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Hydro Energy

Energy is a core part of Hydro's business. We deliver value through strong performance, competitive sourcing, optimal energy solutions and by exploring new business opportunities.

Exterior of the Hydro Såheim building, winter night

With more than 100 years of experience in hydropower, energy is a core part of Hydro’s business, and our renewable energy footprint is a key differentiator in the aluminum industry.  
 
Today, Hydro is a global sustainability leader in the industry, with the strategic ambition of creating value for all stakeholders.  
 
Our operations are based on long-term perspectives, providing competitive sourcing and optimal energy system solutions. We realize new business opportunities within energy technology where we can leverage on our capabilities and industrial know-how.

Energy vital in Hydro’s value chain

Energy, in several kinds of forms, play a vital role in Hydro’s value chain. About 50 percent of the operating costs of aluminum production are energy related, and power cost is a major cost-differentiating element for aluminum plants around the globe. 

Key to produce low-carbon aluminum 

The low carbon footprint of Hydro’s aluminum is a unique competitive advantage, and it is in large enabled by efficient technology and emission free power in the aluminum production process. 

Because it takes a lot of energy to produce primary aluminum, it is very important to use energy sources that leave a small carbon footprint. An aluminum 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.