Energy, in several kinds of forms, play a vital role in Hydro’s value chain. About 50 percent of the operating costs of aluminium production are energy related, and power cost is a major cost-differentiating element for aluminium plants around the globe.
The low carbon footprint of Hydro’s aluminium is a unique competitive advantage, and it is in large enabled by efficient technology and emission free power in the aluminium production process.
Because it takes a lot of energy to produce primary aluminium, it is very important to use energy sources that leave a small carbon footprint. An aluminium plant which base its electricity on coal leaves a five times larger CO2 footprint than one that base its production on electricity from renewable sources.
For these reasons, Hydro has a separate Energy business area. On these pages you can find out more about Energy’s operations and our strategy.