to commercialize industry projects, we are well-positioned to make use of clean hydrogen to decarbonize industrial processes.” Arvid Moss, EVP Hydro Energy